This is what I received from Selftrade.
SCHEME OF ARRANGEMENT
The Company has announced that they have entered into an Acquisition pursuant to which NCC Group will acquire the entire
issued and to be issued Ordinary Share capital of Accumuli, to be effected by means of a Court-sanctioned Scheme of
Under the terms of the Offer, Accumuli Shareholders on the Register on the Record Date, being 29 April 2015, will receive
0.1218 New NCC Group Shares and GBP0.0597 in cash for each Scheme Share, unless they actively elect to vary the
proportions of cash or New NCC Group Shares they receive under the Mix and Match Facility.
Option 1: The Mixed Consideration (Default) 0.1218 New NCC Group Shares and GBP0.0597 in cash.
Option 2: Cash Consideration GBP0.3021 in cash;
Option 3: Stock Consideration 0.1518 New NCC Group Shares.
If no valid election is made, Shareholders will be deemed to have elected to receive Option 1 as the Default Option. Elections
may be subject to proration.
If you wish to make an election for Option 2 or Option 3, please notify us in writing by secure message or letter by no later
than 5pm on 22 April 2015.
Finncap have increased their forecasts for next year by 23% (and this year by 4%).
"Accumuli*: Acquisition of RandomStorm (CORP)
Accumuli has announced the acquisition of RandomStorm, an integrated information security specialist with its own IP which provides scalable managed network security services. The £8.9m net consideration will be funded from existing resources and a new £10m five-year debt facility. In addition to the strategic fit which enables cross sales into the existing Accumuli client base, the acquisition delivered £1m of EBITDA from £3.5m revenue in the year to 30 April 2014: we upgrade Accumuli's FY15 and FY16 EBITDA by 4% and 23% respectively, lifting our target price to 36p (33p)."
"A better bet might be Accumuli (ACM), which lets companies outsource their security needs. It provides third-party data analytics and threat intelligence products, supported by its expertise and technology. The industry minnow continues to benefit from the proliferation of unsecured devices. Lots of people spent ages building castles with really high walls, says chief executive Gavin Lyons, referring to the companies behind traditional network security. Were knocking those walls down.
Accumuli derives 64 per cent of its gross profits from recurring sales, giving investors a clear view of future revenues. And only a fifth of its 719 customers use more than one of its products, providing an obvious route to sales growth. The group has also made strides into the explosive big data space by winning two large contracts for its data monitoring and analytics solutions. The result is that analysts expect both sales and cash profits to rise by about a quarter this year. Yet Accumulis shares trade at an enticing 14 times full-year earnings and offer a 3 per cent forecast yield, which should appeal to investors."
Accumuli's DDAM 'can address new counter-terror Bill'
By StockMarketWire | Fri, 28th November 2014 - 09:50
Accumuli, the independent specialist in IT security and risk management, says that its DDAM service can address the increased legal requirements announced as part of the updated counter-terrorism Bill.
The aim of the Bill is to ensure that ISPs are able to provide, when requested, information to national security and law enforcement agencies' datasets that can be used to identify device usage against associated IP addresses. This requirement has the potential to place significant technical and financial challenges on organisations that need to comply.
DDAM is a modular enterprise solution for the monitoring and recording of DNS, DHCP and IP Address association in a rapid and cost efficient way. It is the result of many years of development, designed for massive scale and is an already proven solution with successful deployments in many of the world's largest organisations.
The technical challenges associated with the Bill are mostly around scale. The volumes of data generated on a daily basis within an ISP or Telco provider are massive.
Potentially billions of devices are connecting and disconnecting with the providers constantly, and the IP addresses associated with these devices are dynamic, meaning they are constantly changing. This makes linking a device to an activity very difficult and the only way for law enforcement agencies to make this association is by searching through billions of records to make the connections. It is the collection and retention of these records that the Bill is looking to introduce, and which will prove a challenge for the providers.
Accumuli says the financial impact of these measures can also be significant. Modern commercial tools that are designed to collect and store data typically charge by volume, so the costs of implementing a suitable system will require significant investment in either development time by the ISPs or a large investment in commercial licences. Director of product management Jon Inns said: "The announcement by the Home Secretary on Wednesday is not a surprise for us, or for the ISPs. Criminals and terrorists are making use of the internet for its speed of communication, its global reach and its ability to hide them in the noise. It was only a matter of time before the Government was going to start asking ISPs to play a more active role in dealing with the threat.
