Riverfort Global Opportu... Share Discussion Threads

[pomp circumstance] 24/11/2005 11:50

WJCC if theykeep issuing shares it will have ;) (missed the 200mil bit)

[wjccghcc] 24/11/2005 11:47

GME? Yeah that really has a 200mm mkt cap!

Tillman, AVV and DTM might fit your criteria. More expensive than the likes of SFR but global leaders in their sectors with high operational gearing, pricing power and barriers to entry. I expect them (like SFR) to beat forecasts. Both have served me well.

[pomp circumstance] 24/11/2005 11:16

Tillman, GME are cheap now the placing has dilluted all the other shareholders!!

[tillman] 24/11/2005 11:03

good luck guys.

I am now out of here.....only had a small holding and whilst I think the company may do very well, I am going back to what I normally do best and where I feel most comfortable...cheap growth stocks with mkt caps in excess of @200M.

My current portfolio is quite narrow with just CHTR, SFR, NIS and an anomoly in the form of ASG....the latter not doing that well but will hopefully change! I need to look at why every now and then I do get pulled into the likes of RGO and ASG...it never normally works out as well as my tried and tested methods!! Strict stop loss policy also doesn't work as well with the smaller stocks which tend to be more volotile.

So, any cheap growth stocks which I should be considering??

Oh yes, I may bring you some luck by selling out of here at the bottom!!

[the prophet] 24/11/2005 09:36

-Numis comment from the results is up on the RGO web-site



-they are forecasting profits of £2.7m for this financial year and £3.5m for the one after.

-Given that Numis raised their forecasts for last financial year three times, then I feel the £2.7m will probably get raised during the course of the year....the note almosts says as much.....'anticipation of further newsflow'

-the EV/revenue figures given in the note imply something like £35m or so sales this year and £50m the year after.

54% eps growth predicted for this year, followed by 30%+ the following year.
And with a decent chance all numbers could get uplifted as 2 ergo's various initiatives work there way through, this looks a great growth stock.

[tillman] 24/11/2005 09:15

they will pretty much spread bet anything,esp with a mkt cap over 20M.

which way will you be going??!!...hope you have a good risk/reward ratio to make it worth while!!!!

spreadbetters on this stock...very brave,clever,stupid or informed?!
all of us would fall into one category when spread betting!

Good luck.

[junior21] 24/11/2005 08:21

can these be spreadbetted with ig index?

[ltinvestor] 21/11/2005 10:46

You will have to trust me- check the thread .
> tillman.The market regards this company very highly and institutions want more shares but they are not available at the moment.This will be resolved, I am sure, shortly to everybody's benefit.

[pomp circumstance] 21/11/2005 10:38

and why would that be?
You made the claim, now play the game!!

[tillman] 21/11/2005 10:19

look like good figs.
..the lower margin mentioned by Big Eddie would initially cause me concern but when read in context it is not too much of a concern for me...read the following para:

One benefit of the increase in capacity of the Multiserve Platform is that
traditionally lower-margin transactions can be processed at little or no cost to
the Group and without using capacity needed to deliver higher-margin
transactions. The effect of this is that whilst margins are lowered, the revenue
from these transactions flows directly to the bottom line. As a result, although
margin reduced from 24% to 18% the actual gross profit grew by 57% during the
year to #4.2 million (2004: #2.7 million).
===============
================
===============
However, I was expecting the share price to do a bit better than it has done today.
As they say, it doesn't matter what you think of a company, it's what the mkt. thinks that counts! Over the years I have seen some very good companies but the share price has drifted or gone up slowly (and dare I say it gone down!!) because the mkt view was different to mine!I now tend to look for companies which have a reasonable mkt cap and can get quite a following which can drive the share price ..CHTR and SFR are good examples.

Holding for now.
I am hoping the share price will go up from here. I te

[big eddie] 21/11/2005 09:25

I am not as bullish as Pomp after my initial review of these results. Gross margin down to 18.2% from 24% last year, only £34k of cash generated from operations and a significant increase in central overhead. This stock doesn't feel like it should warrant a p/e of 50+

I can see why a fund raising is being rumoured,they need the cash. I will be suprised if they can get a fund raising away without a substantial discount to the current share price. All just my opinion do your own research.

