IS Solutions Share Discussion Threads

[cheshire man] 24/11/2015 11:28

Good to see the 115p TP retained :-)

[interceptor2] 24/11/2015 11:03

Thanks for the finncap update GHF, and this excellent new thread. Haven't shared an investment with you for a while (apart from LAKE), always pleased to see that you also hold.

[glasshalfull] 24/11/2015 10:45

Excellent results. Well done to the company from a delighted holder.

finnCap say,

"IS Solutions

Following the purchase of Celebrus in December 2014, IS Solutions changed its accounting year end from December to March and now reveals impressive results for the six months to September 2015, together with a confident outlook statement, highlighting exciting pipeline opportunities and expecting FY 2016 results comfortably in line with expectations.

That acquisition changed the nature of the group, taking it away from the provision of third-party software and managed services and focusing on business intelligence through data gathering and management, offering its own analytics and Big Data solutions.

Revenues and margins have been transformed – and so have prospects. Group revenue is up 118% YoY to £8.5m (over 80% organic growth mainly driven by analytics) and delivering adj. PBT of 1.7m.

H1 cash generation was exceptional and has taken the business into a net cash position and allowing a 0.5p interim dividend declaration. Marking that transition of the business, the long-serving co-founder and CEO, John Lythall, will be stepping down to NED in March. His various roles will be undertaken by a team, led by his co-founder and Sales Director, Peter Kear, who will take over as CEO.

Peter will be assisted by Carmel Warren (who joined the group with Celebrus) as FD and former IS Solutions manager Mark Boxall returning as Operations Director. We reiterate our forecasts of 6.3p FD adj. EPS for FY to March 2016 and our 115p target price."

Regards
GHF

[interceptor2] 24/11/2015 10:12

Bought an initial holding in ISL this morning, I was lucky that the share price dipped after the initial flurry of buys.

Should have bought in here in September when they released a very strong trading update, I always regretted not buying in and knew at the time that I should have done so. So that mistake eventually corrected.

Interims today were impressive with many positives. The following points are worthy of a mention.

Net margin = 14.7%, which increased from 7.3% in last finals.

Comfortably in line with expectations.

Strong cash generation. Net cash now £0,709m, and improvement from last reported net debt of £1,442m.

Clean balance sheet, no exceptionals.

Small borrowings with interest cover only x 49.

70% of business in the fast growth area of analytic software solutions for businesses.

Plan to expand in the large US market soon.

Pays a dividend with x 3.45 cover.

PER of 14.4 looks within easy reach, might be beaten.

Well done to Saucepan and others for buying these on the September trading update.

[scottishfield] 24/11/2015 09:46

Any views on the board changes, from those that know the Company better than myself?

[santangello] 24/11/2015 08:14

Imperious results, with dividend to boot !!!!

[battlebus2] 24/11/2015 07:25

Results surely worthy of comment :))

[norbert colon] 22/11/2015 21:20

I attended the ShareSoc event in July (shortly followed by the AGM) and both were a useful insight various aspects of the business particularly Celebrus. I am rather intrigued why they are doing another one so soon and can only view this as positive given the trading statement.

Unfortunately I dont have time to attend this one but would echo the comments above re: any feedback. My main question for John (or whoever presents) would be around customer feedback re: Celebrus and the boards expectations now that its firmly bedded in. In July, John noted (when directly asked) that Celebrus was "not a game changer" for ISL - I wonder whether perhaps now they think differently? It would also be good to get his thoughts on divestment plans for other parts of the business that are not performing so well and / or have lower margin.

Good luck to all holders and thanks to GHF for the new thread.

[saucepan] 22/11/2015 19:36

I'd love to be at the ShareSoc event (KWS is presenting, too, which I also hold!). Unfortunately, I have other commitments and cannot get down from Yorkshire.

It would, indeed, be great to have feedback on this thread if anyone can manage that.

[santangello] 22/11/2015 16:14

Many thanks for bringing that to our attention.

I will be many miles away from the venue on the said day, but appreciate the invitation.

No doubt there will be a report back to the thread from the same, and Wednesdays opening price/trades should be very positive.

Continued good luck to all shrewd holders.

[sharesoc] 22/11/2015 16:07

IS Solutions present at our next growth company seminar which is on Tuesday. Shareholders and potential investors may be interested in attending:

[cheshire man] 21/11/2015 19:15

Thank you for the new thread GHF :-)

[goosegreen] 21/11/2015 14:19

Excellent update.

