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As well as the excellent trading update, yesterday's Supreme Court news re the repeal of PASPA - legalising sports betting in the USA - has largely been missed in respect of this stock so far but has big positive implications for SCH given their client base. It's the stocks providing the picks and shovels that usually perform best!
Reads very well: https://www.investegate.co.uk/safecharge-int-grp--sch-/rns/result-of-agm-and-trading-update/201805141234499951N/ "The Board reiterates expectations for full year 2018 performance. The Group generated record revenues and transaction processing volumes in Q1, driven by new customer wins in H2 2017. The growth of SafeCharge Acquiring remains on track. The Group continues to invest in new sales people and additional marketing to bring in new customers and generate a greater awareness of SafeCharge's capabilities outside our traditional markets. With robust current trading and strong sales pipeline, the Board remains confident that the outcome for the year will be in line with market expectations."
Good to see this comment overnight from the Naked Trader: "My biggest holding Safecharge continues a slow march up and looks like soon to break all time highs. Just a matter of patience here and hoping for a 400-450 takeout."
Gett operate in more than 100 cities in the USA, UK, Russia, Israel etc: Http://www.prnewswire.co.uk/news-releases/gett-uk-selects-safecharge-682141412.html "Gett UK Selects SafeCharge LONDON, May 9, 2018 /PRNewswire/ -- Popular ride sharing app will use smart payments technology to maximise conversion rates in UK SafeCharge (AIM: SCH) - a leading payment technology company - today announces that Gett, the global ride sharing app, has selected its smart payments technology to optimise payments flows in the United Kingdom. SafeCharge will ensure Gett UK reaches optimal transaction approval rates and maximum recovery for failed transactions when technical glitches have occurred or if there are insufficient funds on a customer's card. etc"
The large shareholder is unlikely to sell "their baby" as they see the future as more exciting when they keep control and get it to grow, rather than cutting and running at the first offer. Two circumstances may alter this: an utterly ludicrous offer coinciding with the moment the large shareholder is eyeing up a new project that will become the focus of their time. To be clear, I have no knowledge of either circumstance.
Hello strudel. you are right in what you say regarding the single large shareholder. But does that necessarily put the mockers on any possible takeover bid ? If the shareholder can make more money from it, won't they give it the green light ?
Don't hold your breath for a takeover - research would tell you there is a single very large shareholder who rules the roost in this company. That's one of the reasons why they are awash with cash with no obvious pressure to do something with it. All IMHO of course...
Noticed that Robbie aid this was his biggest holding but not sure I can see that from his trades, will have to take his word for it! Seems bullish and hopeful of a takeover
Great surge on Friday - looking very strong, and still good value imho. The IC had this to say on Friday: "'Patient investors were rewarded for investing in Safecharge international (SCH) in 2017 after the group's long-promised investment in building out its book of 'tier one' customers - large companies for which it builds custom payment platforms - began to pay off, leading to revenue growth of 7 percent. The group has been diversifying its customer base across industries to reduce regulatory risk. While transaction volumes and values have continued to rise, the move to lower-risk sectors has hit the group's margins and analysts don't expect the free cash flow yield to start rising until 2019. However, cash flow conversion has continued to rise and the group's dividend payment has remained as generous as ever. With the cash pile striped out, shares in Safecharge trade at 13 times forecast earnings, which is significantly below the multiple seen in recent years. With plenty of cash for acquisitions and rapid growth in transaction volumes, it still looks like a buying opportunity to us. BUY.'" I didn't realise SCH was Robbie Burns' (the Naked Trader's) largest holding per his comment on Thursday: "My biggest holding Safecharge continues a slow march up and looks like soon to break all time highs. Just a matter of patience here and hoping for a 400-450 takeout."
