Simigon Share Discussion Threads

[diggulden] 27/6/2013 16:24

Noli, this one has been on my watchlist for a while, I was waiting for about 20p to enter but since the last contract announcement I now realise that may never happen.

What are your thoughts now you have done a bit of research? Broker notes look good, seems as though the understand the business better than some (ahem!Itec!)

[noli] 27/6/2013 15:05

Interview from October 2012 with Ami Vizar: Quite a statement from him on growth.

[noli] 27/6/2013 14:23

According to this SIM should get further contracts from them which will generate substancial amounts.


Work under the contract will start immediately and SIMbox system hardware and training delivery is scheduled to commence in the near future and complete in early 2013.

Revenue generated from the initial order is expected to contribute to increased revenue visibility until 31 December 2012, extending into 2013.

According to the company, the partner will also acquire SIMbox Runtime licenses to supply content to trainees and the resulting income will generate a substantial amount of additional recurring revenues in future.

Featuring SIMbox toolkit, SIMbox server and SIMbox runtime, SIMbox is a licensed system architecture designed to enable companies to develop commercial off-the-shelf software and HLA and SCORM compliant simulation-based training solutions.

[noli] 27/6/2013 13:50

A list of the prices, more for reference:

[noli] 27/6/2013 12:49

Just waiting to hear back from C6 to see what training they use it in, it would seem from early research they can use this in nearly any training schedule which in turn means a massive market in which to grow. The oli/gas interests me most as they usually have money to burn so that sector may do very well.

[interceptor2] 27/6/2013 08:43

Another positive sign with the Chairman buying at 28p yesterday.

Thanks noli for your research and the broker note. I agree that it feels that other contracts will be announced soon, and now that SIM are positioning themselves as a prime contractor, yesterday could be the start of a game changing year.

CEVT, looks significant, just a matter of awaiting contract news there, and sales into the Oil and Gas training and simulation market looks an exciting move, with this market worth $2.24bn in 2011.

ic2...

[noli] 27/6/2013 07:09

That rns today looks wrong as it states 36250 and i believe it should be 46250 which is showing on yesterdays trades as a cfd at 28p, the only trade at 28p.

[noli] 27/6/2013 06:28

Among the small caps, house broker finnCap believes Simigon's (LON:SIM) US$6.7mln training contract with an unnamed customer hints at far greater things ahead.

"It is Simigon's first major defence-sector contract won as a prime contractor and encompasses all elements of the training solution – from server environment, to simulators and distributed training devices – thus significantly improving both contract size and margins.

"Encouragingly, it was won in the face of stiff competition from very large global suppliers, doubtless including some of Simigon's partners," said analyst Lorne Daniel. The target price is 40p.

[noli] 26/6/2013 20:57

Have you any idea when the CEVT contract is awarded as i am struggling to find a date?

[noli] 26/6/2013 20:56

Hi DGW, i have fired off an email to C6 to see if i can get a little more information, lets see if i get a reply in the coming days. C6 have some interesting testimonials from the oil/gas companies on their site but i dont know if they are from SIM's simulator training or C6's training.

[dgwinterbottom] 26/6/2013 19:42

Noli: Like you I looked at Check Six some months ago, it would seem that moving into the oil industry would be an interesting progression as they could do to break out from the reliance on aviation. It has to be said that historically aviation has been the predominant use of Simulators ( having flown them myself on many occasions) as a way to save money whilst practicing situations and maintain currency. If they can harness this to the oil industry and demonstrate its value therein it could herald a very lucrative branch!!!

[noli] 26/6/2013 18:41

It looks as though the CEVT has already been submitted and has been for a while, this link shows companies that are interested which includes Simigon and the changes requested, it looks as though this award is not that far away to one of the listed companies. An informal data collection was in June 4th to 6th.




A little more info:

[noli] 26/6/2013 17:37

Just having a quick look around this company and notice the client list of check six, as mentioned in the results Sim's first 12 month revenue from check six.

Also has anyone any further info on the possible deal worth up to 30 mill re CEVT mentioned in feb.

[noli] 26/6/2013 16:19

From April 2013:

[ianb5004] 26/6/2013 14:58

RNS 6.7 million contract awarded.

MCAP 10 million - no brainer

[melodrama] 26/6/2013 11:34

Great stuff, vols healthy, looks to be the most in a day for 11 months or so. Cash is half mkt cap (very roughly i think) , lovely little tiddler with great future potential.

[interceptor2] 26/6/2013 10:01

"We look forward to working closely with them to deliver a successful training framework - on time, on budget - which will put us in a good position to be selected for subsequent phases of the programme."

The statement from todays RNS release, suggests that there could be more contracts from this customer in the future.

Often the market can be slow to react to significant contract news like todays, it reminds me of THAL when I brought in on the back of a contract win in January, the share price remained at the same level for a few weeks, before doubling on an even larger contract win the following month.

Lets hope Simigon can follow this example.

ic2...

[dgwinterbottom] 26/6/2013 08:56

Indeed excellent news....one assumes it is to do with US Defence procurement. It would be good to see significant contracts outside of aviation simulation to broaden the product offering somewhat.

[cfro] 26/6/2013 08:51

Im in too this morning with a small initial amount. I think at first sight the pe does look a little expensive but with todays big contract win and looking further out the shares do look good value.

[interceptor2] 26/6/2013 08:33

Agreed todays contract win does look transformational imv, hence my initial purchase at the open.

ic2...

[shaunstar] 26/6/2013 08:27

Surprised no comment on their contract win annouced today.... looks transformational to me in that it should propel them well into profit!

[stoney4th] 20/6/2013 09:15

this is from their website:

Financial Highlights
Revenues increased by 24% to $6.81 million
(2011: $5.48 million)
Net profit increased by 97% to $0.69 million
(2011: $0.35 million)
Gross margin of 80% (2011: 85%)
Increased positive cash flow from operations by
9% to $2.5 million (2011: $2.3 million)
Significant increase in cash and cash equivalents
and short term bank deposits at the year end at
$7.11 million (31 December 2011: $4.74 million)
and the Company has no debt

[melodrama] 13/6/2013 08:38

Appears yesterday's action not "Tip" related, so something afoot in the background no doubt.....as you say , poss new markets as CEO intimated recently in that Proactive interview