Ideagen Share Discussion Threads

[yump] 04/7/2013 09:14

Thanks. Yes I noticed the second year contract termination, but actually quite impressed with the detail the company provide.

This level does look good entry point, especially with yesterdays announcement effectively introducing new market areas, so hopefully risks are reduced. Directors buys always nice to see as well.

Very helpful header by the way. I guess its in the 1% of threads on here that's got those silly things like revenue, profit and earnings up there ;-)

It remains to be seen whether IDEA represents a global opportunity to exploit the mission-critical requirements of large corporates, who need to optimise their risk management capabilities by implementing compliance quality improvement software, thereby providing the company with significant upside revenue growth.

I'll settle for reliably increasing profits though.

[glasshalfull] 03/7/2013 22:14

Yump - yep you've the gist of it although I would direct you to this excellent article by Terry on recent presentation by DH...although on looking at a number of threads it appears that it is now frowned upon to meet & talk with Directors ;-)



It explains that due to the recent US sequestration a previous acquisitions contract will not be renewed...so effectively year 2 of 5-year contract terminated. Downside mitigated as payment for the Proquis acquisition was stepped & with earn-out targets missed there will be less dilution.

Today's deal would appear an excellent fit and with IDEA sitting on a decent cash pile of £6.4m at year end and exhibiting strong cashflow then I wouldn't be surprised if they replace the previously expected revenues from VA fairly quickly.

The Directors weighed in and bought at 20p on the VA contract news and I feel the current shareprice offers a decent entry point given the positive news on a strategic alliance and acquisition subsequently.

Regards,
GHF

[yump] 03/7/2013 08:56

Morning all. Had my eye on these for a while and now we're in the quiet period, having a closer look.

Am I right in thinking that there are no gremlins at all here ? ie. its a BOD that report in decent detail, don't hide anything under vague jargon (had enough of them for the time being !) and seem to be able to deliver reliably.

On the face of it, not going to set the world alight, but growing reliably and looks a relatively safe home for an investment, with quite a few areas for upside: ie. different markets developing.

Looks like good cashflow and I noted that earlier in the year there was talk of around 50% increase in EBITDA and in the recent statement it was upped to 70%.

Feels like some of the developments have gone unnoticed.

Have I got the gist of it ?

[glasshalfull] 03/7/2013 08:41

finnCap notes,

Ideagen has announced the acquisition of MSS Management Systems Services Ltd, supplier of Patient First, an information management solution for Emergency and Unscheduled care within the NHS. Minimum net consideration of £0.64m acquires £0.3m of recurring revenue out of £0.5m of total revenue, delivering EBIT of £0.14m with a conditional earn out of a further £0.5m based on ambitious revenue targets. The addition of a further customer base and opportunities for integration into Ideagen's KnowledgeWorker/dart product set presents opportunities for both growth and cross sales. Target 27p reiterated, prelims to April expected mid-July.

Couldn't resist a top-up at the open...trade not showing yet.

Regards,
GHF

[glasshalfull] 03/7/2013 08:07

Looks like a decent acquisition this morning...MMS Management Systems, owner of "Patient First". IDEA indicate that it will be immediately earnings enhancing.



Patient First supports some of the largest A&E departments across the country and manages approximately 1.8 million attendances in A&E departments per annum across 10 Acute Trusts in England. For the 12 month period ended 31 March 2013, MSS generated revenues of approximately £500k with recurring maintenance revenues of approximately £300k and earnings before interest and tax of £144k. MSS had net assets of approximately £150k as at 31 March 2013. Cash at completion was approximately £176k."

Looks like £1.18m total payable IF Patient First achieve revenues of £1.5m in 10 month period to 30/04/14...now that would be some step-change in revenue!

Well done DH & team, looks like a nice bolt-on.

Regards,
GHF

[lanzarote666] 10/6/2013 12:48

'Ideagen PLC (AIM: IDEA), a leading supplier of Compliance based Information Management solutions is pleased to announce that it has signed a strategic partnership with a leading global manufacturer of medical devices to supply the company's order communications software, dartOCM, into the UK NHS'

'It is expected that, if successful, the planned regional roll out will generate a significant, multi-year contract for Ideagen supporting 10,000 users across 700 sites, and provide a strong reference to accelerate further roll-outs in to new networks across the country'

[davidosh] 20/5/2013 14:18

Ideagen will be presenting at our Mello investor dinner in Beckenham if any of you are interested in coming along to ask a few questions or hear some answers ! www.freesharedata.com/mello

[glasshalfull] 10/5/2013 17:54

Thanks WJ.

As you say Lanzarote...nice vote of confidence.

Regards
GHF

[lanzarote666] 10/5/2013 17:44

Four directors buying £40,000 worth at 20p.

Probably tells us more about the new contracts than the old.

