Simigon Share Discussion Threads

[cockerhoop] 05/10/2016 09:58

My point is that in real world the additional unplanned workload would require additional or at least stable manpower (not the 25% reduction in operating expenses reported - mainly through staff cuts) and the delay in revenue received should compress margins short term not expand them as SIM have reported.

[multibagger] 05/10/2016 09:48

My guess is that the "deliverables outside contract scope" were various software modifications or additional functionality requirements of the customer.

Depending on what has been asked of SIM, it could mean rewriting and testing of a fair amount of software code.

Usually, once the master contract is signed up, additional software requirements are a juicy earner for the vendor. So I would expect an additional amount on top of the $6.7m. But again, this is a multi-year contract hence revenue recognition may have something to do with the margins/operating expenses etc.

[yump] 05/10/2016 09:36

I didn't get that either. When I used to run contracts a bit, deliverables outside the original scope led to an increase in contract size. So I'd expect a delay + an increase on the $6.7m. Unless the extra deliverables were minor, in which case how come they led to a delay ? Or was it one of those contracts where even a minor change leads to the whole contract having to be re-written, resulting in the whole thing being delayed.

[cockerhoop] 05/10/2016 09:18

Can anyone explain the following to me?

The companies major contract of $6.7m was delayed due to the requirement to 'provide a
number of deliverables outside of the original contract scope' yet SIM managed to increase the gross margin and reduce operating expenses by 25% whilst providing these unexpected deliverables.

I don't think i've seen an example of a problem contract handled so swimmingly well in any other company........suspiciously well :-)

[eswr] 05/10/2016 08:35

Overhang is definitely cleared. PacketScience overhang gone entirely. New buyers in the name, like Axxion.

[dgwinterbottom] 05/10/2016 08:02

Does this mean the previous overhang has now fully cleared?

[battlebus2] 05/10/2016 07:41

Yes part of the DeVere group can't be bad. It's a big vote of confidence.

[multibagger] 05/10/2016 07:33

Thanks Rivaldo - I checked the Axxion website as well - briefly - but I'm not entirely clear as to what Axxion do though - are they some intermediary or are they a fund management company for Instis ?

If Axxion have taken another 1.25m shares, then there is still a large number traded that day, that has been publicly accounted for, so far anyway.

Interesting developments...

[rivaldo] 05/10/2016 07:27

Axxion are pretty big - 130 funds and 5 billion euros under management:

[rivaldo] 05/10/2016 07:06

Now we know who bought some of those shares - Axxion SA have increased to 3.5m shares, or 6.81%:

[dgwinterbottom] 03/10/2016 22:02

Rather quiet after Fridays excitement!!

[dgwinterbottom] 03/10/2016 09:04

Many thanks Rivaldo, much appreciated!

[rivaldo] 03/10/2016 08:51

SIM have not far off £9m liquid assets (cash and trade debtors less payables), compared to the £12.5m m/cap, so the EV is only £3.5m.

Yet Finncap's last forecast was for £1.06m PBT this year, or 2.04p EPS, with a 0.53p dividend.

As I posted previously, they have a 45p per share valuation based on 51m shares in issue.

Adjust from there as you wish!

[dgwinterbottom] 03/10/2016 08:22

Could anyone hazard a guess as to what the actual present value of Simigon is on a per share basis please.

[cliley454] 03/10/2016 02:18

Yes nice rise on the cards.
Off topic take a look at ENGI. I posted some info on the BB.

[rivaldo] 02/10/2016 07:51

Finncap have a 45p valuation here, so there's plenty still to go for.

Great post from Charlie51 there. It would seem that the Jarvis overhang has now been cleared and everything is set for progress from here.

[multibagger] 01/10/2016 20:37

Likewise janeann :)

...SIM is tightly held, cash rich with good recurrent revenues and contract size is generally pretty huge for AIM standards. I have been building a stake here for a while...and expect the market to wake up to the potential in the not too distant future. Also good to see that SIM is moving into new sectors / markets.

Coming week should be interesting....nothing specific, but feel that we could see a burst of fresh investor interest with a rapidly upward moving share price (I hope).

Good luck all :)

[janeann] 01/10/2016 18:40

good to see you here multibagger - and nice to see some upward momentum - was starting to get disillusioned at the lack of activity as have been in this for a while now.

will be good to see what prompted the change - rns Monday perhaps?

[loobrush] 01/10/2016 17:55

poster on iii

15:17
Re: Small free float - ready to go
SIM.L
charlie51
I met the management at an investors meeting - one of a series organised by finnCap for their clients and IIs following the results. The session was based on a 40 minutes or so presentation of the H1 results. Nothing in the session could be described as being 'inside'.

The transition to SaaS from the on premise paradigm is common place these days as companies seek to smooth revenue profiles, make life more predictable and satisfy the market's understandable desire for greater predictability and visibility. SIM would say they have flagged this up - they have, but it has been rather discreet (hence my comments on the need for better IR).

The main points I would stress here are:

The move to a recurring revenue model is progressing well.

The company's pipeline is the best it has ever been. They are successfully diversifying into areas other than military centric simulation.

The company is moving to a model where it is looking to 'prime' contracts rather than be the sub (ie increasing control in all that it does)

I have repeatedly stressed to the CEO the need for a proper IR plan. I am not alone in doing this. I believe they agree it needs to be done, and are looking to act sooner than later. If there is one immediate example of this it is for the H1 presentation to be placed on the company website! It is not and it should be.

There is no doubt in my mind that the CEO is a very competent individual who has a real grasp on his business - he just does not communicate it! I have suggested forums such as ShareSoc, Mello, Shares etc .,. Hopefully, this will happen - not to mention some proper IR related PR. The PR is lousy at present.

Niche company, and a very interesting one, but too discreet for its own good!

[melodrama] 30/9/2016 17:36

The bottom TA thingy is volume. Maybe 13% ish of the MKT Cap in one day.

[nw99] 30/9/2016 17:29

Took profits