Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Excellent results whilst I was away on hols. Recurring revenues are now up to a heady 67% and rising. Finncap have reiterated their 180p target price, and the 6p EPS forecast for this year will undoubtedly be increased nicely by further acquisitions (that EPS has already been boosted 15% by prior acquisitions).
With £100m revenues targeted by April'22 - more than doubling from last year - there's still plenty to go for.
Sage was hammered this morning on disappointing nos the shares were pummelled 92 to 724 c.11%. Though revs were ahead by 5.3% in the 3 months to
June the transition to a SAAS business has been lower than the Co expected falling c.15% in the
first 9 months to £195m. Sage warned on profit margins at the lower end of operating profits and SRRS revs will be down by c.15%.
This is not the first time Sage has disappointed.
At c.145 I see reasonable value to around 160. Thereafter its toppy to me up to180 considering current growth of 8%+ and 30x adj earnings.
They will have to grow at a much higher % rate and this will cost. The next acquisition will most likely be in the c.£100m range
funded by a mix of borrowings, placing or a rights which could give holders indigestion not to mention dilution.
If the Co is going to achieve the bods aim of doubling mrkt cap they will have to think bigger, inherently a risky strategy
(Buying for growth/look what happened at Microfocus) than via organic rate, safe and steady.
If your happy to stay aboard great but I see Idea as more a trading chip than risk joining in the dash for more growth at 160 upwards.
For a Co valued at £320m top line of under £50m is no great shakes and that must be addressed asap.
No doubt the bod have this as priority numero uno.
yes i agree IDEA is going very strong , no brexit blame here lol.
Excellent trading update this morning ahead on all counts and trading remains robust.
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US stocks have been hitting record nos since mid June, in particular the tech heavy Nsdq just posted a record closing high
at 8203 that's 1570 points up ytd or c.24%. All in the face of Trumps trade war with China, Iran, Europe and now India. Despite the recent weakness in Idea stock (we're still 16% up ytd)
I have had a small top up. Had I been 30 years younger Idea would be on my 'forever' list of holdings as it widens the 'moat'
and is likely to maintain its competitive advantage for the foreseeable.
Ideagen present at our London growth company seminar on Wednesday. If anyone is interested, you can book your place here: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-10-july-2019/
Idea took a clobbering over the wk falling 13 or 8%. Best guess some profit taking after the run up from 137 end May. Vols and bargains have been higher than usual. Sub 140 would look to add.
Ideagen present at our London growth company seminar on the 10th July. If anyone is interested, you can book your place here: https://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-10-july-2019/
Perhaps Gresham have been buying more. Certainly healthy interest this afternoon - including 130,000 shares bought in two lots at the full closing 155p offer price. Bodes well.
Ideagen once again (4th)
is recognised in London's Stock Exchange Group 1000 Co list to inspire Britain 2019 report on the fastest growing and most profitable & dynamic companies.
RNS notes Gresham House have gone above 6%. I note they had 5.7% per their last holdings RNS, so they're steadily increasing their stake and have bought another.700,000 shares or so.
And there's a new contract win with Cancer Research:
Https://www.ideagen.com/company/news/cancer-research-uk-chooses-ideagen-s-software
"Cancer Research UK chooses Ideagen’s software
Thursday, June 20, 2019
Ideagen has secured a new project with a leading cancer charity which will see the company supply it with two of its software applications.
Cancer Research UK, the world’s leading cancer charity dedicated to saving lives through research, will implement Ideagen’s Q-Pulse and PleaseReview products.
The project will see the charity adopt Ideagen’s software for general quality and compliance management tasks as well as for use during complex document review and collaboration projects.
etc"
The summer blues, cricket, Ascot & holidays keep invstrs away. That's fine I can hold as I'm fully loaded here.
Going from strength to strength. Your comments are much appreciated you guys!
The UK tech sector has produced one unicorn Co each month over the past year according to new figs released ahead of London Tech Week.
A unicorn Co is one valued at $1bn and this country has created more of these than any other country except China & the US.
