A solid set of interim results released today from Access Intelligence which look in line with market expectations.
It's still early days yet, but at this stage it's encouraging to see that recurring revenues are 79% of total revenues, up from 72% at the full year, contracted revenue not yet invoiced is up 22% to £6.7m from £5.5m in H1 2013, and total revenue yet to be recognised in the income statement is £9.8m up from £8.7m in H1 2013.
Cash balances are down by £1.13m over the year, but just £381,000 in the last six months.
The current trading statement is certainly the most positive that they have issued since I've been a shareholder where they state that:-
"The business pipeline continues to grow with a number of exciting opportunities on the horizon to deliver a combined product offering using the new platform."
and
"The consistent, year-on-year increases in contracted revenue not yet invoiced, our recurring revenue base and sustained investment in innovative product development, demonstrate the Group's long term stability and provide a solid foundation for continued growth."
Cash generation is good. Cash inflow from operating activities was £518,000 compared with £278,000 in H1 2013.
In the main body of the text it is clear that all divisions have performed well and prospects continue to improve.
The company is well under the radar of most investors.
The share price initially dipped on release of these results, but volumes were very light and a number of small buys quickly moved the share price back up.
I remain optimistic about Access Intelligence's future and potential growth prospects.
See previous update:-
http://michae1mouse.blogspot.co.uk/2014/04/access-intelligence-final-results.html
Wednesday, 16 July 2014
Saturday, 12 July 2014
A holding in Avesco really does pay dividends!!
Avesco released their half year results in early June. What's not to like about this company? I've said it all before about why I believe Avesco offers terrific value, and I continue to hold all of my shares.
If you were a buyer when the shares were languishing between 20p-30p in 2009 then you'd already have had your money back 4 to 5 times over with the special dividend alone (£1.10). Add in the capital growth and regular dividend payments and you'll gather why I'm a fan.
Even now though with the share price at £1.10 the company is undervalued. From the interim results TNAV is around £1.65 and I'd guess the prospective dividend yield is around 6%-7% given the 50% hike at the interim stage (from 1p to 1.5p) and the reduction in share capital from around 26m to 19m shares following the buyback from Taya.
Results at the half year exceeded management expectations and they expect to do the same for the full year given that results will include the World Cup, Ryder Cup, Commonwealth Games etc.
The restructuring that has been taking place throughout the group appears to have gone smoothly, and tellingly management expects this to produce more stable and less volatile trading results, not only in even years where they have the benefit of major sporting events, but also in the odd years which have traditionally been more challenging for the Group.
Avesco is a terrific little company that is cash generative and believes in rewarding its shareholders with generous payouts. It's still dirt cheap. What more is there to say!!
Talking of dividends I'd recommend reading this article from last week's Sunday Telegraph:-
http://www.telegraph.co.uk/finance/markets/10948379/Dividend-yield-is-better-guide-than-the-FTSE-100-at-7000.html
If you were a buyer when the shares were languishing between 20p-30p in 2009 then you'd already have had your money back 4 to 5 times over with the special dividend alone (£1.10). Add in the capital growth and regular dividend payments and you'll gather why I'm a fan.
Even now though with the share price at £1.10 the company is undervalued. From the interim results TNAV is around £1.65 and I'd guess the prospective dividend yield is around 6%-7% given the 50% hike at the interim stage (from 1p to 1.5p) and the reduction in share capital from around 26m to 19m shares following the buyback from Taya.
Results at the half year exceeded management expectations and they expect to do the same for the full year given that results will include the World Cup, Ryder Cup, Commonwealth Games etc.
The restructuring that has been taking place throughout the group appears to have gone smoothly, and tellingly management expects this to produce more stable and less volatile trading results, not only in even years where they have the benefit of major sporting events, but also in the odd years which have traditionally been more challenging for the Group.
Avesco is a terrific little company that is cash generative and believes in rewarding its shareholders with generous payouts. It's still dirt cheap. What more is there to say!!
Talking of dividends I'd recommend reading this article from last week's Sunday Telegraph:-
http://www.telegraph.co.uk/finance/markets/10948379/Dividend-yield-is-better-guide-than-the-FTSE-100-at-7000.html
Trakm8 - Finals
Trakm8 released a great set of results on Monday. I believe that there is massive potential here, and below I have detailed some of the highlights for me:-
Firstly, this is a company achieving rapid growth organically and through acquisition in a area where a clear tipping point has been reached as companies clamour for Big Data. Revenues were up 94% at £9.19m (5 months contribution from Box Telematics) with recurring revenues up 111% at £4.5m. Like for like orders were up 46%.
This is profitable growth with good cash generation, and their recent acquisition was immediately earnings enhancing. Operating cash flow was £1.32m and adjusted EPS rose from 0.79p to 3.48p.
A major contract has been secured with Direct Line Insurance which is significant and potentially transformational for the company, and the outlook statement states that in the year to date revenues are well ahead of last year and trading is in line with expectations.
The narrative in the report is very positive with revenues from recently announced contracts to start really flowing through in the current financial year and beyond, providing a solid stream of recurring revenues now and in the future. Interestingly, they launched a sales and applications engineering team out of their office in Prague this year. This operation has secured several customers and they expect it to be self-funding by the end of the next financial year, following initial start-up costs.
I am still very excited by Trakm8's development where they are achieving profitable growth, generating strong cash flows, excellent gross margins, and strongly increasing recurring revenues which make up more than 50% of total revenues.
Their financial model is very strong, and it will be interesting to see if they can identify any further value enhancing acquisitions in the near future. One intriguing snippet from their final report says:- "The market remains largely fragmented although consolidation is occurring, particularly driven by interest in the space from VCs."
Trakm8 may be a predator at the moment, but I wouldn't discount the possibility of them becoming the prey either, although given the opportunity that lies ahead I'd prefer to see the company transform itself into a multi-million pound cap. by itself. Certainly, the management appear to be doing a great job at the moment.
Firstly, this is a company achieving rapid growth organically and through acquisition in a area where a clear tipping point has been reached as companies clamour for Big Data. Revenues were up 94% at £9.19m (5 months contribution from Box Telematics) with recurring revenues up 111% at £4.5m. Like for like orders were up 46%.
This is profitable growth with good cash generation, and their recent acquisition was immediately earnings enhancing. Operating cash flow was £1.32m and adjusted EPS rose from 0.79p to 3.48p.
A major contract has been secured with Direct Line Insurance which is significant and potentially transformational for the company, and the outlook statement states that in the year to date revenues are well ahead of last year and trading is in line with expectations.
The narrative in the report is very positive with revenues from recently announced contracts to start really flowing through in the current financial year and beyond, providing a solid stream of recurring revenues now and in the future. Interestingly, they launched a sales and applications engineering team out of their office in Prague this year. This operation has secured several customers and they expect it to be self-funding by the end of the next financial year, following initial start-up costs.
I am still very excited by Trakm8's development where they are achieving profitable growth, generating strong cash flows, excellent gross margins, and strongly increasing recurring revenues which make up more than 50% of total revenues.
Their financial model is very strong, and it will be interesting to see if they can identify any further value enhancing acquisitions in the near future. One intriguing snippet from their final report says:- "The market remains largely fragmented although consolidation is occurring, particularly driven by interest in the space from VCs."
Trakm8 may be a predator at the moment, but I wouldn't discount the possibility of them becoming the prey either, although given the opportunity that lies ahead I'd prefer to see the company transform itself into a multi-million pound cap. by itself. Certainly, the management appear to be doing a great job at the moment.
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