Vega Share Discussion Threads

[suicidestu] 10/5/2004 14:00

Not a big chartist myself, but compare 5 months ago to now. Spooky parallel and at the same price. If this temporary reversal receives the same response as in December, 200 within 2 weeks.

Charts aside, the companies prospects are far superior than 5 months ago, DYOR.

[suicidestu] 10/5/2004 09:32

Good buying op today. Slight easeback on profit taking before the inexorable move north to 200

[jangaman] 07/5/2004 23:11

looks good value to me - just a tad worried that the sector has come off the boil a wee bit. wouldn't be suprised if it trades sideways for a while , but I hope not.

[cat] 07/5/2004 16:50

maryquant - 30 May'01 - 09:08

[diamondal] 07/5/2004 10:37

Should be interesting what SHAREWATCH has to sayabout latest developments
on this company. It can only serve to boost the share price.

[diamondal] 06/5/2004 14:23

There is a big buyer in the wings! MMs are desperate to accumulate stock.
Don't sell , there is a lot more upside,and very quickly.

[suicidestu] 06/5/2004 08:50

Great news!

Cant imagine why some people have taken profit at this early stage of the rise. Sell on news isnt applicable when the news is good, AND hasnt even approached being factored into the price.

200 is inevitable now IMHO.

[davewheelershed] 06/5/2004 08:06

Double Whamy!

Confimation of the ESA deal and a stellar T Update all rolled into one.

Hope Ciderpress made it!

DW(S)

[gd150772] 06/5/2004 07:51

watch veg rocket now!!!!!





Vega Group PLC
06 May 2004


For Immediate Release 6 May 2004



VEGA GROUP PLC

TRADING STATEMENT

VEGA Group PLC, the consulting and technology company ('VEGA') announces that
trading in the second half year ended 30 April 2004 has been ahead of market
expectations.

Government and Defence revenue has been particularly strong and has grown faster
than anticipated. This has been partly due to a higher than normal level of
subcontract and hardware sales in Defence and also due to continued growth in
Public Sector. Our Space business has grown in line with market expectations.

Cash generation has been exceptionally strong during the period, as we continue
to focus on management of working capital. Net debt is below £0.5m at 30 April
which is better than market expectations and down from £4.3m at the same point
last year.

Profit before tax and exceptional items, is ahead of market expectations.

As announced in March, VEGA withdrew from negotiations to acquire part of the
CODASciSys business. As a result an exceptional item of £0.7 million is to be
taken.

We are pleased to announce new orders from the Netherlands Ministry of Defence
and the European Space Agency.

The Netherlands Ministry of Defence has awarded VEGA contract extensions worth
£1.6 million, to develop integrated hardware and software training systems for
the F-16 aircraft. Work will begin immediately for completion by December 2005.

From the European Space Agency we have received an order which identifies an
additional €6 million of satellite operations support work, under existing
framework contracts. This work will be carried out over the calendar year 2004
and extends our relationship with ESA for operations support beyond 25 years.


Phil Cartmell, VEGA's Chief Executive said:

'In each of the past three years the management and staff have made excellent
progress in achieving the goals of making VEGA a profitable and growing business
as set out in our strategy. I look forward to building on this platform as we
continue to move the business forward.'


For further information:

VEGA Group PLC : Phil Cartmell - Chief Executive 01707 391999

www.vega.co.uk

[ciderpress] 05/5/2004 17:31

been watching this one. might take the plunge soon to buy

[suicidestu] 05/5/2004 11:16

That is my thoughts Dr. Its a classic 'oversold stock due to boredom' opportunity. There was no reason for the drop from the last time we were at 200. All the more reason for this bull run to continue, and if the ESA deal comes in, well things will move a little faster!

[dr darkstar] 05/5/2004 08:11

looking towards 200 again ?

[dr darkstar] 25/4/2004 09:58

chart looks strongly supported by moving averages

[banney] 23/4/2004 09:20

(AFX UK Focus) 2004-04-23 08:20 GMT:

LONDON (AFX) - Shares of Vega Group gained ground in early trade after today's Guardian reported that -- according to rumours -- the group is close to clinching a deal with the European Space Agency.

At 8.03 am, Vega was 4 pence higher at 146-1/2.

[suicidestu] 23/4/2004 08:32

The title of this bb and mary's initial entry seem equally applicable today. Perhaps the start of the bull run up to the results?

