Triad Share Discussion Threads

[sunshine today] 17/6/2021 20:11

Congratulations to directors and staff.!

[sunshine today] 17/6/2021 20:04

TECH COMPANY OF THE YEAR – MEDIUM

The winner is


Triad Group Plc

[netcurtains] 17/6/2021 14:58

Sunshine Today:
You're missing the BIG ONE: 5G

BT is going up due to 5G rollout.

If you read the ofcom website 5G will help
the growth of Software houses LOADS...
From ofcom:

But the biggest differences go far beyond improving the way we use existing technology like smartphones or games consoles. The connectivity and capacity offered by 5G is opening up the potential for new, innovative services.

It then goes to list lots of ideas for business.
If you read ofcoms site it expects 5G to be absolutely massive
for IT DEVELOPMENT



Smart phones QUADRUPLED (at least) the amount of IT Development going on (think of all those apps).

So 5G is going to have a massive affect on IT development - driverless cars might be just the start.

BooooooooooooooooooooooooooooooooooooooooM

[sunshine today] 17/6/2021 12:49

Westcoast :

It’s all about Microsoft, now if I was planing and building, an up to date package, this is what I would use in the mix.


IOT, Robotics, Microsoft 365, blockchain.

Basically a combination of today’s technology to last the next 20 years.

[sunshine today] 17/6/2021 12:31

I also take the view that having the skills on hand for extremely fast deployment is a sweet spot right now.

I keep reading of large companies in the sector having large backlogs of work.

That is not good for either party in a contract.

Yes, you want an order book, but past that, unhappy customers have to wait, and wait some more.

[sunshine today] 17/6/2021 12:25

Here are some average employee utilization rates by industry:

Architecture and Engineering: 59.9%
Public Relations: 77.5%
Design Agencies: 60%
Software Development & IT: 75%



////////////////////////////////////////////////////////.


The directors target, must be just above average utilisation for the software development sector.

I would be extremely happy if they hit just the sector average of 75%.


COVID effected the first half , yet rates still hit 63% for the full year.

[sunshine today] 17/6/2021 12:19

The Group successfully utilised its in-house resourcing capability to support the recruitment of a net additional 21 consultants during the period. Further, consultant utilisation increased in the year from 49% to 63% and, with the growth in headcount, consultant days billed increased year on year.

[sunshine today] 17/6/2021 12:18

I think we are all agreed that so long as the company delivers every six months , shareholders have, an extremely bright future.

The city has yet to recognise what’s gone on over the last 12 months, particularly with reference to margins during that timeframe.

The utilisation rates for permanent staff is moving up fast, with yet more room for improvement.

[cjohn] 17/6/2021 11:58

netcurtains17 Jun '21 - 09:39 - 3040 of 3044

TRIAD is cheap for this sector
especially if you factor in the latest
outlook statement.

Aveva-- FTSE100 PE ratio 314
Kainos- FTSE250 PE ratio 41.5
Softcat FTSE100 PE ratio 38.8




Yes, the software sector is CURRENTLY extremely highly rated. The ratings you've listed make little sense on economic grounds. Taking RELATIVE valuations in such circumstances is not likely to bear fruit as a sustainable investment strategy, to put it mildly. It's a strategy that has cost investors fortunes, particularly at the top of frothy markets, as the market for software stocks is now.

IT is far more likely that the three software companies mentioned fall back to more rational ratings than that TRD rises to a PE ratio of only 314. (I made a similar point about Kainos on here some time ago; it has since fallen back quite some way in PE terms, as was to be expected.)

But just for fun, let's do some RELATIVE calculation: based on H2, TRD is on an annualised profit of about £1.2m.

Multiply that by 314 and you get a market cap of £376.8m or about 2270p per share. It's got to be right. It's a RELATIVE valuation, after all.

Damn, I forgot: we're predicting £2m for next calendar year. That's a mere £628m market cap or..... but wait. That's way too conservative: in four years' time, when we're sending a shed load of consultants to Stratis, we're going to be doing £14m, no £25m profit a year. Multiply by 314 and you get about an £ 8bn market cap.

Hey and that's just the beginning...


