Patsystems Share Discussion Threads

[interceptor2] 29/7/2010 13:19

Kabouter seem very keen, buying another 1.15m shares @ 24.25p yesterday, taking their holding to over 4.37%.

ps... Thanks for the post with the CEO interview, he seemed very bullish in tone.

[woodcot] 27/7/2010 20:38

PTS is looking good, just think it's a matter of time.

I believe ION will bid sooner or later!

[bg23] 27/7/2010 16:49

copied this of dow jones newswires. interview with ceo webber. theres a big jump im outstanding business pipeline to look forward to !


27/07 14:11 - UPDATE: Patsystems Sees Order Pick-up In 2H As Pipeline Grows

(Adds detail, comments & share price.)

By Hannah Benjamin
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Electronic trading technology provider Patsystems PLC (PTS.LN) Tuesday said its sales pipeline continues to grow, largely as a result of new business opportunities in emerging markets, which it is confident can be converted to orders as soon as this year.

Chief Executive Officer David Webber said the company's new business pipeline is worth about $14 million compared with $10 million at the start of 2010.

"We're very excited about opportunities in Brazil, Malaysia and Indonesia and we expect to start converting some of the pipeline in the second half," he said.

Patsystems' technology is used by global financial institutions as well as independent traders in Europe, the U.S. and Asia-Pacific.

Its products range from plug-and-play modules that address specific issues, to high-performance trading systems with global access to derivatives exchanges and clearers.

About 40% of the firm's revenue comes from clients in Asia, with 25% coming from the U.S. and the rest from Europe.

Webber expects the proportion of sales coming from Asia to climb to about half of group revenue.

"We have a trading system front end that's very low cost to distribute, which appeals to emerging markets, and we offer a connection to a huge number of derivatives markets as well as providing trading infrastructure," he said.

Patsystems' first half, ended June 30, pretax profit fell to GBP629,000 from GBP1.5 million a year earlier as in 2009 the company booked a GBP900,000 gain on a derivative currency contract which reversed to a GBP300,000 loss this year.

Stripping this out, adjusted pretax profit soared 37% to GBP1 million from GBP752,000.

Sales rose 6% to GBP10 million from GBP9.5 million, as solid trading in Europe and Asia offset a 20% fall in sales from the U.S. after one of its clients went in to receivership and it got less bespoke work than in previous years.

"We do expect the U.S. to come back, and we report our Brazil-based revenue within the U.S. results which will benefit it, but we see North U.S. revenue being flat for the rest of the year," Webber said.

Numis Securities analyst David Toms kept a "buy" rating on Patsystems and said the company's results show "good progress" on last year.

Toms said the bullish outlook statement is reassuring given Patsystems' traditional second-half revenue weighting.

At 1306 GMT, Patsystems' shares were trading 0.37 pence, or 1.5%, higher at 24.62 pence, outperforming a 0.3% rise in the Dow Jones U.K. Smaller Companies index.

The company hiked its interim dividend 38% to 0.2 pence a share from 0.145 pence a share a year earlier, which it said reflects strong cash generation and its confidence in future growth opportunities.


-By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [e-mail]

-0-
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(END) Dow Jones Newswires

[bg23] 27/7/2010 09:46

interesting report from edison:

on their estimates, the company is valued at 7.7x 2011 est earnings and 6.2x 2012.

on their discounted cash flow valuation they come up with a price valuation of 35.1p and also show the company trades at a discount to its peers.

ceo quoted on dj news as saying will be offering its services in vietnam, argentina and s korea in the second half. bullish on growth of services, clients and volumes and geographic spread

seems promising

[interceptor2] 27/7/2010 09:13

Management seem confident of sales pipeline leading to stronger growth in H2 and into 2011. Increasing the dividend by 38% would seem to show their confidence. Geographic growth in Europe and Asia are encouraging, with the flip side being a slowdown in USA.

On balance I think worth holding for future growth prospects.