Defined as a start up valued at a $bn...so Idea wouldn't qualify.
Anyways to join the $bn club we have to hit c.£790m. Only £470m to go. Could happen sooner than you think.
Finncap reiterate their 180p target, raising their forecast to 6p EPS for this year.
They note "following the very successful capital markets day" that this acquisition gives IDEA the opportunity for cross-selling and accelerated organic growth.
Also that net debt/EBITDA remains very comfortably below 1x, implying that further acquisitions are possible as per leavers post above.
Good summary on Techmarketview:
Http://www.techmarketview.com/ukhotviews/archive/2019/06/10/ideagen-buys-again
"Monday 10 June 2019
Ideagen buys again
Fast-growing AIM-listed risk management software specialist Ideagen PLC has bought RegTec SaaS supplier Redland Solutions for £15.8m. This move is Ideagen’s fourth acquisition in the last ten months. The purchase is immediately earnings enhancing and is expected to add mid-single digit accretion within the current financial year.
Founded in 2001, Bromsgrove-based Redland has evolved from an IT services firm into a software business through the development of Insight, a Senior Manager & Certification Regime (SMCR) and individual employee competency SaaS platform for the financial services industry. Employing some 30 people, the company’s clients include Santander, Old Mutual, Legal and General, Nomura and Homeserve. Redland revenues for the year to 31 March 2019 were £3.6m with operating profits of £1.2m. Current Annual Recurring Revenue (ARR) is approximately £3m - an increase of 50% from April 2018.
Having delivered c.30% yoy improvements in both the top and bottom lines for its most recent financial year (see here), Ideagen would appear to be very much on a roll. Through the recent purchases of audit management specialist Morgan Kai, quality inspection software supplier InspectionXpert and environmental health, safety and quality platform provider Scannell Solutions, moreover, the company has also demonstrated its ability to acquire and integrate successfully risk management software businesses.
The purchase of financial services industry-focused Redland will not only further advance Ideagen’s position in one of its key vertical market sectors, but also contribute to the company’s continuing transition from a perpetual licence to a SaaS based subscription model. Ideagen management expects to generate 74% of revenues from recurring contracts by the end of 2020."
A good bolt on acquisition for Idea with I'm sure more in the pipe-line. Bringing 40 new clients and adding £4m to rev, 75% recurring
another win win.
Excellent and sizeable earnings-enhancing acquisition for £15.8m this morning - notably addressing compliance in the financial sector:
Https://uk.advfn.com/stock-market/london/ideagen-IDEA/share-news/Ideagen-PLC-Acquisition-of-Redland-Solutions-Ltd/80095290
Lots of recurring income, great cash generation and a blue chip client list:
- Insight is used by over 40 organisations including 7 FTSE 100 and 2 Fortune 100 companies
- Customers include Nomura, Santander, Investec, Hargreaves Lansdown, and Rathbones
Cannacord have raised their price target to 170p after the Capital Markets Day yesterday, and they see 80% upside on achievement of targets:
Https://www.sharecast.com/news/broker-recommendations/canaccord-on-ideagen--5582378.html
"Canaccord raises price target on 'confident' Ideagen
Analysts at Canaccord Genuity raised their target price for British software firm Ideagen from 160p to 170p on Thursday, citing the group's "confident" growth outlook and an "attractive" valuation as their reasoning.
Canaccord said Ideagen's capital markets day had highlighted the "attractiveness" of the risk and audit management software market, evidenced by high confidence in continued organic growth of more than 8% per annum with scope for acceleration to low-teens from 2020.
The Canadian broker, which also reiterated its 'buy' rating on Ideagen, expects recurring revenues to surpass 70% in 2019, noting that they could even approach 80% by 2022, increasing the defensiveness of its shares.
And the company's attractive earnings profile should be enriched by tuck-in M&A, where the firm's chief executive Ben Dorks and chairman David Hornsby had "a strong integration track record".
"In the current uncertain macro times, the relative value of a reliable growth compounder such as Ideagen should go up, particularly as we see that most peers exhibiting similar growth and recurring revenue characteristics trade on 25+% higher multiples," said Canaccord.
