Total Systems Share Discussion Threads

[bargain] 24/8/2005 10:07

Pre-tax £0.60m loss, eps minus 3.96p, dps 1.40p. Any views? ...

PS: No web link, comes from the Aug '05 CD which I suscribe to,

[hugepants] 24/8/2005 08:30

Can you give the amount of the loss Brewin are predicting? Is there a link to the note? Thanks.

[bargain] 11/8/2005 11:40

Anybody going to the AGM? Haven't bought into this Company yet but it does interest me. According to CD REFS Brewin Dolphin (House Broker & Financial Advisor)is forecasting a pre-tax loss for 05/06 as at 18/07/05 with a Hold recommendation. Gives no visibilty beyond 05/06 ...

[rambutan2] 04/8/2005 19:00

from their site...

Senior Sales Consultant: Ref #SSC012
Total Systems plc is dedicated to helping leaders in financial services embrace the future. Total Systems markets a complete insurance solution, Ultima, and a comprehensive investment management product, TFM, together with associated consultancy and support.

Current success (!!!!!!!) has enabled an expansion of our London-based sales teams, creating a vacancy for a Senior Sales Consultant for each product set. Successful candidates will be able to demonstrate an understanding of higher-level sales methodologies and integration and will have at least 4 years experience in the relevant market (Insurance or Investment Management). The ability to interface at the Board and Senior Management level is essential, as is a detailed understanding of the current market place and the business issues customers are facing. The position is based at Total Systems office in the City of London.

Total Systems are an equal opportunity employer, and have no pre-conditions as to age, race or gender. However, we anticipate that the seniority of the role and the maturity required will generally mean that successful candidates will be aged over 35.

Salaries will be commensurate with experience and benefits include participation in the Company's Commission scheme, interest free season ticket loans and annual holiday starting at 20 days that increases to 25 days based upon length of service.

and didn't spot this before...


agm is on monday, 10am...

[mctmct] 11/7/2005 08:28

TTS is probably now below true NAV. Tuck a few away! IMO, they'll still be good value even if the dividend is cut 30%. The management have shown that they are survivors - and they own 50% so their interests are well aligned with the shareholders. I'm still buying for the medium term.

DYOR!

[hugepants] 06/7/2005 15:14

The 2005 accounts are on the website.


Rambutan, As regards requirement to revalue property this may be wishful thinking:


Id guess the company wont be in any hurry to revalue the property if it means they may be hit with a 0.5M tax charge. And the drop today may be due to investors being nervous about current trading which is described as being at a "reduced level". They need to start winning some contracts!

[pjetr] 05/7/2005 16:11

just to keep you updated: I sent an e-mail with my 2 questions last week, this was the reply:

from [e-mail]

Dear Mr ---,

No comment.


Yours sincerely,

Granville Harris

.....

Anyway, I think the result announcement answered my questions pretty well: TTS is still having difficulties making sales, and as rambutan says, the company is FINALLY investing more money in marketing and sales (why did they wait so long?). This is really really necessary considering 'Competition in general insurance policy management systems is intense with many software companies chasing a limited number of opportunities.'.

I feel TTS has been underestimating the hard selling of the competition. Maybe their software is pretty good, technically ('Many competitive products are previous generation with little to offer the current market.'), but that's simply not enough.

I haven't bought, but I might. I would just like to be sure that the company is finally waking up (maybe the big cash position and close shareholder structure put the whole company, and especially the sales dept, to sleep?).

I love value, but I also like a trigger!

Pjetr

[rambutan2] 04/7/2005 16:15

hugepants, now im about as far from being an accountant as its possible to be but have been taking an interest in the current swathe of accountancy/risk rule changes as offers opps for some of the small software cos. in fact tts itself should, i would have thought, be a beneficiary of solvency II, as legacy systems not really up to the job?

note, that aim cos can escape the below, for a year or two in any case...

Tuesday 24 May 2005

MARKS AND SPENCER GROUP PLC
ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

Marks & Spencer currently reports under UK Generally Accepted Accounting
Principles (UK GAAP).

As part of its preparation for the adoption of International Financial Reporting Standards (IFRS), Marks & Spencer is today making available financial
information for the year ended 2 April 2005 prepared in accordance with IFRS.

The adoption of IFRS represents an accounting change only, and does not affect
the underlying operations or cash flows of the Group.

Summary of main changes

2004/05
UK GAAP IFRS Change Change
%

Turnover (£m) 7,942.3 7,942.3 - -
Operating Profit before Exceptionals (£m) 709.4 689.2 (20.2) (2.8)
Profit before Tax and Exceptionals (£m) 618.5 596.0 (22.5) (3.6)
Adjusted EPS (pence) 21.9 21.0 (0.9) (4.1)

Net Assets (at 2 April 2005) (£m) 521.4 938.6 417.2 80.0

The most significant elements contributing to the change between UK GAAP and
IFRS are:

• the inclusion of a fair value charge in respect of outstanding share
based awards for 35,000 employees which reduces operating profit and profit
before tax by £23m in 2004/05; and
• the adoption of a valuation of freehold land and buildings as deemed
cost which increases net assets at 2 April 2005 by £388m net of tax.

[garth] 04/7/2005 10:52

Ram,

how do you rate these compared to some of the other stocks you hold? They've been on my watch list for a while.

Regards,

G.

