Ingenta Share Discussion Threads

[smithie6] 29/6/2023 10:07

btw

congrats to the dirs & staff for winning these 2 contracts.

[p1nkfish] 29/6/2023 07:39

Whomever bought the sales yesterday has made a decent 24hr return on capital on paper. Nice one. Let's see if the seller is done or not.

[p1nkfish] 29/6/2023 07:35

The real care is needed with headcount expansion that doesn't impact margins. That is my concern, not revenue meet.

[p1nkfish] 29/6/2023 07:34

The TU indicates on target and with a bit of sandbagging built-in by management its reads as an easy yearly meet or beat is expected.

[p1nkfish] 29/6/2023 07:33

Tender was probably demanded by Kestrel.

[smithie6] 29/6/2023 07:11

I think it means the tender offer was unexpected. The tender cost money for the shares bt. The strong operating performance did not quite generate enough profit to pay for the tender.

That is how I read it.

[rossco] 28/6/2023 20:50

Reading through the annual results I found this statement within the Financial Report section - “Year-end cash balances were £0.5m below budget reflecting the unplanned
tender offer expenditure only being partially offset by strong operating
performance.”
Does anyone know the reason for the unplanned expenditure related to the tender offer?

[rossco] 28/6/2023 19:25

Someone appears to be nervous about the AGM update this week.

[smithie6] 28/6/2023 18:08

"& usefulness of the notable marketing spend for the last 5 years, total of ~£3.5 million

??"

& yet

growth in revenue not keeping up with inflation !


====
was ~120p...now ~90p.
needs to rise 30p or 33% to get back to 120p.

1/3rd !

:-(

======

jury still out on this one.

[p1nkfish] 15/6/2023 09:59

Lack of any RNS worthy news isn't helping. Has been the case for far too long. I'm all for lots of small deals as they are less risky and spread the customer base but an occasional news worthy win can do a lot of good for sentiment.

[red ninja] 27/5/2023 09:56

They have grown revenue ie £10.5 million last year, £10.1 million (2021) and £10.2 million (2020). They haven't grown revenue from new customers (recently) or in real terms, both of which I agree they need to achieve.

[p1nkfish] 27/5/2023 09:13

Good thing is they are profitable as is, have a cfo that appears capable and a ceo that obviously cares to grow. The cost base is well trimmed and defined.

Sales, sales, sales needed.

[p1nkfish] 27/5/2023 09:11

It's all an unknown as they haven't grown revenue for quite a while.

If we take it the products fit the intended markets then this is a bargain.

They can layer increasing revenue on what is a well trimmed cost base. Well worth a decent premium on todays price.

However, increasing headcount to increase revenue is always fraught with danger especially if the product doesn't fit the market as well as Ingenta believe. Costs go back up and revenue doesn't follow as quickly etc.

Until they show a result they will languish. Show a result that looks sustainable and they fly.

If you believe they can fly then its well worth a punt as this can easily double+ imho.

Dyor, etc.

[red ninja] 27/5/2023 08:51

Having listened to the IMC presentation.

I do feel encouraged. I mean they have increased revenue, they have driven costs down.

I take the point that the marketing has been partially used to upgrade existing customers from Ingenta Connect to Ingenta Edify and that has clearly been a success.
However, I believe they have spent time and money addressing new verticals and if you are not winning at least a few new clients it can't really be regarded as money well spent.

They make it clear the have many target new verticals, and even companies in vertcals they have not considered who have approached them and they have demonstrated to.

The question is are they spreading their net too wide as a small company would they be better concentrating their spend in just 1 or 2 verticals.

The other question for a small company with limited resources could they fall to a bigger preadator which has the resources to more ablely sell their technology. In which case with a market cap. of around £14.5 million, but with £2.4 million in cash. It is not inconcievable that they could be taken out at a good premium to the current price. I mean they are spending £1.1 a year maintaing and upgrading their software.
Thus, the current price share price does not seem expensive.

I've upped my stake by a smigin. However, I could be foolish deluded.

[red ninja] 26/5/2023 10:34

You'd hope Kestrel would have given them a steer on marketing given that they are engaged with a lot of small software companies.

[p1nkfish] 25/5/2023 23:18

They've made themselves quite an interesting acquisition target. Wonder if any of the bigger publishing houses have looked this way?

[smithie6] 23/5/2023 10:12

& usefulness of the notable marketing spend for the last 5 years, total of ~£3.5 million

??

[p1nkfish] 22/5/2023 20:51

The IMC webinar was enlightening. They have prepared the platform and optimised the fixed cost base. Now it's revenue growth, needing higher headcount. The efficiency of the marketing spend will be proven good or bad this current year along with how well they recruit target carrying sales people.

Management are in a position where there is no hiding place. A critical year.
Get it right and the current price will look like a bargain in hindsight.
Get it wrong and it's stagnation, excuses and blood on the carpet.

[smithie6] 22/5/2023 20:06

ARR up by £100k
Which produces a gross profit of ____/yr

And most of the increase in revenue is coming from existing customers upgrading to newer products or adding/contracting more facilities/software. And not from new clients.

Marketing cost, £700k.

Do ppl think the marketing cost is providing a good return on the cost ?

[boadicea] 11/5/2023 18:02

Revenue rising and cost of sales falling is always a good combination!
The report contains notes of caution but that appears to be on the principle of underpromise and (hopefully) over-deliver. The mo seems to have been reinvented to some extent with apparent success. I hope it proves to be a good base for expansion. That combined with resilient margins promises well.

[red ninja] 11/5/2023 16:00

Things generaly seem to be heading in the right direction in todays results :-

"
Financial Performance

Group revenue increased to GBP10.5m (2021: GBP10.1m) with the recurring element calculated at GBP9.0m or 86% (2021: GBP8.9m and 88%). Although revenue has increased, the Group's cost of sales declined from GBP5.5m to GBP5.3m as the previous actions taken to streamline operational efficiency became fully functional. Consequently, gross profit increased to GBP5.1m (2021: GBP4.7m).

Sales and marketing spend was stable at GBP0.7m but is expected to increase in 2023 as the Group seeks to build on the sales momentum achieved this year. Administrative costs have also remained broadly stable at GBP3.2m helping deliver profit from operations of GBP1.2m (2021: GBP0.8m).

No significant tax charge is anticipated for 2022 as the Group continues to utilise brought forward tax losses. Going forward, the Group estimate they will be able to use GBP15.4m and $6.7m of the available tax losses in the UK and US (see note 8 for further details). Additionally, the Group's assessment of its deferred tax asset relating to these losses increased, generating a tax credit in the year of GBP0.3m (see note 3 for further details)."

The tax losses look a good asset for the company and the talk of continued performance in 2023 all sounds very encouraging.

[p1nkfish] 06/4/2023 22:16

I think theres is a decent chance, even with the economy as it is, that INGENTA visits > £2 by end of summer 2024. Could be £2.10 ish by Aug 2024.

Thoughts?

[p1nkfish] 02/3/2023 07:52

A loss of customer to Wiley and to the user.



New company also launched in USA but not UK ingenta, just using the name - ingenta.ai

[red ninja] 24/2/2023 18:28

Ingenta's Linked in feed :-


"Our Business Development team at Ingenta is growing! We are on a roll. We have two open Sales Manager positions and one Account Manager. UK or North America, fully remote positions. Details at


Hopeful signs of future revenue growth,

[red ninja] 02/2/2023 19:18

Agree encouraging signs of revenue growth, perhaps another tender to come next year.

No thought of selling at the moment, its good to have some good dividend payers.