Resources In Insurance Group Share Discussion Threads

[davidlloyd] 13/9/2011 10:13

Nice - some numbers would have been good though......

DL

[dicko80] 13/9/2011 07:44

finally ;-)

[soggy] 13/9/2011 07:39

I assume that I'm the only one left in this share now??

Always happy to see an RNS announcing a new contract. Suprised nobody commented on the results in August - 48% uplift in revenues and moved to profit!

Here's today's news:

RNS Number : 0449O
13 September 2011
RESOURCES IN INSURANCE GROUP PLC

Major contract win with leading insurer

The Board of RiIG, a leading provider of claims management and consultancy solutions to the UK insurance profession, is pleased to announce today the signing of a major contract with a leading Property & Travel insurer for its Verify product.

The Company operates through its four divisions, i-Team, Verify, Consult and Surety Claims. Verify, which provides nationwide field investigation solutions across Property & Travel, Motor, Liability and Counter Fraud, was introduced on a limited test marketing basis in 2010 and, following a period of evaluation, was launched to the wider market during 2011.

Verify has secured a number of small clients in the Motor arena during 2011 and now sees its first major contract from one of the UK's leading insurers for Property and Travel investigation claims, which is expected to commence during the month of September.

The Board of RiIG believes that RiIG has made an impact within the insurance profession with its established I-Team service providing both in sourced and out sourced claims management services. Verify provides a complementary facility on which to accelerate growth of the Company's overall capabilities.

Today's win follows on from the Company's recent half year results, announced on 11 August, which saw an uplift of 48% in revenue to GBP1,373,215 (2010: GBP925,146) and a move to a profit of GBP25,382 before share option expense (2010: loss of GBP150,466). The contract sees the Company's continue to secure new business, which the Board expects will in turn build on its position of profitability.

Commenting on the contract win, Executive Chairman John French, said: "This is excellent news, following so closely on the announcement of improved trading and new business gains from existing and new clients. The win further supports the Board's belief that the Company's prospects for the remainder of the current year are encouraging."

[matty28] 19/7/2011 11:32

not sure if u meant to type something begineer3 came up as just 'edit'

[matty28] 19/7/2011 10:42

anyone go to the agm?

[dicko80] 23/6/2011 19:56

update next week

[matty28] 08/6/2011 16:27

Holding(s) in Company - Replacement
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TIDMRIIG

RNS Number : 1004I

Resources In Insurance Group PLC

08 June 2011

8 June 2011

RESOURCES IN INSURANCE GROUP PLC

("RiIG" or the "Company")

Notification of substantial shareholding

The board of RiIG (the "Board") was notified on 1 June 2011 that on 4 March 2011 T1ps Investment Management (IOM) Limited, via funds under its discretionary management, increased its notifiable interest in the Company to 78,205,982 ordinary shares of 0.1 of one penny each, representing approximately 24.63 per cent. of the Company's issued share capital.

The funds under discretionary management are SF T1ps Smaller Companies Growth Fund (17.63 per cent.) and EIS Fund (7 per cent.).

This announcement replaces the release dated 31 March 2011 under RNS No. 9477D.

ENQUIRIES:

Resources in Insurance Group plc

John French, Executive Chairman Tel: [phone]

Allenby Capital Ltd - Tel: [phone]

Nominated Adviser and Joint Broker

Brian Stockbridge / Alex Price / Dan Robinson

Rivington Street Corporate Finance - Tel: [phone]

Joint Broker

Dru Edmonstone

For further information on the Group, please visit www.riig.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

HOLZVLFBFQFFBBL


0.1p!?!?!?! They must be joking!!

[dicko80] 08/6/2011 14:34

some anaylst coverage but only have it in PDF...

Copy and paste below

Resources in Insurance (RiIG) upturn helps support FY11

SMALL-CAP

PORTFOLIO

Report Date

28th April 2011

Analyst
Ravi Lockyer MSc Llb
Collins Sarri Statham Investments Ltd

Stock Rating: BUY
Share Price..........0.77p
52 week ... 1.07p/0.275p
Shares o/s ....... 317.5m
Market Cap ...... £2.44m
Avg Daily Vol...... 3.9m
Dividend Yield ......... NA
Fiscal Year ... 31st Dec 10

We are impressed at the stabilisation and evidence of recovery in core operations at Resources in Insurance (RiIG) over 2010.

This is evident from the FY10 prelims reduction in loss per share to -0.25p from -0.4p and recent trading announcements (7th April 2011) detailing client wins and a profitable Q1 2011.

The FY2010 loss included a non cash share option expense (£52,746).
We estimate that over FY10 RiIG had 1 or 2 profitable months, whilst Q1 2011 has been in the black.

During H1 2011 RiIG should have 4 profitable months moving up to 10 over FY2011. Operating improvements and client wins should deliver a positive result in H1 2011 and positive earnings in FY11.

The former "Claims People" business is in a recovery phase that started with board room changes in mid 2008 which resulted in the sale of the loss adjusting division in April 2009.

