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That will be a director selling millions of shares.....Barnaby leaving?
What a lovely quiet board for a great share. Last year there was a trading update 13th November. Let's hope for one again. Great to see they're recruiting. And in Nottingham, which they love! Approval!!
Thanks notts, Good find. I think we are! We've quadrupled our SP in the last 5 years and we regularly increase revenue each year by some 30% and often more. Also the announcement is not a flash in the pan but a longer term project. Bodes well for the future.
https://www.nottinghampost.com/news/nottingham-news/nottingham-software-firm-create-150-4586948
Yes, you are correct, the management have an impressive record so one can only assume they know exactly what they are buying.
I'm not that fussed to be honest it's just that I thought Qualsys was expensive and that drew my attention. We consistently double our revenue every three years which is pretty impressive and we are good at generating cash. I don't think it's a long term problem.
Theoretically what you did sounds perfectly correct, what, I wonder, was the cash generation that is spoken of as helping to pay for assets, from period end to the purchase date & also perhaps some deferred revenue was brought into play?
Broadly speaking though I guess you are correct but the accounts are not as clear as some.
It might be worth an email to the company secretary or the FD ?
Hi barchid, I took the purchase price of Qualsys,15 Mill, and added it to the Bank debt as in yesterday's RNS Final Results of 16 Mill.
Or is that to simple and I've missed something - I rather hope I Have!
@Truro
Where did you see this bank debt ?
I missed that but I re-read the RNS and could not see it in the figures that was quoting at time of agreed deal.
If so then not so good at all, surely ?
Growth all across the board. Extremely impressive. My only concern is the price paid for Qualsys at 15 Mill which means, I think, some 30 Mill of bank debt. Lets hope the intellectual properties are the reason.
Pretty impressive results considering the headwinds of the last 2 months in their reporting period, pleased to have been a long term holder of this stock.
Good to see the positive trading update and the acquisition looks interesting . Seems a little pricey but it appears the current BoD is going or at least reduced - perhaps a pay off is the reason?
My guess is that there's a lot of potential here that IDEA believe they can release and certainly some big customers. Good to see us back on the acquisition trail.
Justin Interviews Ben Dorks - https://bit.ly/2ZyEvLp
They're not making any money out of it, it's pro bono, but first it's great that they do it anyway, and second it's great advertising. Think of all those top people going back to their post Covid situations and admin chaos thinking 'that really worked'. :)
Don't expect it costs them all that much anyway.
This trading update appears really confident. They're maintaining the divi, which in today's situation seems a very good sign as to how they see it. Recurring revenue continues on up, with organic growth of 19% and 458 new logo wins, including such names as the Federal Reserve.
"Reflecting the importance of the Group's software to our customers, there has been no material impact on the Group's existing customer relationships or the ARR book as a result of COVID-19.
Cash generated by operations was ahead of expectations at over 95% of adjusted EBITDA*, resulting in a gross cash balance of £8.2m and gross bank borrowings of £25.0m at the period end. Net bank debt at the year end of £16.8m was lower than anticipated and comfortably within banking covenants. As a result, the Group remains in a robust financial position."
I sold out a while back, but have been enviously watching a relative's small holding continuing to rise, and am back today: this is a keeper.
I think I'm right am I? In the midst of a pandemic we've reached an all time high! One thought for the future, with everybody homeworking and all offices closed I'm wondering just how much expensive office space will be needed when the recovery starts. A lot of employees will appreciate the cost and time savings that working from home gives them. I wouldn't mind betting that a lot of them might appreciate a bit of mix and Match.
Very positive trading up date continuing the theme of over delivering & not disappointing.This has been a terrific investment, my only regret not being greedier when I first invested in the 30s by buying a relatively small holding which i did not increase
Regretting selling a few last week, still sitting at 80% of my holding - will top up again in due course...
TP Aerospace, the leading aftermarket supplier of wheels and brakes to the aviation industry, is to implement software from Ideagen as it expands its global quality management operations.
The Copenhagen-based organisation will adopt Ideagen’s Q-Pulse quality management software as the company rolls out its growth plan – ‘Green Sunrise’ - a project that aims at moving closer to customers, amongst others, through more locations around the world.
