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If you have a Huawei phone you have been given a reprieve. Earlier Trump had blacklisted Huawei products from the US mrkts and Google had blocked its Android system on Huawei phones.
With sales (59m) overtaking Apple's IPhone and second only to Samsung a block by Google would have been catastrophic for its sales in the West.
However a 90 day reprieve has been granted to Huawei enabling it to maintain its network and Android system to its mobs. This will give them time to construct their own operating system but whether they could offer U Tube and the like is unknown.
Nsdq is off 5% May to date (up 16% ytd) with Apples shares ($185) down 10% so far this month as Trumps trade war rumbles on and on.
In London the TM100 is little changed May to date
And c.688 (16%) better ytd.
Morning TT. No doubt Idea cont to churn out impressive nos though I would like to see the rev growth increase considerably.
One number that has been static since 2015 is rev per employee. In 2015 it was c.£88k and remained little changed till 2018 when it hit £96k and likely £110k+ in '19 on 6x more staff nos and c.8x more rev than 2013 that's v.g. going.
I feel sure the rev per employee number will increase hugely in the years to come.
You mention dividends, never been that interested in being taxed again but recognise getting a return off ones investment suits most pis and iis.
Personally, any excess cash would be better used in share buy backs assuming the price is below intrinsic value as the remaining shares a) get an immediate gain in value and also b) sellers have an additional buyer in the mrkt.
I expect Idea have surplus funds earmarked to make further acquisitions and as debt is not a problem I feel the div pay out could have been more profitably used.
Anyways i'm sure i'm in the minority on that one.
Idea has bght quite a few bolt on Cos over the years and so far so good.
But one thinks prices for decent value enhancing businesses at a sensible price are a thing of the past or becoming harder to find.... no bad thing if it reins in the 'can do' excesses of deal hungry CEOs.
So watch out for debt financed acquisitions
and ask yourself why risk what we have to get what we don't need.
Morning all.
Hi JL, I think you've made the right call. The last 5 years or so have seen a quadrupling of the SP. 8% is a pause for growth.
My view is that whatever my enjoyment in the SP has been in the past the future is in both SP gains and, more importantly in the company development, dividend increases.
The way this company is currently run both will happen. The dividend has massive potential to grow, not only because of it's miniscule base, but from the cash generative re-occurring revenue increases coming on down the turnpike!
I have recently bght back in IdeaG and following the super trading statement i'm hoping i've made the right call. Everything seems to be going to plan and the Co hardly puts a foot wrong, which makes it difficult to explain the sp performance this year, up just 8% ytd.
I can only think nervousness on Nsdq (+18%) ytd and the high ratings of tech stocks have prompted selling plus of course Trump tweeting non stop on the trade impasse with China and mrkts hanging on his every word, add in the Brexit mess and it's not what the Doctor ordered.
Mrkts need resolution of these matters especially for global trade. How a full out global trade war would impact Ideagen I have no idea but Ideagen has hardly scratched the US mrkt place, so there's room for further expansion now we have a strong presence there.
Never been very keen on 'adjusted ebita' a measure that often redefines earnings to exclude all too real costs.
Here's one example management sometimes assert that their Co stock based compensation shouldn't be counted as an expense. Why not? Was it a gift from shareholders?
Whatever I digress and its a moot point so as long as Mngmt cont to increase operating earnings and widen the moat I'll be more than happy.
Last year I thought the stock price had got ahead of itself and sold out, that proved fortuitous but at 133 and hopefully growth more like 15%+ there's plenty left in the tank for a long term holder.
I doubt there are many tech companies who can point to 10 years of unblemished earnings.
Even WB a notorious sceptic of technology has warmed to the sector by investing in Apple & IBM.
Finncap retain their 180p target price and will review their forecasts after the results.
Terrific year end statement today - ahead of expectations once again. This is a company which consistently delivers.
And recurring revenues are now up to £36.4m, against total turnover of £46.7m. That's around 78% and rising.
Plus excellent cash generation, which may lead to more earnings-enhancing acquisitions.
Lovely stuff.
this time last year, hopefully next couple of days with some good news
Panmure have initiated coverage today with a Buy and a 165p target:
Https://www.ft.com/content/b7bd0e80-6d80-11e9-a9a5-351eeaef6d84
"Panmure also put “buy” ratings on software makers Ideagen....with price target of 165p"
Https://www.bloomberg.com/news/articles/2019-05-03/consolidation-doesn-t-mean-nothing-is-happening-taking-stock-jv7otuqp?utm_source=google&utm_medium=bd&cmpId=google
"Ideagen rated new buy at Panmure Gordon; PT 1.65 Pounds"
This sounds like a good contract win across global operations:
Https://www.eastmidlandsbusinesslink.co.uk/mag/news/ideagen-secures-software-project-with-canadian-global-aviation-services-firm/
"Ideagen secures software project with Canadian global aviation services firm
25th April 2019
Ideagen, the Nottingham-based global software firm, is to supply a Canada-based global aviation services company with software for safety, environment and quality management.
