Intercede Share Discussion Threads

[yump] 31/3/2005 09:58

Have been watching for a while waiting for this sort of news so in for a 'starter' this morning, although my feeling is any significant re-rating will be after finals.

[garth] 31/3/2005 09:41

Jailbird,

If they can make just £500K in profit then a £10m price tag does not look too rich, does it?

At the interim stage:
"As a result, sales have fallen from #878,000 to #535,000, the rate of growth in
own technology sales as yet not compensating for the fall off in sales of third
party products. Gross profit margins have increased from 82% to 87% as the
proportion of own technology sales has increased from 65% to 76%.

Costs have been maintained at a similar level to last year's reduced level, with
#36,000 of the #39,000 year on year increase reflecting the exceptional cost of
engaging Ernst & Young to assist with the Group's outstanding Research &
Development tax claims. This was successful as it resulted in the receipt of
payments from the Inland Revenue totalling #182,000 for the 2002/03 and 2003/04
financial years.

As at 30 September 2004, the Group had net cash balances totalling #615,000.
During the six months ended 30 September 2004, the cash outflow before financing
was #451,000 compared with #274,000 during the comparative period."

And at last year's finals:

"Results

In the year ended 31 March 2004, turnover of #1.6m was achieved at a gross
margin of 83% (compared to #1.8m at a gross margin of 71% in the previous
period).

For the second consecutive year, Intercede has virtually halved operating losses
from #1.1m to #0.6m and the cash outflow before financing has been reduced from
#1.4m to #0.5m. As at 31 March 2004, the Group had a cash balance in excess of
#1m."

And today's statement:

"we anticipate
being able to report financial breakeven for the second half of the current year
in both profit and cashflow terms. Additionally, we can report our largest ever
forward order book and sales pipeline for the next financial year."

Now presumably a large part of the successful 2nd half has been the Gemplus order. That is the eqivalent of all of the revenue for the first half! What is pleasing about that is that it is an order for Intercede from Gemplus on behalf of one of their major European customers. Who'd bet against Gemplus bringing more food to the Intercede table?

If IGP can swing from a cash outflow of almost £400K in the first half to a cash in-flow in the second, having already slashed it from £1.4m to £500K the previous year, then it shows that they could achieve decent profits and cash generation in the year coming.

The move from reseller to own product, with their first patent granted last year, is perhaps beginning to yield results?

On current progress would £500K pencilled in for next year be too far stretched? And a market cap of £10M initially? More if they catch some market interest?

That would imply 32p fair value at this stage and looking forward to considerably more on any Fed contract news?

Just quick musings. IMO only and definitely not advice.


G.

[rambutan2] 31/3/2005 09:28

not really my forte either jailbird.
and still too many ?marks re contracts etc
also, what size of mkt do you use when working it out?
but i am very very sure that its worth a lot more than the current mkt cap.
or is on the verge of being so.
the mms must have a few on the books though otherwise would have jumped further. just need a few buyers today and we can jump further by close. imho.

[josereyes] 31/3/2005 09:27

just picked a few up. looks very promising.

[mohamed99] 31/3/2005 09:25

wake up ..............

[topvest] 31/3/2005 09:00

Fantastic news. We have lift off! Major re-rating now expected imo.

[jailbird] 31/3/2005 08:55

what sort of valuations do U guys give..(not my forte)

say in profit and cashflow positive, then what price would U put on these.

33M share in issue, current mkt cap is £6M

[rambutan2] 31/3/2005 08:51

well well well
patience about to pay off.

[henryford] 31/3/2005 08:50

totally agree.
v exciting prospects

[garth] 31/3/2005 08:48

Added the trading statement to the header. Intercede are finally at breakeven for this half. Looks like with the opening up of the US market being driven by legislation and with Intercede in with a shout we are finally all systems go here! :-)

G.

[jailbird] 31/3/2005 08:32

I expect next year these will be in profit and cash flow positive.
One to add and tuck away.

[jailbird] 31/3/2005 08:09

great news

RNS Number:3655K
Intercede Group PLC
31 March 2005


Intercede Group plc


Press Release - Trading Statement

Trading Update for the Full Year to 31 March 2005

Intercede are delighted to report significant progress in the second half of the
year ending 31 March 2005. Several significant new contracts have been closed
and the Group's international distribution channels have started to generate
both revenues and new prospects. As a result of this success, we anticipate
being able to report financial breakeven for the second half of the current year
in both profit and cashflow terms. Additionally, we can report our largest ever
forward order book and sales pipeline for the next financial year.

