gretel
27 Jan 2016
L&G buying more, large upside RNS shows L&G buying more and moving above 5% with 4.65m shares:[link] good coverage here, including Finncap comments:[link] - Constellation Healthcare Technologies' earnings soar 15:48 25 Jan 2016 The company notched up year-on-year revenue and EBITDA growth of 35% and 62%, respectively After doubling underlying earnings (EBITDA) in 2014, US healthcare services provider Constellation Healthcare (LON:CHT) saw another sharp increase in EBITDA in 2015. The final numbers have not been totted up yet, but when they are, the company expects EBITDA for 2015 will clock in at about US$23mln, up from US$14.2mln the year before. Revenue is expected to be around US$76mln, versus US$54.6mln in 2014. It is little wonder that Paul Parmar, chief executive officer of Constellation, described 2015 as "a very busy and successful year for Constellation�. “We have achieved year-on-year revenue and EBITDA growth of 35% and 62% respectively. We look forward to 2016 with confidence when we will continue to deliver on our strategy as we strive to become one of the largest scaled platforms in the US healthcare and technology sector," Parmar noted. "EBITDA of c$23m compares with our forecast $22.6m," said house broker finnCap. "Management looks forward to 2016 with confidence, and we reiterate our view that Constellation, operating in a large, growing, defensive and fragmented market, is building a leading provider of US medical billing services," the broker added. Shares in Constellation were up 7.3p at 15.8p in lunchtime trading, almost exactly half finnCap's target price."
gretel
25 Jan 2016
RNS : trading ahead of expectations Excellent trading update today - the numbers are well ahead of expectations.Revenues are $76m, compared to forecast $69.7m, and EBITDA of $23m is well ahead of forecast $22.6m:[link] stuff.
gretel
10 Jan 2016
...and another tip for CHT here [link] Healthcare Technologies (CHT)Constellation Healthcare Technologies is a US-based provider of billing services to doctors there. It floated in London a year ago at 135p, and the shares have done well.Acquisitions are a key part of the strategy, but better-than-expected organic growth means full-year cash profit will be at the top end of market expectations.There's plenty of opportunity to grow in this highly fragmented market worth $37 billion (£24 billion) annually.Analysts predict annual profit growth averaging around 20 per cent over the next two years for Constellation."
II Editor
08 Jan 2016
NEW ARTICLE: 11 small-cap winners for 2016 " With the @GB:UKX:FTSE 100 experiencing its worst start to the year since 2000, it's fair to say the mood among investors is pretty glum. Slowing global growth, battered commodity markets and tensions in the Middle East will certainly make it ..."[link]
gretel
06 Jan 2016
One of Finncap's top tips for 2016 FinnCap have released their picks for 2016 - CHT are included as follows...."Essential services in a large, defensive marketConstellation is building a leading provider of US medical billing services. This is a large, growing, defensive and fragmented market. Organic growth in the Billing division has been strong at 14%, but there is a keen focus on acquisitions to accelerate the addition of doctors to the platform and the recent £30m placing supports this.We have upgraded FY 2016E EPS by 44% since IPO in December 2014 and expect further upside. We reiterate our 310p target price, which still equates to a 31% discount to peers and offers 84% upside."CHT are mentioned here in this round-up of Finncap's tips (I also own HAYT, which is another of their top picks):[link]
gretel
11 Dec 2015
Finncap increase target to 310p Finncap have today increased their target price to 310p (from 280p)"Accelerating the growth strategy"Constellation intends to raise $45m via a placing to fund the acquisition of MDRX (initial cost $28m) and its on-going acquisition strategy. MDRX will accelerate the group along its path to becoming a major provider of US medical billing services.The initial consideration represents 6.0x historic EBITDA or only 2.8x including targeted cost savings. Assuming the placing at 160p and the targeted cost savings are completed, we have upgraded our FY 2016E EPS by 10% and FY 2017E by 9%.We have also raised our target price by 11% to 310p (73% upside)."
