Northgate Information Solutions Share Discussion Threads

[hotfinance14] 12/12/2006 12:09

Here comes the big buying guys.

[hotfinance14] 12/12/2006 10:13

Northgate Information Solutions PLC
12 December 2006







Northgate Information Solutions plc

Director's shareholdings


Northgate Information Solutions PLC (the 'Company') today announces that on the
11th December 2006, Sir Stephen Lander, Chairman of the Audit Committee and
Non-Executive Director, purchased 24,100 Ordinary shares at 83 pence per share.

As a result of this purchase, Sir Stephen Lander has a beneficial interest in
54,870 shares in the Company.

END



Maitland 020 7379 5151
Neil Bennett / Amanda Martyr/Anne Wheeler


Note to Editors:

About Northgate Information Solutions
Northgate Information Solutions plc is listed on the London Stock Exchange. For
further information visit the Northgate Information Solutions website at
www.northgate-is.com.

Northgate Information Solutions is a market leader of software applications and
outsourcing solutions to the public safety, local government, education and
human resources sectors. Headquartered in Hemel Hempstead, Northgate now employs
more than 3,200 staff and has approximately 2,700 large/medium customers and
approximately 7,000 small to medium enterprise (SME) customers across the UK and
Ireland. Northgate works closely with many corporate organisations, as well as
approximately 90% of the UK's local authorities, and all of its police forces.




This information is provided by RNS
The company news service from the London Stock Exchange

[cockneyron] 12/12/2006 09:23

Charles Stanley Research on NIS

Northgate Information Systems

Share Price: 82.75p

Market Cap: £443m

(NIS.L)







These results represented continuing progress, with the adjusted operating margin increasing from 14.3% to 15.5% and net financing costs falling YoY. Of the three divisions, HR performed best with a 14.1% increase in operating profits to £16.2m (revenues up by 7.8%) and the order book increasing by 19% YoY to £125.7m. There is demand from clients to provide a full package of HR, payroll and pension services as well as the software, broadening the relationship as well as increasing sales. Public Services operating profits fell by 3.8% to £7.7m on revenues down by 2.1% as a result of reorganisation of the criminal justice market and longer lead times, but recorded some important new contracts and contract extensions. Managed Services operating profits rose by 65.4% to £4.3m on sales down by 1.4% following a move away from lower margin areas and a focus on value added and support. This division won its first ICT contract (Bristol) under the Building Schools for the Future programme, worth £9m over the initial 5-year term. After the period end it won a 5-year contract in N.Ireland, supplying managed learning services and technology under the classroom 2000 initiative, worth £31.4m over the initial period.



Net debt was flat against a year ago, and the company says it has headroom of about £90m to finance further opportunities. After starting to pay dividends following the end of the previous financial year, the company declared its first interim dividend in its current form, and has presented this as a 20% pro forma increase given "the broad seasonality of trading resulting in the majority of profit being generated in the second half". On the acquisition side, NIS made three small bolt-on purchases in HR at a cost of £13.6m, all immediately earnings enhancing, followed by another after the period end for £12m.



"Prospects across the Group are positive for the remainder of the year". We would look forward, broadly, to more of the same over the next 18 months: further building on the strong position in HR and perhaps continuing small bolt-on acquisitions, some improvement in Managed Services and, representing the major upside potential, more contract wins in education for the managed Services division. The company continues to be cash generative (H1 FCF £10.7m) and has plenty of flexibility on its debt. A large part of the business is represented by long term contracts and/or long term customer relationships. While some of these contracts come up for renewal each year, and this represents an opportunity to lose sales or margin, the record is good. At the same time the long term aspect means that growth is measured rather than volatile.



Management made no reference to the takeover approach that foundered recently, the reason generally being understood to be a disagreement on price and management's view that the interested party had no new plans for the company that were not already under consideration. However, while the company continues to be cash generative and to have plenty of further debt capacity it is likely to be attractive to private equity investors as well as trade buyers from, say, the support services sector as much as software and computer services. As we have noted before, we see NIS's minimal FX exposure, its strong market positions and its long term contracts as providing defensive attractions while providing a firm foundation for continuing growth, with opportunities in education providing the most significant upside potential. We remain with an Accumulate recommendation.



