Visual Defence Share Discussion Threads

[par12] 29/4/2008 10:56

Its quite clear than any new holder will have a capital gains tax bill to pay ;0) and possibly a BIG ONE

[rivaldo] 29/4/2008 10:38

Looking rather good now. For a mere £9m m/cap company like VDI, with £7.5m of cash, any decent sales through Taldor should be pretty meaningful, especially given Taldor's status as below:

"Taldor is one of the leading providers of business and technological solutions
in Israel, providing software, hardware, data security and communications
solutions as wall as outsourcing of IT activities and business processes. The
company is traded in the Tel Aviv Stock Exchange: 69.92% is held by DBSI and the rest is held by the public."

[par12] 29/4/2008 08:27

This is NOT good for new holders to this share

[rivaldo] 29/4/2008 07:26

Nice RNS out today - having closed costly offices, VDI are signing up less onerous distribution agreements in a market which should be highly lucrative given VDI's products.

I particularly like the comment about returning to profitability in 2008. Following the H2'07 operating profit this clearly indicates their priorities this year:



"RICHMOND HILL, ONTARIO, April 29, 2008 - Visual Defence Inc. (LSE: VDI) today
announced that it has signed a partnership agreement with Taldor to distribute
and support the Company's integrated security solutions in Israel. Taldor, a
publicly traded company on the Tel Aviv Stock Exchange, is a leading provider of business and technological solutions in Israel.

The agreement follows the Company's decision to close its office in Israel, one
of the strategic initiatives to return to profitability in 2008. Under the
agreement, Taldor becomes Visual Defence's distributor in Israel, selling and
supporting Visual Defence's product line through its extensive sales channels
and support infrastructure,

The arrangement will effectively remove Visual Defence's direct investment in
Israel while continuing to provide the Company business representation in the
region.

'We are delighted to announce this new partnership with Taldor. The agreement
will allow Visual Defence to reduce its overall cost base whilst maintaining a
market presence in the region with a very strong local partner.' says Barry Tal, CEO, Visual Defence. 'Taldor is a leading IT organization with proven
credentials. This partnership puts in place a winning combination of
leading-edge products with outstanding sales and support organization, ensuring
long term success in supporting current and new customers.'"

[rivaldo] 28/4/2008 22:03

Good to see you here aldi1. I just posted some thoughts on FDP over there having been asked to.

I've also added some VDI over the last couple of weeks. The good thing with such a low m/cap is that if there's any decent news or contract wins then there should be an accompanying RNS. With the recent tick-ups perhaps we can even hope that the overhang has cleared.

Agreed about GNG and RCG, both terrific companies imho. Quite a few small caps bouncing at present - hope you're winning!

[aldi1] 28/4/2008 20:13

just a small starter for me.will add some more over the following weeks.
excellent value here.

how are you riv?

i got back into fdp a few days ago after selling on results day.looking for some steady progress back to £3.
gng and rcg starting to show again.i think vdi has similar potential.

sorry for o/t

matt

[rivaldo] 28/4/2008 09:01

Another post-results tick-up on a 15k buy. Only 50k available to buy online now at maximum.

[rivaldo] 25/4/2008 15:32

More about the Abidjan airport project I hadn't seen before:



"African Airport Aims for TSA Clearance
John Barham, International Editor

12/11/2007
A Canadian company has won a 25-year contract to raise security standards at West Africa's Abidjan airport, which government officials hope will enable it to win TSA certification and turn the airport into an international hub for the continent.

Toronto-based Visual Defence and its subsidiary AviSecure won a passenger safety and security screening contract with the government of Ivory Coast to install security systems at the airport and implement new security management standards. The Abidjan airport lacks TSA certification, which prevents it from handling direct flights to the U.S. Travelers between North America and West Africa have to fly via London or Paris.

"We need to do some major training to meet TSA standards," says Visual Defence CEO Dagan Sadeh. "It's not just about security, it's about everything, like complying with regulations and arriving at meetings on time. The challenge is to adapt to the western pattern of work."

The project's revenues, estimated at $140 and $250 million through 2032, are tied to passenger traffic. The more passengers transit through the airport, the more money Visual Defence will make. Winning TSA certification is the key to raising revenues, because this would turn Abidjan into the only airport in West Africa with direct flights to the US.

Ivory Coast was torn apart by coups and a two-year civil war. The airport was overrun during the fighting, and was only returned to government control after French troops recaptured it. Traffic fell by one-third to 800,000 passengers a year. Peace returned in March 2007 with the formation of a unity government.

