Workplace Systems Share Discussion Threads

[banjosinger] 27/11/2003 17:58

Excellent results, but give it a couple of weeks and nobody will be trading it, the trouble is since the name change, it has fallen of most traders screens, although agreed it is good long term hold

[ogodno] 27/11/2003 15:55

thanks for that ........the toe is in ...good luck all....

[nurdin] 27/11/2003 15:52

ogod..I dont trade shares...like to hold until the story changes for the worse...or add progressively if the vibes get better.The management is now entirely focused on developing the Workplace business and from the interims seems that they are making good progress.Working capital is managed well and this has improved cashflow.They appear to have a stable of good blue chip clients which is currently generating recurring revenues.If the demand for their products rises with industry spend on IT,this will change the earnings landscape for WSI.As I said earlier they are trading on a full year multiple of 10-11 on a fully diluted basis which is very low in relation to the sector average.Strip out the cash and the pe drops to near 7.
Clearly much depends on how the business develops from here but if they deliver on expected new sales,a rerating to PE of 20 isnt unreasonable which would put the shares at 20p and over.

[ogodno] 27/11/2003 14:48

nurdin are you taking a long term view here if so were do you see the share price in 6/12 months ........ps do you know if they have a use for the cash they hold......thanks....good luck all...

[nurdin] 27/11/2003 13:59

You guys ever talk? lol I been adding..the more I look at thses the cheaper they seem to get!

[nurdin] 27/11/2003 11:21

ok just spoke to the company..there are now 143m shares in the issue.Cash per share is therefore close to 5p mark..and they are not consuming cash...make up your own mind on this!

[nurdin] 27/11/2003 11:03

Dont think the market has quite absorbed the transformation of WSI...
Assuming they repeat the first half performance in the second half..and that is being very conservative..full year eps should come at about 1.2p.Thats already pe of under 10 at the current price.Now cash is worth 3pps...strip that out and the underlying PE is 6.6.I believe they have cancelled some 37m shares as well..but I need to check on that.Think I will double check everything before buying another lot but on the face of it these look a steal..

[wole] 27/11/2003 10:52

Impossible to buy above 1 X NMS online at Hoodless Brennan! This is gonna fly! I think the talk of divvies is delicious!
Melikeit!!!

[nurdin] 27/11/2003 09:39

150k buy....price will be sqeezed shortly..

[matthewa] 27/11/2003 09:24

nurdin - COuldnt agree more. With stock so tighly held a steady period of buying will propel it to these levels.

[nurdin] 27/11/2003 09:20

Strip out the cash and you buying these on full year multiple of under 10.Price should be closer to 20p imo

[matthewa] 27/11/2003 09:06

rather - spot on. This is as cheap as hell.

[rarther] 27/11/2003 08:39

Future looking very rosy all of a sudden.

Dividend comments sound good to me!

And how about:

"Cash Flow

The Group's cash position including money market deposits increased to #6.4
million from #4.2 million at 30th September 2002 and #4.9 million at 31st March
2003.

The deferred payment from the sale of TeleWare due to be received in March 2004
will further improve cash flow by #0.7 million in the second half of the
financial year."

Considering that cash is so high (~3pps?) and growing, whilst R&D etc. are kept well under control... wouldn't be surprised to see a special dividend (remember shares ~90% held by directors/institutions, so they have strong incentive for this).

[geeforce] 27/11/2003 08:32

that'll do for starters

[matthewa] 27/11/2003 08:20

10.5 bid - Like to see a close above 12 pence

[rarther] 27/11/2003 08:15

Great stuff.

[matthewa] 27/11/2003 08:11

Blowing Out....

[matthewa] 27/11/2003 07:50

WSI (was Workplace Systems)- Cracking set of numbers - I like this bit

'Dividend

As Workplace is now profitable and cash generative with significant cash
balances, it is anticipated that a dividend will be paid at the year end in line
with the Group's previously stated dividend policy.'

[rarther] 11/11/2003 11:36

Investors seem to be missing this because of the name change.

If the results show the company is going in the right direction then this is going to get a very big mark up on the day (market surprise + very illiquid). If they show the opposite then the price could move equally sharply in the other direction.

The odds look good to me. Still holding geeforce et al?

[geeforce] 07/10/2003 21:55

Yep
It's still game on I'm told , so I'm not running-yet!

[rarther] 07/10/2003 17:02

Anyone still holding?

[rarther] 01/10/2003 17:50

The closely held shares (directors + institutions) are already almost 90% of the issued capital (ie. only £2 million in the hands of private investors)... interesting to see it growing further.

I must admit to selling most of my holding at 10.5p... am now looking for a bottom and top-up point.

Graph doesn't look terribly bullish at the moment, but I'm thinking this will pick up in the run up to results in November.

[sheneeqa] 22/9/2003 00:36

First state one the of leading small co funds has taken a position don,t know
what size. The fund manager Paul Jourdon seems to be able to pick em.

[rarther] 30/8/2003 17:24

Cash was £4.9 million as of 31st march.

[from last results, announced in June]:

"Operational Summary

* Workplace maintaining its leading position in the niche
market it serves with strong order book and sales pipeline

* New TeleWare distribution partnerships and direct sales
team have stabilised sales but market conditions remain unfavourable


Ian Lenagan, Chairman and Chief Executive of TeleWork Systems plc, said:

"Trading performance of both TeleWare and Workplace in the year to 31 March 2003
have been affected by the continuing lack of customer investment in new IT
systems. However, both businesses have seen an improvement in their second half
trading performance, particularly in the Workplace division."

The Workplace arm was at about break-even up to the march year end. With a "strong order book and sales pipeline" by March, and the possibility that tech spend is picking up with this new confidence, I don't see why shareholders shouldn't expect a profit in the November interims.

[geeforce] 30/8/2003 11:28

'I know nothing' Rarther's yer man!