Psg Solutions Share Discussion Threads

[masurenguy] 10/4/2007 15:42

Interesting - I topped up my holding this morning but the buy trade has not shown up at all today !

[fido] 10/4/2007 08:27

Masurenguy,
One thing that I forgot to say is that PSG are about to launch their new web offering. They have developed a number of new and earnings enhancing products that will be offered through this new enhanced channel.
Over the last few months we have had very influencial persons and institutions making purchases. We have now had the directors being awarded with options. Over the next few months the potential here is going to be seen and relected in the share price

[masurenguy] 10/4/2007 08:14

Fido - thanks very much for that - that website puts some flesh on their HIP service.

There are other competitors of course - NDH with their HIPstar service is one

although I wonder who the 'national search provider' might be in their process !

[fido] 10/4/2007 07:47

Masurenguy,
In HIPS you can see what PGS aim to achieve. As I said before, they are becoming a one stop shop for all property and other related services. In doing this they will become a focus for work contracted out. In effect what they are doing with HIPS is similar to what they did with the searches. To gain instant countrywide coverage they are forming an alliance of profesionals, with themselves as a one stop shop being the channel through which the contracted out work will flow.Each partner takes their cut for services rendered and earnings are enhanced because you gain control of the mass market. Estate agents will not want to deal with a multitude of players, they will focus on the streamlined suppliers like PGS where service levels can be guaranteed and give a fast and cost effective service.
In becoming a one stop shop they draw in work and increase their market share. This is going to propel already strong earnings growth and enable them to cherry pick the best franchises, causing more profit growth and so on and so on.
PGS is still not understood by the investment world as it is not on many peoples radar, but the strong earnings growth over the next year is going to send out a very powerful buy signal.
Take a look at the link below for more information:

[masurenguy] 10/4/2007 07:45

Very strange spread range on this stock ! The average spread is not very wide, only a couple of points (70 - 72), yet all of the individual MMs have 7 point spreads!

The MM range also ranges considerably when you look at Level 2. WINS & KAUP are offering 70 - 77 on the one hand and EVO & KBC 65 - 72 on the other, with SCAP in the middle on 68 - 75.

[masurenguy] 10/4/2007 07:13

Fido - HIPS

On their website, PSG simply state that they will provide HIPS to customers, mainly through their local alliances (established presumably from existing property search services) and they refer to this as 'The HIP Alliance'. However they do not provide any further detailed information on how the HIP data will be sourced, packaged, delivered and price. Do you know how this will work in practice and whether they have already developed a standard IT package to process HIP reports ?

Incidentally I have seen estimates that the average HIP will cost around £500 and that the total market will be worth around £600 - £700m per annum. However there will be a lot of competition in this new sector !

[fido] 09/4/2007 21:42

2006 finals were released on the 28th June.

Regards

[balloo] 09/4/2007 21:31

Anyone any idea when results are due? When did they come last year?

[fido] 08/4/2007 19:16

Masurenguy,
Don`t get me wrong, I think that HIPS are a bad idea and I am totally against them. However thats not what we are talking about here. We are talking about the extra and substantial revenue stream that HIPS will bring to PGS.
The report demonstrates that this is a moneyspinner and that the market may not be ready. In that case it will be companies such as PGS that will prosper as being a one stop shop they will be able to offer a streamlined survice in a cost effective manner. I posted some time ago that the two things people wanted most from an estate agent were speed and cost effectiveness and that firms that could offer that were gaining market share. The way for estate agents to deliver that is to contract out the back office work to PGS.
If you research PGS you will know that they are rapidly gaining market share and it is for reasons I have just mentioned that this is happening. This is set to continue and increase as they buyout the best performing franchises from their strong cashflow.

[masurenguy] 08/4/2007 10:36

Home seller pack chaos
Martin Delgado, Mail on Sunday
8 April 2007

The Government's new property sales pack scheme is heading for crisis - with potentially momentous consequences for the housing market.

