Last week saw house broker Westhouse Securities lift its valuation for an astonishing fifth time in the last 100 days. At that rate and trend it could be raised another 12 times this year.
Publishing Technology (LON:PTO) has moved up over 500% since this time last year, however investors should note that it has come from a very low base.
Fabulous for any new investor is the Broker has yet to put any value on the Chinese JV but do believe there is scope for this venture to provide futher upside.
The broker also points out the research spend of £3.3M last year is falling fast as the new digital software is completed.
Publishing Technology PLC has its annual report posted on their web page.
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Publishing Technology plc is a United Kingdom-based company is a provider of content systems, audience development and content delivery software and services to publishers, information providers, academic libraries and institutions. The Company’s principal activities are the provision of content systems, audience development and content delivery software and services, including the Internet-based electronic delivery of published research materials, and the provision of Internet-based search and access services for libraries and individual users of that material. Enterprise sells author2reader and publishing management systems, Online provides ingentaconnect, pub2web and Information Commerce Software (ICS) online products, and Marketing Communications provides consultancy service in sales and marketing to publishers. Its pub2web is a multi-content publications platform. Its Web research portal, ingentaconnect, is an e-publishing solutions package for everyone. more »
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Publishing Technology will hold its AGM on Thursday 4th April.
For a stock that has risen more than any other over the last 12 months one might expect the room to be packed out.
After all, Warren Buffet gets tens of thousands attend his AGM"S to learn how he earns 20% P/A for his shareholders, not the 500% PTO has grown in the last 12 months.
Millions of investors around the world spend a lifetime searching out super growth stocks however, just by looking back at a share price trend one can learn a great deal.
Why has this share performed so well, what have investors seen, will the trend continue.?
The AGM is the one time in the year you can ask the directors anything you want,it is also free to enter so long as you own at least one share.
So why do so few investors show up to these events.??
AGM held 4th April 2013.
Att; 7 shareholders, up from 2 last year.
So we have a 400% rise over the last year and it brings in just 5 more shareholders.
Those that did bother to attend must be well chuffed with what they learnt.
The directors reported that trading was ahead of last year,with the low margin products being replaced with recurring revenue high margin software sales.
Highlights
Churchill Archive online and Drama online that are being marketed by PTO on behalf of Bloomsbury, going great guns.
Debt reduction, to zero over the next 9 months.
Jump in deferred income, up 17% P/A each of the last 4 years
Good pipeline of new contracts
Research costs falling hard starting in June this year
House broker has a £3.60 valuation on the shares that trade today at £2.80p
.
PTO put out a trading statement last night just prior to the market close, in line is a 140% jump in profits for this year.
Todays FT page 16 has a chart showing PTO as the No 1 riser over the last year on the LSE.[438%]
5 April 2013
Publishing Technology plc
Result of AGM and Trading Update
Publishing Technology plc (AIM: PTO.L) ("Publishing Technology", the "Group", or the "Company"), the AIM quoted, leading provider of content systems, audience development and content delivery software and services to international publishers, information providers and academic institutions, is pleased to announce that all resolutions proposed at the Annual General Meeting ("AGM") held on 4 April 2013, as set out in the notice sent to shareholders on 7 March 2013, were duly approved.
At the AGM, the Chairman, Martyn Rose, stated that "Trading in the year to date is ahead of last year with revenue and profitability up on 2012. Building on this solid base, and taking account of previously contracted implementation work and new wins, the board is confident that the outlook for the year will be in line with market expectations."
08 Apr Westhouse Securities Buy 272.50 Reiterates £3.60p.
Westhouse reiterates after PTO put out a trading statement last week, the company also won a new contract in France yesterday on the PUB2WEB platform.
Yet more outstanding news this afternoon with two large contract wins.
One for the companies Pub2web platform and the other for the Advance product.
Investors who went to the AGM a week or two ago lernt that these new products go hand in hand with higher margins.
Todays RNS also highlights that this years profit forecast has been firmed up.
To have your years workload "in the bag" within just 15 weeks is some achievment.
The shares responded with a 10% rise but still trade under the house brokers valuation that may yet be upgraded within days.
Publishing Technology has the new digital software that publishers require to fight off Amazon,save costs and open up new markets.
For those investors who like charts,and news one might like to look at the stockopedia chart at the top of this page.
It shows a super growth share being made,each news item pushes the stock to new highs.
are you tara !
The accounts show turnover going up last year to 16.163M.
The old vista software division made a whopping £3.240M [EBITDA] on turnover of just £6.872M.
The new Advance siute of software being installed by Harpercollins and other big publishers ,should produce margins even higher than those of Vista in the comming years.
The new Pub2web software also has buckets of recurring revenue that should lift the online divisions profits.
This gets topped from by the PCG division sales from Churchill and Drama online
PTO is in effect a company with 4 [5 inc china].profit sections that are growing margins and profits.
Publishing Technology PLC has five divisions.
Last week two of those divisions won new contracts; Advance and Pub2Web.
PCG won this contract just over a year ago
PCG is the sales division of Publishing Technology.
Bloomsbury Publishing selects PCG as Global Partner for
Churchill Archive and Drama Online
February 28, 2012
Bloomsbury Publishing selects Publishers Communication Group
to represent Churchill Archive and Drama Online
PCG to provide global sales, marketing and customer service for new digital collections
An update from the accounts of PTO
The PCG division successfully won four
new full service representation deals in
the year all of which start during 2012.
