Psg Solutions Share Discussion Threads

[fido] 06/7/2007 20:10

I had a look at the Investors Chronicle article.
I do not think they understand the company nor the force that will power profits going forward.
Anyone wishing more flesh on that statement can read back through my posts but in the near term this is going much higher, both in terms of profits and share price performance.

[androyd] 06/7/2007 15:48

PSG is perceived to be a HIP related company so any news, good or bad will have an impact on the company, also from IC 'conglomerates are not fashionable' if PSG unloaded it's baggage the market would take a more positive view, if AUDIOTEL are doing well then the board should be able to fetch a decent price but the sooner the better in my opinion, as for ETQ and AVATAR, they're failed investments and should be got rid of. it's about 20 months since we became known as PSG, we're not L&B anymore.

[truffle] 06/7/2007 15:39

Yes, quite an encouraging write-up in the IC, but not having much effect.

[fido] 06/7/2007 14:31

From todays investors chronicle.

Buys for Datong and PSG.

Company Results:
*Buy Ardana (ARA.L) - Assetco (ASTO.L) - Travelzest (TVZ.L) - Northgate (NTG.L) - Cybit (CYH.L) - MS International (MSI.L) - Medical Marketing (MMG.L) - Datong Electronics (DTE.L) - Rift Oil (RIFT.L) - PSG Solutions (PGS.L) - International Real Estate (IRE.L) - Park Group (PKG.L) - Begbies Traynor (BEG.L).

[fido] 06/7/2007 13:12

Thankfully the PGS business plan is not dependent on HIP`s.
As for baggage it looks like profits at Audiotel are going to power ahead.

[androyd] 06/7/2007 12:29

There are two issues which need to be resolved before this undervalued company can power forward, firstly, we need to get rid of excess baggage and secondly, the uncertainty surrounding the introduction of HIPS needs to be cleared and in my opinion, the current jitters (interest rate rises) in the housing market may give the government reason to delay the introduction once again or even pull the plug altogether.

[fido] 01/7/2007 23:12

igoe104,
Basicly HIP`s could mean big bucks for PGS, but the most important thing to remember is that the business model has never relied on HIP`s.
Because of the reasons I have already mentioned, PGS are set to grow strongly even in a slowing housing market. HIP`s when they begin on August 1st will not only add another very strong revenue stream but they will also lock PGS`s captive market into other PGS products providing a very strong cashflow indeed.
As I said before this strong cashflow is being used to cherry pick the best performing franchises adding another 90% of profits each time.
With a highly fragmented market and 83 franchises under the PGS brand that could be taken over, there is a lot of growth to come yet.

I would just like to add just one piece of information about the PGS Audiotel business. Last year Audiotel made the change from lumpy government contracts to contracts on a more commercial scale. If you check out their product line then you can see that they have a very exciting future. One of their products is called roomguard which is used to detect any electrical devices and is mainly for use in secure conditions. Casinos are hungry for this product, but there has been some resistance because it does away with the need for manual sweeps and offers a 24/7 surveilance protection. This can not only be used to protect one casino against fraud but it can also be linked to others providing global protection from a single monitoring room. This is on trial by one of worlds bigest gaming organisations and Audiotel say this product has been taken up on every trial. Resistance apart this and other Audiotel products have a very bright future that will allow Audiotel to add significant profits to PGS.
All in all, regardless of the housing markets I see very strong profits and growth ahead for this company which if you read the results the company pretty much say the same as well.

[igoe104] 30/6/2007 20:28

what involvement will pgs have in the home information packs, which is coming into play this year ?

PS THANKS FOR YOUR INFO FIDO.

[fido] 30/6/2007 20:22

A few other points people may like to consider.

Northern Rocks growth rate moderated from 17% to 15%. That is still a good rate of growth.

Bradford & Bingly see a strong market for buy to let which provide many of the searches.

PGS, as well as taking market share also grow by cherry picking their best franchisees. Once a franchisee gets taken over by PGS the income PGS gets from that franchisee goes from 10% before the takeover to 100% after.
PGS are using strong cashflow to buy out the best performing franchises so you can see that there is going to be strong growth for a long time yet.

[fido] 30/6/2007 19:55

igoe104,
Take a look at the rightmove results.
The company grew strongly even in a slowing house market. The reason for this is because it took market share.

PGS are not only taling market share, they are also channeling other products to their captive market.
Also PGS only have 25% of the search market even though they are the largest player. That gives them a lot of room for growth whatever the state of the market which although may slow will still remain firm for the forseeable future.

[igoe104] 30/6/2007 19:47

I like the look of the business model of the company. but what puts me off is the possible slow down in the housing market.
Sooner or later, all these interest risers will kick, and the market will slow down.
BUT I,LL keep a close eye on the company, looks very interesting.

[fido] 30/6/2007 13:46

androyd,
This is true.
It is early days in the access to information field and there was always going to be some resistance by a few local councils who are more interested in lining their own pockets that giving access to information.
If you look at the PGS results you will see that £1 milion has been spent on litigation. This has been money well spent and will guarantee access from ALL councils in the future.