Sadeh says technology will play a key role in instilling a new security culture at the airport. As in many African airports, well-connected travelers access aircraft directly, dispensing with security checks, customs, and passport control. Employees generally ignore security procedures. Africa has the world's worst air safety record mainly because aircraft are poorly maintained, but also because of inadequate airport infrastructure and security.

Visual Defence's system will force passengers and staff to observe security procedures. Pushing into a secure area in the terminal or breaching perimeter security would automatically trigger alarms. "An integrated command and control center will help people understand procedures and implement policies," says Sadeh. "The system will make life tougher for people who want to get around it."

Visual Defence is a security convergence company. Its Common Management Platform is a software system that ties all security systems into a single common interface. A workflow engine runs in the background to allow staff to manage security procedures. The project includes risk assessment, security strategy development, and procuring, installing, and integrating security technology. The company will also hire, train, and manage airport security personnel.

AviSecure Inc., a 50-50 joint venture owned by Visual Defence and SkyLink Security (Canada) Inc., will manage the project directly. AviSecure handles airport security outsourcing projects around the world."

[scotswhaehae] 25/4/2008 13:36

...whatever...a bit busy at the mo with MOG...

[rivaldo] 25/4/2008 12:48

Do you mean me scots?!! In the immortal words of Derek Jameson...

On an £8.5m m/cap I don't think there's many people waiting to get out. More likely is that when the overhang from an institution or two who invested long ago at much higher up is gone, many more will join those of us who've invested at the bottom.

Since the m/cap is almost covered by cash, which increased last year, and there was a $320k operating profit last H2 - plus just look at all those debtor balances to be received - VDI are doing a lot better than "not getting worse" :o))

[scotswhaehae] 25/4/2008 12:42

I suspect many here are simply looking for a way out...preferably giving out warm words in the hope of cutting losses...I note the usual suspects are even pushing it on other boards such as the excellent RCG (which incidentally really IS starting to motor!)

Gross margins of 33% and declining compare with over 70% at Indigovision so its much tougher for VDI to push into profits...cost cutting seems still to be the order of the day from reading recent RNSs...

Still...its not getting worse and maybe an exit a bit higher will be possible for very long suffering investors...

Good luck al1!

[dasein] 25/4/2008 11:21

Great find Rivaldo :))..confirmation if we needed it that the money for the airport contract will be available.

also looking forward to what you report nick

Excellent set of results, pretty happy with that. They delivered exactly what they said they would,so when chairman states

"2008 will see the full implementation of our security project in the Cote D'Ivoire,"

Now have even more faith that they will deliver

from trading statement

"The Company has continued to grow its revenues and the Directors expect to
report revenues for the year to 31 December 2007 of approximately $28 million
CAD. Additionally the Directors are pleased with the progress the Company has
made toward profitability. However, even though the Directors expect to report
an operating profit for the second half of 2007, the Directors expect to report
an operating loss for the full year to 31 December 2007. The cash position of
the Company remains strong at approximately $15 million CAD".

Sacking is a bit strong Par12, more like a cabinet reshuffle

"Mr Sadeh joined the Company as Chief Operating Officer in June 2004 and has held the position of CEO since December, 2005. "As CEO, Dagan has been instrumental in the Company's growth over the last few years," said Mr Tal. "Since 2005, we have doubled the number of employees, increased revenues dramatically and delivered some of the largest and most complex security system solutions in the world. We are delighted that Dagan has agreed to remain with the company as a non-executive director."

Although there is no doubt that Mr Tal has a large financial interest, and displays great enthusiam for driving this company forward.

"I am very excited to once again be involved in the day-to-day operations of Visual Defence," said Mr Tal. "I truly believe in this company, our technology, our people and our capabilities. The value this company brings to the security industry as an advanced solution provider is unparalleled and I look forward to leading the company through its next stages of growth."

[par12] 25/4/2008 10:47

I think the CEO gets sacked on 1st May, then the guy that takes over as CEO is the one thats brought all the shares, So after the 1st May hopefully all negatives are out the WAY

[rivaldo] 25/4/2008 10:05

Much appreciated Nick, looking forward to your update.

The CEO has bought so many shares in the last year - at 17p - that I'm not expecting any more director buying particularly, though it would be nice to see other directors partaking.

I'd have thought VDI would be the recipient of some of this $37.3m grant for Abidjan airport expansion and upgrading:



"US$ 37.3 million Istisna'a financing for the Upgrading and Expansion of Abidjan International Airport Freight Terminal Project , Cote d'Ivoire."

[nickcduk] 25/4/2008 09:36

Now that the company is out of a closed period it would be nice to see some chunky director buying akin to what we had last year. Maybe then we will finally clear the pesky overhang in the stock. I may try and contact the company next week and hope Mr Tal is more responsive than Bill Watson and Dagan Sadeh. Will report back anything of note.

