Ideagen Share Discussion Threads

[fizzypop] 05/11/2019 15:34

Unusual flurry of activity this pm - possible leak on another acquision?

[jimbobaroony] 18/10/2019 08:15

Machine.. I was really referring to this

“Alex Hewitt, Chief Legal Officer of the Company, has exercised 380,000 options and sold 380,000 Ordinary Shares at a price of 147.5 pence per Ordinary Share. Following the exercise and sale Mr. Hewitt now has a beneficial interest in 5,750 Ordinary Shares representing less than 0.1 per cent. of the total voting rights of the Company”

Mr Hewitt has basically cashed out.

[davr0s] 17/10/2019 19:47

It's noise. That said a lot other volume went through today

[themachine99] 17/10/2019 17:12

what 280k from a total of over 10m shares ??? Why is that an issue

[jimbobaroony] 17/10/2019 16:38

Not liking the director sells

[davidosh] 14/10/2019 01:12

Just to let shareholders and potential investors in Ideagen know that the management team will be exhibiting and presenting at the two day Mello London investor conference in Chiswick London W4 on Tuesday 12th and Wednesday 13th November and there will be an opportunity to take part in a Q&A at the end of each presentation. These are just a few of the companies taking part...



There will also be lots of quality keynote speakers, panel sessions and round table discussions looking at investment strategies & portfolio diversification plus sessions on.... How does a market maker work your share trades? What is undertaken in a company audit? What is hidden on the dark web? & how can retail investors get access to placings?



If you would like to join the thousand investors at the event you can gain 30% discount on your ticket by entering the code ADVFN30 when you purchase your ticket.

[igoe104] 11/10/2019 07:27

Good acquisition with could recurring revenue, and possible good cross selling opportunities.

[multibagger] 11/10/2019 07:06

11/10/2019 7:00am
RNS Non-Regulatory

Ideagen PLC

("Ideagen" "the Company" or "the Group")

Acquisition of Optima Diagnostics Limited

Ideagen PLC (AIM: IDEA), a leading supplier of Information Management software to highly regulated industries, is pleased to announce the acquisition of the entire issued share capital of Optima Diagnostics Ltd ("Optima") for a cash consideration of GBP1.8m (the "Acquisition") paid on completion from the Company's existing resources.

Highlights

-- Optima is a Software as a Service ("SaaS") company that has developed OSHENS, a SaaS based Health and Safety compliance solution

-- Optima has approximately 80 customers across highly regulated markets including Aerospace and Defence, Aviation and Energy - customers include Airbus, Sellafield, BAE Systems and Edinburgh Airport

-- This Acquisition supports the Group's strategy as a consolidator within the Global Quality, Health, Safety and Environmental ("QHSE") software market

-- On a current run rate Optima is generating approximately GBP1m in revenues (of which GBP0.9m is recurring) generating EBITDA of GBP0.1m

-- The Acquisition is expected to contribute GBP0.3m additional annual EBITDA to the Group following the realisation of identified synergies

David Hornsby, Executive Chairman of Ideagen, commented; "Optima is a valuable addition to Ideagen and is in line with our strategy of acquiring businesses that have strong IP and recurring revenues. EHSQ is a valuable yet fragmented market and the acquisition will further enhance our market position as we aim to further consolidate this sector.

[yump] 28/9/2019 10:51

I’m not in here anymore but high risk and speculative it definitely isn’t. What does that make the aim dross ?! Armageddon shares ?

[davr0s] 27/9/2019 19:47

Suspect IC need to put that on all their tips now given some of the spectacular failures they've tipped in recent years

[igoe104] 27/9/2019 19:46

They have put that in to cover themselves. These aren't high risk, they are in a growing market with 73% recurring revenue.

[leavers] 27/9/2019 19:37

Thanks for posting. Not exactly glowing... “high risk, speculative..”

[igoe104] 26/9/2019 19:34

IC TIP.

Buy into Ideagen's growth potential.

[igoe104] 25/9/2019 07:46

Great stuff another acquisition preforming extremely well, the customer base increased over 20% in just over 3 months.

[multibagger] 25/9/2019 07:11

Growth of acquired company rocketing....

25 September 2019

Ideagen PLC

("Ideagen", the "Company" or the "Group")

Redland acquisition update - new contract wins

Ideagen PLC (AIM:IDEA), a supplier of integrated risk management software to organisations in highly regulated industries, is pleased to announce excellent progress relating to the Redland Solutions Ltd ("Redland") business acquired in June 2019.

Since the acquisition, Redland has performed strongly securing nine new logo wins with a combined contract value of GBP1.2m, including prestigious clients such as Natixis, Alexander Hall, TPICAP and IG Group.

All new contract wins are for the supply of 'Insight', Redland's leading Senior Management and Compliance Regime (SMCR) software and have significantly increased the Redland SMCR customer base to 49 from 40 at the time of acquisition.

Ben Dorks, Ideagen's Chief Executive Officer, said:

"We are delighted with the progress that the Redland business has made within such a short period of time. To win 9 new high quality customers within the first 3 months following the acquisition is a clear indication of our leadership position within this high growth market and demonstrates the combined value of Redland and Ideagen.

[yump] 13/9/2019 17:45

I agree with everything you say about IDEA, except I think the golden period of rapid, easily identified growth has passed. It may well be however that IDEA is one of the great businesses that grows for years more.

However, I've looked back over my portfolio a while ago and it appears that if I had sold all my shares when they rose to high p/e's compared to their forecast growth rate I would be much better off.

So that's what I'm doing now, unless we hit a big bull market.
Perhaps I've just missed the ones that have grown for 10 years.

[igoe104] 13/9/2019 13:41

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.

[yump] 13/9/2019 13:10

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.

[petewy] 11/9/2019 13:52

I did the same a month ago. (140p) Great company bought in at 40p but future looks stationary. I switched to TMMG.

[rivaldo] 11/9/2019 12:01

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.

[leavers] 10/9/2019 18:36

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.

[soundbuy] 30/8/2019 09:17

Cheers.........reads well....the safety net of recurring revenue.....rising too......

[rivaldo] 30/8/2019 08:43

Interesting new article and interview with the CEO:

[rivaldo] 20/8/2019 09:01

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%:



"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."

[rivaldo] 19/8/2019 09:02

Nice mention here re Montanaro's buying and the increase in their holding:



"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."