[2lb] 21/11/2005 08:20

Cash needed for working capital - Balance sheet is still very tight for actual cash.

£20m t/o and £1.2m profit was largely built into the price - I think we can safely assume that this is the last year of 100% plus organic growth so now it is about controlled expansion.

So far there have been no acquisitions, other than one from a liquidator - so te future growth will most likely be in this area - be interresting to see what they buy and from where.

[wjccghcc] 21/11/2005 08:10

Perhaps, or maybe they want the flexibility the placing would provide without any specific acquisition yet identified. Cashflow was ok but it will lag profits because they're growing so fast.

[ltinvestor] 21/11/2005 08:05

The directors would not be diluting their holding unless it is for a very special reason.The aquisition must be significant and immediately earnings enhancing!

[wjccghcc] 21/11/2005 08:00

Yup, very good results. Happy to hold. I wonder if we'll be hit short term by the placing. Any idea of the price?

[ltinvestor] 21/11/2005 07:51

How many companies on AIM can show 5 successive years of organic TRIPLE DIGIT GROWTH?This is proving to be a truly exceptional company.

[pomp circumstance] 21/11/2005 07:32

This in the Indie


2ergo bullish on placing

Small Talk hears that 2ergo, the Lancashire telecoms technology group, is close to tying up the fund raising we wrote about last month. The placing has been scaled back somewhat, however, and the company's founders, Barry Sharples and Neale Graham, have abandoned plans to sell some of their own 54 per cent holding at the same time. There is nothing that makes fund managers so nervous as seeing directors passing through the exits just as they are putting new money into a company.

2ergo's software and hardware sits at the centre of internet, fixed line and mobile phone communications, enabling new ways for businesses to interact with their customers. Services such as text message weather alerts, interactive games and bulk e-mails for internet marketing all pass through the system, and mobile commerce - things like text message gambling, shopping and road toll payments - is being developed by several of 2ergo's customers. A trading update last month revealed the company was outstripping even the market's most optimistic forecasts, so results today should be bullish. Expect a placing of about £2.5m to fund further expansion.

[pomp circumstance] 21/11/2005 07:03

WELL DONE BARRY AND NEALE AND THE BOYS AND GIRLS OF 2ERGO!!!!

FANTASTIC!!!


Final Results

RNS Number:3921U
2 ergo Group plc
21 November 2005


Embargoed until 7.00 21 November 2005

2ergo Group plc
("2ergo" or "the Group")

Preliminary Results
for the Year Ended 31 August 2005

2005 2004 % change
#'000 #'000

Turnover 23,139 11,171 +107
Operating profit 1,200 619 +94
Adjusted pre-tax profit (1) 1,617 748 +116
Basic earnings per share 3.37p 2.34p +44
Adjusted basic earnings per
share 4.76p 2.74p +74

(1)Adjusted pre-tax profit is stated before amortisation and other operating
income

Financial Highlights

*Fifth successive year of triple digit revenue growth
*Revenue up 107% to #23.1m (2004: #11.2m)
*Adjusted PBT up 116% to #1.6m (2004: #0.75m)
*Adjusted basic EPS up 74% to 4.76p (2004: 2.74p)
*Forecasts revised up three times during the year
*Results ahead of latest market expectations


Operational Highlights


*Traffic across the Multiserve Platform increased by 124%
*US Division now operating in profit and new information services launched
*Acquired IP rights to a new security protocol, now branded 2safeguard -
under the Government's Security Classifications, this technology has the
capacity to make a mobile phone more secure than a credit card chip and PIN
system making mobile commerce a reality
*Expansion of Business Solutions Division - focus on services to the
corporate sector
*Launch of Wholesale Content Division - focus on mobile entertainment
industry
*Acquisition of Natural Response to enhance Voice Services

Neale Graham, Joint Managing Director of 2ergo commented, "Posting triple digit
growth in both sales and adjusted profit is a remarkable achievement and I am
delighted to report this again. Behind the numbers great strides have also been
made in further developing the extensive services offered through the Multiserve
Platform. During the year we have successfully developed and integrated more
leading edge technologies and, of late, have completed the acquisition of the IP
rights for a secure communication protocol which the Board believes will have a
significant impact on the development of mobile communications in general and in
particular m-commerce.

