Playa035
15 Jun 2015
Re: Final Results thePrior,So Results as expected as per recent trading update. Good Dividend.Current market cap £230What do you think it should be my friend?
theprior
15 Jun 2015
Final Results Now published.Worth a read.Just click the "news" tab for the full report.TP
methilman
23 May 2015
Re: Jim Slater Buy in the Telegraph Have finally taken the plunge on the back of Slim Jim's advice so apologies in advance for any negative impact on the sp going forward.However, with a fair wind and a bit of patience, it should reward reasonably well over the medium/long term (and I am a bit younger than JS).Mm.
theprior
16 Mar 2015
RNS Finals "Comfortable in line with expectations"Excellent, bodes well for the future.Surprised it's a little down this morning.Luck all,TP
zulu principle2
08 Dec 2014
Jim Slater Buy in the Telegraph 7th Dec-14 Jim Slater Recommendation in Telegraph – BUY at 1.38My fourth recommendation for your IHT portfolio is Redcentric, a leading British-based provider of managed IT services, which uses its four UK data centres to provide services including “wide area networks” and “cloud storage” to medium-sized companies. Redcentric’s current focus is to form long-term services contracts, working in partnership with the IT teams of its customers. In April 2013, Redcentric was spun off as an independent business on Aim by Redstone Group. In November 2013, the company made a very astute transformational acquisition of a highly complementary business, InTechnology Managed Services. The purchase price of £65m was funded almost entirely by placing 80 million shares with institutions. The transaction was a real gem, which had an almost magical impact – revenues were doubled, recurring revenues were increased to 80pc of the total and one of the largest independent managed services businesses in Britain was created. In recent months, two of the few listed companies in Redcentric’s UK peer group have been actively pursuing mergers and acquisitions. Iomart had abortive bid discussions in September with Host Europe Holdings and Advanced Computer Software Group has just received a cash bid recommended by the board. The sector is ripe for further consolidation. Since the end of its financial year in March, Redcentric has announced further multi-year contracts with a variety of customers totalling about £10m. These high-margin contracts provide stable future revenue, strongly evidenced by the fact that 80pc of Redcentric’s current revenue comes from recurring business – a very attractive and persuasive feature of the company. To give you a better idea of Redcentric’s services, here is an easily understandable example – a three-year contract worth £1.5m with the Salvation Army, which was won by competitive tender and then supplemented by a four-year contract for a further £1.3m. Redcentric will initially provide 500 sites with a high speed internet connection for the officers’ quarters and other homes provided by the Salvation Army. The contract has the possibility of doubling in size to 1,000 sites over the next six months. Now for another example, which to a non-technical person like me (and perhaps most of you) looks as if it is right on the cutting edge of the rapidly expanding IT market. Redcentric has a five-year contract, worth more than £3m, with a London-based estate agency to provide services that include “wide area network, IP telephony and a central internet with managed firewall services” to approximately 60 locations across London. Join the club if you do not fully understand all the implications of this contract and be comforted by the thought that the Redcentric team understands them very well. On the November 17, Redcentric announced its half-year results to September 30. They were excellent and showed beyond doubt that the acquisition of InTechnology had been very successful. Also, organic growth was above target at 11pc, with improved margins. Cash generation improved to 82pc of profits. At the current price of 140p, brokers estimate that the price to earnings (p/e) ratio for the year ending March 31 2015 will be about 16, falling to 13 in the year ending March 2016. Bearing in mind the organic growth rate, these p/e ratios are acceptable, but that is only half of the potential. Redcentric’s sector is very fragmented and there are many opportunities for consolidation by acquisition, which would bring further economies of scale and operational efficiency. FinnCap, one of the company’s “house brokers”, said it “looks forward to an inevitable return to mergers and acquisitions and further opportunities to add value without dilution”. The broker is right to be optimistic about this as Redcentric’s free cash flow (which can be used to help fund acquisitions) is excellent and, for t
