The Simplybiz Share Discussion Threads

[hazl] 17/9/2018 07:55

It is apparently highly unlikely that SBIZ would let cash build up and not exploit earnings accretive additional opportunities.

[hazl] 15/9/2018 12:31

SO event on Monday........even more visibility....

[davr0s] 14/9/2018 20:13

Yawn - I'm long and have increased my position but can do without arbitrary targets being ramped

[rubberbullets] 14/9/2018 19:59

240p coming

[hazl] 14/9/2018 15:46

...goodness pop out for a minute and return to this...jolly good.

[nw99] 14/9/2018 14:51

Chart breakout

[hazl] 14/9/2018 12:52

'Again from the above IC.

' At the current price of 190,the shares are rated on a modest 12.6 times 2020 earnings estimates,which is hardly exacting for a business that could double in EPS from 8.3 to 15p in the next three financial years.'

[hazl] 14/9/2018 12:48

This from the IC in July....

'as the company moves into a net cash position there will be no interest to pay in 2019 , something investors may not have fully cottoned onto.'

[hazl] 14/9/2018 11:36

bodes well perhaps....

[hazl] 14/9/2018 11:35

Hmm ...bid higher than mid. 8-)

[opodio] 14/9/2018 10:05

Got 25k of these bad boys

[hazl] 14/9/2018 09:26

Market waking upto the potential by the looks of it....since the interims.

IMO

[hazl] 13/9/2018 19:57

SIMON Thomson' view in the IC is worth reading I think.

'there is a real opportunity to lock-in in an investment that has the potential to deliver a 50% return over the next few years in line with anticipated EPS growth.'

Now that was back in July so perhaps achieving earlier than expected and with more potential still?

[hazl] 13/9/2018 15:45

Ah bringing out the late trades now by the looks of it.

[masurenguy] 13/9/2018 13:34

Paul Scott's explanation of the current cash/debt position.

The reasons the company has both a £10.7m positive cash balance, and £10m drawn down on its RCF bank facility are as follows;

Management prudence at time of IPO in April 2018 - i.e. have plenty of cash on hand, so everything goes smoothly. Adjustments to drawdown of RCF occur quarterly, so the first one was in July, after the interim period end.

Investment opportunities (i.e. smallish potential acquisitions) were simmering away over the summer, so the company wanted flexibility, of having ready access to cash.

If repayments are made on the RCF, then the bank charges non-utilisation fees. So the saving on interest charges from repayment is not that great. The company may repay some of the RCF using surplus cash at the next review, in Oct 2018, if no acquisitions are imminent

Debt to EBITDA is low, so the company has plenty of borrowing flexibility. Very good relationship with Yorkshire Bank

I also asked the Group CFO about the cyclicality of cashflows. He said that revenues are typically smooth - most customers (IFAs) pay on a monthly direct debit, either at the end of each month for that month's services, or pays in the following month. Outgoings are more cyclical, because staff bonuses are paid in H1. So H2 sees better cash conversion than H1.

There's very little concentration of client risk. Biggest client is about 1% of revenues. Clients typically pay between £250-750 per month, which is about 2% of client revenues. The service relieves them of regulatory worries, so is seen as money well-spent by most clients. There are competitors offering similar services, but "we work hard for our fees".

I am completely satisfied with the explanations given. My thanks to Gareth Hague (CFO) for taking the time to telephone me,

[hazl] 13/9/2018 11:55

Working today so cannot go on web much.
However pleased to be part of SBIZ's journey.
I think we have a bit of a winner here.

[hazl] 13/9/2018 08:02

Good posts and reassuring to see some reliable posters here.

[pireric] 12/9/2018 20:48

Indeed WJC, he kindly messaged me on twitter to confirm the same. Nice to know nothing cynical. (though not uncommon for there to be many different cynical methods employed by more unscrupulous companies!)

"Original sale to pay towards ‘dry tax charge’ at IPO. New Shares bought via SIPP for future. Personal circumstances and good financial planning. Hope this helps."

Best of luck all

[pietradura] 12/9/2018 19:31

Good looking breakout

[nw99] 12/9/2018 16:55

Paul Scott is bullish here

[hazl] 12/9/2018 16:54

Director dealings too, bodes well.
Dividend...good results all in the space of a couple of days!

[pietradura] 12/9/2018 15:31

In Simon Thompson’s third column this week, he sees great value in the shares of a leading provider of compliance, business and technology services to financial intermediaries. A shift in the IFA industry towards direct authorisation, and the requirement for financial intermediaries to comply with a raft of new legislation, means that a growing number are seeking the services of companies who provide the services they need to carry out their business. It also makes money from product providers, too, so profits from both the ‘demand’ and ‘supply’ side.