[pennyshareguru] 18/4/2004 20:08

VEGA Group PLC

Company Focus by Elric Lloyd-Langton October 27, 2003



VEGA Group PLC (£1.10p)was first established back in 1978, essentially as a consultancy company for the engineering service sector. Since then VEGA has gone through a period of restructuring which has resulted in the sale of its commercial arm of its business and reorganising other parts.

The restructuring program was brought about after the appointment of Philip Cartmell as CEO in early 2001. Formerly of Baan his role was head of consultancy in Europe, Africa and the far East.

As part of the restructuring Cartmell sold off chunks of property as well as underperforming parts of the old business. These included the sale of its Dutch loss making engineering service consultancy arm earlier this year.

VEGA also consolidated its fragmented six divisions and closed 2 offices which resulted in a loss of c 140 jobs.

VEGA core focus is Space consultancy. This part of the business provides software and engineering services for both ground and space operations for satellites as well as developing software applications.

Due to the restructuring VEGA was hit with an exceptional charge of £9.2m in its year end results April 2002 which included a £4.7 loss after the disposal of its Dutch arm.



KEY POINTS - FINANCIAL

* Results are in-line with market expectations

o pre-tax profit (before goodwill amortisation and exceptionals) up 51%
at £1.6m
o total turnover unchanged at £35.6m
o organic turnover growth 4% after adjusting for disposal and exchange
benefit
o operating margins (continuing operations) increased to 6.2% (2002:
4.6%)
* Forward order book £38.6m (2002: £37.8m from continuing operations)

* Strong cash flow reduces net debt to £4.3m (2002: £5.6m)
o interest cover* 5.3 times (2002: 2.7 times)

* Exceptional restructuring charge of £9.7m including disposal of Dutch
subsidiary

* before goodwill amortisation and exceptional items

KEY POINTS - OPERATIONAL

* Key events include:

o £2.5m extension to Eurofighter contract
o four-fold increase in public sector S-CAT orders
o recent launch of Mars Express space mission

* Strong public sector market demand plays to VEGA's strengths
* Significant growth and good profitability in markets of space, defence
and public sector

Chairman, Andy Roberts stated:

"The year to 30 April 2003 has been a successful one for VEGA. Trading profitability has increased markedly and we have reduced our borrowings. Just as importantly, given market conditions, we have generated organic turnover growth and have increased the order backlog of our continuing businesses. In our core markets of space, public sector and defence we have achieved significant turnover growth and have continued to generate strong profits."

Space Consultancy

VEGA`s space service consultancy business has historically proven to be VEGA`s most profitable. This part of the consultancy offers technical support to ground and space expertise. Central to this business is communication satellite programs. Revenue visibility is good as these type of contracts are usually long, some last as long as 10 years.

As well as providing simulations to test satellites before they are launched in to space, VEGA are expanding in to real time data capture. Expansion of its space division into other EU countries that are major players in the European Space Program (ESA). The largest ESA contributors are France 30% Germany 27%

VEGA`S largest base is in Germany where it is currently mid way through a 5 year contract, once that VEGA has held onto since 1978.

Avionic Simulation

VEGA`s other main focus is in the avionic simulation business. Part of this business is technical support for fight technicians. VEGA`s longest running contract is with the British governments MOD, where VEGA supplies avionic simulation training for the Sea Harrier technicians. VEGA has had this contract since 1984.

Since then, VEGA has broadened its expertise into other aircraft training simulators. As part of the simulation program, VEGA`s simulators create computer control repeatable faults. The advantage to the customer is that this type of training frees up aircraft, which clearly reduces over-heads, (say nothing of losing an aircraft)

Typical length of these contracts are 2 to 3 years, usually for a fixed rate from £1m to £6m with an annual management fee of 10%

VEGA announced on the 24th of October that it had won a 5 year £2.6 million contract by the Netherlands Ministry of Defence, to develop and implement a technology-based training system for the F-16 ground crew technicians of the Royal Netherlands and Royal Norwegian Air Forces.

While VEGA demonstrate that they are able to find new business, the Euro fighter contract remains the groups largest contract to date, worth £6.5m initially. This has more recently been extended a further £2.5m.

Significantly, the technical aspect of VEGA`s software is intellectual property which never actually leaves the shelf (so to speak) it is merely repackaged. This means that most of the profit goes to the bottom line. £1.1m (£0.5m)

Further growth

VEGA has moved further forward into the commercial side of its avionic simulation business, by providing IT procurement project management. This entails the provision of simulation training for both pilot and cabin crews as well as ground staff.

VEGA should see further growth from its collaboration with Mott McDonald, which enables VEGA to sell consultancy into central government agencies. This generated £5m last year, of which £1.5m was VEGA`s share.