The point I am very gently trying to make is that you can hold a share and still make critical judgements about prospects and valuations. I'm never going to get carried away by enthusiasm about TRD or any other share I hold.

We know TRD has good prospects over the next two or three years. Beyond that, NO-ONE can see. It looks under-valued to me. That's all. The risk-free action was from the mid-20p share price to where we are now. From hereon in, we are dependent on Company operations to generate decent profits.

[netcurtains] 17/6/2021 11:23

bones and Dorset64:
One of the directors IS speaking - TOMORROW - 4pm



Westcoast is a very large company.

www.westcoast.co.uk/

From NOV prelims:
two private sector clients (one from the
technology distribution sector and the other from ...........)

Westcoast employ 1,600 people
And has revenues of £2.8 billion in 2019.

[bones] 17/6/2021 11:10

Dorset64, agreed and I hope the company will do this. The AGM is their next opportunity for which they haven’t yet named a date, I guess August?

The www.Triad.co.uk website is also a place to find information as they update items of interest there which, while not price sensitive, gives a feel for developments in areas they cover.

[dorset64] 17/6/2021 10:57

bones15 Jun '21 - 18:24 - 3036 of 3042

Nonetheless, CJohn, if the bottom line profit triples this year, I would still expect a good share price even without a pe multiple increase.
=================================================

Bones you are of course correct BUT, this will only increase the share price IF the company tells everyone how well we are doing by giving timely financial updates and possibly online interviews/media.

[sunshine today] 17/6/2021 10:18

Dividends this year could be the highest for the last 20 years at 5P plus

[sunshine today] 17/6/2021 10:15

Knock off the cash, and PE is 19

If profits hit £2M this year, it falls to 7 then 3.5 the following year, then just one the next, on my personal forecasts.

[netcurtains] 17/6/2021 09:39

TRIAD is cheap for this sector
especially if you factor in the latest
outlook statement.

Aveva-- FTSE100 PE ratio 314
Kainos- FTSE250 PE ratio 41.5
Softcat FTSE100 PE ratio 38.8

Triads- PE ratio 25.7

(Triad in the past have been a FTSE250 company - back in 1990s)

[netcurtains] 17/6/2021 09:10

Nice to see it edging higher.
The current price is probably absurd considering
their outlook statement.

(see header of this thread for outlook statement)

[ntv] 17/6/2021 08:33

They made £600k in the second half of the year so it would suggest profits of £ 1.5m for the next or maybe more depending on how quickly the consultants make a contribution to the results
Interesting

[sunshine today] 16/6/2021 18:53

Director buys at £1.45P (March 21)

My money is on them.

It’s absolutely clear the business model was changed two years or so ago.

It’s profits that drive share prices, the re rate started at 30P last November, when the company broke even.

Yesterday we had a true £600,000 profit and dividend.

This year I am looking for £2M profit, slightly weighted in the second half, as more consultants are employed and a small blockchain contribution.

[dennisbergkamp] 16/6/2021 17:04

Plus allow limits to be hit for which ever agenda they have

D

[bones] 16/6/2021 16:52

One of those weird matched trades in the closing auction. That should ensure an opening quote tomorrow of -21 and should help shake out a few more of the “FFS” brigade!

I think these closing auction unwinding trades are engineered by the MM’s in illiquid stocks. They know there are some twitchy investors from early in the year who wont like the opening quote tomorrow, which should be 105 (unless there’s another RNS).

[deeker] 16/6/2021 16:51

Not sure. Advance losers list still shows it down 13%. Will find out at open tomorrow

[netcurtains] 16/6/2021 16:48

Do we know why the price rose so much on close?
Is that some sort of glitch?
Or is it a real rise?

[netcurtains] 16/6/2021 15:31

thanks winning or a finalist should help the sales reps get some more sales.
I mean winning the "booker prize" with books helps loads (even being a finalist)

So by the same token this award (or finalist) will help Triad a lot.

When companies take on a new software house they want to know is this a "safe
pair of hands".
The award or finalist gives the company confidence that picking Triad is the
best bet.

[sunshine today] 16/6/2021 15:15

Bones

I believe we will see at least 3 years of 100% plus growth,(each year.)