Microgen Share Discussion Threads

[wjccghcc] 06/11/2011 18:38

Apad, I prefer them to share buybacks.

[apad] 06/11/2011 13:30

WJC...

My scuttlebutt agrees with your point about consolidation in the wealth management industry.

However, I'm not convinced about the cash cow argument.

One of my friends quotes a cold call from Microgen sales: "You will have tried our Version 4, which was terrible, we now have V5."

He rates it as the worst sales pitch he's ever received.

I don't particularly like special dividends....

apad

[wanttowin] 01/11/2011 19:19

This, OXIG and BPI flew the colours for me today !

[apad] 01/11/2011 11:48

WJC....
Interims fit with your perspective.
MCGN and DPH my only blue stocks today :-)
apad

[ryandj2222] 01/11/2011 10:24

Great! Only blue one on my stocks today.

[wjccghcc] 01/11/2011 07:45

And that's why I hold a lot of these APAD.

FY moderately ahead of expectations and a 5p special divi. It really is a cash generating machine.

Now all we need is for them to spin off the financial systems side and sell Aptitude for a very good price.

[meshiey] 01/11/2011 07:32

see my post 595 - guess i was right after all Truffle and B1ggles - don't knock others comments if you're not in the know!

[wjccghcc] 03/10/2011 09:51

Scuttlebut is always useful.

[apad] 03/10/2011 09:23

W...

I treat gossip amongst users as very important.

Your points on relative growth are well emphasized at the top of the Interim Report. I would like to see a longer term trend - the next finals are key to my retaining my holding.

Your point about consolidation of the wealth management industry is interesting. I'll ask my local contacts. We seem to be surrounded by wealth managers, so my perspective could skewed.

apad

[wjccghcc] 02/10/2011 23:01

apad, you're missing the point. They have stated the wealth management side is mature with the consolidation of the wealth management industry meaning the managers are getting bigger but their numbers smaller. Profits from that division are declining about 5% a year but it still generated 8mm last year for very little investment - the definition of a cash cow. There is no evidence of that decline accelerating and the acquisition you're talking about was done in 2005 so plenty of time for their "mistake" to have manifested in the numbers.

The future is about Aptitude - revenues have gone from 4.7mm in H109 to 7.8mm in H110 and 10.8mm in H111 with op profits climbing from -575k to 2.0mm over the same period.

I'd value the wealth management side at about 6x op profit, adding 27mm net cash giving Aptitude a valuation of 12x annualised profits which seems fair but not overly generous.

[apad] 02/10/2011 18:56

W...
The story about the MCGN Wealth Management software that I have heard is as follows:
Version 4 had a good installed base of users that appreciated functionality built over a number of years, they wanted to update it and bought a Jersey company that had new software and branded it 5. This didn't have the functionality that the user base was used to and they priced 5 fully. This provided the user base with an incentive to shift suppliers - which they have done.
This doesn't sound like a cash cow it sounds like a mistake.
apad

[apad] 28/9/2011 10:47

W..
Small it is, but I suspect it is a protected niche. Good algorithms gives it a head start and makes competition more difficult.
Also, recent purchase of recording company makes great sense.

apad

[wjccghcc] 28/9/2011 10:19

I've always found MCGN to be one of the more conservatively run software companies - cashflow metrics are always ahead of reported profit and they expense all R&D when incurred rather than capitalising it.

TRACSIS might be a bit small for me.

[apad] 28/9/2011 09:27

"Microgen is a UK-based, publicly listed company that also has offices in New York, Wroclaw, Hong Kong, Cape Town and the Cayman Islands. The odd one out amongst these cities is Wroclaw: hardly a hub of financial activity. The reason is that what has now become Aptitude (previously known as OST-Business Rules) was originally developed in Poland in the '90s as a rules engine that was first implemented by a leading bank. The technology was subsequently acquired by Microgen in 2002."

This was interesting. I note that this comes from a sponsored article. Blindingly fast rule based systems seems a contradiction in terms. I guess the growth rate of Aptitude is the key metric W...
As long as they are not booking sales in advance, which is a dreaded sleight of hand for software company investors.

I gained some confidence when the company wanted to buy my shares.

Currently checking out TRACSIS, which is a niche software company that has interesting characteristics.

apad

[wjccghcc] 28/9/2011 09:13

It's basically next generation BPMS designed to process large numbers of transactions extremely quickly. Hence its attraction to banks and large organisations. It has an entirely graphical design interface so allows business people to design it for what they want without IT needing to get involved.

Here's a few links (some old):

[apad] 28/9/2011 08:52

WJ...
Do you know what edge Aptitude has?
I would have thought that the business process software side was well catered for by large and small companies.
apad

[wjccghcc] 28/9/2011 07:54

The wealth side is mature and they run it as a cashcow. Aptitude is now 57% of the business and grew 38% in H1.

[apad] 28/9/2011 07:51

My local Wealth Fund IT manager is lukewarm about the software.
Any opposite opinions?
apad

[wjccghcc] 27/9/2011 21:26

Yes me. Bought my first batch at 40p. My guess is once aptitude gets big enough, they'll spin off the wealth management side and sell aptitude to someone like SAP.

[dolores123] 27/9/2011 20:59

Anyone love this company??

[ryandj2222] 31/8/2011 09:00

New director today - looks pretty good!

[wanttowin] 22/8/2011 17:13

Had a few more today, like the way this share has held...very steadying !!

[wanttowin] 11/8/2011 18:02

Bought in here today with my last 2K, been buying all over since Friday and trust the rally continues. GLA

[janeann] 10/8/2011 16:24

well some substantive trades going through todsy - buys or sells anyone?

or will there be an rns tomorrow?

[broadwood] 07/7/2011 15:41

Thu 07 Jul 2011Services 766 +0.66%

LONDON (SHARECAST) - Shares in Microgen rose by 7% on Thursday after the software provider said that its first half performance is anticipated to be ahead of its expectations.

The group - which operates through two divisions, Microgen Aptitude Solutions and Financial Systems - said its expects earnings for the full year ended 31 December 2011 to be ahead of current market estimates.

Microgen Aptitude Solutions has seen continued growth in the six months ended 30 June, "benefitting from both contracts with new clients and extending the use of Microgen's software within the existing customer base," the statement said.

Meanwhile, Financial Systems has performed well in a flat market, the group said, with high levels of recurring revenue and strong margins.

Shares were trading 6.8% higher at 180p as of 13:30 in the afternoon.