PTSG were tipped as well as the positive mention for SCH in the latest issue of SCSW, and PTSG have rather generously made available to everyone for free the ENTIRE issue of SCSW (as well as PTSG and SCH I also own KAPE which are tipped in the issue): Http://www.ptsg.co.uk/news/ptsg-features-daily-telegraph-sharewatch/
Good news.... Https://www.safecharge.com/press-releases/grand-national-2018-online-transactions-soar-safecharge-payments-platform/ "April 17, 2018 Grand National 2018 Online Transactions Soar on SafeCharge Payments Platform SafeCharge, a leading payments technology company, today announces that it recorded an increase of 60% in number of processed transactions for Saturday�s Grand National, the biggest race in the British horseracing calendar, compared to last year�s event. With over �200m in bets placed each year during this event, SafeCharge payments data suggests that Grand National bets are significantly increasing in payment processing volumes, challenging payment processing infrastructures just like Valentine�s Day or Black Friday. This year, SafeCharge payments data shows that the peak number of transactions processed per second soared by 118%, whilst the value of bets placed throughout the race increased by more than 60% compared to the 2017 event. Furthermore, the speed at which transactions were processed through SafeCharge�s payments platform increased by more than 10%, highlighting the need to rely on a robust processing architecture able to guarantee zero downtime and an always-on approach. �Our data suggests that the volume of online transactions being processed during the Grand National, as well as the speed these are being processed, is increasing significantly year-on-year to become the de-facto method for placing bets at this major event. This obviously puts strain on payments infrastructure which needs to be up to the task,� said David Avgi, CEO, SafeCharge. �We are proud to support payment processing for some of the most prestigious and best-known operators at the Grand National. Our technical expertise and robust payments architecture is trusted by the biggest names in the industry, with a solid track record going back to 2007.� �The Grand National is a landmark event for online betting, attracting huge numbers of players every year,� stated Jim Noakes, Head of Strategic Development and Optimisation at Ladbrokes Coral. �The robustness, scalability and quality of SafeCharge�s Payments Engine has been instrumental to deliver an unparalleled user experience for our customers at the event.�
so not long to go. Nice to see it 5 days earlier than last year too, which is hopefully a good sign: Https://www.investegate.co.uk/safecharge-int-grp--sch-/rns/notice-of-agm-and-annual-report---accounts/201804160725059465K/
I also note today's large acquisition by PTEC of Snaitech. Snaitech has revenue and EBITDA of �890 million and �136 million respectively: Https://www.investegate.co.uk/playtech-plc--ptec-/rns/proposed-acquisition-of-snaitech-s-p-a/201804120700056819K/ I assume that Sagi will get Snaitech to take on SCH's products pronto.
Https://www.safecharge.com/press-releases/blue-panorama-airlines-takes-off-safecharges-payments-technology/ "April 11, 2018 Blue Panorama Airlines takes off with SafeCharge�s Payments technology SafeCharge (AIM: SCH), a leading payments technology company, has been selected as a new payment partner by Blue Panorama Airlines, an Italian based airline fully-owned by The Uvet Group. SafeCharge�s Payments Engine is an end-to-end platform providing a smart and direct connection to Visa and MasterCard. For airlines, this all-in-one service is particularly attractive as it enables the implementation of automated payment routing logic, access to detailed data insights and optimal payments success. Blue Panorama Airlines provides both domestic and international flights to more than one and a half million customers, specialising in flights between Italy and Europe, Africa and the Caribbean, both to tour operators and direct to customers. It also offers low-cost short haul flights through its Blue-Express brand. One of the challenges the airline faced was the ability to accept payments across multiple channels. SafeCharge addresses this challenge by providing cross-channel payment processing to customers that purchase flights through various channels such as travel agencies, via the website, and through dedicated call centres. Fraud protection was another key focus area for Blue Panorama Airlines. Fraud checking is a very important component of a successful payment strategy since airlines and other travel providers carry the risk of large transactions over a considerable time period. SafeCharge�s fraud prevention solution supports specific needs and configurations for the airline industry. High risk transactions are redirected to SafeCharge�s Dynamic 3D Secure solution for additional checks. SafeCharge�s dedicated risk management team collaborates closely with Blue Panorama Airlines to continuously improve screening rules and assist in manual reviews directly or via the SafeCharge Merchant Risk Support Interface.... ....SafeCharge is already working with El Al Airlines and several other OTAs globally. The company is rapidly expanding in the travel sector, bringing customised cross-channel payment processing and risk management offerings to the industry. etc"
Positive update on the results in this weekend's issue of SCSW, concluding that "improving momentum supports an imminent breakout on the charts".