[rivaldo] 25/4/2008 09:26

Nick, I beat you to it by a whole minute :o))

H2 was not only stronger, there was a $320k operating profit. Revenues were also way up, from $10m in H1 to $18m in H2.

As you say, it's just a matter of time before people catch on.

[adam] 25/4/2008 09:23

Cheap as chips - trading at cash, but could get cheaper. However I added a few more as would seem churlish not to. If it sold for 3x sales would be valued at £42m or 5x current price. Add in the cash and you have a 6-bagger. Add in some sales growth as security/surveillance market looks good and you have nearly a 10-bagger.

[nickcduk] 25/4/2008 09:06

Surprised no comment so far on the results. Although to be fair they came in as expected. Loss reduced sharply from last year. 2nd half was a lot stronger than the first half. The Ivorian contract to look forward to this year and a relatively bullish outlook augurs well and keeps the growth story in tact. Just a case of waiting for the market to catch on.

[rivaldo] 25/4/2008 09:05

Results out!

Excellent stuff. On an £8.4m m/cap, VDI have around £7.5m net cash (increased by $400k in the year!) and achieved a $320k operating profit in H2'07.

The outlook statement is promising, the customer list impressive, and they seem to have a solid revenue stream going forward:



"Visual Defence has continued to improve its financial performance in 2007:

* revenue growth of 43% over 2006 to $28.37 million
* a reduction in net losses to $3.7 million down from net losses of $6.7
million in 2006;
* full year operating losses, before stock based compensation, amortization
and depreciation, reduced to $1.68 million compared with $3.62 million in
the prior year; and
* cash and cash equivalents increased to $15.1 million.

Visual Defence signed a new agreement to provide passenger and cargo security
services at the Abidjan Airport in Cote D'Ivoire. This new 25 year
build-operate-transfer contract, established though our 50% owned subsidiary,
Avisecure, represents a key milestone for the Company."

[rivaldo] 24/4/2008 12:48

Tiswas, as long as he buys the company back at minimum at the price he paid for shares last year - 17p - that will do me!

I'm hoping for a lot more than 17p here if the company lives up to its promise though - there has to be a good reason for such director confidence as shown in his heavy share buying last year:

15-May-07 Buy Oved Tal 17.00p 1,029,000 £174,930.00
14-May-07 Buy Oved Tal 17.00p 1,300,000 £221,000.00
10-May-07 Buy Oved Tal 16.00p 650,000 £104,000.00

[tiswas] 24/4/2008 12:21

thanks for that Rivaldo. I note that the major shareholder returns on 1st May but hopefully he has had time to plan how he takes this business forward. Is taking it private on the agenda, would not cost him much with a 32% shareholding and cash on the balance sheet. Maybe buy back a few first? How did the emblaze shareholding come about? Certainly look cheap in a fast growing market.

[rivaldo] 24/4/2008 09:14

Tiswas, last year's finals were out on 25th April so hopefully not long now.

I do have a copy of a Peel Hunt update from last September after the interims. This was produced when the share price was 16.5p with an £11.6m m/cap - now the m/cap is £8.4m, VDI has £7.5m of cash and we know it's produced an operating profit in H2'07...

Here's what the note said:

"Visual Defence (VDI) – Interim results. EST: unchanged REC: CORPORATE#

Good interims with sales up 32% and PBIT improved with losses shortening from just under CAD$5m to CAD$3.5m. The cash performance is better with the neutral cash flow for the half and a maintained cash position of CAD$14.6m. The order book is strong and pipeline healthy with new orders coming from a more diverse base of customers and generally showing customers to be taking fuller advantage
of the capabilities of IP video surveillance. This confirms that the transition from analogue to digital surveillance is gaining traction and gives us confidence that the group is capable of pushing through to profitability for the full year at the EBITDA level.

There has been disappointment with this stock before but new management has delivered on its growth promises at the top line, on containment of costs and management of cash. As the IP security market proves out and the returns from VDI become positive, we think that it is time to start taking notice of this business again.

Cash balances represent half the current share price (8.8p) so the trading business, which should be capable of making CAD$2.5m or £1.06m in 2008, is looking lowly valued. The enterprise value is now £5.3m so EV/EBITDA for 2008 is now just 5x. Trust may not yet be fully restored but we believe another six months of strong trading should make the restoration possible and on a 12-month view the shares are beginning the look increasingly undervalued."

[tiswas] 23/4/2008 15:43

Are the results due any day now? Have Peel Hunt produced anything on them, anyone got a copy?

Thanks

[rivaldo] 23/4/2008 13:35

A 42k buy - and the bid price up :o))