Intercede Share Discussion Threads

[aaronirish] 06/12/2023 14:05

Ports, like airports, are secured areas under federal law. Anyone going in and out needs proper credentials.

[smithie6] 06/12/2023 13:40

Thanks

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For access to showers & toilets ?!
Or to get the driver + truck in or out past the security gate ?

(Perhaps the getting out with a container is the most important part financially since taking a container out which might have 1-2 luxury cars inside or other high value goods).
..if related to containers or container trucks & ports, that must be a big market since the global movement of shipping containers is massive)

[aaronirish] 06/12/2023 13:20

TWIC is secure access to maritime facilities around ports/ships for staff and truck drivers. Its process is not unlike TSA precheck or GLobal Entry or NEXUS for those who are familiar with those TSA-managed programs.

[smithie6] 06/12/2023 10:29

Btw
From the header
"Major Contracts:-
-US Transport Workers Identity Credential (TWIC),
-...... "

Can anyone post any info about this ?
...is it for truck drivers, bus drivers, delivery drivers ??

[devonlad] 06/12/2023 10:23

Break of £1 could be quite significant, could be a move to the £1.20 mark imho if it goes.

[smithie6] 06/12/2023 09:59

RNS on 21st Nov.

"-Commencement of professional services for a new deployment with a significant US Federal Agency;"

& yesterday news of the company's biggest contract win, which was from a US Govt/Federal dept./agency

The time gap between these 2 news items is too short for such a big contract (competitive so takes time) for it to be the same US Govt/federal dept/agency imo.

So, imo, there is another live opportunity with another US Govt/federal dept/agency.
Up to today I can recall 2 big contracts with the US Govt. , previous one for ~$3.5m & yesterday's bigger one. (Big contracts relative to the annual turnover & PAT), so, fingers crossed that there is a live opportunity for another contract with the US Govt. ..."significant US Federal Agency;"

...I see the word "significant", fingers crossed it turns in to a contract in the future.

The US Govt is very keen on Intercede's products. There are surely many US Govt depts that don't yet have Intercede products. And many more governments around the world.

:-)

[ianhamo] 06/12/2023 09:18

Hopefully we will get some coverage in the financial press. Just to keep the share price ticking along nicely till the next trading update, then BOOM!

[smithie6] 06/12/2023 08:49

This morning's trades are interesting imo.

Repeated buys of 5000 & 10000 shares.
imo probably from 1 buyer. From an institution perhaps. Someone with a lot of money.

Update: although they might be matched trades to move shares in to an ISA or SIPP since there are 3 buy trades of 10k shares & 2 sell trades of 10k. With one more sell trade the 10k trades would balance out.

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imo this company is in a very sweet spot, as shown by the 3 RNSs in recent months reporting contract wins & renewals.
& the mkt demand for the sector's products is rising rapidly imo & that is set to continue, the EU is due to issue its own regulations for having to have these types of products in spring of 2024 which are expected to increase demand in the EU.

Each person to their own opinion but imo anyone selling shares is nuts !

[smithie6] 05/12/2023 20:01

Marktime1231 wrote
...what to do with the cash pile

"Capital return or dividends perhaps?"

Uh, no.
Fast growing small cap IT companies imo never pay out a capital return. That is imo normally ever done by companies that have flattish performance & can't find a use for the cash pile.

I'm sure they will find a use for it sometime. And if they don't & it sits there, well, it could earn good money if put it in Govt gilts.
And it is useful to help potential Govts & blue chip clients see that this co. is very financially stable & will continue to be around for the duration of their contract & longer. That is beneficial during any competitive bidding process.

=======

Not every day that the USA is buying parts of its IT interfacing/networking/connecting from a UK company. Perhaps quite rare imo.

====
If some USA company ever tries to buy Intercede I guess that the most likely bidder would be Microsoft, as someone else posted. (Cap. Value of $2.8 trillion !!
Trillion !!....
...what a blunder IBM made all those years ago giving the job of the PC operating system to Microsoft (Bill Gates + a few others in a garage) rather than doing it themselves or insisting on a JV & that IBM got 51% of the JV, take it or leave it.