Conclusion

Since VEGA`s rocky period in 2001 the company has demonstrated strong key sector focus instead of a mish mash un-focused business. Falling to a low of 47p to current levels of £1.10 it is clear that VEGA is now on the right track and should continue to gain further.


I do not hold VEGA shares

I bet the author wished he`d put his money where his mouth was.

[150772] 18/4/2004 18:17

Suicidestu

I think this is a cracking little company which has been well and truly oversold. The forthcoming set of results which are due @ 2nd July are finals, and if it hasn't happened before I firmly believe the company will be completely re-rated. They are growing earnings by more than 20% a year and operate in a niche market. Whats more Veg is rather illiquid so any sustained bit of buying will send the share price flying.

Like the previous two years I fully expect Veg to issue a trading statement towards the latter part of April. Should this confirm things to be all go, it should act as a catylyst for the share price.

Furthermore I believe there was a broker note issued recently giving a target price of 250p. I don't know whether Veg is capable of that, however I firmly believe the shares are considerably undervalued.

DYOR etc

Gd

[suicidestu] 01/4/2004 16:43

Expect this to start rising soon, based on the six month cycle associated with the results. Target 230 post results in June I think.

Is anyone else out there to comment?

[suicidestu] 01/4/2004 10:47

In some ways, it is a good sign that they are only willing to make acquisitions if the price is right, and dont just push things through, because its their policy.

[weatherman] 31/3/2004 22:38

Good news? It certainly takes us back to where we were, which in many ways takes away uncertainty.

Why did Vega try and buy? I guess it was opportunism, although they have said they are looking for aquisitions. They will have to build the company the hard way I guess.

Still great value imo.

Andrew

[slogsweep] 31/3/2004 08:35

Is this good news?

[nilip] 25/3/2004 23:18

As today's end-of-year results will show, the SciSys Government and Commerce arm has caused SciSys some problems this year, with "contract deferrals" (management speak for a lack of sales) resulting in a first-half loss of £0.8m. Although the business has recovered, generating an operating profit of £0.6m in the second half, the delays caused the wider group to report a dip in earnings for the first time since joining Aim in 1997. Vega has only just finished sorting out its own loss-making commercial division.

[suicidestu] 25/3/2004 16:04

Any guesses at how long the suspension will be for?

[trader2] 25/3/2004 13:41

Comment from Holway:

10:30 CODASciSys announces 2003 results and Vega bid

CODASciSys, provider of IT services to a range of industries including government, utilities, defence, space, commerce and industry has announced its results for the year to 31st Dec. 03. Turnover is up 2.5% to £68m, including a £4.5m contribution from acquisitions.

Operating profit declined 31% to £3.9m while PBT declined 33% to £3.9m. For the first time since its admission to AIM in 1997, the company saw EPS decrease - from 23.3p to 20.5p.

Across its two businesses, revenues from existing operations were as follows:

CODA - almost static at £40.5m
SciSys - down 12% to £20.9m
In parallel with today's announcement, shares in Vega, a provider of training and IT services to the space and defence industries, have been suspended following discussions that may or may not lead to an acquisition of two major divisions of the SciSys business. The transaction would constitute a reverse takeover as CoDASciSys has a much greater market cap than Vega.

CODASciSys Chairman, Mike Love said: "Going forward, the Board's attention will be focused on expanding the CODA business, further improving its profitability and building on the turnaround in profitability of the SciSys Division. There are signs that market conditions are slowly improving and we remain positive in our expectations for the business in 2004."

Comment: Although the SciSys business turned in an overall operating loss of £200K, it did manage to edge into profitability during H2. And more importantly, the Space & Defence Division, which is presumably one of the divisions Vega's interested in, made an operating profit of £1m.

Any possible sale would make sense for both parties - but perhaps more so for Vega whose own space division hasn't achieved what was hoped for so far this year in terms of creating greater margins.

The SciSys business saw turnover drop 12% to £23m while CODA business revenues - from existing operations - remained flat. Divesting of large parts of the former would enable the company to focus on maintaining the profitably of CODA. It is, however, the Government & Commerce Division that's causing SciSys the real headache and it's not clear whether Vega's interested in this division. If not, we can't see why CODASciSys would want to agree to a sale.

On top of that, could Vega handle the takeover on top of working on the performance of its own space business and getting central costs under control, which have more than doubled since last year?

[harrykewill] 25/3/2004 13:21

some analysis of the deal: