Inditherm Share Discussion Threads

[cockerhoop] 02/5/2014 11:24

The sales cycle into the NHS can be up to 2 years so the additional investment in the sales team during the last year or so will take time to show results.

[fft] 02/5/2014 11:13

What incentivises management ? Shareholdings are small (anyone ask or know why that is ?)

The sales force don't really seem to be making much difference (post above).

Is this a TND where management need some new blood ?

[cockerhoop] 02/5/2014 10:57

Brian,

I think you are correct that in industrial applications they struggle to find a competitive niche but in medical the business case is pretty compelling with payback for investment occurring within the 1st Year.

NICE appear to be pushing this pretty hard with recent Adoption Guidelines issues which take Hospitals/Trusts through the procurement process with sample business cases etc. It also documents the experiences of 4 trusts using Inditherm under blankets.

hxxp://publications.nice.org.uk/medical-technology-adoption-support-for-inditherm-patient-warming-mattress-for-the-prevention-of-htap3/

That said it is clearly very difficult to get the NHS to change existing practices as quickly as the company or the shareholders would like.

[davidosh] 02/5/2014 10:44

The board do not have significant stakes but 50% of the shareholder base were actually in the room or on the telephone and the very last line on the slideshow makes even more sense when you take everything into context !

[cockerhoop] 02/5/2014 10:33

Hi fugwit,

I also attended the meeting which I found very interesting (especially regarding the other shareholders which Playful also alluded to)

Regards US Nick said something along the lines of there's been some recent sales activity but he remains to be convinced that it will evolve to a trend going forward.

I asked about the ATOM distribution deal which was an encouraging >£200k over approx 4 months of last year and was cautioned not to expect the same run rate over this year as some of the 200K was a lump of initial business sorting out previous distributor 'mess'.

I found the meeting dynamics very interesting in that it's unusual for a small company board to own so few shares (less than 400K in total) and the shareholders present to own so many e.g. Dave Steward 29.4%, Pat O'Grady 9.5% etc. This did lead to some very perhaps overly forthright questioning which appeared to make Mark Abrahams keen to curtail the Q and A's too early in my view.

There was though plenty of time over lunch to chat informally and I was especially grateful to Ian (FD) who answered all my questions and John (NED) who gave me some very interesting history of the company.

[briangeeee] 02/5/2014 10:10

For me, it's not so much a problem with sales, but whether they have a real product that can ever be competitive. They're always going to be competing against the ubiquitous Trace Heating. Whether that's in industrial applications such as or in a personal environment with electric blankets or £16 from Tesco

I'm sure they can demonstrate some advantages of their product, but surely the niche is very narrow. I'd certainly be interested to hear a counter argument that shows the even heating of the polymer mat provides a real advantage to justify the higher cost.

[fugwit] 02/5/2014 09:59

Many thanks for the feedback playful, it is appreciated.

That is a decent turnout for such a tiddler and pleasing to see.

I wonder if there was any indication of the numbers starting to come through from the US Distributor yet?

[stewy_18] 02/5/2014 06:42

Thanks for the feedback Playful,

I certainly does look like a false dawn. We can only hope now the necessary changes will be made to improve sales.

[playful] 01/5/2014 18:44

I attended the AGM today together with 7 other shareholders so attendance was not too bad and we had David on the phone listening in to proceedings.

The Chairman Mark Abrahams opened the meeting and introduced everyone before Nick talked us through a small presentation followed by a Q&A session.

The highlight of the meeting was an attendee saying that the amount of sales attributed to each salesman was embarrassing and the board did not really argue the point.

I suspect something will need to change with regard to direct selling and the introduction of perhaps sales manager/director might be a good idea.

The directors were all very friendly and both Nick and Mark spent time with me to discuss the business and allowed me to share some suggestions.

On the whole a worthwhile AGM but the distinct impression I came away with was that any future growth within the business was not going to be anything stellar unless a big distribution deal could be done in the US.

Sorry it's a short review but I'm just on my way out...

[davethehorse] 28/4/2014 17:19

IDM share price still struggling for support, with no news for 6 months odd we could see a slide back to 5p sort of levels again unless they announce some decent contract wins in the meantime.

[cockerhoop] 27/4/2014 07:52

Pre would work for me as I have to slip away from the Agm at 2ish.

[fugwit] 26/4/2014 18:12

I have space for a whole carcass should it be required.I am happy to email then call IDM first thing Monday if not repeating anyone elses efforts. Is there a preference for a pre or post AGM visit?

[davidosh] 26/4/2014 12:34

Fugwit...that will be perfect as I want to visit the HQ and see the shop floor too. There are at least five more shareholders coming but I think three have been to the Agm and HQ before. I may travel back with you but will see how timing goes on the day.

Will you have space in the boot for about ten packs of Crawshaws meat and sausages lol ?

Any more coming up for the Agm ? We are looking at a record attendance by all accounts.

[fugwit] 26/4/2014 07:19

I think it might be useful to request a site visit as well as attending the AGM. I have always found site visits to be most useful in understanding a business and helping to judge how it is run. Anyone keen on same?As an aside I will have space driving from Rotherham to London afterwards if helpful to anyone.

[tiptop22] 25/4/2014 13:07

why is there a significant spread bet on a highly illiquid stocK?

[davidosh] 22/4/2014 23:45

I am in Kent too. Still intend to be there though and a noon start means it is possible in a day.

[lfc4ever] 22/4/2014 18:37

would love to go, but I am in Kent, so logistics too difficult.

[cockerhoop] 21/4/2014 13:06

Hi Dave,

I should be able to attend - I'd have to be away at 2pm ish though. Have you been to a IDM AGM previously to inform approx length?
As it's at the Holiday Inn there's obviously not a tour of the industrial unit so i'm guessing 2 hours will probably be ok.

As an aside I have booked myself and an investor friend into the ShareSoc Event in Leeds on the 20th.

Cheers

[davidosh] 21/4/2014 01:43

Just checking...How many of you are planning on joining me at the AGM in a couple of weeks ?

Notice is given that the 2014 Annual General Meeting of the Company will be held at The Cusworth Suite, Holiday Inn
Doncaster A1(M) junction 36, High Road Warmsworth, Doncaster, South Yorkshire DN4 9UX on Thursday 1 May 2014 at 12.00 pm

[stewy_18] 07/4/2014 15:29

Impvesta,

From the results :-

The orders growth in our UK business in 2013 was buoyed by projects carried over from 2012 and maintenance contracts that will attract revenue over a number of years, so we cannot expect growth to continue at the same rate.

So as turnover increased by 23% last year, I would expect turnover to increase by less than 23% this year.

Hardly the end of the world, but what then can we expect? You tell me please!

All I know is that turnover will be less than 23% but by how much? Does that mean they will be loss making next year also?

That is what I was questioning by everything going in the right direction. "Carried over" may well have been a better expression, but I hope it is now clear.

Best

Stuart

[impvesta] 07/4/2014 15:13

"2013 results were loaded with sales rolled over from 2012"

I think that is a bit of an exaggeration stewy! The 2012 accounts show £41m deferred income but 2013 shows £85m so, in fact, there is more taken out of 2013 and "rolled" into 2014, than was "rolled" into 2013, to use your terminology.