Ideagen Share Discussion Threads

[tightfist] 19/5/2017 07:27

Hi Rivaldo,Thanks for the reports. Do you find research-tree to be a good source?

[rivaldo] 17/5/2017 12:38

Brief analysis and analyst comment here:



"AIM-listed firm saw revenues and EBITDA grow 24%, with a "significant" increase in EPS

AIM-listed software group Ideagen gave a pre-close trading update for the full year on Wednesday, reporting results in-line with expectations, net cash ahead of forecasts, and significant EPS growth in its eighth consecutive year of revenue and EBITDA growth.

Revenues are expected to be £27m for the full-year with adj EBITDA of nearly £7.8m (+24% YoY). There was also a significant increase in EPS. Analysts had been expecting £26.2m in revenues and 3.2p EPS.

finnCap lifted its target price to 108p (from 98p), in line with its peer group year one multiple of 26x P/E and 17x EV/EBITDA. Analyst Andrew Darley said finnCap's forecasts left out the potential for the benefit of further acquisitions, which he considers inevitable:

"Net cash was significantly ahead of expectations at £4.2m (£1.6mE), indicating very strong cash generation in 2H17, implying strong working capital movement compared with our expected £0.9m outflow. Performance in key verticals remains robust, including particular success in Life Sciences, Aviation, and Financial Sectors. Recurring revenue run rate continues to improve with the transition to subscription revenues, driven partly by the Coruson platform’s potential for larger contract wins. Target price 108p (98p)."

The Group reported impressive cash generation, with net cash ahead of forecasts at £4.2m by 30 April but slightly lower than then £4.8m reported six months ago. This was also after the firm paid £4.6m for the acquisitions of IPI Solutions and Gael, and paid £300k in dividends.

CEO David Hornsby said the company had delivered a year of high-quality earnings growth underpinned by strong cash generation. Mr Hornsby added that its four acquisitions had provided scale, product capability and recurring revenues.

"We continue to grow organically and to increase the percentage of our revenues derived from recurring business. The Group has significant contracted work in progress and a strong pipeline of new business opportunities which provides the Board with confidence for the current year and beyond.""

[rivaldo] 17/5/2017 10:58

Nice summary from Techmarketview:



"Ideagen delivering on multiple fronts

Ideagen, a firm that provides information management software to highly regulated industries, has showed progress on several fronts in a pre-close trading update for its latest financial year (end of April).

Trading has been good across all of its key verticals, giving credence to its shift from being a healthcare-based business to a vertically diverse operation. Both revenue (c£27m) and adjusted EBITDA (c£8m) increased 24%, with a “significant increase” in adjusted EPS. The company says there has also been a “significant increase” in the run-rate of recurring revenues, evidencing its shift from perpetual licences to software-as-a-service. Cash generation in the year also looks good, with net cash coming in “significantly ahead of market forecasts”.

Ideagen’s portfolio of products is hitting a lot of the right spots by reducing risk/increasing compliance, while in turn taking costs down and pushing efficiencies up. It acquisitions (e.g. see Ideagen pleasing on several metrics with PleaseTech and Ideagen bulks up with IPI) are adding to its capabilities and financial performance, but importantly Ideagen is also achieving notable organic growth (10%). All in all, a positive close to the year."

[nfs] 17/5/2017 10:43

They say in line with market expectations so the comments re eps growth are vs prior year

[jonut] 17/5/2017 10:13

Just bought at 94.5p, spread 94-96. Hmmmmm

[eeza] 17/5/2017 08:40

Lol !!!

The usual 'sell the news'.

[bamboo2] 17/5/2017 07:55

Added a few at 95p

[multibagger] 17/5/2017 07:40

Thanks for your inputs - Rivaldo and eeza - much appreciated :)

[eeza] 17/5/2017 07:26

'Significant' is usually taken to be 20%+.

[rivaldo] 17/5/2017 07:15

Finncap have increased their target price to 108p (from 98p).

Multibagger, I suspect that at this stage IDEA can only say the EPS increase will be significant, but can't be specific as it's too early to have finalised the tax charge.

[cheshire man] 17/5/2017 06:42

Excellent TU here this morning :-)

[eeza] 17/5/2017 06:37

Onward & Upward.

[rivaldo] 17/5/2017 06:28

Revenues are ahead of expectations, and the £4.2m cash pile is also nicely ahead of expectations. EBITDA is spot on, and EPS is likely to be the similarly spot on, showing a "significant increase".

Great company, and a lovely, confident outlook statement:

"David Hornsby, Chief Executive, commented: "We are pleased to report that the Group has continued to perform well in delivering another year of high quality earnings growth underpinned by strong cash generation. We have also made four important acquisitions which have provided scale, product capability and recurring revenues. We continue to grow organically and to increase the percentage of our revenues derived from recurring business. The Group has significant contracted work in progress and a strong pipeline of new business opportunities which provides the Board with confidence for the current year and beyond."

[18bt] 17/5/2017 06:22

In the right markets with the right business model and well executed ..

[yump] 17/5/2017 06:19

Exactly what you want from a business, so you can just leave it and wait to see how good it gets.

[rivaldo] 16/5/2017 10:48

Here's a direct link - good to see IDEA continuing to win work overseas:

[jimbobaroony] 16/5/2017 10:24

"hxxps://www.ideagen.com/company/news/maltese-energy-firm-enemalta-chooses-ideagen-q-pulse/"

Another (small looking) contract win. Don't think this is the cause of the rise though.

[jimbowen30] 16/5/2017 09:09

My recent purchase seems well timed for once :)

[eeza] 16/5/2017 09:07

Moving up with each buy now.

100p looming.

[rivaldo] 16/5/2017 08:57

More large trades this morning - very healthy to see new highs on good volumes.

[multibagger] 16/5/2017 07:46

Yes I would think so..the rate of signing new contracts is amazing. I think that £1.20p ish by end of the calendar year is well possible and not out of the question.

[eeza] 16/5/2017 07:29

100p soon to be challenged?