Analyst: Tom Gidley-Kitchin

[slaterlp] 12/12/2006 07:55

Seems crazy, that after continued years of improvement, it still takes a lot to move the share price north by any more then a few pence. City refuses to forward price this company. Must have a very long memory of MDIS days. The stocket market dog.

Perhaps for the relatively small investor (me at least with only 50K in NIS) this is the best thing. Gives us a chance to keep buying as and when we can. Then when the jump to higher ground finally comes, as we all know it will if NIS continue to do as well as the past few years,-- then we will be smiling indeed.

[malc51] 12/12/2006 07:26

The Times December 12, 2006

Tempus

Northgate Information Systems

Northgate Processing payrolls and developing software for the public sector is proving fruitful for Northgate Information Solutions.

The IT group has spent the past few years narrowing its focus to concentrate on the human resources and public sector markets. It has built a business with solid visibility on earnings and a robust cashflow that should prove attractive to investors.

Its success in achieving this was illustrated in October, when the group said that it had received a "number" of unsolicited bid approaches. Private equity groups are thought to have been behind them, no doubt drawn by the group's solid balance sheet. The rejection of the offer signalled Northgate's belief that it can do better itself.

Northgate reported mixed results yesterday. Profits rose 38 per cent to £13.9 million, with solid 8 per cent growth in revenue in its human resources business. Public sector revenue fell 2 per cent, with changes in the police market and longer lead times on local government contracts affecting results.

The group is placed to gain from clients' increasing willingness to tender for larger packages of work, as opposed to particular services.

The shares, which fell back from about 95p to 80p when takeover talks ended, rose ¼p to 83p yesterday. Management seems confident of more growth. At 13 times 2007 earnings, the company, which holds strong market positions, look good value. Buy.

[chef] 12/12/2006 07:21

Small director buy announced this am

[denfredd] 12/12/2006 00:47

so drunker down the pub,getting more drunker.he was downing lots of shorts!!! lol.

[the_equaliser] 11/12/2006 20:21

Has anyone seen drunker50 ??

[chef] 11/12/2006 20:10

And erm no sign of Mr Inside information Drunker!!!. As if you would get inside info and post it!!!!!

[desperate dan] 11/12/2006 20:08

11.12.06 :+0.25, (83) posted better-than-expected first half results, which elicited positive broker reaction, dealers said. The provider of technology to the public services and utilities markets said its first-half pretax profit rose to 13.9m, from 10m a year ago, as group revenue rose 2% to 165.2m. In reaction, Altium Securities maintained its 'add' rating and 90 pence target, saying the figures reveal, as expected, mixed performance across the group's three divisions. It said Northgate HR had a strong period, with revenue growth of almost 8% and a further rise in operating margin to 26.8% from 25.3% and a 19% rise in the order book. Bridgewell Securities said Northgate's results were solid overall and that it expects the company to continue to push towards its 95 pence price target. The broker maintained its 'overweight' price target.

[neefax] 11/12/2006 20:00

GRLZ

Eloquent as usual, will they have a presentation!!!

[malc51] 11/12/2006 16:32

11-Dec-06 Northgate Information Solutions (NIS) Altium Capital. Add. Target 90.00p - Reiteration

[hotfinance14] 11/12/2006 14:17

Nice wording!!!!

[hotfinance14] 11/12/2006 13:44

How much is this seller offloading ?

[chef] 11/12/2006 12:21

Hold both of those mate

[hotfinance14] 11/12/2006 10:26

You will make more money on NIS than VOD thats for sure.

[malc51] 11/12/2006 09:55

Bought another 11K+. Medium term bargain I would think. I might add some more this pm. Unfortunately had to sell some Vod to do it.

malc

[oranges] 11/12/2006 09:31

I really am stunned at the poor response to what can only be described as excellent results, with robust future income streams. Why dont the city boys and girls appear not to appreciate the strength of this company. Whilst I would not endorse wild share values, this outfit more than compares favourably with its peers.

[hotfinance14] 11/12/2006 08:35

Did the city expect better results ?

[malc51] 11/12/2006 08:10

Excellent results. Why the titchy markup? I think I might have to sell some Vod to buy more of these.

[chef] 11/12/2006 08:05

Yup but our fund sellers doesn't care and will bang away until all out. I see this muppets in small stocks regularly. When they have finished the shares rocket and you have to wonder why they decide to sell cheap stocks

[milacs] 11/12/2006 08:01

A brilliant effort considering the fire and associated problems encountered this time last year.

M