[hugepants] 04/7/2005 10:45

Yes the numbers are better than I anticipated.


Eps was only 1p for H1. H2 was 2.5p. This was definetly not flagged up. And dividend maintained.

The outlook statement is a mixed bag. The inference is if there are no new contracts then the dividend will be cut.

'Trading is continuing at a reduced level as a result of the near completion of
the contract with HSBC Insurance and reduced spending with other clients that
are partly due to the reliability and flexibility of our products. Although
business remains competitive the number of opportunities the sales team are
progressing are the most we have seen for a number of years. I am confident that
new client business will develop as the current year progresses but we will take
whatever measures are necessary to ensure the long term prospects of the Company
and this will include a review of our dividend payments.'

Rambutan, I hope you're right about ifrs(?) and the requirement for TTS to revalue the property. This would definetly out value here. Anyone know anything more about IFRS. Must say Ive never heard of it.

[rambutan2] 04/7/2005 09:37

did stay in profit - 3.5eps, and keep the final div - 1.8p.
says business tough but more interest than for a while.
however, imho the most significant part was this...

The Board has taken action to improve the performance of the team. Our sales staff were retrained in modern methods of selling and improvements were made to our marketing including introducing a new web site, overhauling all of our marketing materials and re-branding our products to give them a fresh new look. In order to give impetus to our pursuit of new business further senior sales executives are being recruited.

and about time to! no point in spending money on a great product if you havent got a great sales force to sell it. we might hate them, but those sales folks are as vital as the product.

no mention of ifrs as far as i could glimpse. but wont they have to use it for next set of results? and under it property will have to be valued at current mkt value (i think?).

[mctmct] 29/6/2005 08:53

I'm happy to keep buying - and if they fall on the results, I'll probably buy some more. So long as they stay in profit, the whole software business seems to be in the price for free!

[hugepants] 27/6/2005 09:59

PJ, Let us know if you receive any feedback although I think its a matter of being patient. The balance sheet is rock solid and as long as the the compnay continues to generate cash then Im happy to wait it out. The products sound good and there is a historic record of profitability. And the latest results state they expect to see improved profitability in the medium term. So unless things go seriously pear-shaped Im quite comfortable holding this one.

[pjetr] 26/6/2005 18:24

Hugepants,

I fully agree with your complete analysis. This share has 'Value' written all over it.

I have one remaining question though: why is TTS failing to sign a good number of new contracts? I'm gonna try to talk to the company to get this clear. My question consists of two parts.

One
TTS is explicitely saying that they're participating in all biddings (RFPs - Request for Proposal) - but in the previous FY they seem to have won only 1 contract.
- Are their Proposals priced too high?
- Is the solution being offered too progressive?
- Is the company simply too small (insurers/fund managers might prefer to buy a solution from an SAP-sized competitor)?
- Are the sales staff (4 + probably CEO etc) doing a bad job? Are their Powerpoint presentations overloaded???

Two
The market in general seems to be low. Insurers/fund managers haven't been very interested in IT spending. Why? When is this going to change? Any signs?

If my research proves satisfying, I will buy before the results next week.

Regards
Pj

[mctmct] 31/5/2005 15:56

Yes, time to tuck away a few more.

[lqs] 31/5/2005 15:41

Nice rise today on what appears to be low volume.

[hugepants] 13/4/2005 14:33

Theres a couple of new magazine extracts (on ULTIMA) in the news section

[rambutan2] 08/4/2005 13:05

noticed this in today's lmso trading update...

Two further properties at City Road were also acquired, Monmouth House for £12.5 million and Featherstone Street for £1.7 million, which further extend LMS's City Road Estate.

here's their prop port...

[hugepants] 03/4/2005 18:50

You ask too many questions! Im sure Mr Bourne is doing what he thinks is best and he owns 50% of the company. For me its simply a play on them announcing new contracts. And they did announce a significant one last year. The way I view this stock is the downside is firmly protected by the cash+property assets with the upside potential basically in for free

[rambutan2] 01/4/2005 20:49

hg, you tempted me to read their last report and accounts and a few things that sprang to mind are...
the main man has plenty of reasons for them not selling stuff but doesnt suggest any plan of action to try and get things rolling?
why dont they sell more - only one contract win rns since start of 2001?
is it the language its written in?
are 4 sales staff enough, or too many? perhaps some of the money spent on r&d, or some of that cashpile should be spent on a top salesman or two?
are they just too small and insecure-looking for a big co?
how much of the rev is recurring?

also, how many and who are current clients? the 2004 ar just lists a selection of past and present clients!

whats their justification for holding all that cash - do they have acquisition plans?

would they worthwhile taking over by someone else in the industry?

and thats enough for a friday night!

[hugepants] 01/4/2005 08:27

Total Fund Manager launched:

[hugepants] 24/3/2005 15:11

Excellent and it would be nice if they announced some sales as well. What price did you get them at? The current spread is ridiculous.

[mctmct] 24/3/2005 12:43

Total Systems say they are planning a press release and PR campaign for the new product, Total Fund Manager, at the end of the month.

I have topped up.

[mctmct] 15/3/2005 16:45

Jesdesk: it was the marketmakers marking up the price to shake out some sellers so they could fulfil an order at 63p.

[jesdesk] 14/3/2005 19:25

whats the reason for the rise today, anyone?