"The challenge is how to minimise the impact this ruling will have on the ISPs. This will be a potentially expensive and complex requirement for them to fulfil so we have developed a solution that can deliver on the requirement with minimal overhead to address both of these concerns. DDAM is proven to be able to handle vast amounts of data, is quick to deploy and it's not going to break the bank."
The fact that we are the only posters is good news because it shows that Acc is hardly followed. That will change as profits and size increase. Downing are a large shareholder here which gives me much reassurance that my own analysis was right. We should be worth 20x earnings IMHO - 34p.
Excellent results overall last week, with EBITDA at £2.9m ahead of forecast £2.8m. Adjusted EPS at 1.36p is 46% ahead and is basically on forecast of 1.4p, whilst the 0.46p dividend is nicely ahead by 15% though slightly behind the 0.5p forecast.
I particularly like the very high recurring income at 61% and the very good cash generation. The £3.6m cash pile and the comments in the narrative imply more acquisitions to come.
The headline figures were a bit messy given all the one-offs, but the outlook is bullish and the business is obviously growing very nicely in a sector with all sorts of possibilities.
Can't believe certain comments below about the results - they obviously just took the headline numbers and didn't even bother to look at the EBITDA or the core continuing numbers.
The narrative also revealed a new acquisition which will help this year's numbers.
Finncap raised their price target to 33p after the results and had this to say:
"Accumuli* - Prelims (28.8p)
ACM CORP TP: 33.0p. Market Cap: £45.5m
Prelims to March 2014 are in line with expectations and the April trading update: 61% of gross profit derived from recurring revenue; EBITDA of £2.9m; and net cash of £3.6m (vs £3.5mE). A strategic move towards higher-margin services and maintenance, combined with the acquisitions of Signify and Eqalis, lifted the gross margin from 53% to 60%, delivering 32% gross profit growth compared with 18% revenue growth. With the means to deliver organic and acquired growth alongside a healthy yield, in a high-profile tech subsector, we lift Accumuli's 12-month target price to 33p (27p)."
Acquisitive risk and security managed services provider Accumuli ended FY14 (to March 31) in line with expectations and its end of year trading update with revenue up 18% to £16.6m, due to a combination of organic and acquisition-based growth - although it's not clear how much was organic. Its other key metrics are also moving positively, with net profit up 17% and trading EBITDA rising from £2.8m to £3.6m.
It addition to acquisitions (and one disposal), it has pursued a strategy of increasing recurring revenue by focussing on higher margin services over product sales, and cross selling. There is movement on the change in the make-up of the business with the proportion of revenue from technology solutions dropping yoy from 23% to 18%, while support and managed services now stands at 60% vs. 57% last year (see here for FY13 results). As a result, gross profit margin has increased from 53% to 60%. However, even though cross sales have grown from 2% to 5%, 600 of its c700-strong customer base still only take one service from Accumuli. Even though acquisitions will no doubt continue, doubling down on cross sales should be a focus area for the business over the coming year."
And finally, a nice summary of ACM by a writer for Spreadbet Magazine:
"However, one company that may well still be under the radar is Accumuli (ACM), currently valued at just under £43 million.
Accumuli is developing its offering as a one-stop shop for businesses looking for tailored solutions to meet the threat from cyber crime. We believe there is particular value in Accumulis agnostic approach, which incorporates elements of owned IP with third-party product sales. The firm sees itself as a niche player bridging the gap between the fragmented market of security resellers, among whom it identifies resale and acquisition opportunities, and the larger players such as Xchanging and Computacenter, whose large sales bases the company looks to exploit. At the same time as driving growth through acquisitions, the firm is generating enough cash to
A few weeks ago Simon Thompson of the Investors Chronicle used a broker 's forecast of likely results to support a buy recommendation for this share. I have not seen any update in the magazine but do not subscribe to their website. Does anybody know whether he ( or for that matter anybody else ) has commented on the recently published results?
