Intercede Share Discussion Threads

[tiswas] 25/4/2019 17:43

A bit of life in the old dog yet! Bid/offer creeping up and some volume.

[omiceanmen] 03/4/2019 11:00

To be topical today and replying to Somerset Lad, I think Parris is probably like Dunkerton at SuperDry and we all know how that finished up yesterday! Dunkerton was happy to hand over the reins in expectation of superior performance. When that didn't happen ...

I see Parris's 11% shareholding a bit like a sleeping policeman. If he does a Dunkerton and goes public or starts selling shares in volume I'll know there's a fundamental problem with the business - I'd always trust an entrepreneur with skin in the game ahead of a salaryman executive.

So far Parris has been quiet so I take that to be a good thing.

[somerset lad] 02/4/2019 17:14

I don't think RP is competing. He's set up as a consultant, introducing clients to "founder-operated" providers. Aretti is not providing software or support services. The conspicuous exclusion of IGP (as it is not "founder-operated") made me wonder how RP felt about his leaving.

[pyman] 02/4/2019 16:50

i would think there is a none compete order on mr parris ?

[somerset lad] 02/4/2019 12:30

New management has over-delivered, getting to profitability a year ahead of their promises. Talk of hockey sticks and inflection points has gone, as has the focus on diversification into IoT, and highlighting growth in employee numbers as a positive metric.

The bull case for this stock has long been clear: if you can satisfy the requirements of the most demanding customers in the world (US government and defence contractors), it should be fairly straightforward to roll out the same product to investment banks, accountants, law firms etc. Nobody got sacked for applying the same security standards as the US government. New management has embraced this approach, focusing on developing partnerships and an out of the box MyID product. They will need to deliver growth here to generate significant EPS.

The share price decline over the last couple of months has not been driven by fundamentals (recognising that announcing a contract win of $500k on 28 Feb may have led some to think that not much was happening in terms of sales -- although I think they were more interested in highlighting their entry to a new region). There has been a fairly determined seller (or sellers) and it has been possible to buy in large sizes (e.g. 100k) over the last couple of months. It is always a pleasure to take the opposite side of the trade from someone who seems determined to exit at any price through a constant daily feed of stock. Today's share price rise does no more than take us back to where we were a couple of months ago, even though the story has advanced because we're a year ahead of schedule on getting to profitability.

Finally, for so long as IGP is negotiating large contracts with federal authorities, we're going to see signings just before year end because customers are not going to be able to resist using this as a pressure point.

[kingkongtimmo] 02/4/2019 12:20

Punters not giving it the benefit of the doubt? Its 60% up on the day

[paulypilot] 02/4/2019 11:47

FinnCap note this morning points out that gross cash of £3.2m at 31 March 2019 is *before* any funds received for big $4.3m US Govt agency contract. As business is now cashflow positive, plus getting substantial R&D tax credits, then it should soon become net cash positive (i.e. enough to pay off convertible loan notes, which are not due until Dec 2021 anyway).

All looking very positive indeed - albeit just in the nick of time, signing major contract on last working day of the financial year!

Market cap looks ridiculously low, given quality & size of customers.
There again, the company has disappointed in the past, which might explain why some punters won't yet give it the benefit of the doubt.

PP.

[imjustdandy] 02/4/2019 10:58

This is the key point. Cash from operations increasing and that's before these contract wins. 60p in no time Cash balances of GBP3.6m at 30 September 2018 represent an increase on the GBP2.3m of cash balances at 31 March 2018, primarily driven by positive cash generation from operating activities and the receipt of the 2018 R&D tax claim.

[ramnik007] 02/4/2019 09:41

Lets hope seller can Sell to their hearts content !

[stuart37] 02/4/2019 07:59

Yes, positive and upbeat sounding RNS - always nice to have a surprise to the upside. Maybe this will begin a slow share price re-rating with this new and more aggressive sales driven focus.........

[ramnik007] 02/4/2019 07:55

Positive RNS today, I think?

[jonbirdy] 06/3/2019 18:18

I agree omiceanmen, re: hard to link share sales to Parris off-loading his position. But presumably a possibility.

He does own 11% and he did found it. I’d assume he wishes it do well!

More of a concern (maybe) is his new company.

[jonbirdy] 06/3/2019 18:14

In their 2018 annual report, Intercede noted that their US sales were 71% of revenue. So they seem to have nailed that Sirrux, unless I am misunderstanding your point.

The FAQ page of the website of Parris’s new cyber security company states that, “Aretiico's main focus is introducing international companies to the US market.”

