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GBT, GBST HOLDINGS LIMITED
nipper
post Posted: Jul 18 2019, 07:31 AM
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QUOTE
GBST was quietly going about business until Bravura Solutions formally put it in play in April. Since then, GBST has had seven interested parties pop out of the woodwork and received indicative offers from three of them.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 28 2019, 06:44 PM
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Another day in the sun.
QUOTE
GBST Holdings (ASX: GBT) is a software company that provides information technology services to the capital market and wealth management sectors. This week, Bravura Solutions (ASX: BVS) raised its indicative takeover offer, for the second time, to a bid of $3.00 per GBT share.

GBT has also been approached by a number of other parties expressing interest in the company. In light of these developments, GBT's board has decided to commence a formal process where interested parties have been invited to submit offers to maximise the potential price for its shareholders.

The company has a strong pipeline of new potential customers, and we believe that there are reasonable chances of further upgrades to its earnings outlook and valuation in FY20 and FY21. We continue to invest in GBT because we believe the management team has executed its recent turnaround strategy well. The business has a solid list of customers who value GBT's products and we believe in the positive long-term growth potential of the company.


- We hold GBT as a research-driven investment within WAM Microcap (ASX: WMI). GBT shares are up 10.9% for the week.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 1 2017, 02:00 PM
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In Reply To: nipper's post @ Sep 2 2016, 02:46 AM

and worse
QUOTE
GBST, which makes administration and transaction processing software for wealth managers and investment banks, on Wednesday said that EBITDA for the full year would now be in the region of $12 million for the full year, compared to $17.2 million in the prior corresponding period. Consensus forecasts were for EBITDA of more than $20 million this year. Services revenue was hit by "a project that will not materialise and client deferral of other projects".

GSBT, due to report its half-year results on February 14, has cash of $12 million and no debt and said the board "intends to continue to pay dividends".
down 20%



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 2 2016, 02:46 AM
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GBST is one of the stronger small-caps on my radar. Its capital market and wealth management software platforms act as the unseen engine behind financial service providers of many stripes, here and abroad.

However, not much went the company's way in 2015-16. GBST said in September that long-time chief executive Stephen Lake would retire, and followed that announcement with a profit downgrade in October that sent the shares tumbling 30 per cent.

Things managed to get worse in February, when GBST shared that Mr Lake was suing the company for $2.6 million. Finally, Brexit rattled the company's key UK market and hammered the pound.

It wasn't pretty. In the end, revenue fell 5 per cent for the 12 months to June, while operating earnings before tax, interest and depreciation (EBITDA) fell 18 per cent. And, while the shares had climbed back up to $5.50 by June, they've since come back down to $3.97.

Investors who bought shares in late 2015 hoping to make a quick buck were no doubt disappointed by, well, lots of things, but also by the company's entering a new investment cycle 2016. New chief executive Rob DeDominicis, who succeeded Mr Lake, was up front that the company had accumulated a good deal of tech debt over the past few years.

In other words, GBST underinvested in its products for a while, and now the company needs to play catch up. Research and development leapt to 15 per cent of revenue in 2015, up from 10 per cent the year before.

The bad news is that the company expects to maintain that higher level of investment for the next couple of years, and 5 percentage points of revenue is serious cheddar. That spend is also laid bare to the market on the income statement because GBST does not capitalise R&D.

The good news is that GBST is not putting off this necessary investment any further, and this short-term pain is a gain to the long-term investor.

There's more to give investors optimism. Operating EBITDA was $11.5 million in the second half, up from $8.5 million in the first, a positive sign for the current year, and management is keeping a lid on less-than-critical costs. The business also has a tailwind in the form of rising, high-margin licence revenue, which increased during the year.

Also interesting is that GBST's most important client in the UK, Aegon, has made two large acquisitions that were underpinned by GBST's Composer platform, which is wealth management administrative software for investment platforms. Once the dust settles on the integrations, GBST's share in that market could more than double to 35 per cent. One better, such scale would make GBST that much more competitive at winning new business.

GBST's valuation does not bake in great expectations either. Having run-rated second-half results and made some nip/tucks around one-time items, I figure GBST sells for about 17 times pre-tax profit. For contrast, Iress, which is another well positioned Australian player in financial services software, sells for 24 times pre-tax profit on the same methodology. Granted, Iress had a much better 2016, but my broader point is that GBST is far from carrying a premium price tag.

All in all, I respect that GBST is making tough choices and suspect that many of its current challenges will prove temporary. The valuation isn't demanding and I appreciate the sticky nature of its products, debt-free balance sheet, and 2.8 per cent yield. The shares are worth a closer look for the long-term investor willing to suffer some short-term bumps.

Joe Magyer is the chief investment officer of Lakehouse Capital



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
RADIO
post Posted: Aug 6 2007, 01:04 PM
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Recent ShareScene.com Radio Broadcast (03/08/2007 14:30:00):
GBT - Earnings Update and Acquisition - Mr Stephen Lake, CEO and MD

N.B. ShareScene.com Radio can normally be accessed by the 'RADIO' link, top of every page.
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ShareScene.com Radio delivers investor presentations from ASX listed companies. Keep up to date with the latest corporate dealings of the shares you follow. Hear news direct from the source. Listen to directors and investor relations mangers discuss their company, give investor updates and brief on current results. ShareScene.com Radio keeps you informed about company announcements and events, and provides you daily market wraps and industry discussions.
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u873228
post Posted: Aug 10 2005, 03:19 PM
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anyone holding this thing. Volume up - for a share that no one seems to trade and looks like on large lines? Any ideas on what is going on?

 

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ShareScene.com
post Posted: Jun 14 2005, 06:24 PM
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Upcoming Float:
GBST HOLDINGS LIMITED (GBT)

Thankyou
Sharescene.com

 
 



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