Image Scan Share Discussion Threads

[gatzsch] 22/7/2018 09:42

Image Scan does have 3D X-ray baggage machines hence why the trading company is called 3DX-Ray

[owenski] 21/7/2018 13:10

Good post Assegai

[trident5] 21/7/2018 12:29

"the acquisition is earnings enhancing from the off".

You've got to realise that this is largely meaningless in a low interest environment.

If you're paying cash (earning c0.3%) the only requirement of the acquisition is that it doesn't make a loss post acquisition.

[assagai] 21/7/2018 12:16

buywell , more cash was not needed in terms of running the business. The business is profitable and generates cash. Raising money for an acquisition is a very different thing. Has anyone actually done the sums? Buying a company with a PE of 5 into a company with a PE of 15 MUST immediately lower the PE of the acquirer and therefore should result in an upwards movement of the share price Bill has clearly stated ( leaving no room for misunderstanding) that the acquisition is earning enhancing from the off with organic repeat earnings buttoned on. This will with immediate effect reduce the bumpy earnings graph of IGE. OK it is a shame that cash had to be raised below the current share price but when you are a small AIM company just staring out on the road to being a less small AIM company the city is pretty ruthless with it's largesse!

Apologies Owenski , when i started typing the above your post had not appeared!

[owenski] 21/7/2018 11:57

It's a small company with limited financial resources. BW is doing an excellent job especially on establishing routes to market via partnerships. This should translate into good organic growth potential, the Brazilian partner is a big outlet for them.

The Todd aqu. also makes good sense and widens the addressable market again for IGE with increased product coverage. imo

[buywell3] 21/7/2018 11:36

SP not what it was pre raising cash, ... next results now critical

buywell3 - 28 Nov 2017 - 18:55:05 - 5362 of 5629
I wonder if more cash is needed again ?

[assagai] 21/7/2018 11:32

Fair point but I am expecting nothing more for at least a year and i really think by then having established these new earnings, it will be a lot easier to raise funds. I see nothing wrong with growing the business and i think that the prospect of future dividends means not shopping out the budget!

[trident5] 21/7/2018 11:18

Good find - I don't like his acquisition ambitions though- he'd be better focusing on getting the existing business back on track - expectations are only a profit of £150k this year.

[assagai] 21/7/2018 10:50

Really positive interview with Proactive detailing the acquisition and future strategy.Nice one Bill.

[trident5] 17/7/2018 14:06

Brexit should have very little impact on the existing business of the acquired company - about 95% of its revenue is from the UK.
Interesting that its margins and profits were much better in 2016 than 2017 - which I presume was attributable to the sales mix - split between goods and services.

[clocktower] 17/7/2018 13:45

Brexit - possible big fall in profits then the loan at 8% looks expensive. 8% is that the best deal they could get - no wonder the offer was accepted.

[monty68] 17/7/2018 12:26

Nice one, Bill. Look forward to more information on 7th August

[assagai] 17/7/2018 11:52

Yes looks like around that figure but easily covered with earnings from the new acquisition alone and I'm guessing current holders would prefer this way avoiding considerable dilution. Hopefully the next acquisition will raise funds at a premium after this one proves to be a solid move. Haha

[1squintyflinty] 17/7/2018 11:47

Shareholders dip out short term since they cannot apply for shares, but directors can. I view this move to be positive meduim to long term

[owenski] 17/7/2018 11:22

Ah yes, sorry about that, 160k per annum. Forgot to double it - 320k

Thanks for that.

[boadicea] 17/7/2018 11:05

owenski - £2m for 2 years @ 8% pa
I make it £320k.

[owenski] 17/7/2018 10:16

Loan notes should cost about £160k in interest total if my arith is any good.

[owenski] 17/7/2018 10:14

Directors stumping up 25k a pop, good to see.

Sounds like a good deal, they said they were looking to increase partnerships and some targeted acquisitions.

The Brazil partnership recently announced is excellent considering their foot print covers Latin Americas.

Acquisition also looks quality, strategic and cost effective.

2 years at 8% on the loan notes.

BW is certainly taking the company to better places.

[1squintyflinty] 17/7/2018 09:57

Shareholders dip out short term since they cannot apply for shares, but directors can. I view this move to be positive meduim to long term

[trident5] 17/7/2018 08:47

Looks like Newton's apple is going up.

[assagai] 17/7/2018 08:04

Why on earth would it drift to 4p???.

Maybe Newton's apple fell up?

[clocktower] 17/7/2018 07:57

Give it six months and I can see it sinking below 4p. How the stars bright light has drifted over the past year or so.

[paleje] 17/7/2018 07:47

Buying on 5x profits, presumably there will be synergies as well as access to new accounts. The placing discount to an already depressed share price will rub the wrong way but overall it sounds like a decent deal imo.

[assagai] 17/7/2018 07:22

Wow, that's big news. Always had a feeling that Bill would build IGE up into a bigger more diverse company. This looks like a very positive first step and I love those low pe earnings to be bolted on straight away. Well done IGE, nicely structured deal.

Missed the bit on the first read through concerning future dividends. Now that I like very much!!