To recap, the 2009 transformation saw RiIG ditch loss making claims adjusting and re-focus on core divisions; "iteam" (insource/ outsource claims management), "Verify" (independent inspection services in property, motor and creditor), "Consult" (claims specific consultancy) and recently "RiIG Surety Claims" (credit hire audit / handling).

The board is starting to see cross-selling opportunities and increased inquiries from the existing client base for other group services.
RiIG is seeing improved demand for its experienced claims management staff via "iteam" that specialises in handling claims backlogs and achieving settlement.

We would highlight the following as relevant to RiIG recovery in 2011:-

 The restructuring has improved focus on underlying operations/ client retention delivering a more consistent revenue line. FY10 revenues gained 45% to £2.13m – we expect this growth momentum to continue in FY11 with revenues rising 40% to £3m. Our revenue growth forecast for 2011 reflects a) increase in clients with significant contracts (two to four) b) expected client extensions and roll-over business but not pipeline business c) no client losses.

 Owing to the uncertain timing of conversion of pipeline to contract wins, due to the lengthy decision making process in the insurance sector, the FY11 revenue forecast does not include RiIG's opportunity pipeline, which could impact H2 2011. We estimate that the pipeline (circa £3m) could add around £600k of revenues over FY11-FY12 though this is not in the revenue forecasts. The team are confident in pipeline opportunities which include 2 large EU insurers.

 Decreasing client and revenue variability is important (in FY2010 approx 85% of RiIG's revenues were attributable to two major clients). In 2011 to date, the client list has expanded to include six major insurers, mainly in the auto insurance sub-sector. A key positive has been increased client willingness to roll contracts into new business opportunities, either via adding to the contract length or moving the contract to different group offices. Contract extensions and longer client lists reduces the cost of shedding staff, a problem experienced at RiIG in the past when contracts concluded. RiIG is able to "flex"

EQUITY RESEARCH

RESOURCES IN INSURANCE - BUY

Resources in Insurance (RiIG) is a provider of independent and innovative claims services for the insurance industry

Key Risks Factors
1. RiIG is listed on the AIM market. Its ability to raise new funds will be affected by liquidity conditions and investment appetite for AIM companies.
2. Demand for RiIG insurance services are by their nature subject to long lead times making revenue timing uncertain.
3. RiIG is dependent on key staff meeting sales and client targets
Please also note the risk warnings on the last page of this document relating to companies listed on AIM.
it temporary/ part time staff levels to meet demand, due to its extensive network of claims management staff without incurring redundancy costs.
 The conversion of £300k 12% RiIG loan stock to RiIG equity has removed the burden of the high yield loan note and left RiIG debt free. Whilst RiIG has not arranged overdraft facilities yet, some move to put in place contingent financing during H2 2011 is possible if expansion delivers increased working capital needs. The board envisages recent new hires of 15 in iteam/ consult to be sufficient for now and involve an increase in administrative expenses to £2.9m over FY11 possibly increasing working capital pressures.
 A new business division "RiIG Surety Claims" has been formed to provide auditing/ training services for the UK credit hire market. This new area is small scale and could take to mid 2011 for meaningful revenues.


Diverse service offering/ cross sell/ scalable opportunities

RiIG's major objective over 2011 is to improve scalability, joining up existing/ new clients with the expanded service offering. Typically client/ service additions would change the average contract, from £300k with a 5% operating margin to £500k with a smaller 4% margin ( if an iteam client added Verify). RiIG's ability to scale the product offering to an increased client base is the results driver over the next 24 months.

Valuation move to P/E from P/B will help transparency

A transition is taking place at RiIG and a key benefit will be shareholders ability to value in the business in a more transparent manner than has so far been possible.

At the present time due to the legacy losses and FY 2010 losses, holders basis for valuation consist of book value (P/B) (end 2010 shareholder's equity £143.8k) and price to revenues (P/S). On P/B the valuation at 17.3x book value is of limited guidance for investors and reflects the legacy of losses/ capital depletion. On P/S the valuation at 1.14x revenues appears reasonable though this also suffers from the RiIG high historic variability in the revenue line.

Our FY11 pre-tax profit of £100k/ EPS forecast of 0.0315p puts RiIG on a forward P/E of 25.4x – a high "recovery" multiple that suggests RiIG is in the early stages of profit recovery. As earnings delivery continues it is entirely possible that RiIG would see P/E multiple expansion over FY11-FY12 as investors re-rate the stock on the basis of earnings growth and the diminishing prospect of stock dilution/ issuance.

"iteam"
"Verify"
"Consult"
"Surety"

Core business experiencing improved market recognition hence 15 new hires in FY11. Revenues, margin and net income gains expected in FY11 – the expectation is iteam will still account for >95% of group results in FY11.
Following test marketing in 2010, the board see the opportunity to cross-sell Verify's anti fraud/ spurious claims solutions to iteam clients. Verify has 2 small clients.

A spin-off service from iteam is early stage but cross-sell opportunities exist. Clients have expressed interest in division's training, mentoring, operational efficiency solutions. Has 1 small client but scope for expansion.
New in 2011; objective is to build clients in credit hire handling and audit. Not included in FY11 projections.

