A humble investor
17 Jun 2015
Re: New Contract Now confirmed on TIG's websiteInnovation Group secures £46m Software DealReleased : 17.06.2015RNS Number : 3691QInnovation Group PLC17 June 201517 June 2015The Innovation Group plc("Innovation Group" or the "Group"
Innovation Group secures £46m Software DealThe Innovation Group plc (LSE: TIG.L), a global provider of software solutions and business process outsourcing to the insurance,fleet, automotive and property industries, is pleased to announce that it has secured a new software client win with a Tier One UKInsurer.The client will adopt Innovation Group's rich suite of products including Insurer Policy, Insurer Claims and Insurer Analytics alongwith a self-service portal. The complete eco-platform solution, including the Insurer suite and several of the client's systems, will behosted for the duration of the contract in Innovation Group's data centres.This contract is the third new business win in the UK this year. This is a major transformation project and has been won through itsstrategic partner, a global services and technology company, which is contracted as the overall systems integrator.The contract was signed following an in depth due diligence process. Innovation Group was selected based on the agility,functionality and adaptability of the Insurer platform. After the initial solution design phase the decision was taken by the client touse the platform for the following business benefits:· Transforming its business from a traditional operating model to a future-proofed digital service.· Supporting its customer base using a full omni-channel approach.· Providing a personalised data-driven customer journey.· Delivering a high level of process automation, allowing a reduced cost base and a focus on customer service rather thantransactional activities.The contract has an initial term of 10 years and will deliver £46m of revenue with £12m being recognised over the next 12 months.Andy Roberts, Group CEO of Innovation Group commented:"We have invested significantly in our Software business over the past few years and I'm delighted to see that investment nowpaying off. This is a landmark contract win that recognises the technical excellence of our software suite.We believe the growth of this Software business will bring more large deals. While the timings of these deals will not always becertain, the medium-term picture for this business looks wholly positive, as Innovation Group stands to benefit from more insurancefirms adopting third-party software."Enquiries:About The Innovation Group:Innovation Group (LSE: TIG) is a global provider of insurance software solutions and business process services. With revenues of£209.8m and adjusted PBT of £27.5m in 2014, it employs over 3,000 people across the UK, Europe, North America, Asia Pacificand South Africa and works with 15 of the top 20 global insurance markets, 75% of the top 20 global P&C insurance companies and3 of the world's top 5 fleet and lease management companies.www.innovation-group.comThis information is provided by RNSThe company news service from the London Stock ExchangeENDThe Innovation Group plc Tel: +44 (0) 1489 898 300Andrew Roberts, Chief Executive OfficerLewis Miller, Group Finance DirectorLouise Fisk, Head of Global CommunicationsFTI Consulting Tel: +44 (0) 20 3727 1000Ed Bridges / Matt Dixon / Rob Mind
A humble investor
17 Jun 2015
New Contract Strange that the company hasn't issued an RNS for this significant contract. Has Stockmarketwire jumped the gun ? and can we rely on this announcement being fact ?
