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IS Solutions

  • BY: Andrew Hore |
  • POSTED: 22/12/2014 |

Analytics and ecommerce software provider IS Solutions is buying Speed-Trap Holdings for £7.53m in cash and shares. 

IS Solutions already owns 11% of Speed-Trap, which is valued in the accounts at £800,000, and has traded with its Celebrus business, which is involved in providing data analytics on consumers interaction for corporate, for more than a decade. The deal will add more clients to the group with a focus on financial services, utilities and media. Sales are through large analytics companies systems integrators.

The cash element will be £1.26m will be paid to the A share investors. Net debt was £433,000 at the end of June 2014 and an acquisition bank facility of £1.5m has been secured. However, net debt is expected to be down to £600,000 by the end of March 2015 and a year later there should be net cash.

In 2013, Speed-Trap made an operating loss of £797,000 on revenues of £1.94m but it is expected to breakeven in 2014. Cost savings from combining the businesses should help to improve the figures. There are £4m of tax losses.

Speed-Trap chairman Geoff Shingles, who is also chairman of Imagination Technologies, will join the IS Solutions board as a non-executive director.

The groupís year end will be changed from December to March. In the 15 months to March 2015, a profit of £1.2m is forecast on revenues of £13m. In 2015-16, a profit of £1.7m is forecast.
At 52.5p a share, IS Solutions is trading on less than 12 times 2015-16 earnings.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2014_63.pdf

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