Psg Solutions Share Discussion Threads

[fido] 28/6/2007 07:21

androyd,
PSG consider that their new IT system is going to deliver very strong returns to what they describe as a "captive" market. They aim to sell as many HIP`s as possible to this "captive" market. Like the banks, PSG will be aiming to sell as many products as possible through their one stop shop approach, and I think you will find that they will be targeting a lot more than 5% of the HIP`s market, which for 4 bedroom houses are due to start I think on August 1st.

I repeat that this company offers very strong growth over the near to medium term.

[androyd] 28/6/2007 07:06

If PSG can capture just 5% of the HIP market ( if there ever is a HIP market ), at 20% margins, it would add £6m profits to the group which means that in a couple of years time the company could be making profits in the region of £12m, and a market cap of 60-80m would, in my opinion not be overvalued.

[fido] 27/6/2007 15:36

Pre tax increases in profits:

PSG- up 40%

Audiotel- up 76%

Insurance arm- up 40%

Strong profits going forward, plus substantial increases in profits when new IT system goes live, plus HIP`s.

[androyd] 27/6/2007 14:11

Now that the results are public, it would be nice if the directors showed their support by buying a few!

[truffle] 27/6/2007 11:14

A few more trades creeping out of the woodwork, but not a great reaction so far to the results.

[masurenguy] 27/6/2007 09:11

I agree - it looks very good but negative sentiment in the property sector could still hold this back for a while. Northern Rock are actually down 10% this morning despite their reported increase in profits !

PSG marked up by 5% but there has hardly been a rush to buy the shares - just one transaction in an hour - a Buy of 873 shares @73p - indicates that this could be hamstrung by its sector for a while. Not being a downer, just a realist !

Great long term prospect and I'm holding for that longer term potential !

[fido] 27/6/2007 09:01

The company is set for strong growth with or without HIP`s. However, their forward looking statements make it clear that there are a number of issues that could contribute substantially to profits going forward.
Even Audiotel have shown strong growth which seems set to grow stronger.

Looking excellent going forward.

[sikhthetech] 27/6/2007 08:49

Strong set of results....£3m++ profit and rising....£1.2m in the bank...
and all for just £20m cap...
Cheap..

[fido] 27/6/2007 08:31

Masurenguy,
With the current uncertainty surrounding HIP`s, PSG have no alternative but to sound a note of caution.
Apart from that we are again talking about strong casflow, strong profits and strong growth.

With the likes of Alliance & Leicester, Bradford & Bingley and todays statement from Northern Rock showing a strong market, then this bodes well for PSG in a number of ways.

[masurenguy] 27/6/2007 08:11

The HIPS comment, regarding the potential impact of uncertainty and delay, might just be sufficient to mute any significant rise in the share price.


Outlook
The Group has strengthened its position substantially, turning round a pre tax
loss of £710,617 to a pre tax profit in excess of £3.7 million. Continued growth in the Personal Search Market through the PSG Franchisee Network (with or without HIPS) will provide the platform to market new products and services to its existing customer base.

PSG has recently taken on new management, implemented a disciplined approach
and provided additional finance to ensure that an effective workable IT
pipeline is put in place. Once the IT challenge is overcome it will provide the
key to rapid growth as additional products and services can flow through.

HIPS, partially or fully implemented, provides an opportunity for growth. The
PSG franchisee network, local presence backed up by a national brand, provides
a USP against its competitors gives it a prime position to take advantage of
the new business generated by the implementation of HIPS. The continued delay and uncertainty regarding the implementation of HIPS will mean some additional costs running into 2008 which may partially negate the continued progress that the PSG group will make.

The Group now has the internal resources and the backing of its financial
advisers and bankers to support a major investment opportunity. Management are
determined to take advantage of the Group's strengths.

[masurenguy] 27/6/2007 08:02

Looking very good - need time to digest and analyse them !

PSG SOLUTIONS PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST MARCH 2007

Highlights

* Turnover increased by 16.8% to £14.5 million (2006: £12.4 million)

* Profit before taxation increased to £3.8 million before exceptionals (2006:
loss of £0.7 million)

* Profit before exceptionals and taxation £3.3million (2006 £1.6million)

* Net Cash of £1.2 million (2006 borrowings of £1.5m)

* 17.1% increase in number of searches conducted equating to 50% of personal
search sector

Jonathan Mervis, Chairman said 'Though the uncertainty regarding HIPS may
partially negate progress in 2008, the Board remains confident that the
strategic investment which has been made in staff, marketing, premises and IT
will further enhance our unique position in the market. We look forward to
seeing the resumption of strong growth.'