"The Group has begun the new financial year well and developments already
underway in the market place are presenting us with significant prospects. The
management are confident that our well proven business model, broad range of
products and our expertise places us in a strong position to capitalise on the
opportunities of our growing market. We now look forward to another stimulating
year coupled with tremendous progress, further underpinning the qualities of
2ergo and its people."


Embargoed until 7.00 21 November 2005

2ergo Group plc
("2ergo" or "the Group")

Preliminary Results
for the Year Ended 31 August 2005


CHAIRMAN'S STATEMENT
--------------------

The Board is delighted to report triple digit growth in revenues for the fifth
successive year since incorporation. Forecasts in the market were upgraded three
times during the year and I am pleased to report that the Group has achieved
results above the most recent revisions.

Group revenue in the year increased by 107% to #23.1 million, whilst adjusted
pre-tax profit rose 116% to #1.6 million, a result of both the increase in
traffic across 2ergo's proprietary infrastructure, the Multiserve Platform, and
the increased focus by the Group towards the sale and provision of Business
Solutions. Yet again 2ergo has achieved its rapid growth solely through organic
means. In addition, the US has, in the latter part of the year, begun to
contribute to the profits generated by the Group.

The Group has invested significant time and energy into selectively targeting
partnership and acquisition opportunities that will deliver profitable market
entry and growth. This strategy is set to continue over the coming year and the
Board is currently pursuing acquisition targets in the US, Europe, Australia and
Asia.

The Board is encouraged by the speed in which the American market has matured
over the past 12 months and at the level of acceptance the American public is
showing towards the mobile content and services sector. The volume of US
enquiries from enterprise clients requesting the roll out of 2ergo's traditional
suite of Business Solutions has been particularly pleasing.

Recently the Group has established itself as a provider of mobile solutions to
help tackle current social issues, particularly within the education sector. In
August 2ergo rolled out its 2NC truancy and bullying text service. Through the
Group's appointed reseller the solution won the Princess of Wales anti-bullying
award. In September it also launched a text alert service for a major US media
partner, Media General Inc, which now provides weather updates, sports and
varied news, targeting the Southern states which suffer the brunt of the
hurricane season. The Board is delighted that its solutions continue to help
people across the world and will continue to seek opportunities to utilise
2ergo's technology.

Looking ahead, the Board is extremely optimistic that the investment and
expansion into new business initiatives through this year will deliver
significant contribution to revenue and profit over the next 12 months. The
increased capacity will facilitate further growth, and value to shareholders
should continue to increase as the Group rolls-out additional services.

Finally, once again, on behalf of the Board, I would like to thank all our staff
for their hard work and dedication to the Group over the past year, together
with our growing base of loyal clients, who we will continue to work with to
provide innovative communication services to improve their customer services,
save costs and increase their revenues.


KEITH SEELEY
CHAIRMAN


MANAGEMENT'S REVIEW
-------------------

Financial Performance

During the past year, turnover has increased by 107% to #23.1 million (2004:
#11.2 million). This substantial growth is partly a result of a 124% increase in
transactions across the Multiserve Platform, which justifies the investment made
to increase the scalability and speed of the Platform in recent years. In
addition, increased revenues have been generated through the Group's increasing
focus on Business Solutions.

One benefit of the increase in capacity of the Multiserve Platform is that
traditionally lower-margin transactions can be processed at little or no cost to
the Group and without using capacity needed to deliver higher-margin
transactions. The effect of this is that whilst margins are lowered, the revenue
from these transactions flows directly to the bottom line. As a result, although
margin reduced from 24% to 18% the actual gross profit grew by 57% during the
year to #4.2 million (2004: #2.7 million).