Many thanks

Jon

[santangello] 21/11/2015 10:47

Many thanx GHF.

A more updated and up to date reflection on ISL.

Looks like momentumn building in the run up to results.
At times it is becoming extremely difficult to buy stock, which is a good berometer of MMs position regarding their availability and willingness to slow the traction of the price. All VERY encouraging imho.

[glasshalfull] 21/11/2015 08:26

Link to previous thread



Regards,
GHF

[glasshalfull] 21/11/2015 08:26

New Thread

Sept 2015 "significantly exceeding" trading update resulted in finnCap upgrading 2015/16 results.

"...update reveals that the first five months of the financial year have seen trading progress well ahead of expectations, in particular, two large analytics contracts in the financial services sector bringing £4m of revenue in the year to March 2016, much of it in H1.

Sales from the recent Celebrus acquisition are also ahead of expectations, thanks to increased scale and cross-selling opportunities. These analytics and big-data software projects offer highmargins.

While some of this growth had been anticipated, management expects sales for FY March 2016 will now be ahead of market forecasts with profits significantly ahead. We are raising our revenue target for this year from £15.0m to £16.5m, and our adj. PBT forecast from £1.7m to £2.8m. The FD adj. EPS rises from 4.5p to 6.3p.

Management will also be resuming its progressive dividend policy with interim and full-year payments. In light of this upgrade, we are lifting our target price from 80p to 115p, representing a multiple of 18x current year’s earnings.

Target price raised to 115p"


Regards,
GHF

[glasshalfull] 21/11/2015 08:25

Click here to view the IS Solutions website



Background

IS Solutions plc is a United Kingdom-based company that is engaged in the distribution, design, installation and support of computer hardware and software systems.

The Company is focused on three Web-related areas, which include portals, enterprise content management and big data analytics with specializations in business intelligence in relation to License sales, Project work and a Recurring revenue model.

In December 2014 they acquired Celebrus Technologies which operates in the field of big data to provide business intelligence and analysis, providing detailed data feeds on customer interactions through Internet-enabled devices at an individual customer level to corporates and organisations.


Investment Case

4th September 2015 - Trading Update



Trading
In the first five months of the current financial year (April - August), the business has successfully continued to build on its compelling finish to last year.

The traditional IS Solutions business is experiencing much stronger underlying demand for its Analytics offering with sales currently well ahead of management budget. With financial organisations being the largest investors in big data solutions, the Board is very pleased to announce that this divisions' business team has secured two major contracts with new customers from within the financial services sector. One of these contract wins will initially be for a three-year period, the second will be completed in this year but we expect additional work upon successful completion of the first phase. It is anticipated that they will add contracted revenue in excess of £4 million over the current financial year and in excess of £350,000 per annum of recurring revenue in subsequent years.

It is pleasing to report that sales within Celebrus are also ahead of plan as it benefits from being part of a larger organisation and thus able to capitalise on its increasing pipeline of opportunities. Recent wins in the retail and airlines sectors have been added to the continuing success in the financial sector putting it ahead by 64% of sales for the same time last year.

Overall, we are making excellent progress and the above success gives us the opportunity to invest in our future. Over the coming twelve months the Company will establish a US office to provide real time customer service and pre-sales support to its already substantial US business and further enable future growth. IS Solutions will also expand its UK direct salesforce to take the collective portfolio to a broader customer base. Combine these initiatives with current project sales opportunities with both new and existing customers and we have an exciting future to look forward to.

As a result of this excellent start, the Board is confident that the Company will deliver a strong performance for the year ending 31 March 2016. Revenue will be ahead of market expectations and profitability will significantly exceed current market expectations.

Financials

as at 20.11.2015

Market Cap - £32.3 million
Shareprice - 91.5p


Earnings & Forecasts - per finnCap

EARNINGS

Year End - March

2013A

Turnover £10.4m
Adj PTP £1.0m
Adj EPS 3.1p

2015A (15 months)

Turnover £12.8m
Adj PTP £1.2m
Adj EPS 3.9p

---

FORECASTS

2016E

Turnover £16.5m
Adj PTP £2.8m
adj EPS 6.3p (63% growth)

2017E

Turnover £18m
Adj PTP £3.2m
adj EPS 7.4p (18% growth)

[arlington chetwynd talbot] 21/11/2015 04:07

On this? Nah, just saw it frank...



hic!

[frank incence] 21/11/2015 03:40

go smash your liver

[arlington chetwynd talbot] 21/11/2015 01:10

Mind you, even though I might have a few, looks a wee bit h&s.