gretel
11 Dec 2015
Earnings-enhancing acquisition Excellent news today - another "immediately earnings-enhancing" acquisition.MDRX looks a great fit into CHT.In addition, there's huge new investment into the company from the CEO - and other directors too.The 160p placing price could be better, but isn't too bad (compare the 10% discount to the 30% in DBG's similar placing today!). IMO the market wil receive today's news extremely well. And the new institutional investment will further widen liquidity and investor spread.It's also worth noting the confidence in the "Current trading" section, with reference to debt further reducing, trading looking good and a favourable macro environment:[link]
Vipers Ox
19 Nov 2015
Re: Great trading statement today FinnCap Morning Note:Towards the top end of high expectations CORPConstellation has confirmed that full-year EBITDA is expected to be towards the top end of expectations. Strong EBITDA growth on last year is being driven by organic growth and the successful integration of acquisitions. We are leaving our forecasts unchanged and reiterate our view that Constellation is executing on a large, defensive and growing opportunity. Towards the top end of EBITDA expectations. We forecast FY 2015 EBITDA of $22.6m up 59% on last year as both acquisitions and organic growth contribute. Driven by the size of the opportunity and Constellation's efficient model, we forecast EPS growth of 43% this year and 26% next.Large and growing market opportunity. The US medical billing market is worth $37bn pa and growing. It is highly fragmented and needs to consolidate to provide clients with the efficiency improvements and cost savings they are seeking. Significant value from acquisition model. Constellation has confirmed that the integration of acquisitions is progressing well. The group aims to rapidly build a large US medical billing provider by buying smaller billers at 5-9x EBITDA, and growing their profits by 2.5-3.5x by moving jobs to its captive BPO in India. Strong organic growth. H1 organic sales growth was a very healthy 14% in the Billing division, with 40% of this from existing clients, and we expect this pace of progress to have continued in H2. The group has confirmed today that organic growth is strong. Strategic additions. The three acquisitions since IPO have strengthened the technology base and marked the entry into two new market segments. 71% upside to target price. Our 280p target price equates to a FY 2016E EV/EBITDA of 9.4x, a 32% discount to our peer group, despite the prospect of significantly faster growth in EBITDA.
gretel
19 Nov 2015
Great trading statement today Looking even better value this morning 
)) Now on a forward P/E of only around 11.......[link] Healthcare Technologies, the US-based healthcare services and technology Company, is pleased to announce that, based on year to date trading, the Board now expects the full year EBITDA of Constellation to be towards the top end of market expectations.Paul Parmar, Chief Executive Officer of Constellation commented, "EBITDA performance for the first ten months is progressing strongly year on year, driven by greater than expected organic growth, the continued optimization of CHT's operations and being ahead of schedule with the integration of its acquisitions. Since its inception, CHT has successfully integrated 11 healthcare services businesses, and the Company now has 6000+ physicians on its platform in the US."
