Ideagen Share Discussion Threads

[rivaldo] 31/3/2017 11:17

Yet another contract win.....



"Chiesi Group chooses Ideagen Pentana to boost internal audit practices
21 March 2017

Chiesi Group, the international, privately-owned pharmaceutical company, is to implement an internal audit software solution to enhance its auditing operations worldwide.

Ideagen Pentana, an audit automation product from Ideagen, will monitor Chiesi’s internal control processes to ensure the firm is performing against corporate objectives.

Chiesi’s internal audit team is responsible for assessing the efficiency and effectiveness of the organisation’s processes, providing assurances and consultancy services to management.

Pentana will provide Chiesi’s auditors with one centralised system complete with web capability to ensure data can be captured and accessed while auditing Chiesi’s 27 sites globally.

etc"

Chiesi are big:



"With a turnover of more than €1.4 billion sales we are among the top 50 pharmaceutical companies in the world."

[panic investor] 30/3/2017 21:03

Already in SCH - will take a look at the others - not aware of them at the mo !

[petewy] 30/3/2017 18:30

INSE...good, yes Carclo has pension problems which is a pity because it 's a good share,
I was in GNG before you were Riv...ouch.

[rivaldo] 30/3/2017 14:11

OT : hi droid, good to hear from you. Three ideas for you which still have loads of upside imho - let me know yours:

INSE (16.38p) : on a current year P/E of only just over 10, despite an impeccable profit record, excellent management, likely acquisitions to come etc. Analyst target 21p.

SCH (258p) : on an ex-cash P/E of around 10. They have a £100m cash pile and will use it at some point for acquisitions. Meanwhile the core internet payments business is doing very well and is backed by Teddy Sagi, who will pass on loads of business form his many other ventures. Sagi owns a big chunk, so small-ish free float, but his interests are therefore aligned with shareholders. Analyst target 320p-340p.

GMAA (214p) : on a historic P/E of 8 in a year when their European markets struggled. The results (and a CEO interview today) indicate European demand is recovering, which could lead to a P/E of only 6 or so this year. Analyst target around 340p (from memory).

I also very much like Carclo (CAR), but there is a pension liability issue which puts some off (though not me).

[panic investor] 30/3/2017 13:50

I'm still learning after all these years but it's a good sign that I keep bumping into a few of you on quite a few stock threads too !

[droid] 30/3/2017 13:25

Riv- I seem to go for similar cos to you with nice consistent growth profile and fairly valued like Idea and XLM - what are some of your other favourites currently?

[rivaldo] 30/3/2017 13:08

Finncap have retained their 98p target price today.

Post the PleaseTech acquisition, they're now forecasting 4.2p EPS for this coming year to 30/4/18, with a 0.2p dividend and a £5.1m cash pile at the end of that year.

Adjusted EBITDA is forecast at £11m relative to the adjusted PBT of £9.8m.

At 80p IDEA is still pretty decent value imo for a growth company with high recurring income and impressive management. Other such companies I'm invested in with similar qualities now command P/E's of anything from 25-40.

[rivaldo] 30/3/2017 10:57

RNS - Investec have increased their holding by some 300,000 shares to 26.25m, although their overall percentage has reduced to 13% due to the placing:

[rivaldo] 30/3/2017 06:36

Good news. I'd assume IAG is one of them, but the other must be even newer.

IDEA certainly seem to have a dominant position in this sector. And this just adds to the recurring, secure revenue streams over the next 5 years. Lovely stuff.

[multibagger] 30/3/2017 06:33

Having read the Ideagen company website again from 27 March and today's RNS mentioning "two new SaaS contracts", I think that these are brand new contracts, rather than a delayed RNS re the IAG contract.

What to people think ?

Expect a to move upwards by a penny or two today and but we are still way off the 98p target. (which may come a lot sooner than many expect !)

[multibagger] 30/3/2017 06:19

Jimbobaronny...looks like we may have got an answer to the question earlier on !

But wondering if this announcement could relate to further new contracts (other than IAG) ?

Ideagen PLC

30 March 2017

Ideagen PLC

("Ideagen" or the "Group")

New Aviation SaaS contracts worth GBP1.8m

Ideagen, a supplier of information management software to organisations in highly regulated industries, is pleased to announce it has secured two new SaaS contracts from leading Tier 1 global airlines. The combined total contract value is approximately GBP1.8m which will be recognised over 5 years.

Both airlines will adopt Ideagen's cloud-based safety and reporting software product, Coruson, to implement a safety and risk management system across their operations. Coruson, a SaaS software product, will enable both airlines to proactively manage safety and security and provide staff with a mobile incident reporting application.

These contracts strengthens Ideagen's position in the aviation safety sector represent the first sales of Coruson which provides, a scalable and fully integrated safety platform, to Tier 1 airlines. The company already provides software and services to over 100 regional and national airlines including Emirates, KLM, Thomas Cook, Brussels Airlines, Spirit Airlines and Air Transat.

David Hornsby, Ideagen's Chief Executive Officer, said: "Across the aviation industry, we continue to see strong new business demand for our software and we are confident of further extensive growth in this particular area. These contracts represent a significant milestone for the Company and are testament to both our product innovation and ability to successfully engage with larger organisations in aviation and beyond."