Operating profit has risen by 94% from #619,000 to #1.2 million. The benefits of
the operational gearing predicted in last year's Annual Report are now being
seen by the Group. During 2004, the Group significantly increased its workforce
to satisfy future expected demand, leading to operating expenses in that year
being 20.5% of turnover. This figure has now fallen to 13% in 2005 as the
expected increase in revenues flows though.

This operating profit has been achieved despite a #186,000 loss incurred by
M-Invent Inc, the Group's wholly-owned US subsidiary. The Board is pleased with
the measured approach taken towards its entry into the US which is now beginning
to contribute profits to the Group.

Pre-tax profit was #1.2 million, compared to #645,000 last year, an increase of
92%. Adjusted (pre-amortisation) profit has risen by 116%, from #748,000 to #1.6
million. Basic earnings per share rose to 3.37 pence (2004: 2.34 pence), with
adjusted basic earnings per share increasing to 4.76 pence (2004: 2.74 pence).

The Group continues to have a strong balance sheet - at 31 August 2005
shareholders' funds stood at #4.0 million. This is after the purchase into
Treasury of 718,182 shares at a cost of #1.10 each, an aggregate of #790,000.
Since the year end, a further 318,182 shares have been bought into Treasury,
again at a cost to the Group of #1.10 per share. The Group holds an option over
a further 1,463,636 shares at #1.10 each.


Operational Performance

The Group's core operations have continued to perform in line with management
expectations, with many new client applications being launched during the
period. Client loyalty has continued to be strong with over 96% of 2ergo's
clients renewing their contracts, and many also expanding their current usage.
In addition, a significant number of new clients have taken up the Group's
services.

The Board was pleased to announce the successful acquisition and integration of
Natural Response, the highly advanced and award winning speech-based software
business. Whilst complimenting the Group's recognised Voice offerings, this now
enables 2ergo to deliver highly intuitive and conversational style business
solutions and keeps the Group well positioned to capitalise on the growth in
demand for more interactivity and improved customer experience.

Adding this speech-based technology to the Multiserve Platform has helped to
further differentiate 2ergo from the competition. This has led to the
introduction of several new products and the Board believe this will contribute
to revenues in 2006.

2ergo has continued to develop and expand its Business Solutions Division
through which it offers a comprehensive range of solutions and services.
Collectively they enable clients to drive performance improvements through the
use of mobile, fixed-line telecommunications and Internet technologies. These
solutions make it possible for organisations to switch on new revenues, optimise
business processes and open up new marketing channels. The Board predicts this
area of the business will continue to deliver increasingly high margin revenues
over the coming year.

2ergo's clients consist of companies from many sectors of industry. They range
from SMEs to multi-national enterprises, to public sector organisations. Key to
the Group's success has been its ability to recognise and prioritise sales,
marketing and product development activities in line with market opportunities.

Building on this, during the early part of 2005 the Board commissioned a project
to undertake a strategic and structured review of the business to support and
facilitate continued rapid growth. This work has demonstrated to the Group the
sheer scale of the market opportunities ahead. Key deliverables include highly
focused sales objectives and priorities across industry sectors and business
solutions. It has also contributed to the Group's strategic partnering and
acquisition programme. The review has helped crystallise focus on growth
objectives and how the Group intends to tackle the broader market place.

The Group has now established a 'Wholesale Content Division'. Targeting to sell
to mobile content retailers and brand owners, this new business initiative adds
value to the existing wholesale offerings.

2ergo has been offering its delivery and billing services to mobile content
sales organisations for many years now. As the market matures, gaps have
appeared for a professional wholesale content provider with extensive catalogues
of mobile phone compatible content to support these organisations.

In response and in anticipation of this growing opportunity 2ergo has been
aggressively developing such a comprehensive service by selective acquisition
and content licensing. The results of this have lead to the recent launch of
2ergo's Mobile Content Catalogue, coupled with an end-to-end service
encompassing the provision of mobile content, its world wide delivery and
importantly, a secure billing platform.


