Northgate Information Solutions Share Discussion Threads

[superglide] 20/12/2007 17:16

Landsbanki is a buyer of support services group Augean, Northgate Information Services, SThree, SkyePharma and Harvey Nash. It recommends reducing Carnival and holding the Corporate Services Group

[superglide] 20/12/2007 16:06

Late December has seen a rash of takeover news hit the technology sector. Northgate Information Solutions says it is in talks and NSB Retail has agreed a bid from US business software provider Epicor. With technology and telecoms stocks underperforming the market, analysts expect low valuations to attract yet more bidders to the sector.

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The software and computer services sector underperformed the FTSE All-Share by around 10 per cent during 2007, according to analysts at Landsbanki, with IT hardware and telecoms services also down for the year. That could have been even worse without standout performances from the sector's leaders, such as Autonomy and Aveva. But even these quality companies are well off their highs, with previous star performer Axon losing 40 per cent of its value in the last three months.

The tech sell-off suggests investors are taking a dim view of the prospects for IT spending in 2008, with consumer demand also looking shaky. Nonetheless, trade buyers - and perhaps private equity - are returning.

"The market is discounting a doom scenario that companies and corporates just don't share," says Evolution analyst Roger Phillips. "Recent M&A multiples from trade buyers don't leave the software sector looking expensive by any means." He suggests Intec Telecom and Coda could be prime takeover targets in the medium term.

Technology companies traditionally have more cash on their balance sheet, leaving them well placed to gain customers or niche solutions by acquisition. But companies that are themselves roll-ups of several acquisitions, such as Sage or Microgen, may be too complex for a buyer to integrate.

"Companies that can't prove they're consolidation targets are going to have a very tough time," says Andrew Darley of KBC Peel Hunt. "Those that are unappreciated by the market might consider going private while prices are so low."

Dozens of companies trade below the software sector's average forward PE of around 14. "The trick is to find the ones that are not going to warn - because most of them probably are," says Landskbanki analyst Kevin Ashton. But with Northgate in talks, Civica looking cheap and Anite talking up the prospects for selling one or more of its disparate divisions, Mr Ashton adds: "It's deafening the amount of interest we are hearing in public-sector IT."

[hotfinance14] 20/12/2007 14:54

Moving North again now.Great to see two big contracts in the last 24 hours.

[hifkdmer] 20/12/2007 10:32

very undervalued
a screaming buy imho

[aileron] 20/12/2007 10:15

Northgate Information Solutions wins 5-yr, 9.8 mln stg Leicester school contract




LONDON (Thomson Financial) - Northgate Information Solutions PLC said it has
won an initial five-year contract worth 9.8 mln stg to deliver information and
communication technology (ICT) infrastructure to four schools across Leicester,
as part of the Building Schools for the Future (BSF) project.
Northgate said in the course of the contract, which has a total value of
over 27 mln stg, sixteen schools will be entirely rebuilt or refurbished.
BSF is a programme to raise educational attainment by rebuilding or renewing
every secondary school in England over the next 10 to 15 years.
Northgate supplies software to human resource and public service markets.
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i last sold nis on their last takeover talks i think i got 90-93p.

ive been waiting in the wings until today and repurchased

[superglide] 20/12/2007 08:53

beer - lol, think about the last big contract Arinso got then re read. btw and fwiw i have been lost in nis since 1994 mdis and £2.62/share.
also that is not a contract win - yet. and with the debt we need one like that every quarter i would suggest at least from nis alone never mind Arinso

[hotfinance14] 20/12/2007 06:49

Good find Mercier..another big contract.

[hotfinance14] 20/12/2007 06:49

Good find Mercier..another big contract.

[mercier et camier] 19/12/2007 23:33

Can't believe you guys have missed this:-

RNS Number:3348K
Northgate Information Solutions PLC
19 December 2007

Northgate Information Solutions announced as preferred bidder for ICT provision
in Kent County Council's Building Schools for the Future programme


Northgate Information Solutions, the UK's leading supplier of specialist
software and IT services for the Human Resources, Education and Public Services
markets, has been announced as Kent County Council's (KCC) preferred bidder for
the supply of ICT in the first phase of the £1.8 billion Building Schools for
the Future (BSF) programme. The ICT element of the contract is worth £31m

[bullspread] 19/12/2007 22:41

buy 93 soon

[hotfinance14] 19/12/2007 20:51

Beer..I own thousands of Nis..you are beginning to sound like a window licker!!!

[beercapafn] 19/12/2007 20:44

Superglide

You are lost..

Please exit this forom, like hotfince.

Buy

[grlz] 19/12/2007 20:40

slate & oranges always good to read your posts - I agree regardless of a bid the future looks strong if you take a long view - only have to look at the contract sizes being secured nowadays.

I use 46 as a near term floor as the share price could drop should the board again fall behind Stone's strategy and terminate bid talks - BUT 6 months forward on the finals it's hard to justify that low a valuation.

..DIVI is going up

..Company is finding scale and securing large contract wins

..Greater geographic reach hedging against a UK downturn

..Arinso is going to plan

..Strong management with solid expertise in integrating acquisitions

..Excellent cashflow

I think Stone came on board when Mdis had a MK of 22m - today profits are expected to be more than 2x that number

[superglide] 19/12/2007 20:04

Cadbury Schweppes is trading sideways despite its Christmas post including an ultimatum from Nelson Peltz, its third largest shareholder. The billionaire activist investor wants the confectionery group to sell businesses, return capital and appoint several new executives. The Cadbury board has "months" to adopt his proposals.