Since 30 September 2004, the following orders have been received:

1. DoT Ireland

Intercede has been selected by the Irish Department of Transport to provide
its MyID smart card and identity management software for the secure
enrolment, processing and management of digital tachograph cards.

2. Gemplus

An order in excess of #0.5m has been received from Gemplus, a leading
provider of smart card solutions, for a major European customer.

3. RSA Security

Partnered with RSA Security to win an initial order with a prestigious
European aerospace contractor.

4. European Notaries

Secured a strategically important win with an Association of European
Notaries to issue smart cards to all of the notaries in that country.

5. The British Library

Following a public tender, Intercede was awarded a contract to issue smart
cards to all of the British Library's employees.

6. Major Russian Telecoms Company

After a successful test installation, the rollout of production licences
has commenced to a major Russian Telecoms Company.

Within the last few weeks, we have also been advised that we have been
successful in bids for a major US aerospace contractor, a major UK clearing bank
and a major European insurance group. Further details will be provided as
appropriate as contracts are finalised.

All of these wins are encouraging, although the US aerospace order is perhaps
the most worthy of note given the potential scale of the US Federal Government
market.

This is a major new market that is opening up rapidly as a result of Homeland
Security Presidential Directive #12 and the subsequent publication of the
FIPS-201 standards document on 8 March 2005. This publication opens the way to
the rebadging of all Federal employees with smart cards. This is a massive
undertaking and the major industry providers have started to build their product
portfolios in anticipation of the first Invitations for Tender being issued
later this year. MyID is perceived to be one of a small number of suitable
commercial products and the US Government demands multiple sources of supply.

The Directors believe that Intercede is in a very strong position to harvest a
portion of this market - we have the technology and the US partners either in
place or under late stage negotiations. Furthermore, recent Intercede contract
wins have led to the viral marketing of our reputation as one of the 'best
products' for the job within US smart card circles.

About Intercede

Intercede Group plc is a leading developer and supplier of smart card and
identity management software traded on AIM, a market operated by the London
Stock Exchange (IGP LN) (IGP.L). The Group's MyID(TM) software manages the
secure registration, issuance and lifecycle of digital identities for a wide
range of uses. This requires the integration of multiple technologies and
products from many different vendors, including smart cards, biometrics, digital
certificates and Open Platform applets.

Intercede's customers cover a range of industries and include Athena Smartcard
Solutions, Barclays Bank, BEWAG, Department of Transport Ireland, Fujitsu,
Lloyds TSB, the UK National Health Service (NHS), the Metropolitan Police,
PinkRoccade, Royal Bank of Scotland, RSA Security, Ubizen and various US and UK
Government agencies and departments.

[topvest] 28/3/2005 09:02

Well, based on last two years results announcements Intercede look like they are about to go into their close period. If we don't get a trading update this week, then the next news will be the results, probably at the end of May. Do we think they have done enough in H2 to reach cash break-even? My view is probably not, but quite close. I am happy to hold though as I do think that there is light at the end of the tunnel on this one. The business could go from strength to strength over the next two years.

[rambutan2] 20/3/2005 22:02

wonder if they picked up any business...

IC Card World 2005
Partner Booth: Athena Smart Card Solutions - Athena CMS
Dates: March 1-4, 2005
Venue: Tokyo International Exhibition Center "TOKYO BIG SIGHT", East Hall
Location: Tokyo, Japan
URL:

Description: IC CARD WORLD is the only exhibition in Japan that features smart cards and RFID. This sixth IC CARD WORLD will be a radically expanded event, with reinforced exhibition, latest information-providing seminars and workshops and other programs.

[rambutan2] 20/3/2005 21:58

some real heavyweights here...
Intercede has a solid customer base built on more than 350,000 MyID licenses sold around the globe. Our customers cover a wide range of industries and include: Athena Smartcard Solutions, Barclays Bank, BEWAG, Department of Transport Ireland, Fujitsu, Lloyds TSB, the UK National Health Service (NHS), the Metropolitan Police, PinkRoccade, Royal Bank of Scotland, Ubizen and various US and UK Government agencies and departments.


and this now up on their site as a buyable option...
MyID™ Corporate - An RSA Secured® Solution

Enables any organization to immediately start issuing smart cards and USB keys with RSA Keon certificates. Client middleware integrates tightly with RSA Passage and the management system provides further options to control the issuance and maintenance of RSA SecurID™ authentication tokens.