[wjccghcc] 10/5/2013 08:26

Finncap seem pretty relaxed about it:

"Ideagen has reported that the US Department of Veteran Affairs (VA) has decided to "terminate for convenience" the 'Prism' contract, despite having confirmed in November 2012 that the VA would proceed with year 2 of the contract. The no fault termination follows the February resignation announcements of the CTO and CIO of the VA, and comprehensive review of federal budgets, with continuing fall-out driven by the fiscal cliff and sequestration. Management expects that considering group FY13 outperformance, momentum into FY14 will still cater for achieving unchanged group full-year expectations. With reduced dilution from the lack of requirement for deferred consideration regarding the renewal of the VA contract, the adj dil EPS for FY14 improves 2%. The contract loss is a shame, but no tragedy for expectations."

[lanzarote666] 10/5/2013 08:20

Spoke too soon GHF! Contract cancellation.

Initial mark down as expected - see where it heads in a week. May have changed the opportunity. Slower grower from here.

Reminder to self - more patience required.

[glasshalfull] 09/5/2013 22:05

Well done DH & team. Playing catch-up after few days away. Excellent update.

Regards,
GHF

[nfs] 08/5/2013 06:01

And the r and d is fully expensed so profits are prudently stated in this

[lanzarote666] 07/5/2013 17:39

Missed the announcement this morning - 'comfortably ahead of current market estimates'. Share price up 10% and not a squeak.

£27m market cap, £2.0m of profit. p/e 13 but does not fully reflect the potential further growth coming from the acquisitions. With £6.0m of cash they will be looking for something new next year and if that goes as well as the Plumtree and Proquis purchases this could have a good future.

About time Finncapp up their target from 27p before the breakout comes.

Happy to be patient until others smell the coffee.

[lanzarote666] 23/4/2013 13:36

Still bullish following yesterday's trading update and notice of contract win.

Seems to be some good opportunities in the Aerospace sector and interested to see if the tie up with Koala bears fruit.

[welsheagle] 12/3/2013 19:35

Ideagen has signed approximately £700,000 of new contracts under the Scottish Framework Agreement within its recently acquired healthcare business, Plumtree Group.

The contracts are for the supply and implementation of dartEDM, Ideagen's flagship electronic document management solution to the Western Isles NHS Trust and Forth Valley NHS Trust. It is expected that 70% of the contract value will be recognised over the next 12 months. These new contracts bring the total value of revenue generated under the agreement to approximately £1.2m.

[lanzarote666] 12/3/2013 08:16

'Continued robust trading and further contracts' announcement today.

Looks encouraging.

[lanzarote666] 23/1/2013 17:09

'We are looking at a number of deals that will potentially transform the business going forward'

[bubbleandleek] 23/1/2013 16:51

It's all about their next acquisition.....

[sammy_smith] 23/1/2013 15:17

David Hornsby, Chief Executive Officer & Graeme Spenceley, Finance Director discuss Ideagen's half yearly results.
David Hornsby, CEO and Graeme Spenceley, FD of Ideagen, discuss the half yearly results, detailing the financial and operational highlights.
Click the link to listen;

[woodcutter] 22/1/2013 21:52

Thx GHF more then anything else for bringing IDEA to my attention, it's a great company but i think the risk reward for the share price at present is all to the downside.

I believe rightly or wrongly that all the future growth for the next year or so is in the price and whilst its great to have a long term hold strategy, with these tiddlers you've got to be careful. If they don't meet forecast at next set of results it will clearly go south, if they meet forecast it will then depend on the outlook statement as to how the share price fares, i think that's more risk than i can handle.

Anyway mrs woodcutter said a bird in the hand...............you know the rest:-)

Woody

[glasshalfull] 22/1/2013 20:54

Well done to DH & team. Highlights for me include contract renewal rates of 95%; recurring revenues of 55% proceeding with 2nd year of VA contract and bullish undertone of the CEO.

Absolutely nothing wrong with those results, they are delivering per plan. However, like steg & woody I feel that the current shareprice is up with events as I alluded to a few posts back.

Those that have bought in the last 18 mths may have paid 8p-15p & I don't think it unreasonable that profits are locked in, especially in light of the dilution that woody mentions.

Interested to see what finnCap new forecasts are like...

Regards,
GHF

@glasshalfull1 on Twitter

[woodcutter] 22/1/2013 19:59

L666

You may be right in your analysis it's clear that a full year contribution from plumtree (particularly with the new orders in january) may make the eps better as they go forward, we'll have to see. What swayed it for me was the adjusted % increase in EBITDA and PBT against eps and there's been further dilution, roughly 50%, since the takeover of plumtree so they're going to have to work pretty hard to get the eps to a level were it looks decent value again imo.

Good luck if continue to hold. I'll only consider again sub 20p.

Woody

[lanzarote666] 22/1/2013 18:45

Nice profit guys, well done.

The contract renewals provide a healthy base in terms of recurring revenue and with recent new contract wins and a confident outlook I am tempted to stay a little longer.

The VA connection in the USA is still at an early stage and the tie up with Plumtree should help them take advantage of the opportunities there.

Rather than seeing the placing as a dilution and the price a bit rich, I think it will provide the resources to grow the business further.

The successful acquisition of Proquis tells me they can integrate other targets and their latest comments suggest to me that they are still looking.

Profits may be down but the EBITDA is growing and the cash generation evident.

And all this opportunity in the short to medium term