RE: RE: Can't spell in a rush...25 Jul 2014 18:47
A very good question but not sure of the answer. The Aim market in general has recently turned more bearish after being on a good run and like the main market it does not like the news we are hearing in Ukraine and the middle East. Having said that IDEA should not really be affected. I have also read that the high number of recent IPO have given the investor more choice but the demand in other certain shares suffers?
On the positive side David Hornsby does own a high percentage of the company (7%) and he appears highly motivated for the company. Revenue has increased by 38% which almost now covers fixed costs incurred by the company.
I have also found a recent report by research analysts / tipsters Stockopedia in which they give there own positives and negatives as pasted here:
Positive
•Revenue up 38% to £9.0m, of which 13% was organic
•Recurring revenues of £5.1m covers 86% of fixed costs - de-risks things nicely
•Niche business for customers in highly regulated markets - sticky
•Balance Sheet is sound, with net cash of £4m (but note £2.4m deferred income - i.e. cash paid up-front by customers)
•Outlook sounds encouraging, in particular potential for more NHS contract wins
.
Negative
•Diluted EPS was up, but only by 12% to 1.67p - not great compared with a PER of 20
•Development costs of £525k capitalised, so EBITDA falls from £2.8m to £2.3m after those costs added back
•Tiny dividend of 0.15p for full year is a yield of only 0.4%
•Share based charges of £285k (£178k LY) are remuneration, so should be deducted from adjusted profit in my view.
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