RSA SecurID tokens and Smart cards or USB keys with RSA Keon certificates can be used for:

Secure logon to PC's
Enhanced VPN security
Secure access to networks and Web services
Email signing
Encryption

[topvest] 24/2/2005 21:21

Yes, a NMS of 500 is silly!

[topvest] 24/2/2005 21:20

Excellent news. Everyone seems to think that MyID is a good product. Sounds to me like this one is on the verge of lift-off!

[rambutan2] 24/2/2005 16:24

couldnt resist one of my little top-ups, although it was still 10x the mkt size!

[kmacgre] 24/2/2005 16:20

Nice one. It all adds up. This MYID keeps getting closer to "de facto" material.

[rambutan2] 24/2/2005 13:22

good strategic win and ringing endorsment.

[jailbird] 24/2/2005 13:07

It looks like partnerships and alliances forged are paying off.
But what do they need to win that will bring in material revenues.

Can this company bring in revenues which will be double figures by a year end.?

[maywillow] 24/2/2005 12:54

RNS Number:0023J
Intercede Group PLC
24 February 2005


INTERCEDE GROUP plc

RSA Security Teams with Intercede to Win European Aerospace Contract

Intercede announces that it has collaborated with RSA Security Inc. (Nasdaq:
RSAS), to supply its MyID Smart Card and Identity Management System to a
prestigious European aerospace contractor.

Although the size of this contract is not material for current year revenues, it
is significant because RSA Security is a leading provider of IT security
solutions to organisations worldwide.

Richard Parris, Intercede CEO, said: "We are delighted to have been selected by
RSA Security to supply our technology for this important contract. It further
demonstrates that IT security industry leaders around the world have confidence
in the strength of our technology. We look forward to partnering with RSA
Security on future contracts."

Tim Pickard, Area Vice President, International Marketing at RSA Security,
commented: "We believe Intercede's MyID is a world class, cost effective and
secure management system that broadens the range of solutions we can offer our
global customers. We are pleased to have worked with Intercede on this deal."

About Intercede

Intercede Group plc is a leading developer and supplier of smart card and
identity management software traded on AIM, a market operated by the London
Stock Exchange (IGP LN) (IGP.L). The Group's MyID(TM) software manages the
secure registration, issuance and lifecycle of digital identities for a wide
range of uses. This requires the integration of multiple technologies and
products from many different vendors, including smart cards, biometrics, digital
certificates and Open Platform applets.

Intercede's customers cover a range of industries and include Athena Smartcard
Solutions, Barclays Bank, BEWAG, Department of Transport Ireland, Fujitsu,
Lloyds TSB, the UK National Health Service (NHS), the Metropolitan Police,
PinkRoccade, Royal Bank of Scotland, Ubizen and various US and UK Government
agencies and departments.

For more information, visit www.intercede.com.

About RSA Security

RSA Security Inc. helps organisations confidently protect identities and
information access. The company secures more than 15 million user identities,
safeguards trillions of business transactions annually, and manages the
confidentiality of data in tens of thousands of applications worldwide. RSA
Security's portfolio of award-winning solutions - including identity & access
management, secure mobile & remote access, secure enterprise access, secure
transactions and consumer identity protection - sets the standard in the
industry. Our strong reputation is built on a 20-year history of ingenuity,
leadership and proven technologies, and our more than 17,000 customers around
the globe. Together with more than 1,000 technology and integration partners,
RSA Security inspires confidence in everyone to experience the power and promise
of the Internet.

For more information, visit www.rsasecurity.com.

ENQUIRIES:
Intercede Group plc Tel. [phone]
Richard Parris Chairman & Chief Executive
Andrew Walker Finance Director


This information is provided by RNS
The company news service from the London Stock Exchange
END
CNTTIMTTMMITBRA


Intercede GRP(IGP)

[kmacgre] 23/2/2005 12:17

....however, with the possibility of further deals in this final quarter, we may have breakeven.

[rambutan2] 22/2/2005 12:58

yes. although not ideal. as with the last placing, it would be like a down round in a vc funding. wouldnt put money on it happening (for us) though!

[kmacgre] 22/2/2005 11:48

that would be OK - 7P