Imimobile Share Discussion Threads

[ali47fish] 08/12/2017 14:28

i am new here-noted that the share price only decided to go up one day after the announced aquisistion -is this a habit of this share- hello rivaldo we meet again!

[rivaldo] 08/12/2017 11:54

New highs. Lovely quiet thread. Perfect.

[paleje] 08/12/2017 07:23

No it didn't make the main tips riv, still every little helps.

[rivaldo] 08/12/2017 07:11

Cheers paleje, not one of the main tips AFAICS.

However, IMO is the featured stock in the Mail's market report this morning:



"STOCK WATCH - IMIMOBILE

Shares in Imimobile nudged up after it revealed it had acquired a healthcare communication rival for £15million.

The company, which sends automated text messages on behalf of restaurants, delivery firms and hospitals, has snapped up Healthcare Communications. It said that the deal would enable it to provide communications services to 140 NHS organisations, and is expected to boost earnings this year."

[paleje] 07/12/2017 15:29

IC mentioned it this morning, could be amongst their tips of the week which issue Thurs evenings to online subscribers.

IMImobile (IMO) has agreed to acquire Healthcare Communications, which provides appointment management and patient experience communications to the UK healthcare market. This will entail an initial consideration of £9m payable in cash upon completion, with a deferred consideration of up to £6m payable in cash or shares, based on performance over the next two years. The acquisition is being funded with existing cash and with a new £12m debt facility provided by Silicon Valley Bank. IMImobile says Healthcare Communications has an “established track record of profitable growth”, with three-year revenue and gross profit compound annual growth rates of 50 per cent and 54 per cent respectively. The acquisition is expected to be immediately earnings enhancing. The group’s shares were up about 2 per cent in morning trading. Buy.

[rivaldo] 07/12/2017 12:04

The respected Techmarketview likes the acquisition and expects more good news to come:



"IMImobile Targets NHS Efficiency Drive
Thursday 07 December 2017

IMImobile Targets NHS Efficiency Drive

Cloud communications software and services provider IMImobile is making a play for the NHS IT services market through the acquisition of UK patient communications specialist Healthcare Communications. The move is aimed at enhancing IMImobile’s public sector position through establishing a foothold in the £1.6b healthcare segment.

The NHS has identified better use of digital patient communications as an important driver of efficiency savings as it works to close a £30b funding gap by 2020/21. The Department of Health estimates that missed hospital appointments cost the NHS around £750m a year. Healthcare Communications, which turned over £3.6m last year and provides services to 140 NHS trusts, has established technologies which address the “Did Not Attend” problem. IMImobile believes adding these capabilities to its products and solutions that will provide significant cross-sell and up-sell opportunities in the NHS IT services arena (read the latest UK Public Sector SITS Market Trends & Forecasts Report for further insight into the healthcare market).

Under the terms of the deal, IMImobile will pay an initial consideration of £9.0m in cash on completion withh additional deferred payments of up to a maximum aggregate value of £6.0m, split over two years based on a mix of gross profit growth and EBITDA targets. The deferred consideration will be satisfied either in cash or shares. It is being funded from a mix of existing cash resources and a new £12.0m debt facility agreed with Silicon Valley Bank.

This latest announcement comes hot on the heels of the purchase last month of US messaging provider Sumotext (see here). It also marks a continuation of a heavily acquisition led expansion strategy which has accounted for three quarters of the near 50% top-line growth achieved in its last financial year (see here). This business has grown consistently at double-digit rates while generating cash. There is every reason to expect that this rate of progress will continue."

[rivaldo] 07/12/2017 09:55

After this acquisition Whitman Howard have retained their 260p target for the moment (saying Buy).

They've increased next year's forecast EBITDA by £1m. They now forecast 14.4p EPS to March'19. The cash pile is an estimated £6.7m at 31/3/18.

[rivaldo] 07/12/2017 07:31

Big new acquisition - immediately earnings-enhancing this year. Plus 90% recurring revenues, and 50%+ CAGR growth.