[slaterlp] 19/12/2007 19:30

I still consider downside limited. Still waiting for further drop due to nervousness or otherwise. I intend to buy another Circa 17000 shares. I still want to get them sub 55p. But begining to think it may not fall again. So may take plung at 60ish.

Even if the bid talks come to nowt, and the share price falls on the news, it wont take long to recover. The company is sound and I prefer to wait until next year anyway for Arinso to feed through into the accounts.

I wish I could be sure the talks will come to nothing, as I would buy asap when it fails as the shares might well sink back to 45 again, and I would love to get them at that price.

But I really have no idea. I dont think that anyone outside of the respective Boardrooms has a clue, unless someone is leaking to the city rumour mill.

So its just a wait and see game.

[superglide] 19/12/2007 19:05

Promise goes south at Northgate
NIS

Published date:
Wednesday, December 19, 2007

Northgate Information Solutions (NIS) – Interims PTP: £0.52m (£13.9m) Divi: 0.29p (0.24p)

Good order wins, a backlog worth £624 million and a 21% hike in the interim dividend suggest the IT services expert has a future rich in promise. But investors remain concerned about the Hemel Hempstead firm's £416.4 million net debt burden and how the company accounts for its research and development expenditure.

The shares of Northgate Information Solutions plunged 13% in the two days after the figures were published and hit 59.5p. This is their lowest level since autumn 2004 and is way below the 95p twelve-year high achieved last autumn, before management batted away unsolicited private equity approaches.

Northgate's debts soared primarily as a result of June's £251 million Belgian acquisition ARINSO, even if early profit margin expansion suggests the new addition has settled down well.

Shares says: High financial leverage remains a worry. AVOID

by: Russ Mould



NIS

Published date:
Thursday, July 12, 2007

Northgate Information Solutions (NIS) – Finals

PTP: £31.9m (£30.6m) Divi: 0.72p (0.6p)

Despite a welcome acceleration in organic growth in the second half, doubts continue to linger over how the Hemel Hempstead firm intends to integrate June's £251 million Belgian acquisition ARINSO.

A fat order book of £389.8 million, equivalent to 111% of last year's sales, at least offers good visibility and Northgate's robust recurring revenues and strong cash flow attracted private equity bidders in October. These approaches were brushed off, however, and despite the possibility of trade buyers emerging as the IT industry consolidates, the £474.5 million cap's shares remain mired at 81.75p, well below last autumn's 95p 12-month peak.

ARINSO operates in 27 countries worldwide and provides SAP-based human resources solutions, which compete with Northgate Information Solutions' own software package in this area.

Shares says: Not expensive on a prospective PE of 13 for 2007.

by: Russ Mould



NIS

Published date:
Thursday, July 12, 2007

A developer and supplier of human resources and payroll software, NIS has been kept busy with numerous acquisitions in the last few years and has managed to create a powerful position in HR software, with a 30% market share in the UK.

Management is building a solid reputation by making logical acquisitions and integrating them smoothly. The latest deal, with Arinso, looks like another key acquisition in the HR area, capable of turning NIS into a global player.

Andrew Gibson from Galvan Research and Trading says: 'NIS is in a great position to deliver earnings growth. It has targeted niche areas with good growth potential and its market share should enable it to gain a competitive edge. The recent healthy results and director buying represent good grounds for a further rise in the share price.'

BUY Northgate Information Solutions • Target 90p • Stop loss 77p

TIME TARGET: 4 WEEKS

[john53] 19/12/2007 14:38

Market is very rarely right. It is governed too much by fear and greed. The PE based on expected earnings is ludicrously low for a growth company that has proved itseld over several years including making several successful acquisitions. Because of the current global credit crunch all companies both good and bad are affected but NIS is no Northern Rock so make your investment decisions on facts/ performance and be prepared to invest for the longer term as value will out.

[oranges] 19/12/2007 14:28

grlz

I am suprised that there is no formal announcement with regard to the 'offer', its unfair on shareholders not to be given more detail, dont you think?

[ards] 19/12/2007 12:34

grtz

I am long 15k and have never shorted nis. still considering what best tact is now. hard to believe that stone would sell without substantial premium given his view on leading nis towards a global hr position. an equity sale would chop up firm to realise value. think floor may be a bit higher than 45 as would be on a pe of 7 which is a bit low for such a bullish story. damed if you do and damned if you dont. market usually right however so clearly not expecting successful bid. the best outcome would be for another bidder to step forward. will probably reduce holding and keep long.

[grlz] 19/12/2007 12:16

ards - If they offer a figure, as mooted by the press then that's considered advanced.

There are no guarantees in life, but your brave to short as any formal announcement of terms would be like getting nailed to a cross I imagine and we already know the floor is 45 which isn't a great return for a short at the current share price

[ards] 19/12/2007 11:45

grtz

aware of the general reg but not sure of the timing of notification. I suspect it is not the same day requirement. This is the point I was making that the coincidence is too great. I dont believe in them. This suspician is confirmed by the press reports that talks are advanced. They could not be advanced if the bid was so recent.

kind regards

[hotfinance14] 19/12/2007 10:54

I have not sold 1 share beercap.

[beercapafn] 19/12/2007 10:00

Stone and his wife bought at £0.82 if I rember right about 6 months ago. I sold at 84p and put my money in Rio. NIS would have to be about £2 quid to give me the same return. So I think HOT FINANCE has a reason to be quite.

Or perhaps he sold on the day the share price touched .70p. On a bid rumour. Lets face it chaps. This stock is out of favour and you can do more with your money elsewere.

Beercap.

[bullspread] 19/12/2007 07:27

Last week, Northgate said it is in takeover talks with a private equity group, in an offer reported to value the company at 580 mln stg.

£1 a share