Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Looks like an impressive addition to the Board. Glad to see someone recruited for their knowledge rather than someone whose only qualification is that he sits on other Boards and is a number of the 'old boys club'.
http://www.iii.co.uk/articles/232510/trio-aim-shares-your-isa Links with Microsoft give it a strong niche FY PBT will be £6.6 to £7.6m FY PBT for 2015/16 will then be £9.6m it is predicted thus trading on just over 8 times 2015/16 earnings, could easily be in the teens
Difficult to work out why the Market has marked the sp down today. Could be the cost base influences, although these are being addressed, e.g. investment in staff, or the absence of an interim dividend, which I felt was never on the cards anyway. Be interesting to see how this pans out over the next few days as brokers and IC update their forecasts.
Nice plug today. Hopefully will draw in buyers tomorrow
Tipped by Simon Thompson on IC online today 'Offering 25 per cent upside to my six-month target price of 275p, I rate K3's shares a strong buy...'
This little beauty as just been purchased by Naked Trader. Watch it fly!
K3 provides Microsoft- and Sage-based ERP solutions and managed services to SMEs in the retail, distribution and manufacturing sectors.
The depressed retail environment in the UK and the Netherlands has made it tough for K3 to close the retail deals required to meet FY13 forecasts. The company notes that its other business lines are performing well. K3 continues to invest in its AX for Retail solution, which should generate returns in the longer term, but based on the short-term outlook,
Valuation: Large discount to the sector Since the beginning of the year, the share price has drifted down from 145p to 132p, and after Friday’s announcement, fell a further 17%. On our revised forecasts, the company is trading on very depressed multiples of 5.7x FY13e EPS and 4.1x FY14e EPS. Key triggers for share price appreciation would be the signing of the delayed retail deals, evidence that debt is being repaid, conversions of the AX for retail pipeline and customer wins in Managed Services.
http://www.edisoninvestmentresearch.co.uk/researchreports/K3update210113.pdf
AIM-listed software firm K3 Business Technology Group expects to generate pre-tax profits below current market forecasts, according to trading update for the financial year ending June 30th 2013. In a statement issued Friday morning, the company, which provides Enterprise Resource Planning software to the supply chain industry, reported that it will "generate pre-tax profits below current market forecasts". It stated that this was due to the deferral in signing certain retail deals and investment in the group's Microsoft AX offering. Outside of the retail space, the board said it was pleased with the performance of the group. The group is in the process of creating a new retail solution built around Microsoft's latest AX technology. The company stated that developing 'IP' and global channels to market, together with Managed Services, would help to drive K3's medium and long term growth and was expected to yield significant returns in the future.
Valuation: Bid premium disappears Since K3 announced it was no longer in a sale process, the share price has fallen 16%. However, on our revised forecasts the company is trading on very depressed multiples: 4.9x FY13e EPS and 4.2x FY14e EPS. Key triggers for share price appreciation would be evidence that debt is being repaid, improving margins in Microsoft UK and customer wins in Managed Services.
http://www.edisoninvestmentresearch.co.uk/researchreports/K3210912update.pdf
"All four of our divisions recorded increases in revenue year-on-year although the Microsoft UK Division was affected both by market conditions and our investment programme, and saw profitability decrease. Against that, the International Division delivered an especially good performance and the Managed Services Division continues to show significant growth potential. We signed £13.3m of major new contract wins across the group, up 20% on last year, with many of the benefits still to come. Deal slippage continues to be a feature of the trading environment. "We see the new financial year as a year of investment, with two areas of specific focus being our Microsoft Dynamics AX product and Managed Services. We anticipate that the benefits of our investment programme should come through during the course of 2013."
Software firm K3 Business Technology Group has terminated its previously announced formal sale process with immediate effect, after deciding that the proposals it had received are not at 'a level that would be acceptable to shareholders and are therefore not recommendable by the board'. The news came as the firm restated its results for the year ended June 30th. Revenue for the year increased from £52.8m to £67.96m, boosting gross profit from £29.3m to £39.5m. Cost of sales rose from £23.5m to £28.5m. Pre-tax profit for the 12 months rose slightly from £4.9m to £6.0m. The final dividend for the year was increased to 1.0p per share (2011: 0.75p). Adjusted earnings per share increased by 10% over the year to 30.2p (2011: 27.5p) while basic earnings per share increased by 16% to 20.3p over the year (2011: 17.5p). Cash generated from operations was £7.28m (2011: £5.64m). Operating cash flows in the year included £1.24m in respect of regularising liabilities that were significantly outside normal statutory due dates and commercial terms at the date of acquiring companies and trades, £0.59m of acquisition costs, £0.32m of exceptional reorganisation costs and £0.76m of exceptional income relating to the sale of IP. Chairman Tom Milne said: "In tough trading conditions, K3 delivered good results for the year. One of the strengths of the business is that a considerable portion of group income is recurring, with existing customers accounting for recurring revenues of £33.74m, up 40% on last year. Revenues also benefited from the five significant acquisitions completed in the year.