From Refs the broker forecast figures before the results were
2014 EPS 1.40 EPS Growth 300.0% PER 20.5 PEG 0.07
2014 EPS 1.80 EPS Growth 28.6% PER 14.9 PEG 0.52
From Refs after results
2014 EPS 0.15 EPS Growth -57.1% PER 20.5
2015 EPS 1.70 EPS Growth 1033.3% PER 15.8 PEG 0.02
2016 EPS 1.90 EPS Growth 11.8% PER 14.2 PEG 1.20
From these figures they missed their eps forecast by 89%
For me if a company misses forecasts by such a lot I sell
2015 figures look excellent - but after 2014 I'm concerned about them hitting these figures
2016 does not have the growth I look for and the PEG is above 1.0. A lot can happen between now and 2016 so they could have upgrades.
These are just my views and my reasons and how I decide when to sell.
I am the first to admit I do get the timing of when to sell wrong often
Results were almost as expected Adj EPS of 1.3p vs 1.4p.Remeber there were big changes in the year -big disposal and 2 acquisitions to bed in with another one announced post year end . Next year 1.7p puts them on a forward pe of 16x for a business growing at 20% in a fast -growing market -cheap in the software sector .
Finncap target price 33p .
Im a happy holder .
It's been posted on ADVFN - the formatting is terrible, and it's very long, but it's well worth reading!
"CEO Gavin Lyons has ambitious expansion plans for IT security business
Theres no doubt that the IT landscape
is shifting but it is the speed at which
change is happening that takes your
breath away. With the advent of cloud
hosting, mobile apps and ever-more complex
enterprise software there are billions of bytes
of digital data today that we didnt have even a
year ago, and future growth will be exponential,
as we explained in last months piece on cyber
security (see Sector Report, Shares, 15 May). Even
an expert like Gavin Lyons, chief executive officer
(CEO) of cyber security specialist Accumuli
(ACM:AIM) is bowled over, as he explained
when we caught up for chat in London last week.
The way that this has escalated, its gone beyond
everybodys wildest expectations.
In what was a piece of interesting timing, I met
Lyons just hours after the latest hacking attack
controversy broke, when online marketplace
giant eBay (EBAY:NDQ) revealed that cyber
thieves had stolen personal data from 145 million
of its users. Where hacking was once about
bragging rights, showing that you could take
down a network, now its becoming a money
machine, explains Lyons. And the stakes are
high, both financially and professionally. When
US retailer Target (TGT:NYSE) revealed it had
been the victim of a data breach last month, it
cost CEO Gregg Steinhafel his job.
Whats also shocking is just how easy it is to
join the cyber crime or hacktivist ranks. I saw
on undercover forums that you can now get an
SLA (service level agreement) on some malware
guaranteed to infiltrate an environment for
300, Lyons tells me. But the biggest bombshell
comes next. Its literally got a 24/7 support team
making sure it works, any problems youve got
24/7 email and phone support. That will possibly
shock those that have yet to grasp just how
sophisticated and business-like todays hackers
are. This is not a one-off either, theyre operating
from all over the world, confirms Lyons.
Cyber crime spells troubling times ahead for
organisations both big and small, and especially for
business leaders that cant tell a byte from a reboot.
Back in ancient times, youd build a castle and
whoever had the highest walls was most protected,
Lyons says. But those metaphorical walls today
are coming down as trends like bring your own
device (BYOD) to work, and others, emerge. When
youre an IT executive the question is always how
much is enough, explains Lyons. Companies could
accumuli fights cyber crime end up mailing infinite cheques into a bottomless
pit. So thats why were here, the CEO explains.
We say to an organisation, heres the risk that we
perceive, lets look at your budgets and advise you
on the best way to invest that money. The trick is to
understand whats critical to your business, be it an
excel spreadsheet, a new car design or whatever.
The Aim-listed buy-and-build consolidator
has established a business aimed at analysing
cyber threats, providing the tools to blunt
them, and often, managing the systems for
clients. Those customers are typically small to
medium-sized business in both the commercial
and public sector, with anything from 1,000 to
10,000 staff, although Accumuli does work with
bigger organisations through selected partners,
including Cisco Systems (CSCO:NDQ),
Juniper Networks (JNPR:NYSE) and big data
specialist Splunk (SPLK:NDQ).
