Interquest Share Discussion Threads

[effortless cool] 24/5/2016 22:07

I have just finished a big valuation modelling exercise on ITQ and came up with a fair value of 95.6p, i.e. pretty much where out is now.

It's main problem is its struggle to grow its revenue more rapidly. Most revenue growth in recent years has been driven by the acquisition of ECOM, and that seems to have bene something of a dud, with revenue falling in every half year period since it was purchased. It is perhaps telling that its biggest revenue sector - Enterprise - comprises "legacy customer relationships".

In any case, I hold over 16k of these and plan to hold onto them for now. I won't be adding, however, until I see clear evidence of revenue momentum.

[cfro] 17/5/2016 22:30

I also added today and, i see, so have others here like me. :-)

Still underweight so will be hopefully looking to add again at some later point.

I think the clearance of the overhang is finally kicking the share price on which is well overdue imo.

[tudes100] 17/5/2016 10:33

I'm not greedy, PE of 10 would be fine @ FY17 EPS forecast of 13.5p = 135p (42% upside) plus a nice 3.5% divi whilst we wait.

[pj 1] 17/5/2016 09:57

Added a few more but seems a p/e of x10 is currently the Market for recruiters?

[aishah] 17/5/2016 09:43

Panmure fcst 11.8p(2016) followed by 13.5p(2017). Low p/e and peg. Also a divi of around 3.4%. These look quite undervalued to me. Might add more now that the seller may have cleared. dyor

[battlebus2] 17/5/2016 09:32

Hopefully this time!

[interceptor2] 17/5/2016 09:28

I wondered also about the seller clearing after you highlighted this last week SJ.

Thought I would test the market and tried a small top up, only 2000 shares when the spread was showing 92 - 94, nothing on the open market so had to use fill/kill with 95p limit, went through eventually but I had to wait about 5 minutes for this small order to be filled.

[sailing john] 17/5/2016 08:57

Has our seller finally been cleared?

A 2p tick up on the bid to 92p might suggest so and now 1p on the offer

My second largest holding after Avesco - both have been treading water recently!

GL - SJ

Edit - and a further tick up whilst I was typing!

[pj 1] 16/5/2016 20:10

£212k trade reported at 92p at 12:57, so looks like a buy.

[pj 1] 25/4/2016 09:08

Chris Elderidge CEO gave a good presentation at masterinvestor (as most were to be fair). I also spoke to him at some length after at the stand and he came over as being in favour of PI communications, so hopefully that side can be developed alongside a growing Business.
Talking to other attendees Id say they were in the top 10% of what were classed as decent Companies to research more (very subjective I know)

[pj 1] 18/4/2016 16:30

Took a few more, but had to pay over the offer.

[spooky] 18/4/2016 16:25

Trading these has always been tricky.

[pj 1] 18/4/2016 16:16

Down 5%, yet cannot buy any within the advertised spread. Is that common in this? TIA PJ

[2breakout] 31/3/2016 09:17

couple of days old i think.

[battlebus2] 31/3/2016 09:15

Thanks 2breakout, thought we had been tipped.

[lanzarote666] 23/3/2016 11:28

Patience being rewarded as others are now seeing the value on offer here.

First stop 105p and then we look for 130p as fair value.

[battlebus2] 23/3/2016 10:32

Excellent move back above 90p again, next stop £1 :))

[2vdm] 22/3/2016 10:04

CWA1, that would be great! I've dipped my toe in here at 87p approx after all the comments in the press and on boards like this one. Just hope I've timed it right.

[cwa1] 17/3/2016 14:06

Will sell you mine for £1.40 :-)

[simon templar qc] 17/3/2016 13:43

These were tipped in the Mail some time ago and they may cover again now results are out. Share price should be nearer £1.50 .

[simon templar qc] 17/3/2016 10:15

Undervalued hence the share price getting stronger day by day.

[cwa1] 11/3/2016 15:01

11 March 2016

InterQuest Group Plc

("InterQuest" or the "Company")

InterQuest Group plc, the specialist recruiter in the technology, analytics and digital market, has been notified today that on 10 March 2016 David Bygrave, Chief Financial Officer, bought 24,750 ordinary shares in InterQuest at a price of 80 pence per share.

Following this transaction, David Bygrave is beneficially interested in 37,250 ordinary shares in the Company representing approximately 0.1 per cent. of the Company's issued share capital.

[aishah] 11/3/2016 10:01

Specialist recruiter InterQuest Group (ITQ) has announced results for the 2015 calendar year and that “the new financial year has started positively”. Good News.

This is with the results from the specialist technology recruitment company with a focus on high-value niche markets showing an adjusted pre-tax profit of £5.01 million, generating earnings per share of 10.50p, up from 9.58p in 2014.

After particularly £1.56 million on acquisitions and £1.09 million of dividends paid, net debt was reduced by £2.33 million to £6 million. A further dividend per share of 2p has been announced, to be paid on 13th May, with an ex-dividend date of 14thApril, taking the payout up to 3p (2014: 2.5p).

The company added that “we are witnessing acute skill shortages for technologies that will enable our clients to either augment or transform their operating model to capitalise on the new digital economy. This demand is having an upward impact on salaries as well as permanent and contract recruitment margins”.

This sees house broker to the company, Panmure Gordon, note that although “the new InterQuest management team has inherited an efficiently run business… given the verticals targeted, fee income growth trends should have been higher (+6.2% YoY 1H15, -1.2% 2H15). The new strategy aims to address the top-line through improved consultant retention and headcount investment”. It is forecasting earnings per share to grow towards 12p this year and to 13.5p next.

The reported performance has seen the shares slip towards 80p – suggesting a price earnings multiple of circa 6.8x, falling to circa 6x. Given the noted outlook, progressive dividend and reducing debt, this looks a much too harsh assessment and we continue to rate this Steve Moore tip of the year a value buy.

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