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Share Name Share Symbol Market Type Share ISIN Share Description
Ideagen Plc LSE:IDEA London Ordinary Share GB00B0CM0C50 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 290.00 285.00 290.00 287.50 286.50 286.50 642,449 16:35:23
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 56.6 -0.1 -0.1 - 732

Ideagen Share Discussion Threads

Showing 1626 to 1648 of 1725 messages
Chat Pages: 69  68  67  66  65  64  63  62  61  60  59  58  Older
Yump, its hardly doom or gloom. Idea are forecasting recurring revenues of 74%, plus they are seeing new opportunities in new geographies, plus more growth expected in the USA, following the couple of acquisitions. plus continued good double digit growth. good solid company.
I had these at a similar price and luckily ? decided to sell around 160p. I've wondered quite a bit whether global competition has now made it very difficult to build a business that continues to grow profits for years and therefore its very unlikely that you would happen to have one in a portfolio. Conclusion from that is that you sell in the golden period and don't do the LTBH thing that has been a mantra of investing for so long. But as far as I can see, the long term argument is always based now on the very few businesses where it would have succeeded. Also when they look like they're going to do it for any length of time, the share price rockets to a high p/e, so perhaps you get your used-to-be-long-term return in a few years anyway.
I did the same a month ago. (140p) Great company bought in at 40p but future looks stationary. I switched to TMMG.
Cheers leavers, very useful. Funnily enough I sold all my shares at around the 150p mark recently. It's primarily about nervousness around the markets and general investor sentiment, and therefore protection of profits from an almost three-bagger which was one of my larger holdings held completely in my ISA. IDEA as a high-quality company is on a very high P/E. I'm somewhat concerned that it now has a combination of cost growth from all the global expansion it's undertaking, together with a slowdown in corporate decision-making reported in certain sectors. IDEA have not reported any new contract wins on their usually excellent web site for almost three months now. The possible dilution/need for funding as per the CFO and leavers above is also a downer. So I can't see much upside at present, but can see a sell-off on below-par or average trading. Which probably means they'll be bid for tomorrow at 190p :o)) Good luck all. IDEA will remain high on my watch list and I may rejoin if my thoughts are proven wrong. Which may well be the case.
I had an exchange with the Ideagen CFO recently and he was pretty helpful in clarifying the way the company is planning its growth. As I tried to explain in my posts in mid July when I exited my position entirely I have become concerned about how the company would fund its growth plans, the risk the company would take on to achieve them and the impact this could all have on shareholders from the perspectives of company leverage, EPS dilution and execution risk from stretching to bigger and bigger acquisitions. This is what he kindly explained to me: The funding requirements to hit the £100m 2022 revenue target is around £90m. That £100m of revenue will be hit by organic growth accelerating from 8% to 11% and from them buying approx £9m of EBITDA at 30% EBITDA margin at a multiple of 10 times EBITDA (as per recent acquisitions). This £90m would come pretty much equally from bottom line cash generation, new debt and new equity. The equity or debt mix could be flexed according to market conditions (ie if the cost of the debt at the time was low or if they could take advantage of a high share price with an opportunistic placing). £30m of debt would equate to 1 x EBITDA in 2022 so although that ratio would need to be higher initially to achieve the EBITDA target, if achieved successfully it wouldn’t result in an over-levered business by normal convention by 2022. Growing the proportion of recurring revenues expected over the next 3 years gives them a high degree of confidence in their ability to repay borrowings - he confirmed that debt funding in many ways is sensible as long as they don’t push it too far. An equity raise would likely be around 10% of market cap, so a 10% dilution to us. We have been warned! He pointed out that after a bit of dilution-driven eps stalling this year Finncap (ie the Ideagen board) are forecasting eps of 6.0p for the current financial year which would be 25% growth on last year. I also asked about acquisition size and his view was that they would continue to acquire within their historical range of transactions relative to the size of the group which has worked well for them to date and clearly reduces risk. The market is fragmented but more so at the market end of the market and large targets would be harder to acquire within the investment criteria they have set. So we should expect more £5-20m add-ons, anywhere in the world pretty much. So all of this confirms that they will need a lot of capital (pretty obvious) and that we will suffer some dilution such that EPS growth might not match sales growth. What is news to me is the higher than expected cash generation, the debt / equity split and the accelerating organic growth (welcome and very important). I don’t know if this makes me run out and re-purchase my position but I think it raises the price at which I would be happy to do that and it re-assures me that they are thinking about everything in a measured way (though I had no reason to doubt they were t doing that). Hope helpful.
Cheers.........reads well....the safety net of recurring revenue.....rising too......
Interesting new article and interview with the CEO: Https://
New 8 minute interview with the CEO - good to see more acquisitions are "on the cards", with a good pipeline in fragmented markets and new geographies, and recurring revenues expected to increase to 74%: Https:// "Software group Ideagen plc (LON:IDEA) has posted higher profits for a tenth year running and Ben Dorks, chief executive, explains to Proactive why this trend should continue. Quality, risk and compliance have moved on from just box ticking exercises to being able to provide a real tangible benefit to a business, he explains. Ideagen has an impressive blue-chip client list, which revenues rose by 29% but Dorks was even more pleased with the improvement in recurring revenue, which accounted for 67% of that total and is rising to 73% this year. Acquisitions have added to the momentum and more are on the cards, he adds, as they are a great way to extend Ideagen’s sales reach."
