Imaginatik Share Discussion Threads

[still waiting] 18/11/2013 14:54

plus some.

[bains123] 18/11/2013 14:31

Looking forward to the next 100% spike!!

[dusseldorf] 18/11/2013 14:30

Results are due out soon, should give some good forward visibility. It's one to tuck away but that doesn't preclude the odd 50-100% spike

[still waiting] 18/11/2013 14:27

a bit of buying.

[bains123] 14/11/2013 08:59

Posted on lse by wealthmanager

In the case of Imaginatik, its intrinsic value is incorporated in the following:

1. Its full year revenue for the year ended 31 March 2013 was £3.01m.

2. Its deferred revenue as of the 31 March 2013 was £2.24m.

3. Its full year contract win count for the year ended 31 March 2013 was 24. The 2012 figure was 9. A large proportion of the 24 contracts penned included consultancy services alongside their main technology offering. So this is a new, fast-growing revenue stream.

4. Matt Cooper, in the final results (24-07-13) indicated to the market that the company had a STRONG PIPELINE of business opportunities across the US and Europe.

Right, extrapolating the figures above, and applying financial forecasting tools (I use GMDH™), one deduces the following:

Imaginatik's contract wins increased by 160% in 2013 (9 to 24). These generated a revenue stream of £3.01m. Of this amount, 60% was new clients, 27% was recurring revenue, and 13% was up-selling to existing clients. The ratio in 2012 was 14%: 53%: 33%. So, the key metric here is the new clients; up from 14% to 60%. This is quite significant and reflects an attractive traction rate. Remember, new clients are tomorrow's recurring revenue.
So, based on a 160% increase in contract wins in 2013, I estimate the 2014 figure to rise by a conservative 60% to 38 contract wins. Translating this into revenue gives an indicative, conservative 2014 revenue of £5.8m with a profit after tax of £1.2m and deferred revenue £3.4m. I then take this figure and compare it to its current market cap of £2m and apply a DCF (Discounted Cash Flow) valuation model to arrive at values above £6.9m (market cap) or around 0.24p.

It's worth noting that not all the contracts won by the company are announced. They only RNS the major ones. In addition to this, the company's reported final results (2013) were reported under a new revised revenue recognition policy, within which the Company now recognises all technology revenue on a monthly basis over the life of the contract. Previously a large element of the contract value was attributed to the software licence fee and was recognised in the month the contract was signed. This is likely to reflect positively in the 2014 results.

[tommo777] 13/11/2013 11:23

Are we bumping along the bottom of a bowl?

[still waiting] 13/11/2013 08:25

nice chart developing, another contract win should see this break out nicely.

[bains123] 12/11/2013 16:07

Wealth manager posted "The investment case in Imaginatik, the world's first full-service innovation firm, is not anchored in intra-day share price movements, unsubstantiated theories of coded transactions or self-interested arguments. No. The investment case in Imaginatik is anchored in solid commercial fundamentals:"

[dusseldorf] 12/11/2013 16:00

I wouldn't expect miracles, but indication of growth and forward looking statement with positives would be well received

[bains123] 12/11/2013 13:55

Thanks Dusseldorf, I think they will be good!!

[dusseldorf] 12/11/2013 13:46

Could be anytime in the next 4 weeks judging by historic releases

[bains123] 12/11/2013 13:40

Does anyone know when interims come out?

[ryan83] 11/11/2013 19:05

Well I bought some of these today - gl everyone

[still waiting] 11/11/2013 13:27

still in uptrend..

[knigel] 11/11/2013 13:25

shame the 1 code was not legit..

[still waiting] 11/11/2013 13:21

a few buying now..

[mistermagoo3] 07/11/2013 16:07

Still waiting i have heard ASOS!!

[still waiting] 07/11/2013 16:02

so many blue chips already..

which one next?

[marty421] 07/11/2013 16:00

Hi all, I turn my back for an hour and hey presto. We have had two code 1 deals in as many days so although I believe news may be close you cannot depend on such sorcery.

[still waiting] 07/11/2013 15:25

not today..

mm's not letting you buy so they expect some as well.

[illtud] 07/11/2013 15:24

Is there news due out?

illtud

[still waiting] 07/11/2013 15:08

pressure building again.

[dusseldorf] 07/11/2013 12:59

Can't even buy £100 online at the moment...

[dusseldorf] 07/11/2013 08:56

marty421 - deal value is always sensitive especially with clients, I think the most significant aspect is contract duration, these are good stable business generative contracts that perhaps can be expanded upon (upsold)