Research Update19 Jan 2011 14:41
Excellent post from iii by Wet Wet Frog
I am sure more new comers will come and visit this site to gain a better understanding of UTN, for their benefit, I have updated and post my research note once again..........LOL!!!
Ultima networks (UTN) - a research note by WET WET FROG (Maysun) - last updated on 10th January 2011
The Aim listed company has 3 business divisions:
1. Cognito Software : http://www.cognitosoftware.co.uk/
2. Electric bikes (two brands):http: http://www.powacycle.co.uk/ and http://www.infineumbike.co.uk/
3. Solar power generation: http://www.ultima-networks.com/
Let take a closer look at each business division one at a time.
1.Cognito -
A good product, great customer support , satisfaction, and recurring revenue. Quote from latest result statement:"Despite consolidation within the legal marketplace, the IT services division has continued to grow through increased sales of its range of software products and services. The Board expects that the launch of the all new legal software suite "FiLos" will further improve competitiveness and attract interest from larger legal practices. The division is benefiting from a strong management team and is looking to continue to grow organically and through carefully targeted acquisitions.
Page 11 and 12 of the Law Society software guide :http://www.lawsociety.org.uk/documents/downloads/softwaresolutionsguide2009.pdf
gives a good account of Cognito's business. Soon after product launch,the company successfully sold its Filos software to major firms with 20,000+ stall and £2bn turnover.
Operation profit ( my estimation) for 2010/2011 = £500k, assuming a forward PE of 10, then mkt cap = £5m. This can go higher with the right acquisitions.
2. e-bike.
UK operation: profitable, dealer network (almost 100) established and growing. European operation - Distribution centre set up in Germany, benelux hit the ground and running - infineum continental bikes already a success ( euro 500k for 2010) and 2500 units or Euro 3m for 2011 - this equates to less than 2% of the ebike market in Holland (140k bikes sold per annum). More Infineum models expected to be launched and this represents a staggering revenue opportunity in Benelux alone.
I am sure the company will sign up a German distributor next and more to follow.
Why infineum e-bike?
Infineum is the brand name for the high-end range of electric bicycles continuously evolving in order to bring the latest bike technology to the market.
The design of the Infineum Continental is ABSOLUTELY FIRST CLASS . IMHO, it's in same class as the iphone, a pity they don't call it the "ibike".( I stands for infineum)
THE REVENUE OPPORTUNITY HERE IS -SIMPLY OUTRAGEOUSLY STAGGERING!!!!!
(If the company really want to do some clever sales and marketing,they can negotiate with car maker /dealers to do some joint promotion: BUY A CAR and get an infineum ebike FREE - this will be very int