From June 1, homesellers will be legally obliged to supply buyers with a property information pack, to include a newly devised energy-performance certificate awarded by a new army of inspectors. But The Mail on Sunday has learned that so far only 1,000 of the inspectors have been trained out of a target of 7,500. Experts fear that this shortfall will bring the housing market to a standstill as sellers queue to obtain the vital certificates. And there were further warnings that the inspectors and other suppliers of home pack information will exploit the situation by charging exorbitant fees of up to £1,000. These suspicions received dramatic new emphasis last night when it was revealed that the Minister in charge of introducing the Home Information Packs (HIPs) is due to speak at a training seminar for estate agents hoping to cash in on the new rules.

Housing Minister Yvette Cooper is to give the keynote address at the £60-a-head gathering where, in other lectures, delegates will be shown 'how to make money from HIPs', later this month. The packs will also include legal documentation and searches. But delegates' discussions will centre on the new energy assessors, who will scour homes for loft and cavity-wall insulation, double-glazing and energy efficient light bulbs. The theory is that buyers will then be able to 'punish' energy inefficient sellers by lowering the sum they offer.

There are various ways to obtain a HIP. Some vendors will get hold of the legal documents themselves and hire the energy inspector called a Domestic Energy Assessor to rate the property's environmental efficiency. Others will employ an accredited Home Information Pack provider to do the work, and commission the energy inspector. But only an official inspector can supply the energy performance certificate. Most vendors are expected to hand the entire task to their estate agent, leaving the firm considerable freedom to charge whatever it thinks is appropriate. Even if the actual price of a HIP is as low as £400, the agent can charge the customer more by claiming to have offered a particularly speedy service or by telling the client that obtaining the documents involved extra work.

Mike Ockenden, director-general of the Association of Home Information Pack Providers, admitted last night that only 1,000 people had been trained as energy assessors but he claimed that a further 2,200 would be ready by June 1. When the Government announced plans for the packs, which it claims will 'add transparency' to the process of buying and selling, it was estimated that 7,500 to 8,000 inspectors would be needed. The burden placed on sellers by the packs, which will also include legal documentation, is now expected to throw the housing market into turmoil this summer inducing a glut of homes on to the market in May, then a shortage in June.

There are also fears that the energy ratings could in time be linked to council-tax payments. The Government has already suggested that 'green mortgages' with lower rates should be restricted to properties that fare well under the new energy-assessment scheme. Kevin Martin, from the Law Society, which has described the Government's plans as ill-thought-out, costly and damaging, estimated that sellers desperate to put their homes on the market would be forced to pay at least £750 or face long delays. 'Barring a miracle, there will not be enough inspectors ready on June 1,' he said. 'It means the inspectors, or the estate agents acting on their behalf, will see the opportunity to add a premium. There is no control over what they can charge.'

A number of companies have been set up to take advantage of the need for homes to have HIPs and estate agents are preparing lists of freelance energy-assessors. Training for inspectors takes three to six months, at a cost of about £3,500. Ms Cooper will be appearing at a one-day conference organised by the Association of Home Information Pack Providers alongside property expert Richard Rawlings, who will tell delegates at the Emirates Stadium in North London that the packs are a 'tremendously powerful way of raising commission levels'. The event has fuelled concern that many estate agents will raise their charges as soon as the regulations come into force.

Tory spokesman Michael Gove said: 'The Government has tried to tell us that HIPs will help the consumer. This revelation underlines that they will only add to the cost homebuyers face. 'Yvette Cooper faces an embarrassing choice either admit HIPs won't help homebuyers or pull out of a conference designed to line the pockets of people prepared to exploit the consumer.'

A spokesman for the Department for Communities and Local Government said some estate agents were already offering special deals that would save consumers money. 'It is ridiculous to suggest that because you attend a conference you necessarily agree with the views of every other person there,' he said. 'The introduction of Home Information Packs and energy ratings of homes will cut costs by increasing competition and transparency in home buying and selling.'