Canaccord have reiterated their Buy and 380p target.... Https://www.thelincolnianonline.com/2018/03/21/safecharge-international-groups-sch-buy-rating-reiterated-at-canaccord-genuity.html
Tipped in the IC as follows (and it doesn't even mention the $108m cash pile): "Payments services group Safecharge (SCH) reported impressive transaction growth in 2017, with numbers up 38 per cent to 174m, while the total value of transactions increased 19 per cent to $9.64bn (�6.9bn). Around 30 per cent was attributable to Safecharge Acquiring, the company�s dedicated platform, which allows for the processing of credit or debit card payments on behalf of a merchant without the need of a financial institution. Increased operating costs ate into statutory profits, but if growth came at a cost it hasn�t started to drag on the balance sheet. Cash balances contracted slightly, but this is set against an improved cash conversion rate, up six percentage points to a healthy 83 per cent. The group�s strategy of increasing its foothold within high-quality 'tier 1' customers looks to be paying off. In the period it launched services for 888 (888), Plus 500 (PLUS), Paddy Power (PPB) and others. It also won new customers from a range of areas such as gaming, airlines and ride sharing, the services for which will be launched in 2018. Analysts at Shore Capital are forecasting adjusted pre-tax profit of $31.4m, giving EPS of 18.3� in 2018 (from $29.2m and 17.8� in 2017). IC View The payments specialist is trading on an enterprise/cash profit multiple of 13, which is in advance of its historic relationship to the sector. But, given the rapid growth in transactions, cash generative nature of the business, and blue-chip clients, we see further upside ahead. Buy."
Berenberg today say Buy with 350p target: Http://investing.thisismoney.co.uk/broker-views/
Nice write-up on the results: Https://www.fool.co.uk/investing/2018/03/14/two-5-dividend-stocks-you-may-not-have-spotted/ "Safecharge �450m market cap SafeCharge International Group (LSE: SCH) is a UK-based payment services provider. The company provides these services to a blue-chip client base all around the world, with its proprietary payment platform connecting directly to all major card schemes including Visa, MasterCard and American Express. Reporting full-year numbers for 2017 this morning, the company revealed that it processed 174m transactions last year, a 38% increase on 2016. This pushed revenues up a healthy 7% to $111.7m, although diluted earnings per share fell 9% to 15.8 cents on the back of larger employee-related and restructuring costs. Turning to the dividend, SafeCharge operates a policy whereby it pays out 75% of adjusted EBITDA, as long as there is no material M&A activity. As a result, the company has this morning announced a full-year payout of 16.9 cents per share, a yield of 4% at the current share price. That now marks three consecutive dividend increases since the firm paid its first distribution in 2014. In this time, the payout has grown over 100%. Can investors expect more dividend growth going forward? As it stands, City analysts currently forecast a payout of 21 cents per share for 2018. At today�s share price, that equates to a yield of 5%. However, analysts� forecasts can be a little inaccurate sometimes, so I�d approach that estimate with an element of caution. For example, today�s 16.9 cent dividend is around 11% below what analysts had pencilled in for 2017. Nonetheless, with CEO David Avgi commenting this morning that �we remain confident that our focus on higher quality revenues driven by a healthy sales pipeline will yield profitable revenue growth in 2018 and beyond,� the outlook here does look positive, in my view."
2017 was a year of consolidation as already known, with adjusted EBITDA today at the higher end of expectations. Lovely 16.89c dividend. And SCH's cash pile has increased to $108m. Most importantly, the outlook for this year is excellent: "Building on the record revenues and transaction processing volumes achieved in Q4 2017, the Group has made an excellent start to 2018 with a strong sales pipeline in both existing and new verticals. Transaction volumes continue to grow with volume exceeding US$ 1 billion for the first time in December 2017 and with very strong growth in the value of transactions processed through SafeCharge Acquiring." And: "The Directors look forward with confidence to 2018 and beyond. The Board is issuing guidance for 2018 with revenues expected to be in the range of US$125m to US$130m, and Adjusted EBITDA1 between US$36m and US$38m. This will be driven by continued growth from our existing client base and new customers due to start processing in 2018."
Berenberg today reiterate their Buy and 350p target: Http://investing.thisismoney.co.uk/broker-views/ Chart-wise the consolidation looks like it's getting ready for a break upwards.