[androyd] 30/6/2007 13:39

Yes i agree but once these OFT recommendations are in place, there will no longer be a need to go to court.

[fido] 30/6/2007 13:30

androyd,
The law is on PGS`s side when it comes to local councils failing to give fair access to public records. In the instances where there has been a council trying to block fair competition, PSG has been ruthless in bringing these cases to court and PSG has won every case.

[androyd] 30/6/2007 13:22

There is an interesting document relating to fair competition in the property search market and the OFT's recommendation that local authorities allow access to infomation by property search companies, it's available to view at the communities and local government website.

[androyd] 30/6/2007 11:32

I anticipate that PSG will be tipped in at least one of the two share magazines next week.

[fido] 30/6/2007 11:09

androyd,
From what PGS were saying at their last results I think that a aquisition is very much on the cards. I will not name names but I think it could be a key compeditor which would put PGS in a very powerful position indeed.
As far as Bob Morton is concerned, you cannot help but admire him. He has made some pretty canny investments in his time and it was not that long ago that he topped up his stake in PGS.
Vincent Tchenguiz we all know is a very powerful man and his investment in PGS is a very strong signal that this company is going places.
With reference to Audiotel, their profits were up 76% on last year so I think they will give it a little more time before they demerg it. If you look at their products it is clear that they are going to be a huge success and are going to sold to a global market. I think that Audiotel now have a winning formula and given a little time will be big enough to float on the stock market.
Its packaging company is still growing and making good profits. However the growth prospects are limited and although there is no rush I think you will see this sold off at a good price. All of this will provide PGS with handsome profits which will be ploughed back into the business and give them added focus.
As I said PGS are performing strongly and are picking up market share. I is very clear that they are going to become a much bigger concern and the recent tips for the company are the very first signs of the markets appreciation of that.

[androyd] 30/6/2007 10:49

Thanks for that langland.

[langland] 30/6/2007 10:43

This from the Guardian on Thursday....good spot, Androyd

Better solutions

Things are afoot at PSG Solutions, up 3p to 75.5p. After a refinancing in November 2005, the property specialist announced yesterday it had moved back into the black for the full year to the tune of £3.7m. It plans to spend around £800,000 in preparation for offering Home Information Packs, but its profits for this year will be dependent on when these are finally launched. PSG would like to demerge its Audiotel surveillance business and is also hunting for acquisitions. It could afford to spend up to £10m from its own resources on the right target, and more with a share issue. Supportive shareholders include the property mogul Vincent Tchenguiz and entrepreneur Bob Morton. PSG founders the Hester family still hold a chunk of shares but are not involved in running the business.

[androyd] 30/6/2007 10:37

fido,
There's an interesting paragraph in Thursdays Guardian, if i knew how to, i would post it on here, it mentions that things are afoot at PSG and states that PSG are on the lookout for acquitions and could afford to spend up to £10m, and more with a share issue, it also mentions that they would like to demerge Audiotel and goes on to mention Bob Moreton and Victor Tchenquiz as investors.

[fido] 29/6/2007 18:36

androyd,
Many thanks for your imput.
My own (long term) price target for PGS is £3.20.
Although people are begining to appreciate future prospects, I still feel that they do not understand what is going to be the main driver of future profits.
On the question of HIP`s, PSG rightly say that in all matters of the housing market there is market appreciation of the hands on approach. Through their national franchise PSG reach out locally on a national scale. PSG rightly say that they have no compeditor in that regard and talk of maximising product sales via its IT network to what it describes as a "captive" market.
As I have said in the past, we are seeing very strong cashflow which is being used to develope the business and in cherry picking the very best performing franchises. This is leading to even stronger cashflow and so the process continues. Because the housing market is highly fragmented, PSG will continue to grow strongly regardless of the state of the housing market because it continues to pick up market share. You only have to look at the personal search sector where PSG in a very short time has picked up 50% of the market.
I believe that the share price rise over the last few days has been the very start of the markets appreciation of PGS`s qualities. I believe that the share price performance will continue to improve as the market comes to terms with what in the near term will become a very strong earnings performer.

[androyd] 29/6/2007 17:58

fido, basically, the guy was very bullish and he forecast PSG to hit £1-£1.20, he said he spoke to the CE earlier in the week and said he liked what he had to say and he also said that he thought PSG were well positioned to take advantage of the HIP market, or words to that effect, fido, in my opinion there is still uncertainty regarding HIPS and if HIPS are eventually introduced then i think that the above price target will easily be breeched, on the other hand, if the new prime minister and housing minister decide to pull the plug on HIPS, then i believe that that would put the brakes on.

[fido] 29/6/2007 17:01

androyd,
In broard terms, what did the broadcast say?

[androyd] 29/6/2007 16:07

I've just discovered from the other place that PSG were tipped today on stockmarket tv, i've just watched the broadcast and for anyone who's interested there is a link on iii. The item appears about halfway through the programme.