[ianhamo] 05/12/2023 19:52

I think we could command more than a £1.50 offer. We're not drowning in debt. Generating more and more cash. Looking to accelerate the cash generation with acquisitions. We can stand on our own two feet.We don't need a bid but if one comes it's going to have to be very high imo. Hopefully a bidding war would break out.If a higher enough offer doesn't come then we carry on our own...no worries there.Personally I would hold out for £3.00. If they want it bad enough they will pay...after all that's only approx £175 million, peanuts to the likes of Microsoft.

[smithie6] 05/12/2023 19:12

"This new customer contract was secured after a rigorous selection process, and work will commence immediately to replace the customer's existing, separate legacy platform with the Group's market leading MyID Credential Management Solution (CMS). The Group believes that this new relationship has the potential to develop further as the Group's solutions roll out across hundreds of locations"

..."has the potential to develop further "

:-)

[pyman] 05/12/2023 18:37

nice one ... yes - value in USA would be higher... and if orders keep coming 140p target looks easy enough to hit .

[marktime1231] 05/12/2023 17:06

Not surprised. At least £16M+ sustainable revenue with 30%+ margin and it will soon have £15M+ cash in the bank. Worth 135p by conservative valuation.

So what do you do with all that cash Intercede? Don't blow it on a fanciful acquisition please, nor fritter it away on development when the existing product is selling itself.

Capital return or dividends perhaps? 10p a year anyone? Or sit on it and wait for a 150p offer to roll in, this business really needs to be part of a group listed in the US.

[ianhamo] 05/12/2023 16:44

Cavendish have raised their target from £1.25 to £1.40.

[smithie6] 05/12/2023 16:29

I added some 16-20% more today. (The % rise today is 'underdone' imo)

[ianhamo] 05/12/2023 15:22

Out of the total $8 million contract value.$ 6.6 million one off revenue $ 1.4 million annual support and maintenance.The $6.6 million will boost the cash position significantly and help towards M&A aspirations and hopefully reduce the need to issue more shares to fund acquisitions.The $1.4 million will smash the ARR targets.

[smithie6] 05/12/2023 15:21

"This order, with an aggregate value in excess of $8 million, with all the licence element of this contract being recognised in the Group's financial year ending 31 March 2024 ("FY24")"

Wow

& some text about 'developing further' !!

[smithie6] 05/12/2023 15:16

$6.6m

!!!!!

:-0

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I've been busy today....so that has been a nice surprise.
(I did post the other day that some work was being done for new client in USA Govt....the possibilities were there to see in the recent past RNSs
....I haven't read today's RNS yet.

[devonlad] 05/12/2023 14:48

Not surprised, a lot of that $6.6m drops straight onto the bottom line given the margins. What could have looked a bit expensive now looks quite a lot cheaper!

[ianhamo] 05/12/2023 14:46

Yep seems to be moving quite nicely now.

[marktime1231] 05/12/2023 14:24

Wow. Well done Intercede, £5M+ of immediate license fee revenue for little incremental efffort, exceptional indeed, the warning suggests orders on this scale are unlikely to be repeated. The share price I can see has now jumped in to the 90's.

So someone has secured a large US federal agency competitive order using MyID CMS as part of the bid, effectively reselling for Intercede. And so were a number of the losing contenders. Which makes you think MyID is the value differentiator. The prime contractor will realise this is a competitive advantage.

[devonlad] 05/12/2023 14:16

Doubt it, the news is out. No wonder the directors were loading themselves up to the eyeballs!

[ianhamo] 05/12/2023 14:11

Is it possible to restate the RNS tomorrow if the need is felt?

[devonlad] 05/12/2023 14:10

Trading resumed!

[robow] 05/12/2023 14:09

Group now expects financial performance will be significantly ahead of market expectations for FY24*.