The Inland Group of Companies – comprised of Inland Technologies, Integrated De-Icing Services (IDS) and Quantem Aviation Services (QAS) – will implement Ideagen’s Coruson software across its growing operations in Canada, USA and Europe.
Coruson will be used as part of the Group’s strategy to standardise, streamline and continuously enhance several areas of its safety, environmental and quality management systems, including;
Health and Safety, Environmental and Quality Auditing and Assurance
Health and Safety and Environmental Reporting and Investigation
Proactive Risk Management
Process and Document Change Management
Safety, Environmental and Quality Performance Monitoring via dashboards and KPI/SPIs
etc"
Https://www.ideagen.com/company/news/leading-helicopter-firm-phi-international-joins-forces-with-ideagen-to-enhance-safety
"Leading helicopter firm joins forces with Ideagen to enhance safety
Monday, April 1, 2019
PHI International will implement Coruson across its international business
A leading global helicopter operator is teaming up with Ideagen to deliver real-time risk management tools that will lift the bar on helicopter safety.
PHI International, formerly HNZ, the international operating division of PHI Inc, is partnering with Ideagen to implement Ideagen's Coruson software across PHI’s international business.
Coruson is an enterprise cloud-based system that enables real-time control, visibility and reporting of risks. By deploying Coruson, PHI International will extensively enhance its safety, risk and compliance oversight. The project also sees PHI International become the first in the helicopter industry to combine comprehensive bow-tie risk models with aspects of safety reporting and auditing......
....“More than 5,000 organisations use Ideagen’s products, including seven of the top 10 UK accounting firms, all of the top aerospace and defence companies along with 75% of the world's leading pharmaceutical firms, so we look forward to a close and successful future together with PHI International.”
It is ambitious but with previous history - over many years plus a pile of cash there's no reason why it won't be achieved. I might have said it before but the way this company is run it's in my forever fund.
Quietly get rich in my retirement!!
IDEA are looking to double in size in the next 3 years, and are creating another 30 jobs......
Https://www.nottinghampost.com/news/local-news/thirty-new-jobs-up-grabs-2660908
"Thirty new jobs up for grabs at Nottingham software firm Ideagen
The decision is part of it's project to become a 'destination employer'
A Nottingham-based global software firm is creating 30 jobs at its Ruddington offices.
Ideagen is a UK-headquartered, global technology company that provides software and services to organisations within highly regulated industries such as banking and healthcare.
The firm, based in Ruddington Fields Business Park is now in the first phase of its ‘destination employer’ project, and is creating 30 new jobs locally.
The recruitment drive will see the creation of 14 software development roles, along with 10 internal sales, three customer success and three technical content roles.
CEO Ben Dorks said: “As we prepare to record our tenth successive year of growth it is crucial that we continue to invest in the business.
“One of our key strategic goals as a company is to become a ‘destination employer’ across the globe and these roles are absolutely crucial in helping us to achieve that."
Mr Dorks explained that becoming a 'destination employer' means they hope people would be drawn to working there as the company continues to grow.
He added: “Ideagen is evolving into one of the largest software companies operating in the governance, risk and compliance (GRC) space.
"As we secure more complex and technically challenging projects, it is imperative that we continue to invest in the business and in our people.”
There will be jobs available across software development, internal sales, customer success and technical content.
Mr Dorks said the new staff would be joining Ideagen at a time when the company is set to double in size, both organically and through acquisition, over the next three years.
He said: "At Ideagen, people can grow, develop, have fun and in return for hard work, people are valued and are provided with new experiences, and challenges.
"We value people who want a challenge and are prepared to work with our global teams and work towards success."
Mr Dorks said 80 percent of their staff go on training courses every three months.
The recruitment drive is part of Ideagen’s global growth strategy as it looks to create 100 jobs across four Centres of Excellence in Nottingham, Glasgow, Kuala Lumpur and North Carolina.
Globally, the company now has more than 500 staff across its operations in the UK, Europe, US, SE Asia and UAE.
It’s Nottingham HQ is a 200 capacity facility which is set to become a Centre of Excellence for the company’s Research & Development, Sales, HR & People and Accounts functions.
Mr Dorks added: “By touching key operational functions within our Nottingham Centre of Excellence – from sales and development to technical and customer services – it will ensure we ar
I sold quite a few at £170 and at 151. Time to buy them back I think.
20dma has crossed both 50 and 200dma = golden cross. This reversed the downtrend that commenced in early November.
Hi rivaldo have finally picked up a few this morning. Just a modest few. Have watched and watched this rise relentlessly but now decided to buy on the dip.
Interesting link:
https://blogs.gartner.com/john-wheeler/irm-solutions-market-will-grow-to-7-3-billion-by-2020/
IRM one of the most dynamic IT growth markets for years to come.
