Ingenta Share Discussion Threads

[madigansar] 18/5/2016 13:18

Timbo thanks for taking the time to post the info above on the AGM. Some good questions!

[singer8] 17/5/2016 08:26

Why ever did you try to ban me timbo003 ???????????????????????
big mistake oh dear

FAILED PUMP and DUMP CON man be careful a long list of failed scams under many names.


how many more names hatey ???????????????

annonymous2
sharetips6
hatetrader
34simon
55investor
27howard
29howard
21trader
tradermick
tobytime
hatetrader1

[timbo003] 17/5/2016 07:31

One other thing, I did buy a few on Friday following the AGM on Thursday (easy to buy at 126p, despite the quoted spread of 126 - 128p).

There must be a reasonable chance that they will meet forecasts, so when the interims are released in August they could well mention a full year dividend payment, in which case the share will begin to appear on a lot more radar screens.

[singer8] 16/5/2016 22:55

YET ANOTHER OH DEAR

[timbo003] 16/5/2016 21:35

>>Tadtech
I got into this one through last summers placing attracted by the EIS tax reliefs, so I'm here for at least 3 years, but that's nowhere near as long as you've been here by the sounds of it.

Your comments on your legacy shareholding has reminded me of another topic discussed at the meeting : One of the employee shareholders asked about the buyback resolution and whether it was the company's intention to conduct buybacks, we got the standard sort of answer that there were no current plans but it’s useful to keep options open. The FD (Alan Moug) did say that they had done it once in the past to enable legacy shareholders with small shareholdings to exit without dealing costs. I then asked how many shareholders were on the register during the early noughties and now. Alan estimated there were perhaps 1,600 at peak and around 600 now and stated that the company has previously conducted a tender offer to enable shareholders with minimal shareholdings to exit cost free.

I too think there might be some sort of M&A in the next 2-3 years, I get the impression that in the world of Ingenta, what Martyn Rose wants, Martyn Rose gets. He holds 28% and he more or less stood his ground in the placing last summer and bought over £2m worth of shares in order to maintain his share. The announcement in Jan 2015 that they were in early discussions with an overseas third party to take a strategic stake at a premium, suggests to me that he is probably receptive to an exit (or may even seek an exit) but only if the price is right.

[timbo003] 14/5/2016 20:42

This year’s AGM was held on Tuesday 10th May (commencing 10:30) at the company’s HQ which is located at 8100 Alec Issigonis Way, Oxford, OX4 2HU

The meeting was attended by the BOD, a representative from Cenkos (the company broker), two employee/shareholders and myself.

Martyn Rose (Chairman) kicked off the meeting and suggested that we should have the formal voting first, followed by a Q&A session, everyone agreed. All resolutions were passed with no dissenters present at the meeting so we moved onto a brief update on the business from David Montgomery (CEO). This was basically was an expanded version of what was stated in the RNS, i.e. the company has been trading in line with expectations for the first third of the year, there is a new CEO and a streamlined structure which should yield savings of £1.5m per annum.

Q&As then followed, details are summarized below (in no particular order):


Q: Your RNS updates often use the term "market expectations". How are ordinary shareholders expected to know what the market expectations are? You are not able to give guidance but you can brief the broker, but the Broker is not able to distribute their research notes to private investors??

A: The Chairman was empathetic and invited the Cenkos representative to summarize the Cenkos sales and earnings estimates (I don’t think he was expecting that):
……2016: sales £15.7m, EBITDA £1.0m, pre tax profit £0.8m
……2017: sales £16.0m, EBITDA £1.2m, pre-tax profit £0.9m


Q: Who are Ingenta’s main competitors?

A: There are different competitors for our different products, so for the commercial division (Vista) competitors include Klopotek and SAP
……Klopotek:
……SAP: ,,…

For the content division, Highwire are a competitor and the publishers own in house specialist departments.
……Highwire:


Q: How does our market valuation stack up against our peers?

A: It’s difficult to do meaningful peer group value comparisons using sales or earnings multiples as Ingenta have not yet returned to profitability, but interestingly Cenkos have made some peer group comparisons in their research note which imply that Ingenta is currently undervalued.


Q: What are the barriers to entry for competitors?