With more locations being added to their already wide-spread network of MRO facilities and sales and support offices, TP Aerospace is not only expanding their operations into new countries and growing their global workforce, they are also continuously looking for ways to optimise and develop their current procedures to support its growth.
Ideagen’s Q-Pulse system will provide TP Aerospace with a “single source of the truth” in regards to operational quality management, providing a crucial system for auditing, training, reporting and document management during and beyond its ambitious global growth project.
If the 9 new contracts value at 1.2 Mill is an annual revenue (which the RNS doesn't say!!) then it's a cracking deal as it is 1/3 of Redlands annual revenue. IF this is so then what I thought was an expensive acquisition is actually quite good as 1.2 Mill is some 2% of ideas revenue anyway. There's also a whole new raft of cross-selling opportunities both ways. Rock on!
You sure that was a 'strong buy', Rivaldo?! :))
Let us know if you decide to come back in please. Your views are always helpful.
For clarity I sold all my shares at around the 150p mark recently. It's primarily about nervousness around the markets and general investor sentiment, and therefore protection of profits from an almost three-bagger which was one of my larger holdings held completely in my ISA.IDEA as a high-quality company is on a very high P/E. I'm somewhat concerned that it now has a combination of cost growth from all the global expansion it's undertaking, together with a slowdown in corporate decision-making reported in certain sectors. IDEA have not reported any new contract wins on their usually excellent web site for almost three months now.The possible dilution/need for funding as per a recent chat with the CFO by "leavers" on another bb is also a downer.So I can't see much upside at present, but can see a sell-off on below-par or average trading.Which probably means they'll be bid for tomorrow at 190p :o))However, the recent large sale of shares by the CEO after an exercise of options today is also interesting timing considering the markets, and it certainly won't help sentiment much.Good luck all. IDEA will remain high on my watch list and I may rejoin if my thoughts are proven wrong. Which may well be the case.
Interesting new article and interview with the CEO:
Https://www.proactiveinvestors.co.uk/companies/news/901635/ideagen-thrives-as-businesses-search-for-quality-and-consistency-901635.html
New 8 minute interview with the CEO - good to see more acquisitions are "on the cards", with a good pipeline in fragmented markets and new geographies, and recurring revenues expected to increase to 74%:
Https://www.proactiveinvestors.co.uk/companies/news/900747/ideagen-still-hungry-after-ten-years-of-profits-growth-900747.html
"Software group Ideagen plc (LON:IDEA) has posted higher profits for a tenth year running and Ben Dorks, chief executive, explains to Proactive why this trend should continue.
Quality, risk and compliance have moved on from just box ticking exercises to being able to provide a real tangible benefit to a business, he explains.
Ideagen has an impressive blue-chip client list, which revenues rose by 29% but Dorks was even more pleased with the improvement in recurring revenue, which accounted for 67% of that total and is rising to 73% this year.
Acquisitions have added to the momentum and more are on the cards, he adds, as they are a great way to extend Ideagen’s sales reach."
Nice mention here re Montanaro's buying and the increase in their holding:
Https://citywire.co.uk/funds-insider/news/five-shares-the-pros-are-buying-and-selling/a1260329
"Ideagen (IDEA)
Who’s trading? Citywire AA-rated Charles Montanaro
The trade: The founder of the eponymous small cap firm ramped up his stake in compliance and risk management software firm Ideagen from 2% of shares to 3.1%.
How have the shares performed? Ideagen stock rocketed 264% over the three years to September 2018 to a record high of 172p but has since faltered, dropping to a low of 119p at the turn of the year. The shares were trading at 142p on Friday.
What does the company say? In a mid-July update Ideagen reported revenue up 29% to £46.7 million over the year to end April as it switched to a subscription basis, with contracts signings up 77% over the period, 87% of which were made outside the UK. Recurring revenue rose from 62% to 67%.
What’s the outlook? Canaccord reiterated a buy last month as it lifted its target price from 170p to 180p, putting it just above a median City target of 177p. After briefly climbing to a premium multiple in 2018 the consolidation has restored a historic sector discount, at 23x forecast earnings versus 28x."
Can't really go wrong with this company.