Triad Share Discussion Threads

[black swans] 16/6/2016 07:22

Triad (TRD) is currently valued at £4.7m at a share price of 31p. The recent results show the business turnaround started some years ago is now paying off. For £4.9m you get turnover up 20.6% to £28.3m and operating profit up 112% to £980k. EPS includes a one off negative tax charge so the increase in diluted EPS of 7.72p is overstated. Realistically the PER is about 7. This is relatively low and if you include cash of around £1m and other assets of around £2m the PER is about 4.5. For the growth and assets you should probably be looking at a PER of between 15 and 20. This would give a share price of between 103p and 138p.

[netcurtains] 16/6/2016 06:50

Triad with BritExit/Remain

From Results:
"
Triad consultants developed a new search platform for the Electoral Commission, enabling interested parties to interrogate the Party Election Funding database to understand who has donated what to whom. The application used pioneering user research techniques to come up with a very intuitive system that matched the varied needs of its users, and it was accessed extensively during the period
of the 2015 General Election.

[netcurtains] 16/6/2016 06:42

Triad with BritExit/Remain

From Results:
"
Triad consultants developed a new search platform for the Electoral Commission, enabling interested parties to interrogate the Party Election Funding database to understand who has donated what to whom. The application used pioneering user research techniques to come up with a very intuitive system that matched the varied needs of its users, and it was accessed extensively during the period
of the 2015 General Election.

[s34icknote] 15/6/2016 23:31

We have a seller holding us back.

[netcurtains] 15/6/2016 18:23

brando69:
sty has a PE ratio in DOUBLE FIGURES
trd has a PE ratio of only 4

[brando69] 15/6/2016 14:19

Sty actually went to 420 on Friday!Sty has 6 bagged for me. Still adding as it had a way to go yet. Massively undervalued on fundamentals Believe sty and clp will make me a lot of money this year

[effiert] 15/6/2016 14:15

Buying at these levels very much reminds me of buying STY at 50p ( now £3.50)

[effiert] 15/6/2016 14:15

Buying at these levels very much reminds me of buying STY at 50p ( now £3.50)

[netcurtains] 15/6/2016 11:50

Average FTSE PE ratio is 16
Traid is about 3 or 4.

Equates to 300% under valued.

For a tech stock the average is 22.5

Equates to about 500% under valued.

[black swans] 15/6/2016 07:35

Triad (TRD) is currently valued at £4.7m at a share price of 31p. The recent results show the business turnaround started some years ago is now paying off. For £4.9m you get turnover up 20.6% to £28.3m and operating profit up 112% to £980k. EPS includes a one off negative tax charge so the increase in diluted EPS of 7.72p is overstated. Realistically the PER is about 7. This is relatively low and if you include cash of around £1m and other assets of around £2m the PER is about 4.5. For the growth and assets you should probably be looking at a PER of between 15 and 20. This would give a share price of between 103p and 138p.

[netcurtains] 14/6/2016 13:09

if you go to company web site and read the past 10 years worth of accounts you will note its been a long hard slog to get here!!!

It all started back in 2007.

They are "no over night" success, this was long hard work by the company.

If they keep going on in this vane they will do well again next year and for the next 10 years. They are a gutsy ballsy firm

[netcurtains] 14/6/2016 12:41

effiert,
I think they will be able to "sell" (no longer pay rent) the empty property NEXT year, so potentially they might have another £300K worth of good news (saved annual rent) next year, on top of any good growth.

But as I say, IT contracts are often based on "rich clients" . If we Britexit I expect Triad and all of the UK might suffer for a year or two.

Staying in the EU would be the "big Bang" for this share.

[effiert] 14/6/2016 12:10

Paul scott mentions TRD as strikingly cheap in yesterdays Stockopedia

hxxp://www.stockopedia.com/content/small-cap-value-report-13-jun-2016-fitb-watr-egs-trd-135317/

Triad (LON:TRD)
Share price: 32.7p (up 29.4% today)
No. shares: 15.1m
Market cap: £4.9m

Results, y/e 31 Mar 2016 - a reader has asked me to have a look at these figures.

I must say, I'm impressed. This share looks very good value for a company that has just reported very good profit growth. If profits are sustainable, then I could see this share gaining another 50-100%. It's too small & illiquid for me, and I don't really want to buy anything new at the moment.

Triad seems to be an IT consultancy, for both private & public sector clients. I'm not entirely clear what its activities are exactly.

Key points:

Turnover up 20.6% to £28.3m

Operating profit up a very impressive 112% to £980k. Quite a slim profit margin though, at 3.5% of turnover.

EPS is heavily boosted by a negative tax charge (as previous tax losses are brought back onto the balance sheet). So the jump in diluted EPS from 2.32p last time, to 7.72p this time, needs to be treated with caution.

Balance sheet - looks OK overall. Debtors has risen a lot, as you would expect from the increase in turnover. There's negligible debt, and overall it seems to have net cash of about £0.9m - pretty good.

Note the provisions for empty properties, which will be a cash outflow in due course.

They don't capitalise development spend, which is a positive thing in my eyes.

Outlook comments sound fairly good. Although presumably increasing headcount means increasing overheads? So maybe that might hit profits in the short term, possibly?

