ADD CTP TO YOUR PORTFOLIO6 Jan 2017 13:34
Looking forward to a year of gains here at CTP and as Aphrodite mentions a new contract in the bag on the opening week of the year and no small player either. We are awaiting further details. The current Share Price presents an opportunity to get an idea entry for a company at the cutting edge of a digital transformation of the UK housing associations. But why are holders adding to their positions here and the big players acquiring so many?
CTP already has a large proportion of Housing Associations on the books generating repeat revenue, each taking up one product or more products. If we factor in the estimated cross-selling and positive feedback from both the technical press, industry experts and housing associations themselves it is VERY likely that existing HAs will take up more products. Especially if we take into account the expected mergers that are going to take place, these alone could add significant profit for CTP.
With the cost of acquisitions last year the company still manage to turn a profit but it is 2017 that will be the golden goose year for the company in my view.
CTP have added two new geographies the first being Australia and the Landmark Contract there that the board are so happy about. Which thanks to CTP's recent acquisition of kypera has opened a gateway to new revenue and a new market place. An acquisition consisting of two new products one of which a leading advisor to the HAs said is better than Microsoft’s own non dedicated product. This new addition has a gold mine of potential and in my view is equal to the success CTP are seeing with Documotive.
The last contract win in OZ did not publish figures so we are a little in the dark as to what they were, but our broker target of 90p was prior to this win for the company.
Then we have the Dutch market and if my hunch is right we are looking to put a team in place there this year to exploit the opportunity, time will tell on this one.
There is lots of talk about all UK housing associations going green and clearing their office space of paper as well as providing better access to tenants, who's biggest complaint against the industry in 2016 was that issues were not resolved on one enquiry. CTP are providing the products and services that free up man hours, reduce costs and workloads and overall make the industry a better more efficient environment.
There is lots more I could go on about and I will no doubt spend the next 12 months highlighting the virtues of an investment here, but for now I suggest those considering an investment read through the RNS, take a look at the company website and twitter, YouTube and other social media. This is going to be a BIG year for CTP and that is why I am singing their praises and SHOUTING STRONG BUY to anyone who will listen.
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