Nice mention here re Montanaro's buying and the increase in their holding: Https:// "Ideagen (IDEA) Who’s trading? Citywire AA-rated Charles Montanaro The trade: The founder of the eponymous small cap firm ramped up his stake in compliance and risk management software firm Ideagen from 2% of shares to 3.1%. How have the shares performed? Ideagen stock rocketed 264% over the three years to September 2018 to a record high of 172p but has since faltered, dropping to a low of 119p at the turn of the year. The shares were trading at 142p on Friday. What does the company say? In a mid-July update Ideagen reported revenue up 29% to £46.7 million over the year to end April as it switched to a subscription basis, with contracts signings up 77% over the period, 87% of which were made outside the UK. Recurring revenue rose from 62% to 67%. What’s the outlook? Canaccord reiterated a buy last month as it lifted its target price from 170p to 180p, putting it just above a median City target of 177p. After briefly climbing to a premium multiple in 2018 the consolidation has restored a historic sector discount, at 23x forecast earnings versus 28x."
You were correct gargleblaster! Been away for a couple of weeks. Excellent results. Recurring revenues are now up to a heady 67% and rising. Finncap have reiterated their 180p target price, and the 6p EPS forecast for this year will undoubtedly be increased nicely by further acquisitions (that EPS has already been boosted 15% by prior acquisitions). With £100m revenues targeted by April'22 - more than doubling from last year - there's still plenty to go for.
No but it sounds like they have gone out of business. You should try Sharepad
Anybody know what is happening at 'Company Refs' - they have stopped sending out the 'Refs' and not answering the phone.
Hi DavROs. I have the same info as you so this is really about what our approach is to owning shares. It’s a great company because it has been delivering growth for 10 years, it is very defensive, it has good management, it’s in a great sector, it’s not over-levered....I could go on. BUT the second best decision I have ever made with this company (the best being to buy them in the first place) is to trade the shares semi-actively based on their valuation. I haven’t always got it right but I have been reasonably successful most of the time. When they traded up to 170 I was selling from 150 in increments and sold my last lot just above 170 luckily. The shares then were wildly over-valued on all historical multiples. Right now their growth aspirations I believe have impacted their short-term upside. A buy and build strategy is great but there is a need to fund it and that comes with a cost. The facts are they are growing organically at 8-10% which isn’t spectacular. Trading at 30 times adj earnings is quite heady unless they can grow eps at a similar rate. For me they do t feel hugely over-valued given the consistent growth but they don’t feel cheap either. My sense is it’s a 50:50 call them trading to 130 or 160. If they trade down when the market digests these results and in the absence of further news then I will jump back in. But none of us should own shares at any price should we.
"Why sell if you see them as a great company ?" I think you can probably answer that one yourself with a bit of thought.
Halfpenny, Let’s not see this board polluted with the usual nonsense please...
Hey, anyone know about a mega deal in the pipeline... me thinks a takeover...waiting for some lovely news....
Why sell if you see them as a great company? I'm looking to add if they can break up further
I’ve completely exited my position today. Let’s see where they go. I’d happily re-buy them in the future as it’s a fantastic company.
Thanks for that summary, I've been keeping an eye on this since selling last year, main reason being the p/e and pretty much the same reasons you've posted for wondering where/how more or equivalent growth will come from to support the rating. Perhaps the difficulty is really because consistent growth is actually not that easy. They've done very well over quite a few years, so imo now the question is more whether its a stable buy and hold for modest growth say over 5 years, or try to find something else that is say on a p/e of 10-15, that might be poised for the same sort of growth and rating increase that IDEA have had. Also I can never get my head around the treatments of EBITDA, exceptionals, reported and statutory profits to reconcile those with a real view of performance. So for me, there is 'insurance' in buying at a lower p/e in hope. Unfortunately there aren't many simple businesses just expanding organically and selling widgets, to invest in.
As I posted on 14/5, my concern was that EPS growth in these results wouldn’t be that impressive and indeed 4.8p EPS and 15% growth is the lowest in many years. I don’t believe it’s right to dismiss this, it's integral to value of our shareholdings. At 146 the shares trade on a current year PER of 30 and a PEG of 2, toppy stuff. The focus on recurring revenues adds a strong defensiveness to the share price, it doesn’t necessarily add growth to the bottom line and support a higher share price. The management and brokers are looking for a doubling of EBITDA to £30m over 3 years to 2022 - the simple maths tells you that even if organic growth accelerates to 15%, the company would need to add £8m of acquisition-generated EBITDA in that period, equivalent perhaps to around £50-100m of enterprise value acquired (at the current 8% its more like £10-11m needed). The company has always run almost no leverage (one of the reasons I have been invested) but to achieve its targets in my view it is going to need to push net debt/editda towards 2-3 area over the next few years to avoid further share placings. That isn't crazily high especially with the strong recurring revenues but nevertheless the risks rise for shareholders. I don’t mean to be down on the company - their track record is absolutely first class and they keep delivering. But as an investment I have become less excited about the company in the last 12-18 months because to support their growth targets and a x25-30 valuation they will need bigger and bigger acquisitions which in turn will require dilution of shareholders or weakening of the balance sheet and greater execution risk. The 180p broker target to me rehires EPS of 7p+ and I don’t see that around the corner. Great company but not quite so sure a great investment.
No comment from riv yet! He must be on hols! All looks good from where I'm standing - particularly the guidance regarding new customers.
prelims were on the 17th last year.
The Ideagen presentation from our recent London company seminar can be found in our members area here: hTTps:// There is also a seminar report. To access the presentation, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: hTTps:// Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the presentation (and presentations on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here: hTTps://
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