gretel
12 Oct 2015
Stifel initiate : 70% upside Excellent news - Stifel have initiated today with a 271p target:[link] Healthcare's rating too modest, says Stifel10:18 12 Oct 2015The stock would have to advance around 70% from today’s levels to match Stifel's valuation.Broker Stifel has initiated coverage of Constellation Healthcare Technologies (LON:CHT) with a ‘buy’ rating and 271p a share price target.The stock would have to advance around 70% from today’s levels to match that valuation.Constellation describes itself as an RCM, or a revenue cycle management company.Essentially, what it does for the nearly 6,000 doctors on its books is bill and collect monies owed by government, insurers and patients. It also provides practice management and purchasing services. Obamacare (or the Affordable Care Act to give it its proper name), has created huge upheaval for physicians, complicating the rules on payment while forcing down remuneration. For the barely profitable small firms carrying out mission-critical billing operations, Obamacare adds a financially onerous level of bureaucracy that is often the final straw. For Constellation, it has whipped up the perfect storm – or at the very least a great backdrop to consolidate a highly fragmented market. Last month it made two acquisitions in a month at a total cost of US$32mln. Meanwhile in March it completed its biggest deal to date with the purchase of New York-based Physicians Practice Plus for US$20mln. Stifel’s Ken Rumph estimates that, including the contribution of the new businesses, Constellation trading on a very modest enterprise multiple of just 4.5 times and a price to earnings multiple of 10 times.“Constellation is rolling up a large, growing, sticky and fragmented market for revenue cycle (billing) management in the USA,” said Stifel analyst Rumph. "
Vipers Ox
25 Sep 2015
Investors Chronicle Tip Our number one priority is to deliver shareholder value," insists Constellation Healthcare Technologies (CHT) chief executive - and controlling shareholder - Paul Parmar in the company's results statement for the six months to June. Judging by the 27 per cent increase in first-half cash profits, underpinned by strong organic growth as well as acquisitions, Mr Parmar appears to be doing both himself and other investors a favour.As promised, CHT continues to scale up its healthcare insurance outsourcing model, and trailed these results with news it had bought Northstar First Health for up to $18m (£11.6m). That deal, alongside contract wins and the purchase of Physicians Practice Plus in March, has increased the number of doctors using Constellation by more than 50 per cent to 5500. The day after the results the company announced yet another acquisition for $14m.Unsurprisingly for a buy-and-build company, Constellation talks more about cash profits - which exclude interest costs - than dividends. $17.2m of debt taken on before last year's IPO comes with an eye-watering interest rate of at least 11 per cent. However, Mr Parmar now believes the company should be able to borrow at half that rate, and expects steady cash generation to reduce financial liabilities to $16m by October.Corporate broker finnCap is forecasting full year adjusted pre-tax profits of $15.6m and EPS of 15.6¢ (2014: $9.8m and 10.9¢
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Vipers Ox
22 Sep 2015
Brokers Note Just received this albeit a few days after its release:FinnCapOffering broadened and market positionstrengthened CORPConstellation has further strengthened its position in the US medical billingmarket with today's acquisition of Phoenix for $14m (historic EV/EBITDA onmaximum consideration of 6.4x falling to 2.8x including cost savings).Phoenix provides medical billing services related to work place andautomobile injuries. This marks Constellation’s entry into this marketsegment. We have raised our FY 2016E EPS by 9% and FT 2017E by 13%and reiterate our 280p price target.Falling acquisition multiples. Phoenix is being acquired for a maximumconsideration of $14m split 75% cash and 25% shares. The shares will beissued if performance criteria are reached. This represents an historicEV/EBITDA of 6.4x based on maximum consideration falling to 2.8x when costsavings are realised.New market segment. Phoenix provides billing services in the US Workplaceand Automobile injuries area. This marks Constellation's entry into this marketsegment. It therefore broadens the group's service offering and client base andwill also enable the group to capture greater revenue from existing clients.Further cost-saving potential. Phoenix also has a web-based clearing housethat connects billing service providers and insurance companies. Constellationcurrently uses an external provider for this service and bringing this in-housewith Phoenix therefore offers cost savings.Forecasts upgraded. We are upgrading our FY 2016E EPS by 9% and FY2017E by 14% (new numbers below). Our price target already assumedreinvestment of the placing proceeds and we hence reiterate it at 280p.Attractive P/Es vs growth and peers. Constellation is now valued at 11.4x FY2016E EPS against our forecasts of 43% growth this year and 26% next. Thisalso represents a 60% discount to peers, despite significantly faster forecastgrowth.
Vipers Ox
18 Sep 2015
Re: Another bargain acquisition today...... Thanks for the reply. Thought that was all meant to have been sorted out with these DI Shares and Crest settlement. May be an idea to load up here before the masses arrive. Online through HSBC no problems at all.
techno stock
18 Sep 2015
Re: Another bargain acquisition today...... Online Dealing is unavailable - Can't buy or sell the Stock!!
Vipers Ox
18 Sep 2015
Re: Another bargain acquisition today.... This looks like a clear bargain and yet volume here is tiny. Any thoughts as to why?
