Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. 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.
Software company Kainos Group said Wednesday it expected its full-year results would be ahead of current market expectations following a 'strong' start to the year. Growth in digital services had been 'very strong', driven by both digital transformation and workday, the company said.
Target
Here comes the next wave upwards
This morning...new highs coming
Leaderboard today
10 percent now....expect we will take out 450p this morning
Now
The Group has had a strong start to the year with the momentum seen in the second half of last year continuing into the current year. As a consequence, the Group expects the results for the year ending 31 March 2019 to be ahead of current market expectations.
Today we should motor towards 5.00p very soon
Thank goodness! Been waiting for this retrace. Was in, back in the day and topped-up on the drops so that my average was just proud of 200p
Seen so many shares climb really hgh only to dissapate and dwindle away those gains that I started reading what others thought as it pased 400p for the first time, and made the classic mistake of actually taking notice of what one of the investment magazines said, who opined that the P/E ratio was far too high and that's why they now regard it as a sell (they sold out at 330-odd. By this time it was roughly where it is now as I type - north of 380's I began to wobble. And just like the magazine said it strted retracing, 370, 360. Couldn't stand to see these gains evaporate so when it got to 350 I sold.
Rather pleasingly it continued dropping after I sold, 340, 330, and I think but don't hold me to it, after 320's slightly into the teens.
I then thought, right when it hits 300p I'll buy back in, and felt very clever with myself, but it started climbing, pretty soon it was back to what I sold at, so if I bought now the whole exercise would have been pointless, wouldn't it?
Then it was 360 and I thought okay if it drops back to 350 I'll buy back without complaint. Then it went 370, 380, and I kept upping my buy-back price, until finally it crested over 400p once again and I was in dispair.
And now, at long last, like waiting for 1,000 years, it's coming back to me. I want this and I'm gonna 'ave it.
But first (uh-oh here it comes) I want to see if it goes past my old 350 selling price - LOL!
Recent highs get higher each day. £5 seems to be a dead cert. Wait till a few more investors hear about this.
Glad we got a bit of profit taking and the price came down. I am waiting for MRS to give me some profit, so that I can buy more KNOS. The more it goes down, the better for me.
I was surprised to see Kainos at 404p this morning. Pleasantly so...
And still the share price climbs and still no one has heard of KNOS. lol.
You're not alone. :-) A happy holder here. Bought in May 2017 around 245p.
But then it doesn't matter as I am here on my own. lol. 350p hit today and all looking good.
Looks like another attempt at recent highs. Would be nice to get past 300p.
Panic, I follow them too. I was recently bearish, because the last week in May the price fell to 215p. There's something to learn for me as the price promptly rebounded in the next few days to recover the losses and gain some more. A definite breakout from 256p.
Looks like I am the only one following this. Hit 280p today at one point Profit making, no debt and pays a dividend. Not sure what caused today's rise, but looks like it is breaking out.
and nicely up 10p, and back above 250p.
Published on 30th May ........ Entitled: KAINOS WILL BE GLAD TO SEE THE BACK OF THE ELECTION Full year results from the digital transition and migration business are very decent if you’re willing to overlook Kainos’ (KNOS) Evolve EMR NHS platform. It is designed to streamline NHS services and drag them into the 21st Century, making access and information easier for patients while lowering costs for the UK’s health service. The problem is that investors are clearly not willing to ignore the problem; Evolve revenues declined 12% to £10m in the year to 31 March 2017. Kainos remains positive in the medium-term but its comments that opportunities for the platform in the next 12 months are ‘muted’ is a short-term concern. Sales orders are down 52% to £4.8m while the contacted backlog of implementations is also down sharply on this time last year, £16m versus £24.8m. Hence today’s ugly 5.5% fall in the share price to 226.75p. ROCK AND A HARD PLACE Kainos faces a conundrum with Evolve EMR. On the one hand political leaders are all talking about better and bigger funding for the NHS, yet for now at least, the cash taps remain largely off. This will presumably improve after 8 June once a new government is in place – both the Conservatives and Labour are promising varying degrees of fresh healthcare funding. But let’s put Evolve EMR into perspective. The platform generated £10m of the company’s £83.5m of total revenue. Central government digitisation work continues apace away from the NHS, as does enterprise business through its Workday enterprise resource planning and human resources tools. Overall revenue rose 9% last year. More work than ever is being contract on a repeating software-as-a-service (SaaS) model than ever before which also bodes well for predictability and earnings quality. Cash conversion was typically strong at £16.6m, partly because of SaaS orders fast cash collection. There’s also a small US healthcare operation gaining traction, Evolve IC. It’s still very small with sales of £3m but Kainos has developed some encouraging third party relationships to help it grow quickly. PLENTY OF OPTIMISM Kainos has bolstered its workforce in both its Belfast and Gdansk development hubs mostly to drive its best growth opportunities this year, including Workday accredited consultants from 75 to 110. The over headcount has gone from 830 to 975. Now the company needs clearer direction from a new government on NHS investment, and the hard cash that counts. Analysts at Canaccord Genuity actually raised forecasts for this year following today's figures. They are now predicting £14.8m pre-tax profit this year on £89.1m of revenue. The broker has also lifted its share price target from 255p to 290p.
It seems investors misunderstood the figures, or did not read them right. 325p here we come. Interesting article. http://www.irishnews.com/business/2017/05/31/news/kainos-extends-reach-deeper-into-europe-as-stellar-sales-growth-continues-1039598/
My opinion: Today's news isn't ideal and the reduction in profit is a warning. Most growing IT businesses can step into a growing digital market, but can they do it profitably? So today the market has punished Kainos, and for now the price has further to fall, probably to about 210p. PS: I noticed the fall on May 26th, from 250 to 240, and some must have known the results weren't going to be positive.
Final Results Comparing 2016 and 2017 by analysing it separately. I spot the one misleading discrepancy, that is the head count. In 2016, the head count was 777 and today’s headcount comes to 975. So, how is it an increase of 135 staff? Should it be 198 staff? Kainos was a little sneaky by including contractor employees numbers this year but wasn’t last year. Results Shares are currently down 7% as I am giving you my thoughts. Revenue came in at £83.5m which is lower than my forecast of £102m (based on the change in headcount). Meanwhile, operating profits came in softer at £13.2m, which is way below my estimate of £20m. Also, this means operating margins have declined. The operating cash flow was helped by an increase in £3m payables and zero increase in receivables. The positive note is the increase in the cash balance to £23.7m, that was due to lower dividends. Total dividends payout came to £7.2m, which is 2.2% yield. P.S. I know they increased their dividends by 5% this year. However, Kainos was paying out £13m in dividends to shareholders in 2016. Overall, the results tell me the company is fairly valued.
In their latest trading update, they mentioned that growth is in-line with market expectation without giving too much away. But they did let slip one thing. That is the recruitment of 216 addition staff since last year, which is an equivalent of a 25% increase. From my research, I have evaluated the revenue per staff growing from £81k to £104k in three years. Similarly, profit per staff rose from £10k to £19k. So, using conservative estimates of £105,000 sales per staff and £20k profit per staff, then my forecast for Kainos Group’s 2017 is: A. An approximate revenue of £102m from £76.6m; B. And operating profit close to £20m from £14.2m. These are impressive estimates and we will see by the end of this month. For more evaluation of Kainos Group business, please click the link here: http://bit.ly/2qAFH0S