Almost �120,000 of shares just bought at 313p, causing a decent rise. New highs soon hopefully.
https://www.finextra.com/pressarticle/72488/safecharge-launches-reconciliation-manager "SafeCharge launches Reconciliation Manager SafeCharge (LON: SCH), a leading payments technology company, has today at ICE 2018, launched SafeCharge Reconciliation Manager, a new solution for businesses to automate the matching of transactions across all their payment service providers, merchant platforms and banks. By consolidating and automating the reconciliation process with SafeCharge Reconciliation Manager, businesses in any industry can benefit from increased control, reporting accuracy and retrieval of revenues from incorrect reconciliation. Reconciliation of incoming payments against bank accounts is a complex process, made even more challenging when a business relies upon multiple payment providers, payment matching and fee-verifications. Transaction data which is not monitored properly can lead to lost revenues, customer disputes and audits picking up bookkeeping errors. To address this complexity, SafeCharge Reconciliation Manager automates and simplifies the monitoring process. Guido Murguia, CFO at Caliente Interactive, a SafeCharge Reconciliation Manager user, explains, �By implementing SafeCharge�s Reconciliation Manager Solution, we have been able to recover significant revenues that would have otherwise been lost. Through careful monitoring of transactions across multiple payments providers, platforms and bank accounts, SafeCharge identified inconsistencies and addressed these outstanding transactions until all funds were reconciled. Through SafeCharge�s transparent and accurate reporting, we have a snapshot of our financial position at all times allowing us to have more control over fees, deposits, withdrawals, account balances and chargebacks.� SafeCharge Reconciliation Manager has been developed to automatically reconcile settlements across multiple providers with businesses bank accounts, ensuring that the correct amounts are received without delay. When a mismatched transaction is flagged, the SafeCharge Reconciliation team contacts the relevant provider and bank to immediately rectify the situation. For businesses, using SafeCharge Reconciliation Manager eliminates the need for extensive in-house finance resources, minimises financial loss exposure, and provides a single focal point that covers all financial aspects. �For businesses with multiple payment partners, SafeCharge Reconciliation Manager is the ideal solution to streamline all reporting into a single unified overview, to ensure that all payments have been received correctly and that processing fees are in line with related service contracts,� explained David Avgi, CEO, SafeCharge. �We are saving our customers thousands of dollars in revenue and putting them back in control of their payments.�
What an excellent trading statement - the confidence going forward is obvious..... Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SCH/13500375.html "Pre-close trading update and Notice of results SafeCharge (AIM: SCH), a leader in advanced payment technologies, provides the following pre-close trading update for the year ended 31 December 2017. The Group generated record revenues and transaction processing volumes in Q4, with the latter exceeding US$ 1 billion for the first time in December. This excellent Q4 performance followed a strong performance during Q3. The Company expects that its results for the full year will be in line with market expectations, with revenues for 2017 in the range of US$111-112 million and Adjusted EBITDA* in the range of US$33-34 million. The Board reiterates its view that the full year dividend will total 75% of Adjusted EBITDA* for the period. With robust current trading, a strong sales pipeline and new clients set to join the platform, the Directors look forward with confidence to the 2018 financial year. Notice of results The Company will announce its results for the year ended 31 December 2017 on 14 March 2018."
Good news: Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SCH/13495570.html "SafeCharge Granted Payment Institution License by the FCA SafeCharge (AIM: SCH), a leader in advanced payment technologies, today announces that its wholly owned UK subsidiary, SafeCharge Financial Services Limited, has been authorised by the Financial Conduct Authority (the "FCA") as a Payment Institution. This in in addition to SafeCharge Limited's existing authorisation as a European Electronic Money Institution. The authorisation will allow SafeCharge Financial Services Limited to provide payments services in the UK in accordance with the Payment Services Regulations. It will enable SafeCharge to continue expanding its services portfolio to its existing client base and to new clients, as well as future proofing the business post Brexit and potential changes to the passporting rules. David Avgi, CEO of SafeCharge, commented: "Obtaining the Payment Institution license from the FCA fulfils one of our central objectives, as outlined in our strategy. It is also an independent endorsement of our best practices in Risk management, KYC, AML and Compliance and is testament to our high operational standards. Our merchants now have the additional validation and confidence provided by the FCA authorisation. This license places SafeCharge in a key position to capitalise on the expansion of its business and services in the UK market and other EEA members."