Intercede Share Discussion Threads

[robow] 26/8/2021 13:48

somethings cooking

[ianhamo] 16/8/2021 11:59

Very high volumes the last day or so. News due?

[ianhamo] 06/7/2021 12:54

A nice juicy 3 or £5m contract would be nice ?

[rambutan2] 05/7/2021 22:21

Somerset lad, I agree, it's the direction of travel that is encouraging. The mkt much prefers smaller, more often and growing, to occasional, large and lumpy.

[somerset lad] 05/7/2021 21:59

Always dangerous to try to divine what the market is thinking, but I suspect it likes the new contracts for two reasons. First, new customer relationships tend to start off small for Intercede and grow, so rather than £600k of revenue the more important factor is perhaps that there are 6 new customers to whom Intercede can expand its sales. Secondly, Intercede's strategy is to rely on partner sales for growth. The fact that the existing partnerships are delivering sales (and there are more partnerships behind) is a very encouraging initial vindication of the strategy: partners who are making sales are more likely to put the effort into trying to make more sales.

[pyman] 05/7/2021 15:37

yup- nice to see sales momentum...

[ade45] 05/7/2021 11:42

Market sees a link between regular cyber security attacks, in USA especially, and a company with increasingly successful cyber security product

[earwacks] 05/7/2021 09:18

Great to get an update although again I was rather underwhelmed and was expecting it to dip back below £1. So what do I know. Well firstly £600,000 of contracts Q1, although very welcome doesn't warrant a 15% rise. So either theres another announcement coming about an acquisition or they are being acquired or perhaps its just the bonkers market. On reflection probably go for the last suggestion

[robow] 10/6/2021 18:31

thanks Earwacks

[earwacks] 10/6/2021 18:19

The presentation was pretty good. No hint of and no requests for dividends. The question of M&A did come up and sounds like they are keeping an eye open but not busting a gut to be acquisitive. Like they say there is a history of poor acquisitions by many companies, so it would need very careful consideration. They are rightfully pleased with the turnaround and are cautious about Covid in Europe. Plenty of emerging opportunities there, which The CEO being Dutch must be quite a useful advantage. It is odd having such a select cliental. They offer a pretty niche product for which they don't see many competitors of their quality which considering the length of time they have held these clients must be self evident. Business in USA has been very good, so it maybe Europe could offer similar growth if Covid is contained, which has clearly been restrained. If you are hoping to make money quickly from here it may not be for you, but if invested for another couple of years I think it could be very rewarding. No debt and solid recurring income. Any acquisition could be funded by current cash or cash and shares, depending on size. So thats my plan, stay put and add according to opportunity

[ianhamo] 08/6/2021 17:37

I read "sustainable revenues" as hint to dividends

[marktime1231] 08/6/2021 12:56

Well spotted rivaldo and these seem like fair results but already priced in, and some. I particularly liked the idea that they are now debt-free, saving £400K pa interest which will go straight to the bottom line. So that kind of cancels out the profit measure fudge?

News of further sales progress to increase revenues is due in order to justify the earnings multiple.

Hugely profitable, cash inflow of £4-5M pa will give them a problem of what to do with it next year. Suggestions ... investing in growth or shareholder returns?

On the other hand, I wonder if a big player in the ID sector with lots of cash fancies acquiring £11-12M revenues and £3-4M profit, the net cash position a sweetener on a valuation multiple of around 5-6? I would take 125p.

[somerset lad] 08/6/2021 09:53

I’d describe the figures as clean and clear. On the highlights, it is not clearly correct to deduct taxes payable but ignore taxes receivable: you’d be giving a different substantive treatment to the same accounting category depending on whether the number was positive or negative. And so I don’t think there’s anything wrong in highlighting the accounting EPS figure post tax credit.

[robsy2] 08/6/2021 09:36

Well spotted Rivaldo.I'm a holder.I was looking for something in the cybersecurity space and chose this one. Expensive it is on current earnings but it is in turnaround mode and has what looks like a plausable game plan to make themselves a lot more relevent.
The price target on this one is 125p which is indeed pricing in some large contract wins. I'm waiting for the wins to come in the money to drop straight down to the bottom line!

[rivaldo] 08/6/2021 08:27

Rather sneaky presentation in the results highlights - PBT was £1.1m, but IGP chose to ignore this and highlight the £1.5m PAT, which was only achieved because of an overall £400k tax credit.

That's 2p diluted EPS rather than the 2.8p stated.

Which is silly as the overall performance was good. Too expensive for me at a £59m m/cap for £1.1m PBT. A nice little company - £10.9m revenues - with good prospects, but the upside from that £59m m/cap seems limited for a while yet unless there's some more large contract wins.

[somerset lad] 05/6/2021 08:49

Final results due in June, so IMC is good shareholder comms.

[ianhamo] 05/6/2021 08:35

Investor Presentation 10.06.21, is this a positive or a negative?Possible rights issue?Notice of Offer?

[earwacks] 31/5/2021 09:22

A 57 million cap with 8 million in the bank takeover 2,4 billion cap company. I know they are saving £400,000 a year from the conversion of loan notes, but good luck selling that idea to the markets. We keep hearing how big the cyber security market is, and how much worse security is getting especially in the US, and yet IGP have revenue of 11 million at the moment. Doesn't seem that ambitious. They did talk about their work at the top of the pyramid and the need to get into markets lower down the scale.I expect that is where there is more completion too. How a company this size got to work mostly in US defence departments is a bit of a mystery. They must be very good at their job.They obviously do what they do very well. They just need more of it. A lot more. I would be delighted if Darktrace or anyone bought IGP, but I suspect its way too small for takeover interest in its current form

[ianhamo] 30/5/2021 18:03

A reverse take over of Darktrace would be interesting ?

[robsy2] 22/5/2021 10:49

Hopefully the cleaned up B/S and feathered nest will be followed now by the announcement of a step change in business.

[earwacks] 22/5/2021 09:29

Well the directors seem to be busy feathering their own nest and have expressed their lack of interest in paying shareholders a dividend. Lets see some serious growth then fellas. 11 million revenue is a bit poultry to be honest especially in this sector

[rambutan2] 13/5/2021 21:42

New sales recruit - bit old, but with good contacts!

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

[pyman] 06/5/2021 15:53

yup- strong

[le4r] 06/5/2021 15:51

Something leaked - or tipped somewhere? That's quite a movement in last few hours...

[ianhamo] 25/4/2021 17:27

Director buys due this week. Hopefully give the share price a bit a nudge up. ?