Sounds terrific!

[rivaldo] 04/12/2017 12:03

Bouncing well today - new highs soon hopefully.

[rivaldo] 01/12/2017 09:06

Yep, Canaccord will have taken a big tranche of Toscafund's shares.

Looking like there's continuing demand here now. EDIT - that'll teach me :o))

[someuwin] 01/12/2017 08:44

Only just seen yesterday's late holding RNS:

CANACCORD GENUITY go from 5.7% to 10.2%

[rivaldo] 30/11/2017 15:10

RNS just out - confirmation that Kestrel must have bought a fair few of Toscafund's shares.

Kestrel are up to 9% now with 5.525m shares - they often buy large stakes in companies, so hopefully they'll continue buying more shares:

[rivaldo] 30/11/2017 08:37

Not a bad start today.....

[rivaldo] 29/11/2017 22:40

New all-time highs here today (just!).

I prefer to invest directly in IMO as imo there's still a long way to go and I want to reap all the rewards.

[rogerrail] 29/11/2017 18:52

River I did the same

[mw8156] 29/11/2017 17:01

looks as though share options could be a drag

[riverman77] 29/11/2017 15:48

I added via Gresham House Strategic fund, which has around a third of its assets in IMO and is also sitting on a 22% discount. The other holdings also look interesting and the team seem to have a good track record.

[rivaldo] 29/11/2017 12:28

Indeed - excellent stuff. It looks like Toscafund are now completely out given the 13m+ shares traded today and the road ahead is clear.

[metis20] 29/11/2017 12:13

Looks as if about 6.5 mn shares have just changed hands at 205p.

From the last RNS we see that Tosca held 12.6%.

Shares in issue - 61mn, so Tosca held 7.7mn.

Have Tosca just gone from 7.7mn to about 1mn shares?....

Ask has just moved up to 212p.

[rivaldo] 29/11/2017 11:04

Managed to get the full Questor tip - 300p here we come :o))



"Questor: three things can make a share price rise – and this stock has them all

29 November 2017 • 6:18am

When a fast-growing company with a loyal customer base and no debt is cheaply valued, there’s usually a good reason.

In the case of IMImobile, the Aim-listed software firm, the reason is likely to be the presence of a large and persistent seller on the shareholder register in the shape of Toscafund Asset Management.

Tosca has been gradually reducing its stake in IMImobile. Its motivation seems to be more a matter of the management of its portfolios than any negative view of the stock itself, but the effect has been to put downward pressure on the share price.

This, of course, presents an opportunity for other investors, as long as they are prepared to wait until Tosca’s selling is no longer perceived as a major drag on the price. Certainly the fundamentals of IMImobile seem strong. In the words of Tony Dalwood of Gresham House, the asset manager, which owns about 14pc of the company, it “embeds” its products in its customers’ operations.

“IMImobile software carries out tasks such as sending the text messages that greet you when you land in a foreign country or the messages from banks that ask you to confirm that you have made a particular transaction,” Dalwood said.

“Once you have signed a contract to use this kind of software you are unlikely to switch to another product and IMImobile has a good record of keeping its customers once it has won them.”

He said it was growing strongly and generating plenty of cash. “Earnings growth is coming from a growing customer base – it is forming a good beachhead in America, for example. This growth is both organic and from acquisitions,” he said. Recent interim results showed revenue and gross profit both increasing by double-digit percentages.

Normally such a good performance would result in the shares being highly valued but the perception that Tosca could continue to sell large numbers of IMImobile shares has prevented this from happening, some brokers have suggested.

Many professional investors prefer the “Ebitda” measure of earnings when they value shares, as opposed to the after-tax profits used for the conventional price-to-earnings ratio. Ebitda stands for earnings before interest, tax, depreciation and amortisation, and because of those disregarded costs it will normally be higher than the after-tax figure.

This means that the ratio of the share price to Ebitda will be lower than the normal p/e ratio for a given company – typically about 40pc lower, Dalwood said. But if we compare IMImobile’s price-to-Ebitda ratio with the valuations of other companies we get a sense of how cheap it is.