A: We don’t have patents, so the barriers are mainly our reputation, domain expertise and our software


Q: At least one of the profit warnings released last year mentioned an onerous contract, what changes have you put in place to ensure there are no further onerous contracts?

A: The onerous contract was due to underestimating the resource required to fulfil the contract and we had agreed the contract on a fixed fee basis. Historically most of our contracts have been based on a fixed price, we have now switched most of our contracts to charge on a time and material basis only and we will no longer provide fixed price quotations.


Q: Where will growth come from if you already have seven out of the top ten global publishers on your books?

A: There is certainly scope form growth, in general terms digital content is a growth area and this requires hosting, we also expect consolidation in the area. We intend to expand the number of contracts we have with mid-sized publishers, having a greater more diversified range of customers should also de-risk the business to some extent.


Q: Will you need to raise more money in the short to medium term?

A: No fund raising planned, if we were to make small acquisitions we would probably fund them with cash and existing facilities, if we were to make a larger acquisition we may need a fund raising although we would not issue equity at these low levels.


Q: According to the annual report the outgoing CEO (Michael Cairns) was paid £328K last year, this seems very excessive, did he get a pay off?

A: Yes there was a severance payment.


Q: Why did Cairns leave?

A: Given the position of the business, the BOD considered that he was the wrong person for the job, lacked a sense of urgency and had the wrong background.


Q: Did he (or does he) own many shares, could there be a shares overhang as a result of his departure?

A: He didn’t hold that many shares (from recollection around 90K shares)


Q: Is there an employee share save scheme to incentivise and retain key employees?

A: There isn't a share save scheme, but there is a share option scheme.


Q: The shares are relatively illiquid, the more liquidity the better (not least for employees incentivized by share and option schemes). Why not beef up PR, start employing a promotional broker (Hardman, Equity Development etc) who will produce research reports that can be distributed to all investors.? Why not employ PR organizations like Proactiveinvestor, who will conduct regular (recorded) interviews with directors, they will also provide opportunities for directors to give presentations at the regular Proactiveinvestor forums?

A: The BOD have discussed these options on a regular basis, it is probably a bit early to do this, we would prefer to do implement it after the company has returned to profitability, this would make the investment case more credible.

[timbo003] 14/5/2016 11:19

Apologies for the delay in writing up the meeting report, I have been distracted by another shareholder meeting (Strat Aero) which has taken up more of my time than anticipated,

[timbo003] 13/5/2016 09:28

AGM report will follow here later today

[timbo003] 13/5/2016 09:27

Ingenta (ING) was formerly known as Publishing technology (PTO). The name change was effective from today May 13th (today). The rationale for the name change is outlined in the most recent annual report (year ending December 2015):


In tandem with the release of our Annual Report and Accounts, we will be rebranding the Group. In the last year we have completed the first phase implementations of our new product set, reached the final stage of our decade-long development cycle, and paid down all debt within the business. As a result, the Board believes we are now positioned for growth and that now is the right time to relaunch the Group with a less industry-specific identity.

The name Publishing Technology has become restrictive as we look to wider markets, particularly for our online content products. We will therefore be returning to the name Ingenta, a name known across all of our markets including China.

We will rename our trading companies and will ask shareholders to agree a change of name for the plc at the forthcoming AGM. As well as relaunching the corporate and trading identity of the business, we will be re-aligning the products under one brand umbrella, changing 'advance' to the more descriptive 'Ingenta Rights', 'Ingenta Order to Cash' etc and removing the confusing 'pub2web' name and replacing it with the more industry-agnostic 'Ingenta CMS' allowing us to target all industries and markets that deal with content.


Over the last 1-2 years the share price for PTO/ING has been on a downward trajectory, this poor performance can be traced back to a profit warning issued in September 2014 which lead to a discounted placing (June 2015), restructuring of the business and departure of the CEO (Sept 2015). The company may now have turned a corner with the House broker (Cenkos) forecasting a return to profitability for year ending December 2016.



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Proactive Interview September 2021

!YOUTUBEVIDEO:VGRQ2wfMhIA:

[bazzerp] 18/6/2005 14:49

Just wondered if anyone else interested in this. Posted on Michael WEalters board , but little interest.
Very low P/E & good growth.