Imagesound Share Discussion Threads

[spangle93] 06/9/2006 11:00

Just a shame he used the word "comfortable" for the outlook. Something a little more bullish would have had a more immediate impact on share price Maybe a revised broker forecast would spell this out?

[cockneyrebel] 06/9/2006 10:35

The thing is MusicStyling was only acquired in mid May so it has had little effect on these results. They say it is performing ahead of expectations:

"* Acquisition of MusicStyling.com exceeds expectations. Over 650 music zones in 180 luxury hotels around the world now using the bespoke service * Refinancing actions position group well for further acquisitions. "


At the acquisition in May it was being used in 100 hotels around the world so they have more or less doubled the client base in hotels in 4 months.

CR

[diogenesj] 06/9/2006 10:19

Decent results and it does look as though they should easily meet or beat forecasts for the year. Had a small top-up this morning.

[cockneyrebel] 06/9/2006 10:14

Well two way selling this am but the price still up on the bid.

Margins have risen nicely and I think there's likely to be an updated broker note I'll try to get.

Reckon there's a larger buyer out there soaking up any sells.

These are actually on course to do more like 1.3p eps this year imo, but most won't spot that if they just scan down to the unadjusted eps. The adjusted number is what matters.

CR

[bigbigdave] 06/9/2006 09:44

Spangle - you are in good company dreaming about shares 8-)
and sad yes!
(May not be a dream too long here)

[cockneyrebel] 06/9/2006 08:12

might need a press tip or a broker note to spell it out a bit but I reckon the punters will be buying the fwd PE of 6 with glee when they get their head around the results or read the tips/notes

CR

[cockneyrebel] 06/9/2006 08:01

Winterfloods have moved up and buying on level II - think the punters will grasp it gradually today :-)

Not easy tho, when you're reading lots of results in a rush at 7.00 am, they could help the punter out - I was struggling at first too :-)

CR

[invisage] 06/9/2006 07:59

directors want to buy even more? don't highlight the adjusted eps? Call me a sceptic :-)

Thats a real nasty from the management imho - i dont like that - i believe in Integrity.

They said

All these factors make us comfortable of meeting market expectations for the year.

Which in a way can be read as an understatement, as CR suggests they have 0.5p eps therefore should not only meet market expectations but beat them.

So the statement :

directors want to buy even more? don't highlight the adjusted eps? Call me a sceptic :-)

Could be regarded as being written deliberatly, maybe as CR suggests so they can buy more stock.

But this kinda behavior is to be expected in small cap stocks, they dont have to be so transparent with their reporting like the larger caps.

I like their strategy and management, thats more important, so on that basis ill hold.

[liarspoker] 06/9/2006 07:52

CR - SMC - BSF. :O)

[cockneyrebel] 06/9/2006 07:51

directors want to buy even more? don't highlight the adjusted eps? Call me a sceptic :-)

I'll have a word with the FD today if I can, suggest they have it in big bold letters at the year end results - make sure everyone gets it loud and clear.

H2 is usually a slightly stronger half in this industry and with 0.5p eps under the belt 1.1p could get bustedc with the momentum they have.

[elmfield] 06/9/2006 07:46

Should give support to a blue day.

[invisage] 06/9/2006 07:45

"Yes CR. I have to agree with that. So why don't they highlight the fact that not only are they comfortable with market expectations but also show us that they are because they have achieved almost half the earnings in H1?"

Doq - I'd rather they did'nt, i like a management team that keeps it on the "low" i.e. no hype and surprises the market.

[shanklin] 06/9/2006 07:44

CR,

Yes, slightly naughty presentation of the numbers by ISD.

Subtracting the share options (£66k) and interest costs (120k) from the £590k adjusted operating profit number quoted, gives a properly adjusted PBT of £404k, so they look like they'll be well ahead of forecasts at year-end.

Thank you for highlighting ISD to me.. Shame I only have 100k

Cheers, Martin

[invisage] 06/9/2006 07:44

hehe :)

I like their strategy trying to decrease debt etc.

Derek Mapp has a good rep according to Collin Stewart note. Based on the reading it certainly seems like they have a good strategy in place.

"Our focus on higher quality business and more predictable recurring
revenues has significantly strengthened the core business and established a good platform for delivering sustained profitability"

[doubleorquits] 06/9/2006 07:41

Yes CR. I have to agree with that. So why don't they highlight the fact that not only are they comfortable with market expectations but also show us that they are because they have achieved almost half the earnings in H1?

I'm not as cynical as you to suggest that there are other motives ;0)
but it does seem odd.

[liarspoker] 06/9/2006 07:37

Reads nice.......

[cockneyrebel] 06/9/2006 07:32

Excellent results - better than expected tho they fail to highlight the pre amortisation and goodwill figure.

"adjusted operating profit of £590,000 before goodwill amortisation."

Actually means the pre tax profit adjusted is about £400K after interest which means the adjusted eps stands just short of 0.5p in H1.

Don't know why they never highlighted the adjusted EPS - perhaps the directors want to buy more shares!

They've had some great contract extensions too and H2 is going to see a lot more business from hotels from the acquisitions that they say are trading ahead of expectations.

1.1p eps this year looks easily beatable and they say they are confident of that - 2.4p eps for next year might even get upgraded.

CR

[bigbigdave] 05/9/2006 21:47

Night Night all
Alarm clocks 7am

[cockneyrebel] 05/9/2006 21:16

I'm here - just waiting for the results, can't do anything else!

Forward PE 6 keeps you mesmerised imo.

Hard to guess what the results will show but on earnings momentum I would expect something like 0.35p eps for H1 and 0.75p eps in H2 looking at the momentum and the expectations of 1.1p for this year. 2007 looks like being 1p eps in H1, 1.4p eps in H2 or there abouts so you can see the earnings growthg momentum here.

From looking at how they trade H2 is actually weighted a bit more than H2 because these stores tend to install systems more in the run up to Christmas so it wouldn't surprise me if the split is more like 2.5p/8.5p or even greater. What will matter is what they say about expectations for this year and going forward.

See you tomorrow :-)

CR

[spangle93] 05/9/2006 20:41

LOL against myself. He must have been hiding behind the keyboard.

[james 2] 05/9/2006 20:34

Spangle - judging by the post 2 minutes before yours he is still around :o)

[spangle93] 05/9/2006 15:31

... or at least, in the next week, if any of the papers or popular magazines decide to report on the results or follow up with a tip.

Very quiet on here recently - is CR on holiday?

[cockneyrebel] 05/9/2006 15:29

Looks like a screaming buy here imo - the contracts, the jobs, the newsflow, the director buys - the only reason punters are not buying is that that can't grasp that when a guy sells 500 and it ticks down it's cos they move on 500. Have there been a stream of large sells from anyone in the know? No.

Little sells and punters sheeping it. But then when it starts rising it rises on 500s too - and if the punters are chasing it the rise is awesome.

Think like a human, not a sheep imo.

CR