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Http://www.cambridge-news.co.uk/business/business-news/aim-more-risky-simigon-worth-13385046 If the market latches on to the expansion into e-learning and SIM announce one or two successes in this area then we could well be on a big winner, particularly given that: (1) the £6m cash pile comprises 60% of the £10m m/cap (2) the company is already very profitable (3) it has high recurring income Their ambitions are certainly big: "Although across the military, simulation learning has been established and widely adopted for some years, there has been less in the way of offerings to specific commercial markets such as driving aids, support for operating or working with machinery like cranes, oil and gas related, or even for those working in the extensive health sector, not to mention that vast civil aviation sector."
It looks like the job went well. I was worried there might be some probs with it. The buying could be part of Simigons buyback or it might not. Anyway, when there is hardly any news , this is good news.
yes at 8.09am would of thought a bigger rise today
A couple of notably large buys this morning by SIM's standards, including a 65k buy just reported at 22.9p. Welcome sukithedog - one of them was yours I assume?
Bought in this morning Great confirmation of contract and also most of market cap in cash
Excellent news this morning - great to see SIM finally completing this major $6.7m contract without any residual issues: Extracts: "SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that it has successfully completed all systems delivery milestones and received the requisite client confirmations in relation to the $6.7 million contract announced on 24 June 2013 (the "Programme")." "SimiGon President & CEO, Ami Vizer, said: "We are pleased to announce the successful completion of all systems delivery milestones. The experience and know-how obtained during the delivery of this Programme will be leveraged to further new business opportunities for SimiGon and our partners within the SIMbox ecosystem. We are proud to be part of this major Programme as a prime contractor, marking a significant milestone in SimiGon's strategic aim to lead more opportunities as prime. We are looking forward to extending this solution and concept to meet other training needs worldwide."
....and a further 100k buy and a 46k buy in the last couple of days (that 93,240 buy and sell was most...erm....interesting!).
And now the interesting buy from Tuesday has just been sold for an interesting loss. Interesting....
...and another interesting buy this morning, this time 135,510 shares at 21p.
Interesting buy just now of 93,240 shares at 21.45p.
Unusually busy today by SIM's standards with 380,000 shares traded.
Looks like the real reason for today's rise has just been revealed - a 79k buy at 22p. Nice.
The only way is up at the moment with this share as buy back underway and no one wants to sell. Could be a very nice gain here in a relatively short time. 5000 shares traded and up 10%
FYI from Finncap's note last week - they say Buy with a 45p target. They go for 3.1c EPS this year, rising to 3.3c EPS next year, with a 0.7c dividend each year: "Clearer skies ahead The FY 2016 results are in linewith expectations which were downgraded in February. Affected by delays to a large Israeli Air Force contract which could not be recognised in the period, revenue was down 13% YoY to $6.0m. With the high gearing in the business model, this meant earnings fell 80% YoY to $0.4m. More positively, cash owed at the end of 2015 was received in the year to deliver $1.0m of FCF, and after the $0.3m dividend distribution, this lifted net cash from $7.4m to $8.1m at the year end. This year¡¦s declared dividend is lower ($0.1m or 19% of earnings); however, there will be a $0.2m share buyback to make up the distribution to shareholders to previous levels. Away from the revenue recognition issue, underlying business remains profitable and performing well, in terms of new business wins and pipeline, as well as building a base of recurring revenue. ƒ¤Organic growth strategy is focused on winning new strategic customers, and growing engagement within the existing base. SimiGon is delivering on all major contracts and increasing its market visibility while seeking new opportunities as both a prime contractor and strategic partner. ƒ¤New markets: Progress is being made in both civil-aviation and industry, and although mass-market adoption is at an early stage, the company is ideally positioned to gain traction in it, given its blue-chip client base, strong IP and wealth of experience with the technology. ƒ¤The large $6.7m prime contract won in 2013 continued during 2016 although on a slowed by supplementary client requests outside of the original contract. The company has been meeting these demands with a view to follow-on work and the contract is finally due for completion in H1 2017 and we anticipate news on any subsequent opportunities thereafter."