Lyons is cagey about naming customers though,
in fact he sidesteps a few details, partly because of
competitive circumspection and also because the
firm is in close period ahead of full year results to
end March pencilled in for 23 June.
(post on if you agree)
Read full longer post:
It is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
Many highly popular stocks are going down even on GOOD NEWS !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
IT is easier to tank a share price, rather than make it go UP, by short-selling.
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what's the good, if the stock never really recovers?
AND when they have got you all hooked on the 'lovely' new all-time LOW.....They'll SHORT IT AGAIN !
# ChalieHarper - posted on iii
IF a fund owns a large share holding in a firm and is long.... whilst waiting for its end game to materialise, it loans out any number of its shares to a shorter...the shorter then manipulate the share price down making £X amount when short ended.... the shorter then gives the loaned shares back and splits the proceeds 50/50.
They both make cash, probably during a time when not much is happening with the sp. IT's a WIN-WIN for them but BAD news for the pi's who as usual may have sold at a loss because the cash has to come from somewhere. #
Thanks for posting the ft article.
Not going mad but will buy a few more tomorrow and if im lucky and the price comes under profit taking or Russia moves further into Ukraine I might be presented with a buying opportunity
The relative ease with which the Heartbleed virus has accessed what should be secure websites, and retrieved millions of customers passwords, is not just alarming, but brings into sharp focus the need for internet service providers and websites to secure their businesses against the ever-increasing threat of security breaches.
Aim-traded Accumuli is operating at the forefront of network security technology and boasts more than 700 customers in its services and technology solutions businesses. Its global customer base consists of companies across an expanding range of industry sectors.
The solutions offered to clients fall into four key areas: defence in depth examples include firewalls; data monitoring and analytics; network access control; and external threat intelligence to identify emerging IT security threats and ensure preventive actions can be taken in advance.
Accumulis other main operation is focused on helping organisations identify where they are vulnerable, providing expertise to deploy technologies correctly for the first time, and delivering a managed service platform that enables companies to outsource the management of those technologies.
IT security skills remain in relatively short supply, providing a strong incentive for businesses to seek these services through a managed service provider such as Accumuli. The company is now seeing a shift in its business towards managed services, partly down to the acquisition of Signify, one of the UKs leading providers of managed service two-factor authentication.
There is decent organic growth coming through, as Accumulis underlying revenues rose by 6 per cent in the first half of its financial year to the end of September 2013. Strong industry trends and smart-looking acquisitions are improving the quality and predictability of earnings by boosting recurring revenues from managed services, software support and maintenance contracts. Indeed, over 60 per cent of the companys gross profits in the 12 months to March 2014 were derived from recurring revenues.
When Accumuli reports results in June, we can expect cash profits to rise by 38 per cent to £2.9m on 20 per cent higher revenues of £17m in the 12 months to end March 2014. This translates into a 40 per cent rise in both adjusted pre-tax profits and earnings per share to £2.8m and 1.4p, respectively, according to analysts at brokerage FinnCap.
Moreover, Accumuli ended the financial year with £3.5m of net funds on its balance sheet. Thats the equivalent of 2.2p a share of net cash. Strip this sum out from the current share price and the cash adjusted forward price-to-earnings ratio drops to a little over 12 for the current fiscal year. There is decent dividend support too 0.46p per share for the year just ended.
As more investors cotton on to the earnings growth potential and the solid income stream the board are distributing to shareholders, the combination of a sharply rising dividend and falling earnings multiples are likely to make for a compelling investment case."
Yes tend to agree with your powerful logic there Zulu...and like you a holder. I planned an exit ( in my mind only of 28p as the year progresses, but not really necessary if this crowd keep going the way they are..seem decent.
On separate note I finally got around to taking a look at JQW ( Chinese online business promotional partner...sort of finds you customers and builds SME's web presence and skills). Tipped by SCSw at 80p making £17m profit yr end 2013, sitting on 34£m cash! valued at lowly 150m I suspect until a year or so of results...watch out for results 29/4 as whilst not as solid as ACM may prove to be this years next plus 500...worth a look and monitoring ...love to hear your thoughts. pen
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