So potential conflict there.

However, the new Intercede CEO seems sales driven and when Parris was in charge, it was all quite jam tomorrow. Who knows how good he was as a salesman?

Intercede market cap now the same as annual revenue.

[sirrux] 05/3/2019 12:27

Keep an eye on it. So many UK businesses have struggled in the US but doesn't mean it's the end of it. Not even HSBC could conquer that chestnut. Some deep seated protection going on that they don't really tell everyone about or maybe UK businesses are just not good enough on the service side even if the product is right. This will find a buyer eventually perhaps and the price is off to find one.

[omiceanmen] 05/3/2019 10:51

As I understand disclosure rules Parris would need to declare if his holding falls below 10% and every 1% point below down to 3%. Several 100k shares have traded this year and no announcement from Parris has been made. The maths suggest other sellers are in the market.

In any case, surely the Board would have taken precautions to ensure that Parris was onside. It would be bold and possibly foolhardy of the Board and its NOMAD to have an 11% shareholder in the wild without managing his exit. A settlement agreement with a lock-in period could easily achieve that end or a scheduled share buyback plan with some lock-in terms. Maybe that will be declared in the annual report.

[jonbirdy] 05/3/2019 10:12

Parris owns 11% of Intercede so any of his sales would surely have to be declared to the market.

[solrei] 04/3/2019 21:07

I think it's constant selling from Parris

[omiceanmen] 04/3/2019 19:30

The lowest share price in 10 years and still falling. No one at IGP seems to know how to run a public company. Let's hope they pull year end numbers out of the bag.

[jonbirdy] 03/3/2019 08:21

Hey Grupo, it’s 80p not 180p.

You can read the note from 28 Feb for free by registering with FinnCap

hxxps://researchlibrary.finncap.com/Register/Register

[grupo] 28/2/2019 11:42

Intercede Group PLC IGP finnCap Corporate 180.00 - Reiterates

[omiceanmen] 24/1/2019 14:30

I can only assume this 24 October option award was announced to flag to the market management's expectations as to the growth potential of having Pol and Adams join the top team. In the absence of any other statements from the Intercede board, I consider this to be the nearest thing we have from Pol as to his manifesto. As Chairman, I expect him to stick by this public statement or to explain why he cannot deliver. With great office comes great responsibilities - I wonder how much a senior American executive gets paid to be a UK AIM Chairman? As a shareholder I am expecting a significant contribution in return. If not ...

[jailbird] 23/1/2019 15:35

Not looking good here is it Wonder whether Chuck will resign if he fails to hit his target next

[omiceanmen] 14/1/2019 15:31

Thanks Jailbird. I missed Helen Adams departure too. Based on the plan she agreed to, we should have been heading for £16m sales this year. Happy days. However, not sure what the forecast number for current year actually is but I'm sure its a lot less. Anyone know the brokers forecast?

I note Chuck Pol agreed to the same targets as Adams:

"On 24 October 2017, a free unit award equivalent to 70,537 ordinary shares of 1 pence each in the capital of the Company (“Free Units”) was granted and agreed with Chuck Pol, Non-Executive Director of Intercede. The Free Units will vest on 29 September 2020, subject to the achievement of performance targets based upon 50% growth on FY2017 revenues in FY2018, a doubling of FY2017 revenues in FY2019 and a tripling of FY17 revenues in FY2020."

Its 18 months since Adams and Pol were both appointed apparently with the job of refreshing the sales team to achieve this high growth. I am still expecting Pol, as Chairman, to deliver on this expectation. Otherwise, why would he have agreed to the performance award in the first place if he didn't judge it achievable.

[jailbird] 14/1/2019 03:56

It all looks like a bit concerning to me..too many changes ringing around in a short times is not a good news for me.
Targets are being missed maybe?


Helen Adams has resigned as Chief Sales Officer as well...a while ago but missed that too

Remember her performance targets

Several significant appointments have also been made to strengthen the Group's Sales & Marketing. Chuck Pol (former Chairperson Vodafone Americas) and Helen Adams (former VP Sales Europe & Asia/Pacific for ARM Holdings plc) were both appointed in June 2017 with further recruitment subsequently taking place to expand and refresh the Sales team. As a commitment to achieving consequential high sales growth, Helen Adams has this week agreed to a share option plan incorporating performance targets based upon the achievement of 50% growth on FY2017 revenues in FY2018, a doubling of FY2017 revenues in FY2019 and a tripling of FY17 revenues in FY2020.