"We lift our target to 170p reflecting higher conviction in growth delivery, re-rated peers and rolling forward our DCF. Our target implies 20% upside but we highlight ~80% potential assuming management delivers on its '£100m revenues and £30m EBITDA' target for FY22."
Finncap today reiterate their 180p target:
http://investing.thisismoney.co.uk/broker-views/
Excellent...idea cont to source new customers to its SaaS model. I'm not watching the sp 10x a day now, my cert has gone in the bottom drawer for the next month.
Https://www.investegate.co.uk/ideagen-plc--idea-/rns/contract-award-with-new-tier-1-airline-customer/201905300700095349A/
"New Contract Award with New Tier 1 Airline Customer
Ideagen PLC (AIM: IDEA), a leading supplier of Information Management Software to highly regulated industries, is pleased to announce that it has won a new SaaS contract with a new Tier 1 airline customer, worth £1.2 million over its three-year term.
The airline, a global leader operating over 3,000 flights across six continents, will use Ideagen's safety management software Coruson to enable 65,000 users to log and report all safety incidents across its entire operation.
Ben Dorks CEO commented: "We are delighted to be awarded this important contract with a prestigious new customer. The implementation of systems to further improve airline safety is vital for the industry and it is a testament to our product and people that another global airline has selected Coruson. It is also encouraging to see the sales momentum of last year continuing into the first month of the new year."
Last year I thought Ideas sp had out performed the business, ie while the value had advanced at an excellent rate over the years, it's market price had grown faster.
That situation cannot persist indefinitely so expect periods of underperformance as well, which fortuitously i did as no sooner had I sold my holding the shares started falling.
Ideally I would prefer the sp to track its intrinsic value (DCF that can be taken out of a business highly subjective as that is) so as every shareholder would benefit in exact proportion to the progress Idea made over time.
I accept that's wishful thinking on my part.
Unfortuneately the sp will never conform to this ideal as speculators and day traders will bid up the stock to make gains, volatility being their life blood.
Nevertheless as long as earnings and return on equity/capital cont to grow at a reasonable rate all will be well smoothing out periods of over/under performance. Last year a 33% increase in eps and up from -3 to +4p over 10 years cont the excellent progress.
I remember reading some years back that in the period '83-93 only 6 Fortune 500 companies returned 30% on equity.
I know some investors have Ideagen on their 'forever' list of holdings (too late for me alas) so daily,weekly, etc moves in the sp will be neither here nor there as long as the basic nos move in the right direction and at a minimum of say c.15% gain in value or doubling every 5 years, holders will do very well or until Idea becomes so large that's almost impossible.
Should that ever occur holders will have long given up tap dancing to work.
Morning all.
Nice contract win for a number of IDEA's different software services:
Https://www.ideagen.com/company/news/ideagen-secures-ambitious-software-project-with-joramco
"Ideagen secures ambitious software project with Joramco
Tuesday, May 21, 2019
Ideagen’s Q-Pulse, Q-Pulse Risk and PleaseReview will be implemented to support Joramco’s organisational growth with particular focus on quality, safety and risk
Ideagen has announced it is to supply its software to a major aircraft maintenance organisation in the Middle East.
Joramco, an independent commercial aircraft maintenance, repair and overhaul (MRO) organisation based in Jordan, will adopt Ideagen’s Q-Pulse, Q-Pulse Risk and PleaseReview products.
Joramco will use Ideagen’s software as it aims to automate and support key processes associated with its quality, safety, risk and regulatory requirements...
.....Operating for more than 50 years, Joramco – majority owned by the Dubai Aerospace Enterprise (DEA) since 2016 – has maintained a strong track record as a leading commercial aircraft MRO organisation.
Joramco serves a wide range of customers across the Middle east, Europe, Asia, Africa, Russia and across the Commonwealth of Independenet Estates (CIS), offering services on several aircraft models from the likes of Airbus, Boeing and Embraer fleets.
etc"