Canaccord say Buy with a 160p target:
Http://investing.thisismoney.co.uk/broker-views/
Finncap retain their 180p target as follows:
Extracts:
"Interims are in line with guidance, as ever, including a boost in activity across the group, particularly SaaS and the US. 8% organic revenue growth was complemented by 67% recurring revenue (FY18: 62%), growing cash generation, and a continuing strong track record of acquisitions. The board structure implemented for FY19 is proving its worth, in delivering continuing operational excellence in addition to strategic acquisitions as the Integrated Risk Management market consolidates. Clients won in the period – household names
including GlaxoSmithKline and McLaren Mercedes – reiterate product quality.
Target 180p reiterated as Ideagen continues to lead the sector by example."
"Integrated Risk Management (IRM) remains a strong growth environment.
Enterprise adoption is expected to increase from 30% to 50% by 2021, and Ideagen products are evidently well received in key verticals: Aviation (300+customers); Accounting (8/ top 10 UK firms); Aerospace & Defence (7/global top 7); big Pharma (15/ top 20). The software delivers operational efficiency and quality assurance as
well as exculpating management, delivering much more than box ticking benefits. We reiterate our 180p target, with the pace of all activity notably stepping up."
Yes, every measure is upwards and with the last year 3 acquisitions (and one already this year!) to feed into the half year and the next full year then this should only continue. My guess is that while revenue, profits, cash generation and dividends will steadily increase the SP will advance at a slower rate than say the last 4 years when it quadrupled.
I've taken advantage of this rise and sold enough to re-coup my original stake. This could be my first forever company.
Looks like IDEA are nicely in line to at least achieve expectations, particularly given the H2 seasonality.
The 67% and rising recurring income partly explains why this company is rated so highly, along with the need for their products to meet compliance/regulatory requirements and the global growth which the company is achieving:
https://www.investegate.co.uk/ideagen-plc--idea-/rns/unaudited-interim-results/201901220700067008N/
Vind LV are continuing to buy. They now own over 8%, up from 7.71%, with 17.61m shares.
Which suggests they've bought another 700,000 or so shares from their prior holding per the IDEA web site and not just the 255,000 since their last purchase per the RNS:
Https://www.investegate.co.uk/ideagen-plc/rns/holding-s--in-company/201901210846216199N/
Hi shareminator,
The current share price reflects the recent history and the enormous potential. In the last 5 years the revenue has quadrupled. In that time profits have averaged less than a million. This is mainly due to the constant stream of acquisitions. We did three last year including Morgan Kia which was a biggy and we've already done one this year.
Some 75% of current revenue is reoccurring which is regular and predictable cash in the bank. The profit forecast on digitalook for this year is some 2.5 times the combined total of the last 5 years at some 12 Mill. I know a forecast is only just that but it seems we're moving to a new level. I detect no struggling!
One could ask the same of why it rose so high in the first place. This company struggles to justify a £260 million market cap at today's price on all valuation metrics in the current market.
Going below 100p in the next few months
Good-looking acquisition yesterday for £3.5m - earnings-enhancing for the coming financial year, lots of recurring revenues, and in the fast-growing Environmental sector:
Https://www.investegate.co.uk/ideagen-plc--idea-/rns/acquisition-of-scannell-solutions-ltd/201901140700059403M/
Plus lots of great clients which will aid cross-selling to the likes of "100 customers including Intel, Johnson and Johnson, BT, Heineken and Coca Cola".
Finncap reiterate their Buy and 180p target. They summarise as follows:
"Ideagen has announced the £3.5m acquisition of Scannell Solutions, a provider of Environmental Health Safety and Quality software on a SaaS platform, based in Cork. Scannell has c100 customers including well-known brands such as Intel, Johnson & Johnson, BT, Heineken and Coca-Cola, illustrating the quality of the solution – typical of Ideagen’s acquisition strategy where M&A of quality software and a strong customer list provides a de-risked alternative to M&A.
We reiterate our 180p target price and look forward to adjusting forecasts with interims, scheduled for 22 January. Ideagen continues to demonstrate that with the three certainties in life being death, taxes and regulatory compliance, automation of Governance, Risk and Compliance remains a sweet spot for continuing industry
growth."
"180p target reiterated, for a stock which sets the bar across the sector for consistent execution and growth."
Hi PilotBill, as you say a good buy at this price for all the reasons you state. The sp is now down to where it was 6 months ago. The future sp will reflect the last few years growth - can anybody lend me a few quid please?!
All joking aside it is difficult to see how IDEA can fail in the near future. I intend to hold for the next 4/5 years before reappraising.
With a great deal of their income now coming from outside the Uk this is looking like a really good buy at this price. Recurring income is strong, US$ earnings strong and growing fast. Clients don’t find it easy to change as the data is secure resulting in very good customer retention, not to mention the products are good. Compliance is getting more demanding and in demand. I can only see this company getting bigger with improving profits.