Vantis Share Discussion Threads

[agreeable] 13/8/2007 08:12

thank you egoi

[spaceparallax] 10/8/2007 08:18

Just checked all my shares and the vast majority are red today!

[egoi] 10/8/2007 06:51

Cheque on its way next few days -:) - the market sell off has even hit quality stocks like VTS. Look forward to picking some VTS up when the market volatility settles down.

[agreeable] 30/7/2007 12:17

this company has kept the growth story through acquisitions, which due to cash flow restrictions are now at an end (as confirmed at recent senior management meeting). Plus some accounting tricks that would make Arthur Andersen's eyes water means these shares only have one way to travel

[spaceparallax] 28/7/2007 09:19

Egoi,

You're so provocative - at least he's Agreeable! LOL!

Anyway, back to real reason that I'm posting. I subscribe to growth Compny Investor (GCI), which I've generally found to provide some good guidance - part of that subscription provides Peter Shearlock's small cap selection.

In today's edition he has the following to say:-

"Vantis encounters cost pressures

It could be time to take your profit in Vantis, the accountancy and professional services business. Its full-year profits came in a fraction below expectations and it is clear the company is encountering some cost pressures. Tipped here just over three years ago at 115p, the shares currently trade at 216.5p. While they do not look expensive at under 12 times prospective earnings, they could come under pressure short term. Sell."

Given my reputation for fence-sitting, I think it's time that I sell up and just spectate.

[egoi] 26/7/2007 18:38

Your's is just 'half' space! Off the fence, buy sell or hold? (A clue one of these would mean staying on the fence, so which way would you go if you gotta jump, on a 12 month view). -:)

[spaceparallax] 26/7/2007 15:48

You two are a right pair - talk about glass half-ful vs glass half-empty.

[egoi] 25/7/2007 10:21

Oh dear is that the best you can manage; debtors, lol, (turnover up 26% debtors up 29% so where's the big deal, pretty much what you'd expect) obviously you didn't get this far down the report, lucky I am here to help you;

'The increase arises principally in business recovery and Vantis Tax, both caused by growth in those businesses.'

Due to growth ......... that's, erm, growth; given VTS deals with blue chip clients, I'm satisfied these debtors will pay the company no problem. I guess you are hoping people might confuse debt (which is very sharply reduced, good news) and debtors lol?

Did you miss this bit then on acquisitions:
'The pipeline of acquisition and recruitment opportunities continues to be
extensive, assisted by the prominence of our brand and a good stable market. We
will continue to remain focused on appropriate acquisitions, team recruitment,
integration and the development of our service lines across a broad range of
sectors.'

Apparently you did miss that too. Either that of your definition of extensive is 'none'. LOL!

Most damning of all though, agreeable, you don't comment on a single one of the excellent headline numbers, or the sharp reduction in debt, which says more to me about your real feelings on these results than anything in your post..........

The upgrades will surely follow over coming weeks. The one point I might have conceded (but apparently it doesn't worry you but it does demonstrate one of us can at least keep a sense of seeing both sides) would be intangibles. As with all companies that grow by acquisition, there are lots on the balance sheet. If the market was to turn sour -, as for some companies it now is in the 'communications' sector - and banks come calling, because intangibles by themselves do not pay the bills, then they can get in difficulty. Happily VTS talks of strong stable growing market for their products so it is not an issue here.

Anyway, if I'm in John Street, you'd best be at the opticians. -:)

All imho.

[agreeable] 25/7/2007 09:50

I am back, sorry i had to sit down given the shock of the size of Debtors, plus exceptional costs are really interesting covering costs re Numerica (how long ago was that deal? and costs of starting up new venture! never head of those being exceptionls
People who really want to understand what is going on in this group should look at Companies House files on some subsids, where they have been filed! all of them late
Anyway egoi you can return to John Street your job done for another week.

given this has been an acquisition driven story to date what is the reference to acquisitions in the current statement...something about being under tight control i.e. none

I await the future with interest, but oh those debtors!

[spaceparallax] 25/7/2007 09:27

I think that the results look solid - let's see what the Market thinks.