Further to the progress achieved during the year we have started the new financial year with a strong order book and healthy pipeline of opportunities. Underpinning the Group's success will be our ability to develop new and existing accounts and deliver successful outcomes for our clients.

In order to capitalise on the opportunities being developed efforts to strengthen our business model continue. A key aspect is the need to increase the headcount across the business.


My opinion - overall this share looks strikingly cheap. Just £4.9m market cap, for a business that's just reported a profit of just under £1m.

The key question is whether that profit is sustainable, or whether this was just a one-off bumper year for some reason? So more digging is needed I think.

I've not found anything untoward in the figures - the accounts look clean to me, with real profit, and positive cashflow.

Overall, it's probably too small & illiquid for me, but it certainly looks worthy of more research for any readers who delve into the really tiny end of the market. It would be interesting to meet the Directors, and better understand the business model, and strategy.

That's me done for today. See you tomorrow!

Regards, Paul.

(usual disclaimers apply)

[effiert] 14/6/2016 12:06

Paul scott mentions TRD as strikingly cheap in yesterdays Stockopedia

hxxp://www.stockopedia.com/content/small-cap-value-report-13-jun-2016-fitb-watr-egs-trd-135317/

Triad (LON:TRD)
Share price: 32.7p (up 29.4% today)
No. shares: 15.1m
Market cap: £4.9m

Results, y/e 31 Mar 2016 - a reader has asked me to have a look at these figures.

I must say, I'm impressed. This share looks very good value for a company that has just reported very good profit growth. If profits are sustainable, then I could see this share gaining another 50-100%. It's too small & illiquid for me, and I don't really want to buy anything new at the moment.

Triad seems to be an IT consultancy, for both private & public sector clients. I'm not entirely clear what its activities are exactly.

Key points:

Turnover up 20.6% to £28.3m

Operating profit up a very impressive 112% to £980k. Quite a slim profit margin though, at 3.5% of turnover.

EPS is heavily boosted by a negative tax charge (as previous tax losses are brought back onto the balance sheet). So the jump in diluted EPS from 2.32p last time, to 7.72p this time, needs to be treated with caution.

Balance sheet - looks OK overall. Debtors has risen a lot, as you would expect from the increase in turnover. There's negligible debt, and overall it seems to have net cash of about £0.9m - pretty good.

Note the provisions for empty properties, which will be a cash outflow in due course.

They don't capitalise development spend, which is a positive thing in my eyes.

Outlook comments sound fairly good. Although presumably increasing headcount means increasing overheads? So maybe that might hit profits in the short term, possibly?

Further to the progress achieved during the year we have started the new financial year with a strong order book and healthy pipeline of opportunities. Underpinning the Group's success will be our ability to develop new and existing accounts and deliver successful outcomes for our clients.

In order to capitalise on the opportunities being developed efforts to strengthen our business model continue. A key aspect is the need to increase the headcount across the business.


My opinion - overall this share looks strikingly cheap. Just £4.9m market cap, for a business that's just reported a profit of just under £1m.

The key question is whether that profit is sustainable, or whether this was just a one-off bumper year for some reason? So more digging is needed I think.

I've not found anything untoward in the figures - the accounts look clean to me, with real profit, and positive cashflow.

Overall, it's probably too small & illiquid for me, but it certainly looks worthy of more research for any readers who delve into the really tiny end of the market. It would be interesting to meet the Directors, and better understand the business model, and strategy.

That's me done for today. See you tomorrow!

Regards, Paul.

(usual disclaimers apply)

[blueball] 14/6/2016 10:52

Moving on up nicely.

[netcurtains] 14/6/2016 08:42

I would say Britexit would be something that is holding back the price (of this and all shares)...
However, you could argue that this is the time to buy, if you think Britexit will not happen

[netcurtains] 14/6/2016 08:39

if you bought a sweet shop it would normally be worth 10 times its annual profits.

Thus TRIAD, making £1M a year should be worth £10M.
If its a "growth" company (which it currently is) it should be worth £20M (20 times is profits).

Currently Triad is valued at 4.7M

Thus to get to "fair" value it would need to rise to between 65p and £1.30p
My guess is that it will get to about £1 within 12 months.

I would say Britexit would be something that is holding back the price (of this and all shares)

[cfro] 13/6/2016 16:06

Hi ya all,

old granny cfro here! :0)

[battlebus2] 13/6/2016 10:44

Should have bought at 5p like tara mod form.....

s34icknote my thoughts are, its very cheap but dyor....

[s34icknote] 13/6/2016 10:40

Underlying Eps of 5.4 p ?Eps 8 p - 30 percent tax credit (2.6p) ?PE of 5.8 with 25 percent cash on balance sheet .Any thoughts ?

[modform] 13/6/2016 10:20

Yes looks like it bb2 , the first stock I hold that TBM is a holder as well

[battlebus2] 13/6/2016 10:04

Everyone and their grannies are in this one modform :))

[modform] 13/6/2016 10:01

Ah, nice to see you guys bb2 and ic2 on board here.

[battlebus2] 13/6/2016 09:45

Good to see i'm in good company :))