[yespmedc] 27/7/2010 08:45

PTS note -

[glasshalfull] 27/7/2010 08:33

HB comment

Patsystems (PTS, 24.25p, £45.19m)

Patsystems (PTS, 24.25p, £45.19m) Interims to June 2010 saw sales up 6% to £10m (£9.5m) with adjusted PBT of £1.03m (£0.75m), DPS of 0.2p (0.145p) with net cash of £9.18m (£8.90m at the December year end). The group sees good opportunities ahead for its global ASP solution, aided by the recently opened hubs. It reports a strong pipeline and healthy opportunities ahead, promising a stronger second half. Europe grew 25%, driven by last year's contract win with the Turkdex Exchange. US revenues, down 20%, declined as expected due to client closures and reduced bespoke work. Asian revenues grew 16% due to the Bursa Malaysia which helped offset the Tokyo Grain Exchange. Cost of sales fell to £0.2m (£0.3m), with operating expenses underlying at £8.9m (£7.7m). We maintain the 30p price target. BUY (Julian Tolley)

Regards,
GHF

[glasshalfull] 27/7/2010 08:31

Missed results through attention to several other companies reporting this morning.

Well the words "solid" or "robust" could be used in relation to PTS's interims.

Impressive revenue growth in Asia and good growth in profitability for Europe. North America somewhat of a disappointment, both in terms of revenue & profitability.

Net cash now up to £9.2m and importantly sales pipeline significantly higher than last year.

Overall, decent results at a glance, if a little uninspiring.

Regards,
GHF

[bg23] 27/7/2010 08:27

a bit earlier than expected, look pretty encouraging on first glance :-

PATSYSTEMS PLC

RESULTS FOR THE SIX MONTHS AND THE PERIOD ENDED 30 JUNE 2010

Financial Highlights

� Turnover up 6% to GBP10.0m (H1 2009: GBP9.5m)

� Adjusted pre-tax profit* up 37% to GBP1.0m (H1 2009: GBP752k)

� Net cash inflow from operating activities for the period was GBP1.3m
(2009: GBP2.2m). Cash balance at 30 June 2010 was GBP9.2m (GBP7.0m at 30 June
2009)

� Interim dividend increased by 38% to 0.2p per share (H1 2009: 0.145p),
reflecting strong cash generation and confidence in future growth opportunities

* profit before tax after adjusting for share option costs, marking to market of
derivatives used to hedge cash flows and amortisation of


intangibles
other than internally developed software

Operational Highlights

� Bursa Malaysia selects Patsystems to provide a new order management
system to support regional growth plans

� Patsystems new global ASP solution, XConnect, gains immediate traction
with Terra Futuros in Brazil, Unicom and Phoenix Securities in Japan and Okachi
in Hong Kong adopting the hosting service

� The number of new business opportunities and the overall value of the
sales pipeline is significantly ahead of the prior year

Richard Last, Chairman, of Patsystems, commented:

"I am delighted by our achievements in the first half of this year. Bursa
Malaysia selecting our order management system and the Indonesian Commodity and
Derivatives Exchange successfully launching new contracts with our exchange
solution are both testament to our strength in the Asia Pacific region.

Our continued growth in emerging markets, a strong sales pipeline and this
year's deployment of our new global ASP solution, XConnect, will support
sustained growth in 2011 and beyond."

[bg23] 26/7/2010 11:14

ION as a millstone - a couple of ways of looking at it.
1. it certainly makes it harder for another interested party to show an interest.
2. the shareholding might make it less attractive for target companies that PATS might have had in its sights to expand via takeover/investment .

however, the company seeme to be doing the right thing. business/clients, income, coverage all going in the right direction. cash building up, making investment an easier proposition. no debt.

i think the main barrier to institutional investment is the micro cap that the company has - rightly or wrongly, the sub £50m m cap is not attractive as an investment proposition.

and at the end of the day, its only market recognition of growth possibilities, profits and unusually dividend income that is going to change that, unless of course ion decide to make its move, in which case existing shareholders have to ensure ion don't walk away with the company to cheaply

[glasshalfull] 26/7/2010 10:14

I had pencilled in interims for next week based on last years announcement.

Checked the website and nothing posted there. Haven't contacted the company at this juncture.

Regards,
GHF

[glasshalfull] 26/7/2010 10:12

bg23 - My reference re. ION was in relation to the static shareprice & nothing more. Interesting that you mention HK....remember posting an article on the thread around Feb time which alluded to this. Hadn't heard anything further.