[egoi] 25/7/2007 06:43

Splendid results and positive outlook statement, certainly trounced my expectations decisively; strong profit rise, steep fall in debt with over 11 million available for further acquisitions. Dividend up strongly - my fretting friend agreeable will be hard pressed not to grudgingly accept things look pretty darned good now, though no doubt he'll do his best lol! In a results package this size no doubt he'll find something (or maybe try to dig up old news, a real sign of desperation that'd be) but it'll be pretty drippy I fear for him, in comparison to these numbers:

'Turnover up 26% to £89.7 million (2006: £71.2 million);

• Profit on continuing activities before goodwill amortisation,
discontinued operations, exceptional items, interest and tax up 13% to £14.4
million (2006: £12.8 million);

• Profit on ordinary activities before taxation (after discontinued
operations, goodwill amortisation and exceptional items) up 67% to £7.5
million (2006: £4.5m);

• Adjusted basic earnings per share on continuing activities excluding
goodwill amortisation, discontinued operations, exceptional items and
finance charge on discounting of deferred consideration of 18.6 pence
(2006:16.9 pence), an increase of 10%;

• Cash generation from continuing operations before exceptional items of
£7.6 million (2006: £6.8 million);

• Interest cover from continuing activities before goodwill amortisation
and exceptional items approximately 6.2 times, and approximately 4.3 times
after allowing for discontinued activities, goodwill amortisation and
exceptional items;

• Final dividend proposed of 3.8 pence per share, making a total for the
year of 5.3 pence per share (2006: 4.8 pence), an increase of 10%....'

320p may be dependent for a while on the market not collapsing, otherwise it looks definitely on the cards this year.

I think the market will like these results and the recent new uptrend channel will be confirmed; I fully expect broker upgrades and positive coverage in the likes of Shares Rag, the Press and IC in coming weeks when they analyze results.

Fully back on track for powerful growth.

[egoi] 24/7/2007 15:39

I don't have a postcard, they said about a month ago 25th July - which by my calendar, is tomorrow. Your mention of accounting tricks suggests you are going to be scrabbling deep to try and find excuses for good results lol. -:)
Results will be important, in line we know, but the outlook statement and accompanying 'other' comments will be what interest me, rather than the historic numbers.

Chart has a strong triple bottom of support around 210p and rising new trend channel, so in the absence of anything untoward, or a market slump, we should see good share price strength from here on.

[agreeable] 24/7/2007 12:51

I note that results are now delayed vs last year, is it because it takes longer to add up a bigger profit number or it takes longer to persuade auditors to go along with accounting tricks.....
answers on a postcard

[egoi] 09/7/2007 15:01

Up again today.

[spaceparallax] 09/7/2007 14:55

The problem is that you both keep being proven correct for a while - the sp's so volatile without good overt reason.

[agreeable] 09/7/2007 11:43

strangely i dont think so, partners have been told internally no more acquisitions all about organic growth. Still a lot of advanced billing going on which accounts for high debtors figure plus recent publicity about the firms practice of pro-forma invoicing and then only invoicing for vat purposes once money paid will soon get knock on the door (another) from HMRc, IMHO

[egoi] 05/7/2007 07:17

Nice triple bottom on the chart, looks like we could have a strong run into results on 25th, with a bit of chart support around 210p now. Opening stronger today again.
Last triple bottom in Feb/March presaged a big rise.
Downtrend line from early March has been broken.

[spaceparallax] 02/7/2007 10:00

Egoi,

I thought the TS looked solid too, but can't figure out what's been happening with the share price

[egoi] 01/7/2007 14:15

Ahh my old pal agreeable still getting the facts wrong.

Did you miss the TS?

'Preliminary results for the financial year ended 30 April 2007 are due to be
announced on Wednesday 25 July, 2007 in accordance with the Group's usual
timetable and are expected to be in line with market expectations.

The Group has experienced solid growth in trading across all business units in a
stable SME market. Core practice, taxation, business recovery and i.f.a., where
repeat client revenues provide good visibility in earnings, have been
particularly encouraging. Corporate finance and Vantis Custom House have also
performed well.......'

How can 'solid growth in trading across all business units' be ex-growth.

You gotta laugh! Discredits anything else you say imho, I'm afraid.

300p target remains intact, boredom selling and a recently shaky market has taken this lower, nothing else.

If it did happen to hit 200p due to these factors, and what a bargain that will be, now have I any funds........
.........I will happily send you that tenner, but would prefer to give it to a charity of your choosing. Up to you though..........

Edit: opening higher today, perhaps some T-20s will now start buying in the run up to results, quick return to 240p? Oversold, good bounce play now?

[agreeable] 01/7/2007 10:38

I have not posted here for some time but notice that my 200p prediction is about to be fulfilled, this has clearly gone ex-growth, the institutions who took the Charles stanley placing have to be upset. Now cash is tight they cannot afford acquisitions which have driven profits, there is an overhang of shares issued for past acquisitions and they still have to deal with any potential claims arising from the questionable 'charities' scheme they were selling. 150p next stop.

[amazon_woman] 11/6/2007 14:18

5v1 29k v 1k L2 getting stronger tick up?

AW

[amazon_woman] 11/6/2007 10:31

4v1 on L2 news coming ??


AW