Chairman's Statement
It is a pleasure to report a profit before tax of £3,769,432 compared with a
loss of £710,617 last year. Net of exceptional gains this year of £480,467 the
profit before tax was £3,288,965. Turnover for the year was £14,568,255
compared with £12,907,546 last year. These results were achieved after substantial increased investment at PSG Franchising Limited ('PSG') in staff, marketing, larger premises and legal protection for personal search. Substantial ongoing investment is being made to develop the IT systems for delivery of Personal Search, related products and the nascent Home Information Packs (HIPS). All significant costs relating to the above have been charged against profits. The Group Balance Sheet has strengthened considerably with net cash at year end of £1,242,791 compared to borrowings of £1,463,981 last year.

PSG delivered 328,000 (280,000 last year) personal searches during the year
equating to about 25% of home sales and 50% of the personal search sector.
Together with its franchisees, PSG is well prepared to provide HIPS, as and
when they become mandatory. PSG has a local presence spread nationally through its 83 franchisees across England and Wales to provide a service to solicitors, estate agents, surveyors and mortgage providers. This 'hands on' presence combined with an IT system, that when further developed, will be able to deliver more products on line to captive clients. This platform and the national sales force gives PSG a unique conduit to sell into the conveyancing process. Audiotel and Moore & Buckle made satisfactory operating profits of £479,292 and £406,633 respectively. Steady progress was made in the disposal in part of the Group's holdings in some of its investments. A breakdown of pre-tax profit between the Group's activities for the years ended 31 March 2007 and 2006:

2007 2006

£'000 £'000

PSG Franchising 2,995 2,138

Audiotel 479 272

Moore & Buckle 407 412

Paterson Financial Services 315 224

4,196 3,046

Less

Head Office costs (827) (1,023)

Interest (80) (461)

3,289 1,562

Exceptional gains / (losses) 480 (2,272)

Total pre-tax profit/ (loss) 3,769 (710)

[androyd] 27/6/2007 07:16

Results are out!

[masurenguy] 27/6/2007 00:55

Well there was a 25k Buy @73p on Monday too - maybe the same person accumulating prior to results. Lets hope that it's a good omen !

In the meantime Datong posted a 31% increase in sales to £9.6m transforming last years £600K loss into a £1.6m profit this year. Hopefully Audiotel will have made significant progress in 2006 too !

[fido] 26/6/2007 17:07

25k buy ahead of results!

[masurenguy] 19/6/2007 20:51

Datong results are due on Tuesday 26th and PSG results are also due next week so there might be some mutual momentum if there are positive annoumcements relating to both Datong and Audiotel.

[fido] 19/6/2007 09:48

androyd,
Audiotel have gone from lumpy government contracts to commercial business contracts which are said to be winning every order they go for.
Bodes well for the future.

[androyd] 19/6/2007 09:31

Datongs performing well ahead of results, hopefully this should augur well for PSG via Audiotel!

[androyd] 19/6/2007 08:16

It's Burley, see RNS issued yesterday.

[masurenguy] 19/6/2007 07:38

Which NXD has resigned, Hester or Burley ?
Do you have a link to the company statement relating to this ?

[yogya59] 19/6/2007 06:06

Interesting that the only non exec director and the one legacy from previous regime has resigned. No thanks nothing. Just a short statement. In the last annual report it showed he got a small fee as a director but something like 75k for PR work, presumably linked to lobbying for Home Information Packs. No loss probably, but think we now need some new non exec's

[fido] 15/6/2007 00:08

androyd,
Thanks for that info.
In this next set of results Audiotel should show a marked improvement in profits as its business has sought to commercialise its products. A takeover by Datong would be greeted with favour by the market as long as it was a good price.

[androyd] 14/6/2007 19:56

Datong, one of Audiotels market competitors, is to announce its annual results on Tuesday 26th, having already stated that their strategy is to grow by acquisition, they might be interested in purchasing Audiotel.

[masurenguy] 13/6/2007 09:35

Results due by the end of next week. Just 3 months ago, at the fiscal year end, the CEO was quoted as saying that he anticipated exceeding the prior forecast of £2.9m PBT. That would put them on an historic PE of 9 at the current share price !