[rivaldo] 28/3/2017 08:50

Also last night Liontrust declared that they'd increased by 1.88m shares to 20.62m shares, or 11.29%:



With Vind LV buying almost another 4m shares and going to 6.24%, that still leaves buyers of the other 7.5m placing shares still to be identified - more RNS's to come perhaps:

[petewy] 28/3/2017 08:28

Vind LV AS. Swedes are major shareholders.

[jimbobaroony] 27/3/2017 22:13

Wonder how much it is worth?

[rivaldo] 27/3/2017 21:40

Indeed - it's described as a "major win". Perhaps they could have announced it as an RNSNON even if it wasn't quite material enough to be a full RNS? Anyway, it's certainly impressive (here's a direct link):



"Ideagen, a supplier of information management software to organisations in highly regulated industries, is pleased to announce it has secured a contract to provide International Airlines Group (IAG)  with a safety and risk management and reporting software solution.

IAG, parent company of Aer Lingus, British Airways, Iberia and Vueling, will adopt Ideagen’s cloud-based safety and reporting software product, Coruson, to implement a safety and risk management system across the Group.

Coruson, a SaaS software product, will enable IAG’s portfolio of airlines, cargo operators and maintenance repair organisations to proactively manage safety and security and provide staff with a mobile incident reporting application.

The IAG contract strengthens Ideagen’s position in the aviation safety sector. The company already provides software and services to over 100 regional and national airlines including Emirates, KLM, Thomas Cook, Brussels Airlines, Spirit Airlines and Air Transat.

etc"

[droid] 27/3/2017 14:44

Looks like a meaty prestige contract from IAG today :

hxxps://www.ideagen.com/company/news/ideagen-secure-iag-contract/?utm_source=Twitter&utm_medium=Social%20Update&utm_content=IAG%20Coruson%20Press%20Release

[glasshalfull] 23/3/2017 22:08

Been a busy day & only now playing catch-up on the various company RNS releases.

Decent acquisition with finnCap indeed upgrading their target price from 78p to 98p.

finnCap indicate,

"...PleaseTech delivered recurring revenue of £2.1m out of total revenue of £3.9m, yielding EBITDA of £1.3m. April FY17 forecasts are lifted by £0.2m at the revenue line and EBITDA is breakeven.

April FY18 forecasts accommodate strong growth in recurring revenue to £2.7m but exclude the benefit of a previous large one-off licence, leading to consequent uplifts of £4.0m in revenue and £1.4m in EBITDA. The £10-12m (£2m deferred conditional based on recurring revenue generation) total potential acquisition cost range implies 8.7-7.3x EV/EBITDA based on the forecast EBITDA uplift in FY18. 

Ideagen's 1H17 16% organic growth is complemented by its continuing track record of successful strategic acquisitions and integration, highlighting how Ideagen is worthy of a premium rating. Target 98p (78p), based on rolling year- one multiples forward at FY18 23x P/E and 17x EV/EBITDA".

---

Kind regards,
GHF

[rivaldo] 23/3/2017 13:56

Techmarketview are unsurprisingly positive on the acquisition:



"Thursday 23 March 2017

Ideagen pleasing on several metrics with PleaseTech

Ideagen is getting into the acquisition swing, announcing plans to take on another company to add further critical mass to its information management software offerings for highly regulated industries. The target is PleaseTech, whose PleaseReview product provides collaborative document review, co-authoring and redaction that will add to Ideagen’s expanding GRC capabilities.

The conditional acquisition sees Ideagen offering £10m, plus up to £2m of performance based payment. PleaseTech does not match the scale of Ideagen’s largest acquisition - the £21m (£18m net) paid for Gael in 2014 who had revenue similar to Ideagen at the time and enabled it to ramp up the overall business and its GRC activities – but PleaseTech is a bigger undertaking than the more recent Covalent and IPI acquisitions. There is a share placing to help fund the acquisition. However, Ideagen, who delivered revenue up 52% to almost £22m in its latest financial year, is gaining more acquisition experience.

PleaseTech appears to be performing well with revenue and EBITDA of £3.9m (up 45%) and £1.3m (up 72%) respectively for the year ended 31 December 2016. It is cash generative with strong recurring revenue on its own IP, which are attributes Ideagen looks for. PleaseTech also brings additional vertical market focus with a strong pharmaceutical presence among its 185 customers, complementing Ideagen’s interests in this sector and in aerospace and defence. Add the expectation that it will be earnings enhancing in the year to April 2018 and there is plenty to commend this acquisition."

[yump] 23/3/2017 08:45

If its earnings enhancing that should end up something well over 4p then for yr ending April 18.

[multibagger] 23/3/2017 08:25

The news today explains the share price weakness recently. Placing at 75p is excellent news and no surprise that the share price has recovered to that level (for starters).

IDEA is set to go from strength to strength :)

Good luck all !

[rivaldo] 23/3/2017 08:13

Finncap have increased their target price to 98p (from 78p) :o))

[cheshire man] 23/3/2017 08:07

Good news going forward,took some more yesterday and again this morning :-)

[yump] 23/3/2017 07:34

They're really going for size, that's a nice chunky acquisition. I wonder if this is one of those companies that will just keep going in your portfolio and end up in the 250 with funds chasing it...

[martinthebrave] 23/3/2017 07:28

Excellent news. Makes my 72p top up yesterday feel like one of my better moves!