Red24 Share Discussion Threads

[glasshalfull] 11/6/2013 08:52

See post 792 re. forecasts

Therefore pleased to see that their cash generation far higher than I anticipated with earnings marginally higher than forecast.

Very good news in relation to HSBC renewal, & until 2017 ;-) ... which underpins recurring revenues of 80% or so in this division..

Now on a historic PER of 9, or if you exclude the £1.7m net cash the PER falls to 6. I'd anticipate further 10% organic growth this year and perhaps a bolt on acquisition? Dividend yield also tasty at over 4%.

I remain a very content holder.

Regards
GHF

[cheshire man] 11/6/2013 08:04

Pleased with that :-)

[cfro] 11/6/2013 07:58

Very good results. PBT £940k and eps of 1.55p.

[integer] 11/6/2013 07:56

first ever final dividend as well. I wonder whether they will adjust the interim next time to 0.2p to normalise.

[davydoo] 11/6/2013 07:32

Cheekily slipped in HSBC 3 year renewal, that's big news.

[owenski] 11/6/2013 07:22

Should be good for 15p today????

[davidosh] 10/6/2013 10:57

Just to advise you all that REDT will be presenting at the next Mello Central on Wednesday 12th June at the FinnCap HQ near Liverpool st station so you can ask the directors a few questions then if any of you would like to join us.

www.freesharedata.com/mello

[glasshalfull] 02/6/2013 10:23

I'd expect results in the next fortnight, which in the absence of any updates should come in c. £900k PBT and 1.5p EPS. Worth reminding that the company has exhausted previous year tax losses and this will mitigate EPS growth year.

Current market cap is £6.6m and they should have c. £1.3m net cash on the balance sheet following purchase of the freehold for their South African base. Therefore EV of only £5.3m.

The contract wins/renewals announced at the beginning of 2013 should underpin forecasts for the current year. Recent developments such as the current crisis in Turkey may utilise REDT's Response abilities in similar fashion to that described in last years preliminary results;


"We continue to provide our advisory and support services on a volume mandatory basis to clients of HSBC and AIG, amongst others, and this has seen steady growth in use during the year. Response work also arises from this work but, unlike last year, there was no major "headline" incident such as the Arab Spring where we extracted over 400 people. However there were a good number of less visible incidents, such as the political unrest in Mali where we helped over 60 people."

This is the advice issued by the UK Govt this morning in respect of Turkey;

https://www.gov.uk/foreign-travel-advice/turkey

"The FCO advise against all but essential travel to parts of the country."

There is also renewed interest/concern in food safety, with REDT's entry into this market during the last 12/18 months looking very well timed.

I remain a content holder.

Regards,
GHF

[cheshire man] 28/5/2013 09:54

Prelims in a couple of weeks I think so maybe some buying into that ?

and a reminder.........



14 November 2012

RED24 PLC



HALF YEARLY REPORT FOR THE SIX MONTHS TO 30 SEPTEMBER 2012



Red24 plc (\"red 24\" or the \"Group\") is pleased to announce its unaudited results for the half year to 30 September 2012.

Highlights:

· Revenue increased by 15.4% to £3.3 million (H1 2011: £2.9 million)


· Profit before tax of £440k (H1 2011: £412k)


· EPS of 0.75p (H1 2011: 0.73p)


· Dividend increased by 25% to 0.40p (2011: 0.32p) - over four times covered by 2011 earnings



· HSBC contract renewed for further year



· Food safety product revenues exceed target



Simon Richards, Chairman, commented:



\"We are pleased with the continued growth in the business in the first half of the year. Both business segments showed significant sales growth and this bodes well for the medium term prospects for the business. The balance sheet has continued to get stronger and we are delighted to declare a 25% increase in the dividend, which remains well covered by earnings, whilst enabling us to retain a significant strategic cash reserve.\"



\"We continue to invest in new products, which we believe will contribute to the long term success of the group and are particularly encouraged by our new food safety product.\"





Enquiries:



Red24 plc



Simon Richards, Chairman
Tel: [phone]

Mal Worsley-Tonks, Director



Seymour Pierce



Mark Percy, David Foreman, Corporate Finance
Tel: [phone]

Jacqui Briscoe, Corporate Broking






red24 is a provider of a range of assistance services, offering risk management in a number of fields, including preventative and reactive advice to help individuals and organisations to avoid and manage security risks to themselves and their dependents. The services are supplied to leading international financial service companies.

[rp19] 02/5/2013 09:56

I bought an initial position in early April, following its drop from previous highs. Looking to accumulate as and when. Nice to see a few well respected contributors on here too.

[jamielein] 02/5/2013 09:29

I also used this opportunity to increase my small holding. I thought I'd missed the boat when it was above 15p.

[cfro] 02/5/2013 08:58

Well, little bit of movement...

[cfro] 29/4/2013 12:08

I've been buying a few as well. Looks a great buy point on the medium term chart. Would like to see an earnings enhancing acquisition or two in the near future.

[norbert colon] 26/4/2013 12:20

I have recently added too on the same basis.

[glasshalfull] 26/4/2013 10:35

finnCap indicated that for year just ended (31/03/13) REDT would deliver PBT of £900k.

With utilisable tax losses exhausted they will have an effective tax rate of 20% (14% in 2012) which should therefore deliver EPS of 1.5p, placing the company on a historic PER of 8.5

Management are targeting 10% organic growth per annum and with high revenue visibility of 80% and margins increasing I imagine that they may look to further expand via a selective acquisition of a complementary offering such as the cyber crime area they have noted at developing.

Dividend of 0.45p forecast for this year which equates to a 3.5% dividend yield and net cash should comfortably exceed £1m following the purchase of the freehold property of their Cape Town office last year. With a market cap of £6.2m I would anticipate that they will be on a EV of £4.7m-£5m which is far too low IMHO for the consistent performance the company has delivered to-date and 4-years of earnings growth, albeit the increased tax rate will subdue EPS growth this year.

Unsurprisingly given my views I've been adding to my holding following the 20% pullback from the recent highs that were generated from through the announcement of contract wins and consideration of REDTs offering in respect of product safety (horsemeat scandal) and security risk response (Algerian crisis).

Regards
GHF

[davydoo] 26/4/2013 09:21

Looking at stockipedia this morning I notice broker forecasts showing a lower profit figure for 2013 of 700k. With 440k achieved in the first half that's quite a drop. Recent contract wins may have upfront costs but that wasn't mentioned as material in the announcements. Anyone any ideas?

[davydoo] 09/4/2013 18:01

New website launched https://www.red24.com/nonmembers/

[rp19] 21/3/2013 13:29

Thanks davydoo. Perhaps the general normal lack of newsflow between result dates, over the past fews years may provdie me with an entry point.

[davydoo] 21/3/2013 07:48

I am a holder RP19 less though than previously, but very happy to hold and looking forward to results in June.

[chessman2] 20/3/2013 22:02

The big seller was given a very good price which indicates there is buyer waiting to pick them up.

[rp19] 20/3/2013 21:07

Davydoo - are you a holder? Is high on my watch list.

[davydoo] 20/3/2013 17:00

Very big. Take out the other major holder, who would have to announce, and its about 3% of the available shares.

[rp19] 20/3/2013 14:11

Big sale gone through this morning, 736k shares, representing 1.5% of total shares in issue (or 2.2% of the shares in public hands).