ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

SCH Safecharge International Group Limited

435.00
0.00 (0.00%)
23 Apr 2024 - Closed
Delayed by 15 minutes
Safecharge Investors - SCH

Safecharge Investors - SCH

Share Name Share Symbol Market Stock Type
Safecharge International Group Limited SCH London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 435.00 01:00:00
Open Price Low Price High Price Close Price Previous Close
435.00 435.00
more quote information »

Top Investor Posts

Top Posts
Posted at 01/6/2019 08:54 by gswredland
Investors expecting another bid here?
Posted at 25/5/2019 18:58 by fizzypop
Still waiting on Interactive Investor for divi as at 6pm today.
Posted at 25/5/2019 17:17 by togglebrush
FWIW ___ Barclays,"Smart Investor", paid dividend in cash today
Posted at 24/5/2019 19:51 by fizzypop
Anyone received their divi yet as payable today? No sign of the div in my Interactive Investor account where usually arrives by noon.
Posted at 09/5/2019 19:13 by epicsurf
In any case, SafeCharge (SCH) has kept up its rapid growth. During 2018, it processed 255m transactions – up by nearly a half – with the value of these transactions rising 45 per cent to $13.9bn. 

Of course, investors will wonder whether such momentum can be sustained – or, preferably, improved. 

Somewhat encouragingly, we learnt at the full-year results stage that the group made an “excellent start” to 2019, and that it had a good sales pipeline in existing and new verticals. Management has guided towards 12-month revenues of $155m-$165m, and adjusted cash profits of $40m-$42m. 

But expansion often requires expenditure. This year, SafeCharge is investing in its sales teams, to enter new markets, and in its products. And with net cash of $93m at last count, it’s possible that we’ll see the group make some acquisitions of its own. Buy. HC
Posted at 03/5/2019 09:08 by rivaldo
Checkout's $2 billion valuation certainly merits comparison with SCH's.....

Checkout's turnover: $46m, SCH's turnover: $138m
Checkout's PBT: $6.7m, SCH's PBT: $27.2m
Checkout's m/cap: $2 billion, SCH's m/cap: $637m (incl $93m cash)

SCH's turnover and PBT are 3/4 times that of Checkout's, but the valuation is just a third of Checkout's.....

"A little-known European startup with no history of raising money from outsiders is riding investor euphoria for the payments sector into the billion-dollar club.

Checkout Ltd., a digital-payments processor based in London, recently raised $230 million from investment firms including Yuri Milner's DST Global, Insight Venture Partners and Singaporean sovereign-wealth fund GIC Private Ltd., the company said on Thursday. The fundraising round, Checkout's first, values the company at nearly $2 billion, according to people familiar with the matter.

Launched in 2012 by Chief Executive Guillaume Pousaz, Checkout helps retailers accept credit cards and other payment types for their online stores in the U.S., Europe, Middle East and parts of Asia. Its European business generated $46.8 million in gross revenue and $6.7 million in profit in 2017, the most recent year its accounting statements were available on British registrar Companies House.

The startup competes with other in-demand payments companies like Stripe Inc., which was valued at more than $22 billion earlier this year, and Adyen NV, whose stock price has nearly tripled from its June 2018 debut. Checkout's customers include established merchants including Samsung Electronics Co. and Adidas AG as well as high-growth tech firms like Deliveroo."
Posted at 15/3/2019 06:54 by rivaldo
Cheers penpont, that' a good read.

I note that Network International - a payments processing company - has announced it's to IPO in London next month. It will be valued at $3 billion and makes $152m underlying profit (presumably before tax) on almost $300m of sales.

Hopefully that will concentrate minds on SCH's undervaluation - and perhaps bring to the market another potential predator for SCH. The article concludes:



"Payments businesses are in demand among investors because of the rise in ecommerce and a fall in the use of cash"
Posted at 14/3/2019 16:11 by penpont
From IC today:

Tip Update: Buy at 288p
Tip style
SPECULATIVE
Risk rating
HIGH
Timescale
LONG TERM
Our previous tip
We said BUY at 272p on 06 Dec 2018
Tip performance to date
+6%
By Tom Dines

Safecharge (SCH) continued its impressive growth story in 2018, delivering a 47 per cent increase in the number of transactions – to 255m – along with a 45 per cent increase in transaction value, to $13.9bn (£10.5bn), split evenly between new customer wins and existing clients.