My impression remains that it will be a matter of time before ION agree a deal to aquire PTS. I do think that the fact that ION have a 29% stake acts as a millstone to a certain degree and one of the reasons that the shares haven't budged for sometime. Results, product development and cash have continued to progress satisfactorily for the last 18 months but following the spike up in May 2009 the shares have remained becalmed within a small trading range.

Just my take FWIW.

Regards,
GHF

[bg23] 26/7/2010 09:54

ion's shareholding isn't weighing - it might if it was for sale, but its not - or at least i have missed the headlines if it is

recently there has been a reasonable bit of volume going through, as in chunky trades, either the company broker has a working bid or they have been responsible for sorting out institutional type positions

i am not sure if i belive it, but i was told by another holder that another possible reason was the company broker was acquiring shares in the company to smooth a listing in Hong kong - now, i don't know the listing requirements, regulations or otherwise so i can't comment one way or another execept to say that this process was mentioned in the press when the prudential were looking to acquire AIG's asian units. i don't know if it happened or not and haven't heard anything about pats looking to list in hong kong except it was mentioned here or in an interview post the full year figures.

as for the APS hubs, i think we might see a number of companies taking up the service - after all, its a pretty cheap option if you are looing to expand your exchange offering and already offer clients a Pats front end

any idea when the half year numbers might be out ?

[glasshalfull] 26/7/2010 09:23

PTS continues to progress nicely, but there's no budging the shareprice.
Suspect IONs 30% stake weighing heavily here.

Regards
GHF

[interceptor2] 26/7/2010 07:38

Could be the first of some new agreements to use the new ASP hubs announced last Thursday. I would hope this could see the start of the share price moving out of it's range bound trading price.

[bbd2] 24/7/2010 08:24

Hoodless Brennan view:


Patsystems (PTS, 24.25p, £45.19m) has announced the roll-out of three Application Service Provider hubs, in Hong Kong, Singapore and Sydney, which together with its existing hub in Tokyo, allows users access to other exchanges without investment in infrastructure. Sitting on just 10x prospective PER to December 2010 we see upside to 30p or more by the year end, a maintained BUY. (Julian Tolley)

[bg23] 22/7/2010 12:22

Patsystems launches 'XConnect' as
new ASP hubs open across Asia Pacific

Singapore: 22 July 2010 – Patsystems is pleased to announce its new fully-managed Application Service Provider (ASP) offering, XConnect, as it launches three new ASP hubs across Asia Pacific.

Patsystems' new ASP hubs, located in Hong Kong, Singapore and Sydney, join Patsystems' successful and established hub in Tokyo. Each hub offers localised exchange connectivity, a choice of three front-end trading applications, API access and full pre-trade risk management.

The hubs in Hong Kong, Singapore, Sydney and Tokyo will be networked to one another using Patsystems' XLink technology. Patsystems XLink provides seamless communication and order routing between any Patsystems' installation or client site, therefore allowing clients to access exchanges without direct membership.

This new ASP network is the foundation for Patsystems' XConnect. XConnect provides the full benefits of Patsystems trading solution without the need for clients to invest in a technology infrastructure or technical support resources. Clients can opt to use just one of Patsystems' ASP hubs, or they can utilise multiple hubs to facilitate cross-market access. For example, a client in Tokyo can utilise the Tokyo hub for local access to the OSE, TFX, TSE and TOCOM. Using the XConnect network, they can leverage the Hong Kong hub to access HKEx and the Singapore hub for access to SGX, SICOM, CME Group®, LME and NYSE Liffe.

Patsystems plans to announce the locations of additional ASP hubs later this year, which will also be part of Patsystems XConnect network.

Barry White, Regional Director of Asia Pacific, said:
"Patsystems XConnect offering allows us to focus on the needs of local and regional customers who require infrastructure outsourcing and exchange access. XConnect enables new and existing customers to leverage our XLink technology across the four Asian hubs, providing customers with greater connectivity options. We look forward to on-boarding customers to our efficient and cost-effective ASP solution."

[bg23] 15/7/2010 13:01

from what i can see on their website, there's no cross interests and ION aren't listed. although seem to be a broad based financial services type co.

all seems pretty quiet, expect that the company is near announcing its interims.

small announcement on pats website:

Nihon Unicom Inc. goes live with Patsystems' ASP facility in Tokyo

Singapore: 14th July 2010 – Patsystems is pleased to announce that Nihon Unicom Inc., a commodity futures broker in Japan, has launched a new Patsystems offering utilising Patsystems' Application Service Provider (ASP) facility in Tokyo.

