Interactive World Share Discussion Threads

[saucepan] 21/9/2006 14:50

Thanks for posting Simon.

[simon14] 21/9/2006 12:26

Heres todays DAN note on it


Interactive World has released preliminary results ahead of our expectations, showing top line growth of 2.4% and a significant increase in gross and operating margins (+12.6% pts and +12.3% respectively). The resulting EPS (7.7p vs 6.2p in FY05) was 6.9% ahead of our 7.2p forecast. The company has also announced a 4.0p/share full year dividend, equating to a yield of 4.1%. Interactive has stated that trading at the start of FY07 is progressing well and we expect the group to drive solid organic growth (forecast 19.5% earnings growth), compounded by possible acquisitions. Given the FY06 outperformance, dividend yield and growth prospects, we retain our Buy recommendation and raise our target price from 99p to 124p, equating to 13.5x earnings to FY07.

[simon14] 21/9/2006 12:22

Great results.!!

[saucepan] 21/9/2006 10:15

Polythene: I think you can have your cake and eat it. Some funds will only purchase shares in companies that pay dividends, so there is now a prospect of new institutional interest.

As to results, I am pleased, but slightly surprised that the market has reacted so favourably.

I found the increase in turnover a little disappointing: there is not much growth between £8.9m and £9.1m.

This was more than made up for, this time, in margin increases.

Comment on overseas expansion also sounded rather more cautious than I expected.

However, unlike some other companies, perhaps the Board of ITW prefers caution and under-statement rather than hype.

With a projective P/E of 13.4 and a projected PEG of 0.48 (before today's results - which have slightly beaten market expectations - are factored in): there is plenty of prospect for capital growth in this young company.

All IMHO.

[polythene] 21/9/2006 09:37

I'd prefer captital gains from shareprice, to dividend as dividends are taxed at 42% in my juristiction. CGT is 20%.

[silverfern] 21/9/2006 08:04

4p dividend - amazing. And they are saying it is a progressive policy. A very cash generative business, very low risk given the business model.

Edit: The total dividend for the year is 5.5p which signals that a mid-year div will also be paid. THe margin is sustainbable given the agreements they have in place and the p/e on results is around 11

[asp1] 21/9/2006 08:01

and here they are!!! look very good.

[asp1] 21/9/2006 07:09

Of course, silver, was forgetting statment, thanks for reminder.

[silverfern] 20/9/2006 16:12

Their trading statement last month said results in Sept; next Friday is the last trading day in Sept so the results must come between now and then

[asp1] 20/9/2006 15:21

Where did u get next Fri from silver? - just a guess???

[silverfern] 20/9/2006 10:48

REsults will be by next Friday at the latest. I've bought twice since my post on 12 Sept as the market seems to be waiting for the results

[polythene] 20/9/2006 10:47

You see, with people like volsung in the world, this type of business is virtually recession proof! Lol

[moormoney] 13/9/2006 14:16

nice bounce back so far.

[simon14] 13/9/2006 09:46

Well I guess itll be close to that date then.

Forecast Key Dates
Key Date Date Status
Next prelim announcement 30 - Sep - 2006 E
Next annual report due 31 - Oct - 2006 E
Next AGM 30 - Nov - 2006 E
Next interim announcement 30 - Mar - 2007 E

[simon14] 13/9/2006 00:49

Heres something to read ( if you havent already), sorry is old 8/8/06.

Your results are due 30/09/06

Interactive World has released a positive trading statement for the full-year to July 2006. It highlights good trading, in line with expectations. It expects to report significant growth on FY05 - we are estimating PBT of £4.2m (+35% YOY) and EPS of 7.2p (+16%). The company will also pay a dividend.
We initiated in June 2006 at 75p with a Buy recommendation and 99p price target. The shares closed yesterday at 75p and we retain our view. The company continues to demonstrate strong organic growth (customer base c.900k regular users) and has the funds to carry out bolt-on acquisitions. It has also re-negotiated its important 5-year content contract with The Sport Group so that it is now 5-year rolling rather than fixed. Mobile gaming trials with Probability are early stage but could offer further upside. This remains the least risky and highest quality operator in the sector and, at 8.2x to FY07, plus a forecast yield of 5%, we retain our Buy recommendation.

[johnv] 12/9/2006 18:38

Hoping to buy mid 80s or lower and missed out today, wasnt expecting such a massive drop. MMs could have taken a large sell today(they have 3 days to notify)hence the volatilty.

[kalmar] 12/9/2006 18:27

Im still watching closely....amazed in the volatility for such tiny volume....thought I would have to pay over a quid....shud have some funds available next week.
I really like the look of this company.

[silverfern] 12/9/2006 13:46

I will buy before then thus stopping the fall and no doubt upping the price by 5p. If that then starts the bull run on these don't worry, I won't be selling :)

[asp1] 12/9/2006 13:33

.....and at this rate of fall shouldn't have long to wait.....

[asp1] 12/9/2006 12:16

Good question silver! - mms dropping share price on next to no sells - looking increasingly good for topping up - will definitely be back in for more at 70p.....

[silverfern] 12/9/2006 10:33

t/over approx £14m
margin 35% after costs
so ptprofit £4.5m or around 12p eps
growth of over 20% in current market meaning a prospective p/e of 6.5
new markets in US announced;
£6m cash pile of which a % given back in healthy dividend, for example 2p dividend costs around £800k so they could easily pay 4p and not dent cash reserves by much
acquisition strategy annoucned

What are others expecting and why are you not buying?