End of Formal Sale Process On 1 March 2012, following approaches received by the Board, the Company announced the commencement of a formal sale process in order to explore whether an offer for the issued and to be issued shares of the Company was in the best interests of shareholders and the business as a whole. An update to the formal sale process was given on 31 July 2012, stating that the Company continued to hold discussions with a number of potential offerors. Before and during the formal sale process, the Company received several indicative proposals and potential offerors were provided with access to management and detailed financial information. Following extensive discussions the Board does not believe the proposals received are at a level that would be acceptable to shareholders and are therefore not recommendable by the Board. The Board has therefore decided to terminate the formal sale process with immediate effect. The Company is no longer deemed to be in an "Offer Period" as defined in the City Code on Takeovers and Mergers ("the Code").
http://www.investegate.co.uk/Article.aspx?id=201209180700074740M
OUTLOOK K3's underlying robustness is encouraging and the acquisitions we have made have strengthened the Group. With the end of the formal sale process, we are now re-focusing on our strategy for growth. We have a number of medium term growth opportunities to leverage our large customer base and build on our key customer and supplier relationships, especially in Managed Services and our International operations. We see the new financial year as a year of investment and will continue to invest in new product offerings across the Group, with two areas of specific focus being our Microsoft Dynamics AX product and Managed Services. We anticipate that the benefits of our investment programme should come through during the course of 2013. Financially, the Group remains robust, with good cash generation and banking facilities extended for a further year.
Tom Milne, Chairman, said, "In tough trading conditions, K3 delivered good results for the year to 30 June 2012. One of the strengths of the business is that a considerable portion of Group income is recurring, with existing customers accounting for recurring revenues of £33.74m, up 40% on last year. Revenues also benefited from the five significant acquisitions completed in the year. All four of our Divisions recorded increases in revenue year-on-year although the Microsoft UK Division was affected both by market conditions and our investment programme, and saw profitability decrease. Against that, the International Division delivered an especially good performance and the Managed Services Division continues to show significant growth potential. We signed £13.3m of major new contract wins across the Group, up 20% on last year, with many of the benefits still to come. Deal slippage continues to be a feature of the trading environment. With the end of the formal sale process, we are now re-focusing on our strategy for growth. We have a number of medium term growth opportunities to leverage our large customer base and build on our key customer and supplier relationships, especially in Managed Services and our International operations. We see the new financial year as a year of investment, with two areas of specific focus being our Microsoft Dynamics AX product and Managed Services. We anticipate that the benefits of our investment programme should come through during the course of 2013."
Operational Key Points · Five significant acquisitions completed - now integrated and performing in line with expectations · Revenues up in all four Divisions (SYSPRO and Sage, International, Microsoft UK & Managed Services) but difficult conditions in the UK - SYSPRO and Sage Division, generated high levels of recurring income - International Division, especially strong performance - Microsoft UK Division, profitability impacted by investment in Microsoft AX and UK trading conditions - Managed Services, significant investment and encouraging progress · Major new contract wins totalled £13.3m (2011: £11.1m) · Board sees new financial year as one of investment - in Microsoft Dynamics AX and Managed Services - to drive recurring revenues - financial benefits to come through in 2013 and beyond
HIGHLIGHTS Financial Key Points · Good performance in challenging market conditions · Revenues of £67.96m (2011: £52.80m) - incl. £11.82m from acquisitions - recurring revenue up by 40% to £33.74m, accounting for 50% of the total (2011: £24.18m) · Adjusted profit from operations*1 of £11.33m (2011: £9.58m) - incl. £2.18m from acquisitions*2 Profit from operations of £7.35m (2011: £5.81m) · Adjusted profit before tax*3 of £10.02m (2011: £8.68m) Profit before tax of £6.04m (2011: £4.91m) · Adjusted basic earnings per share*4 of 30.2p (2011: 27.5p) Basic earnings per share of 20.3p (2011: 17.5p) · Net debt at 30 June 2012 of £15.68m (2011: £15.49m), having repaid £3.64m in the year - banking facilities extended to Dec 2013 · Proposed final dividend of 1.0p (2011: 0.75p), an increase of 33% · Formal sale process now ended (as announced separately today)
http://www.investegate.co.uk/Article.aspx?id=201209180700094749M
Update on Formal Sale Process K3, which supplies and supports Enterprise Resource Planning software to the supply chain industry, provides the following update on the formal sale process. On 4 April 2012, the Company announced an update to the ongoing formal sale process noting the aim of announcing a recommended offer to shareholders during July 2012. K3 confirms that discussions with interested parties are ongoing. The Company expects to publish its preliminary results for the year to 30 June 2012 in mid September 2012 and will make a further update on the formal sale process around this time. The Board reserves the right to alter any aspect of the formal sale process as outlined above or to terminate it at any time and in such cases will make an announcement as appropriate. There can be no certainty that any offer will be made for the Company or as to the level of any offer that may be made.
http://www.investegate.co.uk/Article.aspx?id=201207310700118555I
Andy Makeham, Chief Executive of K3, said, "RSG represents another excellent acquisition for K3. We already have an established business delivering retail software solutions to mid-tier retailers and RSG will extend our reach into the substantial small retailer market. In addition, it brings us strong recurring revenues, including from managed services, from a large, high quality customer base."