That's a terrific report, thanks. Given that the current m/cap is almost entirely covered by cash - and from memory more than covered if you include receivables - the core business, with high and increasing recurring revenues, is in for virtually nothing. Finncap have a 45p target price here compared to the 19.5p share price, and I can understand why.
Thanks for all the +tive people., particularly (as always) like the cash holdings. Would be more confident if they had held the divi levels. However I'm here for another year at least as it's a nice quirky company to hold an interest in. gla.
From advfn Daz14 Apr '17 - 13:08 - 473 of 473 0 0 I attended a company presentation yesterday and found it very useful, here's a summary. Hopefully it will be of interest. The company is transitioning to a Software as a service (Saas) model, with 57% of revenues now coming from this source and which will increase further as a percentage this year. The order book stands at $23m, spread over a number of years and this provides substantial visibility of revenues both for this year and guarantees they will be profitable this year. Simulated learning is likely to grow significantly over the next 5 years as the Y and Z generation enter employment and it becomes more and more the norm, so the market opportunity for Simigon in the medium term is substantial. Learning by doing is also the most effective way to learn. Although the company has traditionally focused on military aviation, where there is a need to train pilots before they actually fly an aircraft, there are also other industries like oil and gas and crane operation where training for critical scenarios is vital and so there are many opportunities and they are working with resellers to expand these markets as being a small company, they don’t have the capability to do it themselves. The account receivables of $2.9m is due to the a number of factors :- the transition to the Saas model and the large contracts, a substantial amount of this has been collected since the year end. Cash flow was similarly affected and there should be an inflow this year. I came away thinking that given most of the market cap is covered by cash, there is a substantial opportunity here. Yes, the large contracts are going to be lumpy and unpredictable but the forecasts are conservative and don’t make allowance for any wins over the next few years. Given also that they have a substantial order book and a high level of visible recurring revenues, there is also not much risk and so you can play the long game and if they do gain the expected traction in new markets, then the price ought to substantially higher in a few years time.
Results are out and are bang in line with reduced forecasts: Http://www.investegate.co.uk/simigon-limited--sim-/rns/final-results/201704110700141205C/ The £9.7m m/cap at 19p (51.4m shares) plays $8.14m of cash and $2.92m receiveables too - of which I note over $1m has been collected since the year end. SIM must prove that the forecasts for this year (2017) of 3.1c EPS are realistic, say in the H1 trading update or results - unless there's contract news in the meantime. The outlook statement continues to emphasise the lower short term revenues from the high value long term license contracts, so caution regarding those forecasts may be appropriate. Nevertheless, there are a number of reasons to be rather positive about SIM's future in the narrative, and it still looks a very interesting company to me. I'm happy to hold for the medium/long-term with hopefully the capacity for upside surprises/contract news flow. I note that the share price is recovering nicely now, after an initial markdown by the MMs on numbers which the market knew about already. The lack of available shares means that any decent news will be well rewarded, especially given the cash backing in the Balance Sheet. As regards the buyback, aound 66% of the shares are held by the top 7 shareholders. That leaves only around £2.9m of shares in free float. And it's usually only possible to buy 20k-30k of shares at a time at most. So $200k is more than enough. If SIM actually succeed in buying back $200k of shares they will probably drive the price up very nicely indeed! Either that, or they'll find one or two larger holders to buy out completely and thereby reduce any overhang.
Very poor results, high expenses. $200k buyback - hardly worth bothering with? Anyone got some positives from these? gla
I see finnCap CORP of 27/3/17, have a 45p tp for SIM - "reiterates".
I can't see the point of a token buy back so in expecting at least 1m, which would only be about 12% of cash available. Given how little is available I would expect just huge announcement to have a very positive impact on the sp. Well worth tucking these away and wait for the good news.
Just had a gander at Morningstar which says top 8 holdings have 87.31% of shares. Puts a different complexion on things. gl.
Quite a sizeable chunk then if the figure is correct. About £3m worth. What do we envisage for buyback levels ....£1m?
Quite a sizeable chunk then if the figure is correct.
Free float is 28% according to the website.