Security Res. Share Discussion Threads

[clocktower] 12/2/2008 10:35

Anyone around?

[clocktower] 31/1/2008 17:17

This rally in Spring has been a long time coming and I expect that war chest is growing by the day, so any purchase will not cause any undue strain but take-out the competition.

[alexacj] 24/1/2008 11:24

I hope that Landsbanki are correct and Spring are looking for the next aquisition....I would however hope they don't "rush" into it but wait to see how the US economy performs and the effect on the recruitment sector....aquisitions normally take months to conclude.....so by the time we reach mid year we should have a clearer view on the market conditions......£35 million in the bank should provide a nice "war chest" to mop up quality companies on the cheap. One other point that needs careful managing is....IF.... we do see a dramatic downturn in business....Spring need to react fairly swiftly in reducing overheads to continue to conserve their cash!! Interesting times I think!!

[clocktower] 24/1/2008 10:58

Nice quick bounce back on this and that does not surprise.

[clocktower] 21/1/2008 12:55

Fall only due to current market conditions I guess.

[pbracken] 17/1/2008 15:18

LONDON (Thomson Financial) - Shares in IT recruitment company Spring Group remained slightly higher late morning following a positive trading update, with Landsbanki upgrading it to 'hold' from 'reduce'.

At 11.20 am, Spring Group shares were 1 penny higher at 44 pence. This morning, Spring forecast full-year pretax profit up about 30 pct to around 7 mln stg compared with 5.4 mln stg a year ago, ahead of analyst expectations.

Reacting to this, Landsbanki said Spring's trading update was positive. The broker said the company's cash generation in the second half of the year was especially impressive.

Given current market conditions, the broker said it remains cautious with regard to Spring's prospects in 2008, particularly as it now has significant business in the US, through Glotel, and could be affected by the rapidly weakening US economy.

So on prudent expectations of 10.5 mln stg pretax profit and EPS of 4.9 pence based on a tax rate of 18 pct, the shares trade on a base of 8.7 times 2008 earnings, said Landsbanki.

However, after stripping out 12 pence of disposable cash from the share price the multiple falls to 6.3 times, virtually on a par with SThree and Harvey Nash on 6.2 times, said Landsbanki.

With Glotel fully consolidated and staffing company valuations very depressed, the broker said it would be surprised if the ambitious management at Spring were not already planning further consolidation opportunities. Landsbanki said it would be supportive of such moves and was raising its recommendation to an enthusiastic 'hold' from 'reduce', with a fair value for the moment at around 50 pence.

In other reaction, Collins Stewart reiterated its 'buy' rating, commenting that the integration of Glotel had been achieved ahead of schedule and at a lower cost than anticipated.

Seymour Pierce upped its rating on the stock to 'outperform' from 'hold' with a 55 pence price target. It called the new management's performance "excellent", noting that it has restructured the business to focus on higher margin operations, integrated Glotel, and generated 30 pct earnings growth and strong cash flow.

Although it said the shares are not cheap against their peer group, Seymour Pierce said it thinks they offer good value against the rest of the market. Meanwhile, Altium Securities kept 'buy' on the stock, with a 75 pence price target, noting that profit before tax is expected to also come in higher than its estimate of 6.2 mln stg.

Noting that cash generation was ahead of estimates, with year-end net cash of 35 mln stg, in part owing to improved systems, the broker added that it thinks this represents a strong result. But in view of wider economic uncertainty and its effect on confidence, it is leaving its full-year 2008 and full-year 2009 estimates unchanged for now.

[clocktower] 17/1/2008 14:49

Well done mac and thanks, I am fine and seeing your buying things must be looking up for you also.

I have a large wedge tucked up in de-listed WTV having seen a bid for the company last yearm be re-buffed, although it was at a huge premium to the share price then or now.

They are on listed on a matched bargain basis on Jenkins website if you want to take a look.

Some good shorts around but this is a screaming long imo if you are not looking for a quick turn in a day.

[alexacj] 17/1/2008 14:45

Also bought a few....looks too cheap to me on a forward p/e of 8 (not updated for todays trading note) and £35 mill in the bank!!

[machoolahan] 17/1/2008 14:43

Nah stuff it, bought a few. Might just be a short-term thing tho ;)



How are you anyway CT?

[machoolahan] 17/1/2008 13:28

Still on my watchlist here CT, agree that looks like a good set of results.

[clocktower] 17/1/2008 11:36

What a great T/S. If the markets were not going through this rough paych, I would have expected this to leap.


A re-rating in line though I expect. £35 million in the bank and profits around £7 million.

[clocktower] 20/12/2007 14:43

Going up and no followers it would seem.

[clocktower] 19/12/2007 09:06

Nice start this morning...

[clocktower] 18/12/2007 16:27

Time to look at these again very soon. They have travel well south since July but the prospects for 2008 look good imo.

[schober] 12/9/2007 09:23

FINANCIAL HIGHLIGHTS
* Revenues down 8% to #190.5 million (H1 2006: #207.9 million)
reflecting the planned exit of uncommercial contracts
* Net fee income up 1.3% to #23.4 million (H1 2006: #23.1 million)
* Gross Margins up 10.8% to 12.3% (H1 2006: 11.1%)
* Profit before tax up 10% to #2.2 million (H1 2006: #2.0 million)
* Earnings per share up 11% to 1.29p (H1 2006: 1.16p)
* Net cash inflow from operating activities #9.4m (H1 2006: #5.9
million)
* Group net cash balances (pre-Glotel acquisition) up 38% to #53.7
million (H1 2006: #39.0 million)
* Interim dividend 0.1p (H1 2006: 0.1p)
OPERATIONAL HIGHLIGHTS
* Business restructured into three divisions
* Management significantly strengthened with three new Managing
Director's appointed
* 100 new sales staff hired
* Office network expansion implemented
* Successfully acquired Glotel plc for #27.2 million in July 2007
* Acquisition of Glotel plc accelerates strategy

Peter Searle, Chief Executive Officer, said:
"During the first half of 2007, we made good progress in investing in our new
strategy and we are pleased to report a 10% increase in profits. With the
business restructured as planned, the management team significantly strengthened
and the Glotel acquisition completed we are well positioned for further growth
in the traditionally stronger second half."

altium likes them and reiterates buy
onwards and upwards?

[clocktower] 03/7/2007 14:59

Maybe but I do not like it now.

[ialwayswinatmonopoly] 02/7/2007 09:09

short term target 80p (Technical target)

[clocktower] 26/6/2007 12:23

Well that`s a turn up for the books. Will this turn out to be a good deal?

[clocktower] 14/5/2007 13:44

Lifeless now,best left alone for now.

Hope all is going well mac.

[machoolahan] 08/5/2007 18:11

Hard to say CT - well played though - brilliant timing :)

[clocktower] 08/5/2007 15:58

Near tops by the looks of things mac.

[clocktower] 04/5/2007 08:59

Maybe time to take a little profit mac, that said I think it has more life in it yet.

[clocktower] 01/5/2007 12:14

nice rise today mac.

Trust you ok?