It is currently trading at a ratio of between eight and nine. Link Mobility, a comparable peer, trades at more than 20, while private equity deals in this area are being done at Ebitda multiples of between 10 and 14.

Earnings growth and the potential for the valuation to come into line with similar companies provide two routes for IMImobile’s shares to rise but there is a third potential reason, Dalwood said.

“Share price growth has one of three causes: rising profits, higher valuations and balance sheet developments,” he said.

If, for example, a business is funded equally by debt and equity and uses its cash flows to pay off half the debt, the value of the shareholders’ portion will increase significantly, all else being equal. This is a standard private equity approach to an investment.

IMImobile has already paid off all its debt and amassed some cash, so in its case the way to make the balance sheet work better for shareholders would be to start to pay a dividend.

This could also help the shares to be given a higher valuation.

“At a time when interest rates are rock bottom, dividends are highly prized,” Dalwood said. “Any company that pays a dividend stands to be looked at more favourably by investors.”

He added: “This stock has all three of the drivers for share price growth. We think the price could go from the current 200p or so to nearer 300p.”

Reassuringly, several board members have significant stakes. Jay Patel, the chief executive, owns 5pc of the shares, worth about £6.2m, and “he’s not selling as far as I know”, Dalwood said,

Questor says: buy"

[rivaldo] 29/11/2017 09:55

There's been lots of buying at the 208p mid-price this morning, which indicates that Toscafund have been continuing to top-slice, but interestingly the buy price has now moved up to 208.5p.

Perhaps a sign that the overhang is clearing/has cleared.

[rivaldo] 29/11/2017 08:48

Beat you to it by 1 minute metis :o))

But we still need someone who's got access to the full tip if poss.

[rivaldo] 29/11/2017 08:18

Excellent - IMO are the main tip in today's Questor column in the Telegraph, and there's already been a fair bit of buying.

Anyone got the full article they can copy here:?



"Questor: three things can make a share price rise – and this stock has them all
By Richard Evans
29 November 2017 • 6:18am

When a fast-growing company with a loyal customer base and no debt is cheaply valued, there’s usually a good reason....."

[rivaldo] 21/11/2017 23:21

IMO have been tipped here today - and he doesn't even mention the large cash pile which further reduces the P/E:



"IMImobile

One small-cap tech stock that does appear to be attractively valued, is IMImobile (LSE: IMO). The £124m market cap cloud communications software specialist helps its clients use mobile and digital technologies to communicate and engage with customers. Notable clients include Vodafone, Pizza Hut and the BBC.

Through a combination of organic growth and acquisitions, IMO has grown at a formidable rate in recent years, with sales rising from £39m in FY2012 to £76m last year. Earlier this month, it announced that revenue and gross profit this year are expected “to be above current expectations.”

Half-year results released this morning show further progress. Revenue surged 48% year-on-year to £53.1m, including 12% organic growth, while EBITDA rose 8%. The company saw particularly strong growth in India and South East Asia. Earnings growth was a little underwhelming, however, at just 1%. Chief Executive Jay Patel said: “We remain confident about the Group’s prospects for the remainder of the year. We expect revenue and gross profit to be in line with market expectations that were recently upgraded following the trading update given on 1 November and underlying EBITDA to be in line with expectations.“

Analysts current expect earnings of 11.1p for this, placing the stock on a forward P/E of 18.3. At that valuation, I believe IMImobile warrants a closer look."

As regards the above post, no-one was forecasting or wants a dividend - much better to utilise their cash for growth (and/or acquisitions).

And South Africa is perfectly fine according to today's narrative:

"The business is trading satisfactorily in a difficult economic and political environment in South Africa, and we secured a new three-year contract for data management with the leading PayTV operator in the country. We also signed a partnership agreement with Blue Label Mobile, part of Blue Label Telecom, South Africa's leading telecom distributor to bring IMImobile's products and solutions to market."