[fido] 07/4/2007 17:06

To give people an idea of where this is heading they should keep in mind two things.
1. The last finals included a set of one off costs that will not be repeated and yet they still showed strong profit growth and cash generation.
2.Hipps are about to provide a major uplift in earnings.
With these two points in mind you can see why the chairman is confident of beating earnings forcasts.
Why then have the directors just issued themselves with share options if they do not see that the shareprice is heading much higher in the months ahead.

[fido] 07/4/2007 16:13

Masurenguy,
PGS benifit from offering a one stop shop. As you say the market is highly fragmented and as far as searches are concerned there is still 75% of the market to go for.
Like I have said before, to streamline the process, reduce time and cost, a lot of estate agents contract out this complete section of the process. As with all sectors, scale is everything, and with its one stop shop PGS are taking market share. This is still in the early stages but within two years PGS will be generating substantial incomes.

[masurenguy] 07/4/2007 15:27

"As for HIPS, PGS have played down the profit potential but if you take note of what is being said by estate agents and banks and building societies, then it is clear that they see this as a money spinner. As a lot of this work will be contracted out to the likes of PGS then this is going to provide a major uplift in profits along with other products".

I agree, HIPS has considerable potential as a incremental revenue and profit generator for PGS. However there is competition out there from the likes of NDH, with their Hipstar package, and some of the other companies listed in The Guardian article, most of whom I've not heard of previously. So it is quite difficult to really determine what share of this potential will be gained by PGS going forward.

[fido] 07/4/2007 14:19

If you go to the PSG website you will see that they continue to take market share. If you have read what I have said in the past then you will know that not only will they continue to do so but that those market gains will accellerate. PGS have recently moved to bigger offices to accomodate the expansion and their new computer systems are designed for delivery of new products.
As for HIPS, PGS have played down the profit potential but if you take note of what is being said by estate agents and banks and building societies, then it is clear that they see this as a money spinner.
As a lot of this work will be contracted out to the likes of PGS then this is going to provide a major uplift in profits along with other products.

[masurenguy] 07/4/2007 10:58

Truffle - 2 Apr'07 - 08:03 - 329 of 331: Masurenguy - can you give more info on the GCI report, please? Who are they, and where can the report be found etc?
...............................................................................

GCI is Growth Company Investor as androyd has already stated above. Can't post a link to their report on PGS since it is a subscription site. You can access their main website on: if you want to check it out.

Their conclusion on PSG was that it looked to be a very good value on a forward PE of less than 10 and that Jon Mervis was confident of exceeding the house brokers profit forecast of £2.9m.

[androyd] 02/4/2007 07:18

Truffle,
beacon equity research, GCI = GROWTH COMPANY INVESTOR.

[truffle] 02/4/2007 07:03

Androyd - can you give more info on the Beacon report, please? Website etc.

Masurenguy - can you give more info on the GCI report, please? Who are they, and where can the report be found etc?

Thanks.

[androyd] 31/3/2007 11:19

Thanks for the info Masurenguy, i've just read the article and i think it will result in PSG rising through 80p next week, it also explains all those purchases at the end of last week! There is a mistake in the article, psg sold a stake in tomco (formerly netcentric, not netstore).

[androyd] 31/3/2007 11:05

Who's GCI?

[masurenguy] 31/3/2007 09:59

PSG tipped by GCI this weekend.

[androyd] 31/3/2007 08:54

Beacon equity research have a target price of $2 a share for Avatar systems (PGS owns 19%) they are currently trading at $1.

[androyd] 31/3/2007 08:11

Only time will tell what impact HIPS will have on the two companies although PGS may issue a trading update shortly which may give us an insight.

[masurenguy] 31/3/2007 07:48

True but the companies who are poised to obtain the greatest gain from the introduction of HIPs are those who already have a strong and established service distribution network with Estate Agents, Mortgage providers and Solicitors who will advise House sellers on the new regularity requirements. It seems to me that both PSG anmd NDH are well positioned in this context.

[androyd] 31/3/2007 06:20

It's a fragmented market, there are lots of companies that are prepared to provide HIPS, most are private unquoted companies.