Northgate Information Solutions Share Discussion Threads

[grlz] 11/12/2007 13:28

trading at around 10 times earnings, Questor repeats its view that they look cheap.

My thoughts exactly..

[hotfinance14] 11/12/2007 10:11

Need to reduce debt.

[staverton] 11/12/2007 10:03

Todays Telegraph

Northgate IS
62½p -6
Questor says Buy

Since Questor last tipped Northgate Information Solutions as a buy in July, the shares have sadly headed firmly in a southerly direction.

Northgate, a supplier of software and IT to human resources and local government customers, has been one of the unlucky casualties of the continued sub-prime fallout.

Fears of a recession and a slowdown in companies upgrading their computer systems - especially in the recruitment sector - have seen the stock tumble.

Yesterday's interims were strong and the integration of £250m business Arinso, its largest and most significant deal to date, has progressed well. The acquisition gives the group a human resources footprint outside the UK and is said already to be delivering "substantial" benefits.

Despite an upbeat set of results, Northgate shares fell due to it unveiling higher than expected levels of debt. Still, with recent share price falls leaving the shares now trading at around 10 times earnings, Questor repeats its view that they look cheap.

Continued speculation that the group could sell off its public sector or managed services business could help the

[hotfinance14] 11/12/2007 08:39

Its Northgates results today..many PI's will buy in NIS by mistake as usual.

[drunker50] 11/12/2007 00:34

Stone is having a jolly good gamble with shareholder cash here.
Great learning curve for him if he fails.
Hero if he succeeds.
Personaly i have lost the appetite for such gambles.

[desperate dan] 10/12/2007 19:37

What a shame about Stone.

If ever this company gets a really good CEO, it will be off to the races.

His eogtistical driven actions are ruining the balance sheet.

[grlz] 10/12/2007 17:39

well if it goes sub 60 which I doubt, but a market fall could test the share price further I am buying as Cashflow will tradeout the interest, should Stone not acquire anything large in the next 18months. I expect NIS to benefit further from ARINSO and the order book to pace further and faster than current levels as the current pipline is based on old NIS - ARINSO takes this to another level - the new contract sizes being gained demonstrate this. (Pfizer £16m Cadbury - Largest ever global HBO, it goes on)

Calculated risk, but the performance of the business speaks for itself and I don't agree with the Dresdner note as their looking at an absolute interest level without consideration to how the company usually trades out it's cashflow position - it's like they have deliberately hijacked the uncovered LIBOR as a NIS specific issue, not due to problems in the wider credit market - a little pedantic given rates are expected to be cut.

six months time £50m profit with double digit organic growth and a £800m orderbook and were still be sitting at £363m MK - no chance 14x earnings imho

DYOR

[hotfinance14] 10/12/2007 17:35

Would like to know what Stone thinks of this.

[ards] 10/12/2007 14:01

Northgate IS, which was forced to relocate its Hemel Hempstead headquarters
and data centre after being hit by the Buncefield oil depot explosion in 2005,
said sales rose 49 pct to 246.3 mln stg, well ahead of the 230 mln analysts'
consensus forecast.
But Dresdner Kleinwort cut its rating to 'reduce' from 'add'. It noted that
net debt rose to 416 mln stg from 184 mln in April, following the acquisition of
Arinso.
It said net interest of 13.7 mln stg, compared with the broker's expectation
of 11 mln, suggests its pre-tax forecast of 50.5 mln stg for the year to April
may be in the region of 6.7 mln too high.
The shares fell 6 pence, or 8.8 pct, to 62-1/2.

[chrisc168] 10/12/2007 09:52

alot of sellings, why ?

[beercapafn] 10/12/2007 08:40

Hi hotfinance14...

A buying oppertuinity eh. !!!

Go for it. ?

[mercier et camier] 10/12/2007 08:10

Capitalised at £400M the shares are high enough.

[don carter] 10/12/2007 07:57

If the H2 eps is merely the same as last year, NIS would be heading for a FY eps of around 7p........Undervalued.

[liveinhope] 10/12/2007 07:34

20.8% increase in dividend is welcome news.

[hotfinance14] 10/12/2007 07:09

Northgate Information Solutions PLC
10 December 2007



NORTHGATE INFORMATION SOLUTIONS PLC

Interim Results for 6 months to 31 October 2007

Northgate IS delivers strong organic growth and cash flow following
transformational acquisition

Northgate Information Solutions plc, the international supplier of specialist
software systems and IT services for the human resources and public service
markets, today announces its interim results for 6 months to 31 October 2007.

Financial Highlights

2007 2006 Change
Turnover £246.3m £165.2m +49.1%
Adjusted(1) Operating Profit £31.5m £25.6m +23.0%
Adjusted(2) Earnings Per Share 2.84p 2.96p -4.0%
Dividend 0.29p 0.24p +20.8%

Highlights:

•Northgate becomes a global HR software and services supplier with the
completion of the ARINSO acquisition

•Strong organic growth across all divisions; up 6.6%

•Total order book rises to £642.0m, up 11% organically

•Adjusted operating profit up 23.0% to £31.5m, including maiden contribution
from ARINSO

•ARINSO operating margins rise to 9.5% as integration begins

•Continued growth in operating cash flow. £32.7m generated in the period

•Dividend per share increased 20.8% to 0.29p per share

Ron Mackintosh, Chairman, commented:

'This has been a period of great activity for Northgate. The group completed the
acquisition of ARINSO, its largest and most significant to date, during the half
year, which has transformed the group into a global provider of HR software and
services, with operations in 46 countries. This acquisition is already
delivering substantial benefits, with the group winning a number of significant
new orders and the integration process running ahead of our expectations. Our
Public Services division meanwhile has continued to deliver critical systems to
both local and national Government and delivered good organic growth whilst our
Managed Services division has built on the strong position it has secured in the
Government's Building Schools for the Future Programme. Overall, we have built
strong foundations for future growth, both in the second half of the year and
beyond.'

Chris Stone, Chief Executive, commented:

'The figures for this half year demonstrate both the strength of the Northgate
group and its enormous potential. During the half year all three of our
divisions delivered organic growth, strong cash flow, and strong order intake.
All three have strengthened their positions in their key markets. In addition
the acquisition of ARINSO is proving to be even more promising than we had
envisaged; it has enabled the HR division to win a number of significant
long-term contracts and accelerated the evolution of our business from a
software and services supplier into a true global outsourcing group. In terms of
outsourcing, HR stands today where the IT industry was 15 years ago. The
opportunities for growth are substantial and we now have the breadth and scale
to capitalise on them.'

[hotfinance14] 09/12/2007 14:50

Thanks Slater.

[hotfinance14] 09/12/2007 11:30

On www.ft.com they use to show forecasts.Does not seem to appear there now.

[hotfinance14] 07/12/2007 19:16

Results on Monday.Lets hope the interim dividend increases.

At the interims last year we had an interim Div of 0.24p and final 0.48p.I am hoping for an interim of 0.30p which is a 25% increase.

[grlz] 07/12/2007 17:10

crewe - @65 when I posted to results i'm guessing higher but we shall see.

I don't agree with the view that the market has a problem with NIS, I can safely suggest that market participants don't give a rats 'bout any listed company. The concern would at this point be the debt which is real and the business NIS needs to generate to service said debt, which given the economy is less than predictable and hence the share price volatility.

NIS has a decent cashflow position but the lack of a strong balance sheet is a cloud. But good contract win though..

[hotfinance14] 06/12/2007 06:55

Thats something none of us know.

The fundamentals have not changed.

[chrisc168] 05/12/2007 18:02

with all these new contracts. Why is this share price still going down ??

[hotfinance14] 04/12/2007 16:06

Northgate Information wins 5 yr Wycombe Council deal worth 4.5 mln stg




LONDON (Thomson Financial) - Northgate Information Solutions has won a new
contract worth over 4.5 mln stg over five years with Wycombe District Council.
The contract is to provide ICT managed services to the council, said a press
release. Northgate, who already provides revenues and benefits services to the
council, will give onsite desktop support to 650 council workers.
[e-mail]

[4323] 04/12/2007 12:59

Yet another contract win