Ideagen Share Discussion Threads

[rivaldo] 13/12/2016 10:30

GHF, thx for the new forecasts in your post 699 and updating the thread header.

[multibagger] 12/12/2016 07:46

I hope that we don't get taken out too soon Yump - as I like companies to grow and add value to my portfolio. It is just an observation that companies with characteristics like IDEA with products addressing a regulatory need, recurrent revenues with sticky customers, solid growth trends and little or no debt are prime candidates for a takeover - whether we like it or not.

[yump] 12/12/2016 07:41

Hope not, I'm relying on IDEA to be a long termer - they make a big difference to the overall returns, although takeovers give that short term fix.

Most times takeovers never happen with the companies you expect though - they seem to come out of the blue with something sitting quietly in your porfolio that you thought was boring or dead.

[smithie6] 12/12/2016 07:29

Any views on the valuation of IDEA vs ELCO ?

[multibagger] 12/12/2016 07:23

Given the stellar progress we are making and the sectors we are in, we could be a very attractive takeover target. The recent M&A activity stemming from a weaker £ seems to have top UK companies firmly in the sights of bigger global players.

[yump] 11/12/2016 14:06

I wonder what a realistic size is for IDEA eventually - or what number of potential acquisitions there are and what revenue they could deliver in total ?

ie. is it actually a potentially large business in the making...

[petewy] 11/12/2016 12:52

finnCap raised its price target to 78p (from 69p).

[glasshalfull] 11/12/2016 10:40

Header updated with additional commentary & new forecasts on the back of the earnings enhancing IPI acquisition.

2017E
Turnover £26.0m
Adj PTP £6.9m
adj EPS 3.2p (20% growth)

2018E
Turnover £29.9m
Adj PTP £8.4m
adj EPS 3.9p (22% growth)

In the next financial year (2017/18) the acquisition results in Turnover estimates being increased by +7% (increased by +£1.9m); PBT by +11% (increased by +£0.8m) and EPS by +10% (increased by +0.4p).

The structure of the deal also allows for IDEA to retain a decent slug of net cash for any further acquisitions. finnCap are forecasting that IDEA will have £6.4m net cash at year end April 2018.

Kind regards,
GHF

[rivaldo] 09/12/2016 11:06

Nice summary from Techmarketview:



"Ideagen bulks up with IPI

In another move to add to its critical mass Ideagen, the provider of information management software to highly regulated industries, has acquired Mansfield-based IPI, a specialist provider of Quality and Compliance reporting software.

It ticks Ideagen’s acquisition boxes – complementary businesses with strong IP and recurring revenues. For IPI that means revenue of £1.69m in the year to June 30 2016, with EBITDA of £0.34m and £1.48m cash. It has £1.9m of annualised revenues of which £1.4m is recurring. Ideagen is paying £5.54m net (gross is £7.02m less IPI’s £1.48m cash) in a part cash/part shares deal. Ideagen also gains IPI’s Visual IP platform, 17 staff and 400 customers across Aerospace and Defence, Complex Manufacturing and Life Sciences verticals including GE Aviation, Sikorsky, Augusta Westland and Meggitt.

In all, it looks like a sweet and digestible deal for Ideagen, with the bonus that it will be immediately earnings enhancing. It is another step on its GRC journey, which has been fuelled by a several acquisitions such as Gael and Little British Battler Covalent and proving to be a successful move for the company."

[martinthebrave] 09/12/2016 09:07

Excellent acquisition. Bought a few more first thing.

[multibagger] 09/12/2016 08:51

Averaged up with another 28k shares :)

[glasshalfull] 09/12/2016 08:32

Appears an excellent complimentary acquisition.

As rivaldo mentions, finnCap have increased their price target to 78p on the back of a 9% uplift in earnings.

finnCap say,

"...the acquisition of IPI Solutions Ltd, a profitable and cash generative governance risk and compliance software company already integrated to operate within the Ideagen product suite.

IPI's own IP extends Q-Pulse's reach into manufacturing Industry processes, currently delivering annualised recurring revenue of £1.4m out of total run rate revenue of £1.9m. Net consideration of £5.54m includes £2.9m initial net cash consideration plus 889k shares (£500k at 56.2p), with deferred consideration of £2.1m over 24 months.

Forecasts are increased 2% at revenue and EBITDA level in FY17 (April year end) and +7% revenue, +9% EBITDA, FY18. Target price increased to 78p."

---

Although I've only recently updated the header, I'm delighted to do so again against a backdrop of increasing earnings forecasts for the next couple of years ;-)


Kind regards,
GHF

[cheshire man] 09/12/2016 08:26

Noticed that rivaldo,,,,,:-)

[rivaldo] 09/12/2016 08:20

Finncap have increased their target price to 78p from 69p....

[cheshire man] 09/12/2016 08:03

Topped up on this excellent news :-)

[multibagger] 09/12/2016 07:12

Cracking acquisition - seems to be a perfect acquisition fit :)
I would expect the market to like this and add 2-3p to the share price today or the next few days !

Good luck all :)

[rivaldo] 09/12/2016 07:09

Today's new acquisition looks excellent:



- immediately earnings-enhancing
- already known to IDEA and integrated with IDEA's software
- £0.6m EBITDA rising to £0.8m on a £5.54m consideration looks a bargain
- lots of recurring income
- blue chip and new customer list with big aerospace names

[rivaldo] 07/12/2016 13:52

The share price could carry on rising up to 80p. Or it might fall back a bit. Who knows? If you're a short-term trader you might care, but otherwise....

[rivaldo] 07/12/2016 09:43

Cheers GHF - reads well.

[glasshalfull] 06/12/2016 15:09

Hi rivaldo,

Yes...been v busy and header update wasn't on list of immediate priorities. Last time I attempted I corrupted hyperlink.

Thanks for the jag...I'll have it done by end of the week ;-)