Small Cap Report (6 Mar) - TRCS, LCG, BDI, VNET, TRB, AMO, SPGS, AMS

Wednesday, Mar 06 2013 by

Pre 8 a.m. comments

I mentioned in my report of 4 Mar that the broker forecast for Tracsis (LON:TRCS) seemed to show turnover & profits expected to halve for year-ending 31 Jul 2014. The company has been in touch to say that this is definitely incorrect data, because there are not any forecasts in issue for Tracsis for year-ending 31 Jul 2014 yet, and that in any case they wouldn't expect trading to go backwards. So my apologies for this, and I'm happy to correct this error, which I have passed on to the data provider to be corrected at their end too.


London Capital Hldg (LON:LCG) shares shot up recently on it announcing that 3 competitors were interested in taking over the spread betting company. It all went wrong yesterday afternoon, with an announcement at 3:39pm saying that it is no longer in discussions, and the shares are back down to 36.5p, which is only slightly above the price before the takeover approaches.

One has to wonder about the shares, given that three competitors all looked at bidding, and all withdrew. I had a look at these shares recently, and had some concerns over a legal/compensation problem the company had, which seemed to involve large payments. Also they are in a very competitive sector, and I'm not clear what (if any) competitive advantage LCG has. I'd want up-to-date facts & figures before taking the plunge on this one, something just doesn't feel right with it at the moment.


Bond International Software (LON:BDI) announce a contract win to provide payroll & HR software to Carpetright's 600 stores. That's great, but no indication is given of the size of contract, or whether it is material to their results (which I suspect it probably isn't). Nevertheless, for a serial disappointer, it's good to hear that BDI is winning new business. I've been in & out of these shares several times over the years, and the company has often looked promising, but the accounts are a bit wobbly on closer inspection, due to capitalising development costs. I might have another look though, as you would imagine there should be a nice cyclical angle on the shares, as companies invest in new software as economic recovery beds in.

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
8 thumbs up
0 thumbs down
Share this post with friends

Tracsis Plc is a United Kingdom-based company that specializes in solving a variety of data capture, reporting and resource optimization problems. The Company’s products and services consists of: Software: Industry strength resource optimization and rail management software, Professional Services: Consulting and technology related professional services across the operational and strategic planning horizon, Remote Condition Monitoring (RCM): Technology and reporting for critical infrastructure assets in real time and Data Capture and Analytics: Collection, collation and analytical services of traffic and passenger/customer data within rail, traffic and pedestrian rich environments. It has contracts with operators within the rail and bus industries. Its subsidiaries include R.W.A. Rail Limited, Peeping Limited, Safety Information Systems Limited, MPEC Technology Limited are few of the company’s subsidiaries. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

London Capital Group Holdings plc is a United Kingdom-based company that operates through its principal subsidiary, London Capital Group Limited. The Company's core activity includes provision of spread betting and contracts for difference (CFD) products based on financial market products, such as futures, equities and foreign exchange. The Company provides online trading to private, retail and professional clients. The Company's operating segments include financial spread betting and contracts for difference (CFDs), the United Kingdom, and institutional foreign exchange (FX). The financial spread betting and CFDs, United Kingdom segment is engaged in the provision of the spread betting and CFD products, commission income, exchange gains and interest. The institutional foreign exchange segment earns commission income generated from the clients' FX trading. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

Bond International Software plc is a United Kingdom-based provider of software solutions in the field of human capital management. The Company is engaged in providing software, hardware and related support services to the recruitment industry; providing human resources and payroll software and related support services and outsourced payroll services, and providing outsourced services to the state education sector. The Company operates through three business segments: Recruitment software, HR and payroll software, and Outsourcing. The Recruitment software segment is engaged in supplying specialist recruitment software. The HR and payroll software segment is engaged in supplying human resources and payroll solutions. The Outsourcing segment is engaged in providing outsourced human resources, payroll and other services to schools in the state sector, and payroll bureau services to organizations in the state and private sectors. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is Tracsis fundamentally strong or weak? Find out More »

2 Comments on this Article show/hide all

marben100 6th Mar '13 1 of 2

Hi Paul,

Re London Capital Hldg (LON:LCG) , was not attracted to that one after seeing them present. I formed the impression that it's another one of those cos that makes profits from exploiting dumb clients. As you've experienced, those stories generally don't end well for shareholders, so I steered clear.

It's good to have plenty of filters for companies not to invest in. Makes it easier to narrow down the choice of attractive & investable propositions and focus on those. Doesn't matter if you miss some that turn out to be good. More opportunities always come along.



| Link | Share
tads 6th Mar '13 2 of 2

Hi Paul

Given that VNET now has iDraught installed in 2000 American pubs, do you know how much this will be worth to them?



| Link | Share

What's your view on this article? Log In to Comment Now

You can track all @StockoChat comments via Twitter

About Paul Scott

Paul Scott

Paul trained as an accountant, then spent 8 years as FD for a ladieswear retail chain.He became a professional small caps investor in 2002 to date.Paul writes a small caps report for on weekday mornings. He joined Fundamental Asset Management Ltd as a research associate in 2014, as part of their Small Cap Value Portfolio team. more »


Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis