Networkers International Share Discussion Threads

[battlebus2] 29/7/2013 18:23

Great to see you here Glasshalfull, i had you as chief suspect after mentioning them hence post 61. As you say excellent value.

[glasshalfull] 29/7/2013 18:11

bb2 - Didn't want you getting lonely...as intimated in my mail last week, I also see value here. Been adding a few ;-)

Believe that NWKI and EMR look excellent value on economic pick-up and yet shareprices of each at year lows.

Regards,
GHF

[battlebus2] 26/7/2013 11:22

Someone else sees value with those buys today, it's been a while lol.

[battlebus2] 20/7/2013 21:09

Bam Bam the figures you post are absolutely correct but they don't mean this is a bad business or for that matter one that is over valued imv.

The cash generation is what swings it for me atm even if NFI is falling
Debt is falling by another 1 million
They continue to repurchase shares
The next dividend will increase by 16.6%



During the period, the Group has made excellent progress in improving and diversifying its sales mix with over 25% (2012: 20%) of Net Fee Income now being derived from permanent placements. The Group's Energy & Engineering division has performed especially well, increasing its share of Net Fee Income to 11% (2012: 6%).

The Group expects to announce an increase of 16.6% on the interim dividend to 0.70p per share (2012 interim dividend 0.60p per share) when it reports its interim results on 19 September 2013.

Networkers continues to implement its strategy of investing in specialist areas within its key staffing sectors of telecommunications, IT and Energy & Engineering with a particular emphasis in emerging markets.

Commenting on today's announcement, Spencer Manuel, CEO said "As detailed in our Final Results, we began 2013 with a lower starting position in terms of contractor numbers compared to 2012 but with the belief that there was opportunity to grow throughout the current year. This still remains the case and should place us in a stronger position as the year progresses and our comparative numbers become less challenging.

Overall, I am pleased with the progress made during the period, particularly in increasing our permanent placement revenue stream which now accounts for over 25% of our Net Fee Income. The overall telecoms market remains unchanged from when we reported back in April. However, when market conditions in this sector do pick up, we believe we are very well placed to benefit from the increased demand that 4G will create. Whilst, understandably, our telecoms contractor numbers are down on last year, they have plateaued out in recent months and I am pleased to report that strength in our specialist IT and Energy & Engineering divisions means that at this stage we remain on target to meet management expectations.

[bam bam rubble] 18/7/2013 16:57

The decline began 18 months ago here which was also the time the directors chose to sell £3 million of their shares - a reliable indicator that things were on the turn.

6m to Dec 2011: £16.7m fee commission (from £103.1m client salaries)
6m to Jun 2012: £15.9m fee commission ( from £90.6m client salaries)
6m to Dec 2012: £14.9m fee commission ( from £80.1m client salaries)
6m to Jun 2013: £14.6m fee commission ( from £7...m client salaries)

[battlebus2] 15/4/2013 17:16

Hi paleje, yes very little interest from P.I's though imv this still has a decent upside with great cashflow and increasing dividends. Patience will reward :))

[paleje] 15/4/2013 17:03

Battlebus, there doesn't seem to be much interest in them, I must admit I've been watching for a while, hoped there might be more input from 4G, still looks solid though. I was tempted to buy in after after the boardroom bust up but failed twice to get some answers from the company after a couple of polite emails and gave up then. Maybe the q's I asked were sensitive at the time but even so co's who don't respond to shareholders or potential ones usually put me off.

[battlebus2] 15/4/2013 16:27

Pre 8 a.m. comments
Good morning. A fairly quiet morning today for results. I'm looking at reasonably good results from Networkers International (LON:NWKI), an AIM-Listed recruitment company. It looks good value to me. They have delivered 4.7p EPS for the year ended 31 Dec 2012, which is ahead of broker consensus forecast of 4.3p. It seems to have been higher gross margins that has driven the out-performance, up from 16% to 18%.

The market cap is £39.5m at 43.5p per share, plus there is £6.9m of net debt, although that relates to invoice discounting. With a net current asset position of £14.2m, the balance sheet looks fine, so seems to be a question of customers being a bit slow in paying, rather than there being any problem level of debt.

With a PER of 9 times 2012 earnings, and a dividend increased 25% to 1.25p (for a 2.8% yield) this looks reasonably priced, although there doesn't seem to be much growth in evidence. That could change in a recovering economy though, so in my view reasonably priced recruiters are a good place to invest right now. Most have re-rated in the last year, some substantially, whereas this one has only risen from a 12 month low of around 35p in Oct 2012 to 43.5p now. Hence could be more upside to be had here, possibly?

They mention upside from the roll-out of 4G networks.

[battlebus2] 15/4/2013 16:22

Another Successful year for Networkers International
In the Group's mobile telecoms division which represents 56% of net fee income we did experience a softening in market conditions going into the second half of the year. Market conditions did stabilise during the last quarter of 2012 and this has continued into 2013.
2012 was clearly a challenging year for the staffing industry as a whole. Despite this, the Group has successfully continued its international expansion strategy within IT and Energy & Engineering sectors, to complement our existing offerings within mobile telecoms.
Another Successful year for Networkers International

The Board of Networkers International Plc, the AIM-listed international recruitment company, is pleased to announce final results for the year ended 31 December 2012.

Financial Highlights

• Net fee income (gross profit) increased by 1.6% to £30.79m (2011: £30.31m);

• Adjusted* pre-tax profits for the year increased by 6.2% to £7.03m (2011: £6.62m);

• Pre-tax profits of £5.68m (2011: £6.60m);

• Adjusted* EPS (basic earnings per share) increased by 11.4% to 4.70p (2011: 4.22p);

• Conversion ratio improved to 23.7% (2011: 22.8%);

• Permanent net fee income has shown growth of 19.5% for the year, more than offsetting the modest reduction of 2.8% in contract net fee income. Permanent placements represent 20.9% (2011: 17.6%) of net fee income;

• Favourable change in sales mix has resulted in gross profit margins increasing to 18.0% (2011: 16.0%);

• Operating cash inflow of £6.0m for the year;

• Net debt relating entirely to drawdown on invoice discounting for working capital purposes has been reduced to £6.9m (2011: £9.1m), after making payments for own share purchases and dividend payments totalling £3.0m;

• Strong balance sheet and good liquidity with net assets of £19.7m and net current assets of £14.2m; and

• A recommended final dividend of 0.65p per share giving a total of 1.25p per share for the year (2011: 1.00p per share) being a 25% increase on prior year.

Operational Highlights

• Share of net fee income derived from markets outside of the UK totalled 71%;

• Successful expansion of specialist IT and Energy & Engineering divisions into the Group's International offices;

• Group headcount totalled 371 (2011: 367) as at year end with employees located in overseas offices now representing 45% (2011: 40%) of Group total headcount; and

• Offices operational in UK, South Africa, UAE, China, Malaysia, Mexico, Brazil, USA and Canada;

Commenting on today's results, Spencer Manuel, CEO, said "Overall, 2012 has been another successful year for the Group with growth achieved in net fee income and underlying earnings. This is especially pleasing given the backdrop of a challenging global economic environment."

In the Group's mobile telecoms division which represents 56% of net fee income we did experience a softening in market conditions going into the second half of the year. Market conditions did stabilise during the last quarter of 2012 and this has continued into 2013.

2012 was clearly a challenging year for the staffing industry as a whole. Despite this, the Group has successfully continued its international expansion strategy within IT and Energy & Engineering sectors, to complement our existing offerings within mobile telecoms.

We have started 2013 in line with management expectations whilst overall market conditions are broadly unchanged from Q4 2012. There remain a number of opportunities for growth within our existing business and we are very well placed to benefit from any improvements in market conditions and from the global investment expected for the upgrade in mobile networks to accommodate 4G networks."

* adjusted for the add back of amortisation of intangible assets, litigation costs and share based payments and, for 2011 only, the deduction of unrealised profits arising on business combinations. For the adjusted EPS calculation, the year end number of shares of 83,535,269 2011: 89,053,953) have been used.

[battlebus2] 15/4/2013 07:53

Great results this morning given last year was exceptional-PNFI up 19.5% slightly ahead of the January trading statement and slightly less of a reduction in contract NFI. Cash inflow 1 million more than expected and margins up, the dividend is also nearing 3% now.