US Operations

Since the start of the year 2ergo has established its US division which is now
poised to expand into other fields where the UK business has traditionally been
strong. As predicted, from Q4 of this year the US business has started to
contribute profit to the Group which is expected to increase throughout 2006.

Over this period, the Group has attracted an increasing number of unsolicited
requests to roll out its traditional suite of Business Solutions (such as mobile
applications) from US enterprise clients. The Group is currently in advanced
negotiations with several US corporate organisations to offer the provision of
these solutions and associated innovative communication services.

The US is strategically important for 2ergo as it makes available an audience of
over 250 million mobile users. The Group believes that, compared to Europe, the
US mobile market is still in its infancy for mobile business solutions, and is
well placed to aggressively seek a share of this major market as it unfolds. For
example, following the US interoperability agreements, 2ergo was quick to react
by launching new services to provide information & alert SMS services for
weather, news, sport and entertainment.


Outlook

The Group believes its products and services will play a major part in shaping
the future of the communications market. The Group remains confident that its
positioning is correct as it takes advantage of a converging market, and in
particular, the mobile communication industry's continuing evolution. It looks
forward to benefiting from the increasing rewards that are expected, and have
been predicted. The Board feels this view is supported by the current dynamic
levels of growth enjoyed by the Group.

2ergo's core portfolio of products and services is constantly being reviewed to
satisfy the rapidly expanding opportunities of a growing global market. The
scalability and increased functionality of the Multiserve Platform provides
differentiation and ample capacity for further growth.

The recent relaxation in European legislation regarding m-commerce also presents
new market opportunities for 2ergo. The consumer is no longer restricted to only
purchasing content and services to reside on the mobile device. The mobile
device can be used by businesses and consumers to purchase many products and
services.

In anticipation of this and security concerns surrounding the acceptance of
m-commerce, the Group has recently purchased the IP rights of the unique
Response and Authentication Messaging Protocol, now branded 2safeguard. This
will provide the Mobile Industry with a new protocol to deliver secure payments
and communications. Under the UK Government's Security Classifications,
2safeguard has the capacity to make sure that purchases via a mobile phone are
more secure than a credit card chip and PIN system.

The Group believes this will provide the mobile network operators with a secure
m-commerce environment within its already established core infrastructure. This
would significantly reduce the need for new development, ease capacity
constraints and also resolve certain concerns surrounding the European e-Money
Directive.

The Board expects 2safeguard to open up a wealth of additional new opportunities
for 2ergo and its business partners, ranging from credit cardholder 'not
present' transactions, to secure person-to-person communications. Specific
applications include age verification, to protect minors from accessing mobile
or online adult content; or gambling services. In the longer term, the potential
for further services are huge - for instance it could also be used to guarantee
secure electoral voting via the mobile handset and to allow banks to communicate
securely to their account holder's mobile phone.

The US continues to provide an increasing number of opportunities for the Group
and the Board predicts that the US is poised for an aggressive period of growth,
which 2ergo expects to be part of.

The Group's new business pipeline remains healthy, both in Europe and the US,
and 2ergo fosters and benefits from strong customer loyalty. The Board is
therefore confident of future successes and expects to see excellent continued
growth throughout 2006 and beyond.

-ends-

[pomp circumstance] 20/11/2005 10:31

Results monday!!! No weekend press before that?

[ltinvestor] 09/11/2005 10:13

Tillman
I expect the figures week commencing 21st Nov along with a very bullish update!

[tillman] 08/11/2005 11:02

Any idea on date for next results being released?
24/11 last year and RNS ref. release on 01/11

[ltinvestor] 07/11/2005 08:10

2ergo's 24 hour price check is now being used by the Doorkeys estate agency portal using speech recognition (www.doorkeys.co.uk).

[ltinvestor] 24/10/2005 09:03

The security protocol alone is worth more than the present mkt cap!Trust me.