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Best Research Award 2007
Edison Investment Research, winners of 'Best Research Award'
Redstone
| Date | Reports available | Download |
|---|---|---|
| Dec 22 2008 |
Cautiously optimistic Redstone reported interim numbers that showed revenues ahead by 10% but adjusted PBT down over 40% to £2.8m due to a rapid deterioration in order levels, specifically large-scale ICT projects. Management has been quick to rationalise, taking £7m of annualised labour cost out of the business. The group consumed £7m of net cash during the first half taking net debt to £26.6m against a current market cap of £13m, but there are signs that the working capital build up is being unwound as net debt had fallen by £4m to £22.4m by 31 October. With repayments on the £20m term loan due in 2009, management is in negotiations to revise the terms of its loans to create financial headroom. Decisions on the Birmingham and Salford BSF contracts worth £170m over 11 years are due in January and we remain cautiously optimistic on the shares. Research type: Update - Interim results |
Log in to download 2 page note available |
| Jun 10 2008 |
Showing true potential Following a period of acquisition and reorganisation, Redstone management has created a market leading, profitable integrated IT and communication solutions provider as a platform for organic and acquisition-enhanced growth. Cross-selling initiatives are gaining momentum and Redstone’s increased capability and scale is enabling management to secure multi-million pound, multi-year projects. These results show a clear indication of the true potential within the new Redstone and we believe the shares are undervalued. Research type: Update - Full year results |
Log in to download 5 page note available |
| Apr 02 2008 |
De-risking growth Redstone management has completed a phase of restructuring to create a profitable integrated IT and communication solutions provider as a platform for organic and acquisition-enhanced growth. A healthy pipeline of new contracts and a high proportion of recurring revenue underpin our forecasts. We believe Redstone will continue to deliver upside from the newly expanded Converged and Managed Solutions offerings. The shares are undervalued. Research type: Quarterly Update - Trading update |
Log in to download 4 page note available |
| Dec 12 2007 |
Transformed for growth Redstone is substantially derisked due to a healthy pipeline of new contracts, a high proportion of recurring revenue and a number of key partnerships now in place. Management has refocused the group into a leading provider of integrated IT and communications solutions. Acquisitions are fully integrated, cross-selling is underway and costs are being cut. We believe that Redstone will continue to deliver, offering significant upside potential from the newly expanded Converged and Managed Solutions offerings with the potential to bolt on synergistic acquisitions. Research type: Outlook - Interim results |
Log in to download 12 page note available |
| Aug 06 2007 |
Shortlisted for Birmingham BSF Redstone recently announced that as part of a consortium with Catalyst Lend Lease and Bovis Lend Lease, it has been shortlisted for the Building Schools for the Future (BSF) contract in Birmingham. This is the largest project of its sort in the country and Redstone will be responsible for supplying a complete IT and communications solution that will supply approximately 90 schools in the region with a fully integrated IP network, communications, IT and e-learning environment. It is anticipated that preferred bidder status will be announced by spring 2008. Winning this contract would significantly raise our forecasts for Redstone. Research type: Flash note - Trading update |
Log in to download 1 page note available |
| Jun 26 2007 |
Re-positioned for growth Redstone management has proved adept at timely acquisitions which have refocused the group away from its telecoms legacy and more towards the higher margin and higher revenue visibility of IT and communications solutions. We believe that Redstone has turned a corner, offering significant upside potential both from the newly expanded Converged and Managed Solutions offering and the currently untapped cross-selling initiative being undertaken across the group. Research type: Outlook - Initiation of coverage |
Log in to download 12 page note available |
| Dec 04 2006 |
Positive newsflow Half year results to 30 September 2006 came in as expected on the back of recent acquisitions, with revenues up 42% to £47.4m and gross profit up by 43% to £17.5m, Redstone’s second profitable half in succession. Future revenue and profits growth is anticipated from the acquisition of IDN. On a consensus projected earnings basis for the second half of the current year, the group is currently fairly valued. Research type: Company Comment - Interim results |
Log in to download 2 page note available |
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Edison's research ... is balanced, objective and provides a level of detail not normally associated with smaller companies.
Peter Knowles
Director, Fyshe Horton Finney