The arrival of a P/E will also make RiIG easier to value from the viewpoint of its support services peer group and encourage comparisons. The UK peers include some outstanding UK companies with overlapping businesses. The addition of retained earnings would also help the balance sheet and reduce price/ book multiples.

The shareholder list is concentrated with surprisingly high institutional interest (approx 53%) given RiIG's £2.5m market cap. A further 9.7% of the shares are held by the board. The institutional following suggests RiIG does have open to it more innovative funding methods and alternatives (an example was the £300k of convertible loan stock/ now converted) to a straight placing which it may employ in the event of acquisitions or a significant increase in business beyond levels currently envisaged.

The board's proactive approach to shareholder communications, RiIG attended both the Growth Company Investor Show in September 2010 and the Master Investor Show in March 2011 has encouraged a strong retail shareholder following that in our view would respond well to positive earnings and a steadier revenue path.

Board of Directors

*John French, Chairman Experienced AIM and PLUS executive at both executive and non executive level having led numerous IPO and M&A transactions. Moved from non executive Chairman to Executive Chairman in 2008 to lead the restructure of the Group.

*Robert Mitchell; Non-Executive Founded Bluehone Investors LLP after a career at F&C where he helped launch the AiM Trust and the Discovery Trust. Mr Mitchell is a chairman of the Audit Committee and a member of the Remuneration Committee at RiIG.

*Gordon Vater; Managing Director Responsible for Group operations and Business Development, with over 20 years claims experience mainly in the loss adjusting and claims management sectors.

*Dominic Boyce; Finance Director/ Company Secretary, former founding partner of an accounting firm in Trinidad & Tobago and subsequently Finance Manager at Alwen Hough Johnson Ltd reinsurance brokers in the UK.

*Barry Whyte; Non Executive Director; founded the Claims People Group post a successful career as MD of Miller Knight Ltd. Mr Whyte is chairman of the Remuneration Committee and a member of the Audit Committee.

CSS forecasts – FY2008-FY2011F
FY 31st Dec (£m)
FY2008A
FY2009A
FY2010A
FY2011E
Revenue
1,095,905
1,465,911
2,131,971
3,000,000
Admin Expenses
2,192,618
1,966,535
2,452,361
2,900,000
Share Option expense
-
-
-52,746
Interest
Expense
3,959
8,723
30,677
Profit before Tax
-1,100,672
-509,347
-403,813
100,000
Tax
-135,263
1,470
-
Loss from discontinued operations
-89,792
-39,922
-
-
Net profit
-1,325,727
-549,269
-402,343
100,000
EPS (p)
-0.97
-0.40
-0.25
0.0315
A: actual E: estimate; Source: CSS Investments Ltd

Conclusion

The recovery story at RiIG is gathering pace, and if the board can convert the service offering to revenues then revenue growth (40%-50%) could be strong over FY11 and FY12.

Given the constraints on personnel requirements (>80% total expenses) our expectation is the group would require revenues to exceed £3.5m before deriving significant efficiency gains. However investors should focus on trading and the revenue upside that the service expansion should deliver.

The shares have factored in some of the recent trading improvement, but there would be further appreciation in the event of positive H1 and FY earnings.

Longer-term RiIG would make an excellent fit for a larger acquisitive support services group (>£100m mkt cap) looking to quickly build up an expertise in insurance claims handling.

Whilst a merger/ takeover approach is not likely in the short-term an offeror might be encouraged by RiIG's high shareholder concentrations.

[davidlloyd] 08/6/2011 11:29

Spooky.......shame I didnt put my money where my mouth was......

DL

[dicko80] 08/6/2011 11:03

I'm hearing an update is due in next couple of weeks

[davidlloyd] 07/6/2011 16:55

From an interest perspective only, and no technical reason that I am aware, having followed this share for (too long?) a time I have often observed a tightening of the spread prior to a kick north, but this is now very tight indeed 0.52- 0.53 bid/offer and interested to see if history repeats........worth a punt? Probalby not! (past is no key to the future and all that- IMO etc..)

DL

[sirraman] 06/6/2011 21:01

so pretty quiet... where is the news from the company.. ? has the growth story fizzled out ??....sp is not going anywhere...but drifting down....?

[davidlloyd] 11/5/2011 11:35

Hmmmmm.......

DL

[dicko80] 29/4/2011 10:53

i dont see £20k profit as "very impressive"

anyhow...

[trixter] 26/4/2011 12:06

disappointing?

[davidlloyd] 18/4/2011 11:03

I reckon it will be Thursday 28th APril - and nothing will happen of interest until then......

DL

[davidlloyd] 07/4/2011 11:59

Two ways of looking at it..........

(1) Perhaps a bit of overly positive rhetoric by JF (I take him to be a serial optimist!!)which needed a bit of realism deployed pre official announcements;

or, on the other hand, the complete opposite;

(2) A need to quieten things down to allow further 'reasonabley priced' stakebuilding prior to figures released.....surely not.....:-/

AIMO of course....
DL