Financial Highlights

-- Net fee income (gross profit) increased by 1.6% to GBP30.79m (2011: GBP30.31m);
-- Adjusted* pre-tax profits for the year increased by 6.2% to GBP7.03m (2011: GBP6.62m);
-- Pre-tax profits of GBP5.68m (2011: GBP6.60m);
-- Adjusted* EPS (basic earnings per share) increased by 11.4% to 4.70p (2011: 4.22p);
-- Conversion ratio improved to 23.7% (2011: 22.8%);
-- Permanent net fee income has shown growth of 19.5% for the year, more than offsetting the modest reduction of 2.8% in contract net fee income. Permanent placements represent 20.9% (2011: 17.6%) of net fee income;

-- Favourable change in sales mix has resulted in gross profit margins increasing to 18.0% (2011: 16.0%);

-- Operating cash inflow of GBP6.0m for the year;
-- Net debt relating entirely to drawdown on invoice discounting for working capital purposes has been reduced to GBP6.9m (2011: GBP9.1m), after making payments for own share purchases and dividend payments totalling GBP3.0m;

-- Strong balance sheet and good liquidity with net assets of GBP19.7m and net current assets of GBP14.2m; and

-

[battlebus2] 14/4/2013 17:53

Looking forward to the results in the morning. Any other holders?

[battlebus2] 04/4/2013 12:29

Results due on the 15th April.

[battlebus2] 04/4/2013 09:50

Moving strongly again today, still on a very undemanding p/e of 11 with most in the sector 50% higher. Hopefully the new 4G investment will begin to reap some rewards. They have already said the dividend will increase by 18% so much better than current banks are paying.

[battlebus2] 03/4/2013 09:12

Continuing it's run up to results with a tick up again :))

[battlebus2] 02/4/2013 12:04

Loverly quiet thread too :))

[battlebus2] 02/4/2013 11:14

Took a few of these with results in 14 days and a p/e of ten. Broker target of 62p.

[paleje] 19/10/2012 14:33

Yes that's a point davidosh, another RNS to follow I would think.

[davidosh] 19/10/2012 11:47

There must still be a few million shares needing to find a home at 32p ? The shareout amongst directors and buyback did not add up to Popes holding from memory

[paleje] 19/10/2012 10:12

Looks like a boardroom bust up with a founder board member quitting; Pope's resigned and entire shareholding been mopped up by the company buying back ~£1.6m worth and the other directors sharing the rest. They say Pope will still maintain contacts in N. America, hmmm I bet he will.

Still, his patch accounts for less than 10% of group revenue as fas as I can see so unlikely to cause major damage unless there's more to it. Further clarification required.

Took a chunk out of the company's cash pot.

[davidosh] 19/10/2012 10:08

I see a director has left with immediate effect and shares dumped at 32p

[paleje] 03/10/2012 10:44

From the outlook statement 17 Sept the company said -

".....conditions within the group's telecoms sector has tightened which we view as an investment pause ahead of the rollout of the new 4G networks. As these rollouts gather momentum, we anticipate a significant increase in new business opportunities from this sector in 2013 and beyond...."

On Tuesday 02 Oct an agreement was reached between providers that will make 4G multiple networks available by summer 2013, 6 months earlier than planned (Guardian). So presumably likewise for the new business opportunities referred to.

They also said -

"...In recent weeks it would appear that market conditions in our telecoms division have stabilised; and our other core markets such as International IT and Energy & Engineering are both trading ahead of management's expectations..."

Nobody seems interested in these guys but they seem to be doing the right things, if anybody looks in here and sees any negatives please do flag them up....preferably before I grab a few.

[paleje] 24/9/2012 11:32

Anybody following these guys? I just noticed their recent shares buyback so took a look at their track record which looks decent to me. Interims and outlook statement 17 Sept was positive -

Increased perms/temp ratio which many recruiters are struggling to do
Increased profit and reduce debt
Increased dividend 33%
FY looks to be at least in line
Trade since HY has stabilised in Telecoms (they expect a boost from G4) and ahead of forecast in IT, Energy and Engineering.

They say 2012 H2 won't quite replicate 2011 H2 which was exceptional so growth for the full year fairly modest. But what about 2013, they look to be on a forward PE around 8, which seems low for what appears to be a very competent outfit working in the right sectors and geography.

[topvest] 23/1/2012 15:01

up again and over 40p

[topvest] 21/1/2012 18:13

Moving up again - hopeful this will get above 40p and possibly back to it's 2007 high of 47p.