Previously, Nihon Unicom managed its Patsystems environment internally. By moving to Patsystems' ASP environment, Nihon Unicom no longer needs to manage or invest in a technology infrastructure or technical support resources. With its new ASP offering, Nihon Unicom will continue to utilise Patsystems front-end trading applications, J-Trader and Pro-Mark, along with direct connectivity to the Tokyo Commodities Exchange (TOCOM).

Patsystems launched its enhanced ASP offering in Tokyo in August of 2009. Patsystems' Tokyo ASP facility offers internet line resiliency, resilient firewalls, networks and servers. The facility contains a link to Patsystems' London data centre to support XLink connections to and from Japan.

Patsystems unique XLink network enables Patsystems' customers to leverage one another's exchange memberships and allows for seamless communication and order routing between any Patsystems' client site.

Barry White, Regional Director of Asia Pacific, Patsystems, said:
"Patsystems has enjoyed a long and successful partnership with Nihon Unicom. We look forward to continuing this partnership by hosting Unicom's new ASP environment, which was launched seamlessly and without any disruption of service."

Mr. Takeuchi, Manager of Information System Department, Nihon Unicom, said:
"It is with great pleasure that we offer this new high-quality service in cooperation with Patsystems. We consider the partnership with Patsystems essential to extending our business in the upcoming 'Exchange Consolidation' era as well as being able to offer a stable system for our customers."

[bbd2] 30/6/2010 14:15

So our former CEO Kevin Ashby has joined Velsys ltd. Anyone know of any connection with ION ?

[bg23] 23/6/2010 09:17

dvda,
pretty similar to what i found. not a great deal of substance out there. they seem to be relatively passive holders.

regards

[dvda] 21/6/2010 12:11

I found a couple of snippets:

"Kabouter is a Chicago-based investment management firm with assets under management of approximately USD185 million as at 31 December 2009. Kabouter adopts a reasonable price approach by investing in small to medium size companies in non-US developed markets and benefits from their growth."

"According to a good source, Kabouter operates out of San Francisco. It is a small operation with around, or a few more than, two fund managers. The owner is a smart and sharp guy named Craig Millikin.

Kabouter targets relatively unknown businesses with decent growth potential and cheap valuations in developed markets.

It would steer clear of companies that have heavy capex requirements to keep up their revenues.

Kabouter is interested in relatively small companies, which institutions have not bought into yet."

[bg23] 21/6/2010 11:45

just following up on Kabouter, there really is very little out there on them. they don't seem to advertise, I can't see anytthing on their performance returns and can only see a couple of sec/regulatory announcements against their name.

google throws up a couple of snippets, but nothing of any note. they were a holder of yougov, and have occurred previously alongside Herald in reportable sharholdings.

other than that not a lot to report.

whateever happend to Maddox and ecrn? they used to pop up with some sesible comment on the company and seemed to have a bit of insight - but they've been quiet of late. you guys still around , holders?

[woodcot] 09/6/2010 15:59

Another sizeable trade of 739,000 at 24p, again I don't think it is a sell but if it is there must be a buyer waiting for the shares otherwise the share price would be marked down.

ic2, if it is another buy I don't know where the stock is coming from and why they go through at the "offer price"

[interceptor2] 03/6/2010 12:43

Interesting trades recently, with the 1.7m purchase by Kabouter already mentioned. I wonder who brought the 1.2m @ 24p just before, I guess a threshold wasn't passed so no RNS likely. On the other hand, who are on the other side of these trades?

But I like the news flow recently which is gathering pace nicely.

Regards ic2........

[bg23] 03/6/2010 12:29

woodcot,
thanks, hadn't seen the announcement.

not heard of Kabouter, then again , why would I? will have a look

its noticeable that they, caz capital and herald have all added recently - sure they like the story - but perhaps they have an inkling that the end game is getting closer?

a pure coincidence - on the front of todays paper i see that TA associates are to realise approx £50m from the upcoming float of jupiter - rearranging the deckchairs?

bg23