forwardloop
17 Apr 2015
info Shares mag courtesy of alliance trustInnovation to deliverIntegrated insurance software specialist closes on ‘landmark’ deal Steven FrazerInvestors could see a sharp bounce in the share price of Innovation Group (TIG) with a handful of potentially ‘material’ contracts expected to close before half-year results next month (19 May). ‘One of them looks set to be a landmark deal,’ believes John O’Brien, analyst at respected IT research website TechMarketViews. This could come as a timely fillip for shareholders in the wake of a profit warning earlier this month (1 April) due to delays in signing off on a number of sizeable technology agreements. The company also admitted that mild winter weather ‘adversely impacted claims volumes in our UK property business.’ This saw analysts recalculate year to September 2015 forecasts, with Investec shaving 4% off its pre-tax profit prediction to £37.1 million, and slash its target price on the stock from 45p to 35p. The shares fell 15% on the day to 24p, although they’ve since recovered to 26p. Hampshire-based Innovation Group provides business process services (BPS) and software solutions to the insurance, fleet, automotive and property industries. It has operations across North America, Europe, Asia Pacific and South Africa. Last year the company reported £27.5 million pre-tax profit on just shy of £210 million revenues, but improved trading in its technology business should ensure a substantial improvement this year. Consensus estimates are currently pitched at £34.4 million from £243 million of revenue, according to Reuters data. Shares says: "A 35p target price implies a September 2016 price to earnings multiple of just 13.5-times based on Investec’s earnings per share estimate of 2.6p. Contract news could start a sturdy rally." ‘This is a slight bump in the road for Innovation Group but, in our view, nothing to be too concerned about,’ says Ian Spence, founder of IT research consultancy Megabuyte. Technology contracts are typically fairly large, but also unpredictable in their timing. ‘The apparent renaissance in the company’s software division will be most welcome but, inevitably, will bring with it increased lumpiness in revenues and profits from period to period,’ concludes Spence. Investec’s analysts take a similarly sanguine view despite cutting its price target. ‘We await first-half 2015 results which will give Technology & BPS profit splits for the first time, which should support the investment story,’ confidently predict Julian Yates and Roger Phillips. ‘We retain our buy recommendation.’Shares says: Buy Innovation
forwardloop
01 Apr 2015
Investec maint 35p tgt Innovation Group FTSE SMALLCAP Technology Buy 35p 21.5 62.8% InvestecPayPoint FTSE SMALLCAP Financial Buy 1400 823.5 70.0% Canaccord Genuity
hippolyta
20 Mar 2015
Re: AGM 25th March The best thing written on here all year
Lavenonews
16 Mar 2015
Re: AGM 25th March Company has canned quarterly IMS so doubt any update before interims in May. It is off radar and an easy trade in the short term as the euro and zar keep weakening v pound. But business is sound so expect solid progress, dangerous to be short for too long here. Plus if pound weakens in election vs dollar TIG could get acquired, plenty of acquirers with dollars in their pocket. Speculative enough?!
hippolyta
16 Mar 2015
AGM 25th March Well - since pretty much nothing has happened here for months - at least the AGM might create a little interest? Anyone able to share speculation to break the boredom on this board?!
Willow67
29 Dec 2014
Sold Sold my shares today. I've been considering it for a while and now the price has recovered a little it feels like the right time. The business seems to be growing but it feels mostly through inorganic means and generally I have been very disappointed by their organic growth. The PEG is 3 which is far too high for me.
kevlarr bandini
04 Dec 2014
TIG busy end to a successful year [link] Innovation Group’s (TIG) management was up all last night closing the acquisition of UK-based EMaC, an outsourced provider and administrator of service plans for motor vehicles for up to £46m in cash.TIG will pay current owners CEO Angela Barrow and Mobeus Equity Partners £36m upfront for the business, which manages service plans for the retail motor industry in the UK&I. EMaC has a total of 1.5m service plans and sold 300k alone in the past year, which CE Andy Roberts said this makes EMaC the leading player in the UK.2015 looks set to be a transitional year for the group, as Roberts will take a part time CE role by the year end, current FD Jane Hall will move into a new role as CEO role of the BPS business. March, TIG will also have a new exec chairman, who will lead the search for Roberts’ full time replacement.The numbers themselves were in line with expectations. Revenue was up 10% in constant currency (ccy) to £209.8m, and adjusted EBITDA was up 33% ccy to £37m – giving TIG an adjusted EBITDA margin of 18% vs. 15% last time. Management explained this strong performance was achieved on the back of a benign year for insurance claims, which shows they are doing the right things to manage the business in both good and bad conditions.The UK delivered 17% top line growth (2% organic) following acquisitions of Crashworth and LAS in 2014, and GVS in 2013 (see here and work back). TIG’s property business was the star with growth of 28%, followed by software, up 10%. UK motor was much more subdued at +2%. It suffered a 16% fall from existing business, although this was offset by the acquisitions.Despite these challenges, TIG sees motor as a major opportunity for the group, hence the significant investment in acquisitions in the past year. The latest move for EMaC will give TIG access to a fast growing business – FY14 revenue is expected to grow 23% to £9.1m, and EBITDA grow 21% to £3.5m. We understand that profitability from EMaC should keep tracking up, making it a very healthy business for TIG to take on. Roberts also sees plenty of opportunities to expand EMaC’s services into Europe.Posted by John O'B
