Stock data
| Market cap. | £179m |
| Last close | 19.00p |
| High / Low (52 weeks) | 23.0p / 15.2p |
| Stock market listing | FULL |
| Forecast net cash (£m) | 56.3 |
| Forecast gearing ratio (%) | N/A |
| Team | Technology |
| Sector | Technology |
Price performance
| % | 1m | 3m | 12m |
|---|---|---|---|
| Actual | (5) | 1.33 | 15.15 |
| Relative * | (9.51) | (5.4) | 18.86 |
* % Relative to local index
Other companies covered in sector
| Y/E Sep | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2010A | 162.1 | 15.5 | 9.4 | 0.57 | 33.3 | 12.4 |
| 2011A | 175.9 | 21.2 | 15.0 | 1.01 | 18.8 | 8.6 |
| 2012E | 200.6 | 27.1 | 17.6 | 1.06 | 17.9 | 6.6 |
| 2013E | 218.1 | 32.3 | 22.9 | 1.41 | 13.5 | 5.5 |
Last updated on 09/12/2011
Latest research
Australian deals
Flash note | Technology | 25/10/2011
Recovery to growth
Outlook | Technology | 05/09/2011
German hat-trick
Update | Technology | 22/06/2011
Trading update
Flash note | Technology | 15/02/2011
On a sounder footing
Update | Technology | 10/12/2010
Major outsourcing win
Flash note | Technology | 09/09/2010
Bump on the road
Update | Technology | 18/08/2010
Shaping up
Outlook | Technology | 09/07/2010
Open road ahead
Update | Technology | 04/12/2009
In the fast lane
Outlook | Technology | 12/10/2009
Investment summary
Innovation’s full-year results reflected the fruits of a robust BPO deal flow and early signs of a recovery in higher margin software sales. With a healthy pipeline and a refreshed product portfolio, the company looks in good shape to continue performing well in 2012 and beyond. Delivery to our estimates and a continuation of good deal flow should support a 12/13x ex-cash multiple, implying a fair value of 21-23p one year out. Further visibility on the margin uplift gained from Enterprise deployment and licensing deal flow and major BPO wins are the key catalysts for a more aggressive margin recovery to become priced in.
Last updated on 09/12/2011
Industry outlook
Innovation's solutions add much needed efficiency and flexibility to an insurance industry being shaken up by the entry of consumer brands and comparison engines. Economic weakness is likely to prolong decision cycles and is reducing claims volumes, to which Innovation's BPO sales are tied.
Last updated on 09/12/2011
Key management
| Andy Roberts, CEO |
| Jane Hall, FD |
Company address
| Yarmouth House 1300 Parkway, Solent Business Park Whiteley Hampshire PO15 7AE United Kingdom +44 (0) 1489 898300 View website |
