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[buffetteer] 26/10/2014 07:52

Back in having sold over a year ago at £6.30. High growth ,v high return on capital ,growing profit contribution from Inovia and sale potential with Mr Brody over 72.

[pamelajane] 21/10/2014 17:12

Super update, lots of cash, paying a decent dividend, new contract wins and bounced from £7 long term support. I'm back in :) x

[phillis] 14/10/2014 07:45

outstanding!

[olded] 08/9/2014 17:47

Can't break £8. In a 750-800p range. Don't consider it that expensive based on PBT forecast of c£22: PBT to MCAP of 15 x. And that excludes the cash. Waiting for a good re-entry point.

[jeffian] 08/9/2014 13:56

Don't know why these are down on the referendum news. Think of all the extra work generated by translations into Scottish.........

[phillis] 31/8/2014 19:16

Someone has been buying Midas a lunch!

[phillis] 03/7/2014 17:30

On the up finally

[vb79] 30/6/2014 20:47

Thanks woody. Support looks at £7, £6 and £5. Wonder which one it will bounce from...?

[woodcutter] 30/6/2014 19:44

been watching recently for a reversal signal on price but looks like potential support could be breached. No +ve candlestick signals and all indicators still looking -ve too.

Niche player but still looks expensive on fundamentals too. Risk reward -ve balanced aimho.



woody

[mrmomentumt] 04/6/2014 08:10

Not especially cheap and clearly looking unloved at present. I sold out but happy to buy back in. Can anyone advise from a technical perspective where support on the chart is?

[phillis] 02/6/2014 10:19

good business position and excellent cash generation

expect continuing dividend growth!

[jeffian] 15/4/2014 10:32

Good write-up in the Times today (Tempus) saying prospects in China are good and should be able to maintain underlying (i.e. ex-acquisitions) growth around 7% pa for some years ahead. Only rate it a 'hold' though on grounds of high PER.

[phillis] 11/2/2014 17:49

Agreed
But they spelt it out then
Why not do it again?

Moving on

[jeffian] 11/2/2014 17:28

It's not at all misleading if taken in the context of previous announcements.

From 2013 AR:
"inovia Holdings Pty Limited contributed £1.2 million revenue and £0.1 million to the Group's profit after tax for the year between the date of acquisition and the balance sheet date. If the acquisition had been completed on the first day of the financial year, group revenue for the year would have been £90.5 million and group profit £17.2 million."

From Chairman's statement at Preliminary Results:
"With the full effect of the PharmaQuest and inovia acquisitions as well, the Board now expects the Group to deliver revenues in excess of £100m in 2014, as it continues to materially enhance its leading position in the intellectual property space."

Surely it's just confirming we are on track?

[phillis] 11/2/2014 15:54

we beg to differ then

The majority of the profit from inovias turnover comes (and last year came) from translation
A 27% increase in turnover year on year arising only (mainly?) from inovias inclusion this year will not produce the profit impact that would derive from such an increase in its base RWS's business
In that sense since the 27% increase is such a large one the statement is misleading or perhaps better put, fails to explain what it could so easily do

[jeffian] 11/2/2014 14:23

No, what "normally" happens is that acquisitions are aggregated at the next available periodic results and RWS have no history of reporting 'like-for-like' revenues and acquisitions separately (check out acquisition of Communicare in 2009 and Pharmaquest in May 2013). As you say, Inovia revenues were not consolidated previously because we only had a minority stake. Inovia's figures for last year were spelt out in the RNS of 17/9/13.

[phillis] 11/2/2014 13:50

Last year inovia was a minority interest and its revenues were not consolidated

Year on year growth figures would normally be adjusted on a proforma basis - i.e with the base year changed to include inovia's revenues
This helps the reader understand where the growth is rally coming from - even on a trading update

[jeffian] 11/2/2014 12:47

I don't get that at all, Phillis. Of course Group figures include Inovia. This is a trading update, not a set of accounts including last year's figures, so why would they prepare 'pro forma' figures (presumably the appropriate presentation will be made in the periodic accounts)? Inovia was acquired for cash (so no dilution of earnings) and stated to be immediately earnings-enhancing. The statement says that the core business earnings continued to show "good growth" and if you were being really picky I suppose you might have looked for a split of that 27% between Inovia and the rest of the business but I don't see anything "naughty" about it.

[phillis] 11/2/2014 11:57

I may owe prestigen an apology

It seems to me on further review that the 27% figure includes inovia revenues which were not included last year
If so a bit of a naughty claim - the number should be stated on a pro forma basis

Are you reading this Mr Brode?

[jeffian] 11/2/2014 10:52

I have to say, I didn't pick up on that as a "warning" at all, though I can understand some profit-taking given the recent strong run and valuation. Currency movements are neither here nor there - it's just a question of translation (excuse the pun!) in the published UK accounts - and I think the market takes as little notice of currency 'losses' as it does of 'gains' when it swings the other way. And there is absolutely no comparison with DIA (which I sold at 1356 at the first sign of trouble - now 727) where profits actually tumbled to less than they were earning several years ago and growth rates appear to have stalled. Historically, RWS revenue increases have turned into proportionally larger increases in profit so if they can maintain the sort of revenue growth they mention here, I would have thought they'd actually end up exceeding analysts' profit forecasts.

[phillis] 11/2/2014 09:32

"Group sales for the first four months of the financial year have been 27% ahead of 2013 despite this growth having been marginally restrained by pound Sterling strength and some delays in converting a strong pipeline of potential new customers."

27% ahead of 2013 despite.....
Some problem eh
I bet a few other enterprises wish they had the same problem

[prestigen] 11/2/2014 09:00

Phillis: profits will be impacted by adverse currency movements and delayed orders. Can be no certainty of when orders will be delivered hence could materially impact profits hence profit warning could come. Not saying it will, just more question marks over the company for me today than their was yesterday. Like I said, potentially just a small blip. But for safety sake, have banked profits for now. Also has tried to crack £10 couple of times now and hasn't so could be a barrier for some time. Dividend not great either. On that basis think my money could do better elsewhere for now. Still feel this is a great company nonetheless, just doesn't have the same attraction as it once did.

[henryatkin] 11/2/2014 08:45

Its nothing like DIA. DIA restructured their total sale strategy and misread the potential impact of moving from resellers of their products to taking it all in house. They did that whilst still trying to expand with additional costs. RWS by comparison are still growing and..................................."RWS recently acquired inovia Holdings Pty Limited which is headquartered in New York and is the largest non-law firm provider of international patent filing solutions globally. Its patented, web-based technology provides over 1000 law firm and corporate clients with cost effective processing of international patent applications, typically producing cost savings in excess of 30%. From its locations in the US, Australia and Europe, its patent filing service covers 124 countries.

[phillis] 11/2/2014 08:13

whose RNS did you read prestigen?
business forging ahead!