This is a relatively new revenue stream
for PCG but one which can be highly
profitable when the correct skills are
deployed.
Churchill Archive online has had outstanding sales since launch last year,more on this can be found from the Bloomsbury trading statements.
Drama online that has only just been up and running for a few weeks has also hit the spot, last night
The Curious Incident of the Dog in the Night-Time winning seven awards, equalling musical Matilda's record win in 2012.
Publishing Technology PLC are the selling agents for Drama online around the world.
Drama Online site launched today.
Boomsbury and Faber's Drama Online, launched today (1st May) in beta, includes a partnership with the Victoria & Albert Museum to illustrate the publishers' collection of hundreds of plays.
The new website, http://www.dramaonlinelibrary.com, collects the drama lists from Methuen Drama, Arden Shakespeare and Faber, including more than 500 playscripts from Aeschylus to David Hare, as well as the first ever online editions of Bertolt Brecht's works.
The site is aimed at students, researchers and higher education institutions, and combines the texts with in-depth critical support providing context for the drama.
The Drama Online site has also partnered with the V&A Museum to use hundreds of production images from its theatre photo archive.
Drama Online was first conceived four years ago, and combines works from Methuen Drama, Arden Shakespeare and Faber lists. The site contains interactive features such as character grids showing the relative size of roles and and an interface that allows users to search for content across works.
Publishing Technology plc now has its Pub2web portal up and running for CNPIEC with around 1/4 million books on the site. The press release below was never put out via an RNS at the time,just posted on the company web site. Research on CNPIEC [ state owned] shows it has a 60% market share. If one takes the time to read the last accounts from Publishing Technology, we learn the Venture is now self funding after just one full year of trading.
Publishing Technology signs landmark China deal: OCT 2011
Following the launch of Publishing Technology plc in China last August, the largest provider of software and services to the publishing industry has announced it is partnering with the China National Publications Import and Export Corporation (CNPIEC) to deliver the first ever digital publishing platform to supply content to Chinese libraries.
As the largest company fully licensed by the Chinese government to import publications, CNPIEC has more than 10,000 institutional users spanning academic and public libraries across the country. The ground-breaking new site will use Publishing Technology’s pub2web platform with interfaces in English and Mandarin and aims to offer all Chinese libraries digital access to both local and international content, part of a wider government-led scheme to improve online access and discoverability of content in libraries.
Furthermore, as part of this partnership, Publishing Technology will offer the 250+ publisher customers on its ingentaconnect platform the opportunity to extend their visibility and awareness into the burgeoning Chinese library market, attracting new audiences and opening up potential new revenue streams.
George Lossius, CEO at Publishing Technology, commented: “The Chinese government is actively encouraging growth and development in the publishing and library digitisation arena, and it is tremendous to be able to play an important role in this. Our partnership with CNPIEC is incredibly significant; not only because it is our first major deal since launching in China, but also because of the potential benefits that it will afford our very broad customer base, offering them an opportunity to more effectively tap into a highly lucrative growth market for the very first time.”
Operational gearing can have a huge effect on profits.[Not the same as high risk debt gearing]
In the years 2007 -20011 Publishing Technology had just about static turnover in each of the four years.
Profits came in around B/E as cash was spent on designing and building the new publishing software. Cost: ITRO £2.5M P/A.
2013 is the tipping point for the companies profits.
Turnover rises, while fixed costs stay just about the same.
R and D is slashed as the new software products are complete.[the saved cash drops down into the profit box.]
The new software suite has higher margins than the old, so even on flat turnover profits can move up.
Debt is reduced towards zero thus a huge fall in finance costs.
The combination of these factors can drive profits in leaps and bounds.
To sum it up, just a small rise in turnover can lead to a large rise in profits.
.
http://www.youtube.com/watch?v=2-iEEyjg6sM
Internationally, the joint venture in China
bedded down and was able to fund itself
after only a few months as a result of the
deal with CNPIEC (Chinese National
Publishing Import Export Corporation).
Bloomsbury [BMY] have full year results out today.
Publishing Technology PLC [PTO] sell Churchill and Drama online on behalf of Bloomsbury.
Note of the last sentence, for a small company like PTO it looks like a coup.
"We are industry leaders in our digital strategy with a wide range of digital initiatives producing good returns. Our knowledge hub programme has made huge progress. We successfully launched the Churchill Archive in October 2012 and Drama Online in February 2013 both to praise and good early sales. The Churchill Archive was described by the judges of the Independent Publishers Guild's digital publishing award as 'a dynamite digital product' to which Bloomsbury 'has added stacks of value to the material'. The Churchill Centre has acquired access to the Churchill Archive from Bloomsbury for every secondary school in the USA, UK and Canada in a ground breaking initiative"
Publishing Technology Plc Coverage Initiated by Analysts at WH Ireland. (PTO)
Posted by Jim Brewer on May 21st, 2013
Publishing Technology Plc logoInvestment analysts at WH Ireland began coverage on shares of Publishing Technology Plc (LON: PTO) in a note issued to investors on Tuesday, Analyst Ratings Network.com reports. The firm set a “buy” rating and a GBX 320 ($4.92) price target on the stock.
Several other analysts have also recently commented on the stock. Analysts at Westhouse Securities reiterated a “buy” rating on shares of Publishing Technology Plc in a research note to investors on Monday, April 8th. They now have a GBX 359.94 ($5.53) price target on the stock.