Investors might question how long the secure payments specialist can maintain such growth, but transaction values have consistently expanded since it floated on the Alternative Investment Market (Aim) in April 2014 and the group has “enjoyed an excellent start to 2019”. Management said the size of the addressable market is $3trn-$4trn, and though there is no shortage of players in the sector, there is still plenty of room for growth.

It plans to do this by focusing on new markets and verticals, as well as continuing to sign up large “tier one” customers to its fully-serviced payments platform. In the year, Safecharge opened offices in Shenzhen and Mexico and signed up tier one clients in a range of industries, but it came at cost, as the gross margin deteriorated by 450 basis points to 53.3 per cent.

Bloomberg puts the consensus adjusted EPS forecast at 20.9¢, an increase of 24 per cent from the 16.8¢ achieved in 2018.

IC View
These results validate the view that Safecharge is well placed to expand within a burgeoning marketplace, but the margin contraction shows that profitability will occasionally be constrained by the rapidity of that expansion. Net cash equals 16 per cent of group market cap, strip it out and the enterprise/cash profit multiple is in line with the historical rating, but we think the growth will prompt a re-rating when the one-off costs are fully absorbed. Buy.

Last IC View: Buy, 272p, 6 Dec 2018
Posted at 09/1/2019 11:34 by dr know
It’s time for Questor’s share tip of the year.

As we did last year, we have approached the fund manager responsible for this column’s best-performing tip and asked him which stock he feels most enthusiastic about today.

That fund manager is Gervais Williams of Miton, who in March 2017 put Questor on to IG Design, which gained 120pc before we sold it in September last year.
For 2019, Williams has high hopes for Aim-quoted SafeCharge, whose advanced technology helps retailers to process card payments.

“Accurate processing of these payments is extremely important for retailers, especially online,” he said. “You want to catch all the attempts at fraudulent use but you don’t want too many ‘false positives’, when the system rejects a payment that is actually legitimate, because this is annoying for customers and can lose business for the retailer.“Having the right ‘gateway’; software makes all the difference here. There is plenty of competition in this area, including from large companies such as Worldpay, but we are very impressed by SafeCharge’s payment technology, which it developed in-house.”

Williams pointed out that the company was based in Israel, which gave it access to a pool of excellent software engineers thanks to the technological prowess of the Israeli armed forces.

“The underlying business is very strong and transactions have been going through the roof, with 60pc growth in 2018,” he said. “Every customer it signs up is profitable, although profit margins vary because some customers need more support than others. I am not even slightly worried about margin erosion.”
He said the company had also moved away from certain types of business, such as betting, which were seen as riskier. Investors have seen this and sent the share price lower. As a result, the stock trades at about 16 times expected earnings for the year just ended and about 14.2 times earnings for 2019,” Williams added. “This is superbly cheap for such a good business.”

He said Miton was one of the largest shareholders, while the directors also have very large stakes – something that Questor finds reassuring as it encourages managers to take a sensible, long-term approach.

The company is able to grow without much need for capital investment, so it has been able to grow its dividends “beautifully”, Williams said. At today’s depressed price the shares have a forecast yield of 5.8pc. SafeCharge also has net cash of £65m, against a market value of about £350m.

“This year I think the stocks that will do well are those with minimal debt and a growing dividend,” the fund manager said. “We are allergic to geared [indebted] companies at the moment.“But we are very excited by SafeCharge. We love its yield and we love its cash cushion.”

Questor says: buy
Posted at 06/12/2018 20:25 by epicsurf
Also tip of the week in investors chronicle.

Sorry don't subscribe

Your Recent History

Delayed Upgrade Clock