http://www.rcg.tv

Everyone to their own, bought in yonks ago and sold half at over 100% other half in for the long term over 300% up already, but still a long way to go. I will hold these until first sign of weakness.

Been in and out of these 3 times and done nicely after results I intend buying again on the inevitable pull back. Great company-seems a rosy future here.

moneyplus where do you reckon it could pull back to ?

Cracking set of results:

RC Group (Holdings) Limited
12 March 2007


12 March 2007

RC GROUP (HOLDINGS) LIMITED

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006


Strong results ahead of expectations - foundations laid for continued rapid
growth


RC Group (Holdings) Limited (the 'Group' or 'RCG'), a leading international
provider of biometric identification products, security and RFID systems, is
pleased to announce its Preliminary Results for the year ended 31 December 2006.


FY 2006 FINANCIAL HIGHLIGHTS

- Revenues grew by 299% to 61.8m (2005: 15.5m)

- Excluding acquisitions, organic revenues grew by 181% to 43.6m (2005:
15.5m)

- Gross profit increased by 263% to 30.1m (2005: 8.3m)

- Profit before tax increased by 308% to 19.6m (2005: 4.8m)

- Positive operating cash flow of 1.6m (2005: 0.2m)

- Normalised earnings per share increased 151% to 10.8p (2005: 4.3p)

- Dividend per share increased by 20% to 0.6p (2005: 0.5p)


FY 2006 OPERATIONAL HIGHLIGHTS

- Organic revenue growth driven by successful new product launches, including
S-series, FxAlert System, FxGuard Windows Logon & Fx SecureBook

- New customer wins included the A1 Malaysian team for the A1 Grand Prix and
Sunway Lagoon amusement park, Malaysia, Sharjah Charity International in
Dubai, one of the leading private banks in UAE, and oil refinery training
centre in Abu Dhabi

- New partnerships with Intel, Sony, Motorola and Digital China

- Strategic expansion into attractive Middle East, South Africa and
Chinese markets

- Board strengthened with appointment of Dato Lee Boon Han and Edric
Ackland Snow

- Promising start to 2007 with positive sales momentum, particularly in
Middle East

Dr. Raymond Chu, Chairman and Chief Executive Officer, said: 'I am delighted to
report another record year of revenue and profit growth. This was a landmark
period for RC Group, during which we succeeded in both further leveraging the
exciting commercial potential of biometrics and RFID applications into the
security, gaming, entertainment and transportation markets, and in strategically
diversifying into carefully selected geographical markets of exceptional
potential.

'We anticipate that our core markets of Southeast Asia, China, the Middle East
and South Africa will continue to be leaders in the adoption of increasingly
sophisticated security and access control products based on biometrics and RFID
technologies. The lucrative potential of early-adopter demand in these markets,
combined with RCG's highly attractive products, deep technical expertise and
successful business model gives us a great deal of confidence in our Group's
future.'

Great reaction to a great set of results

Miles ahead of forecast and optimistic about future, goodness knows where this is going but with this sort of growth, cash in bank, dividend, current p/e is way too low imo.

Buy and hold with the occasional add on any dips is the order of the day here I reckon. Those looking to get in on post results selling must be cursing today.

all the best

capa

moving away from ridiclously cheap to just fairly cheap given growth expectations, still difficult to complain

Great set of results and well worth buying and holding as this company has a long way to go. The sp rise is higher than I expected but profit taking will pull it back in the next few days--I'm hoping to get back in around 120p but may take a while!

what a day for rcg, massive share volume I dont expect this share price to fall back down to 120p now. RCG is in the limelight now at last. 20 million cash just sat in the bank hey, margins improving maybe 3 share price by the end of 07. I still think RCG will be one of the best performing shares of the year. HOLD

I too do not expect to see a drop to 1.20 but you never know.

Personally I am looking at adding at anything under 1.40

capa

With 20 million in the bank i dont expect any shares to be issued to pay for further expanding, there are so many big sells again at the end of day today this is my only worry. Anyone take a guess as to it profits for 2007?

I jumped back in at 148p as the price seemed to be holding up well and there should be some very good press comments in the next few days after results like this.

damn, was going to buy when they dropped to 110p last week but was hoping for a tad more, hindsights a wonderful thing they say, who would have thought the figures would be this good...?

From my friend Donaferentes on the other side:-

Some one above suggested 15% per 6 months growth in EPS. One needs to take into account the increased weighted average number of shares to arrive at a more accurate figure.

For 2006, 19,132k net profits equated to 10.8p fully diluted EPS - weighted average shares in issue during the year 177.15m.

2006H2 net profits were 11,904k. Let's increase them by 15% 2007H1 and 15% 2007H2 = 29,433k total for year.

At the end of the year there are 194.9m shares in issue. Let's guess a further 20m are issued for acquisitions, option exercises and remuneration. The average number of shares in issue during 2007 will be 207,400,000.

So EPS for 2007 on this highly conservative basis will be 14.2p - an increase of 31.4%. On a PE of 15 X 2007 EPS (resulting in a PEG of 0.48) this gives an SP target of 213p. At 20 X 2007 EPS we get a target SP of 284p.

As ever, I would expect results to substantially exceed this modest target. 250p must be readily in our grasp over the next 12 months.

IMHO
WDIK
DYOR

stockdog, you have to take into account a possible fall in earnings this year.

Potentially 2 years before they increase EPS again.........though perhaps just a 1 year period.........

The 12th March Investec Update is here :

http://www.ph.ed.ac.uk/~s9547654/RCGInvestec.pdf



.

PP - why would you imagine a 300% increase last year falls to less than zero this year?

Read the Investec update in the link above, its their forecast, they are the new broker, and its their update after results.............and they consult with their client, RCG.

RCG has an issue, in that earnings are not visible going forward.

The results just gone reported on a "weighted number of shares" and the 2007 figures must report on the full amount of shares in issue (which dilutes earnings), then there is tax and all sorts of things. This will be a period of consolidation on RCG, and it often happens, people follow the growth story, but forget all the other factors.

papel thanks for the investec link, i agree on the tax rate increasing to 7% but investec predictions are far to conservative (and they admit this in their report)along with what was written in the rcg tip in the shares mag about 5 weeks ago. Ok we wont see another 300% increase this year but at least 100% is easily possible with a USA deal.

Managed to get an add in sub 1.40 as hoped.

Broker notes on RCG have consistently been understated, gives them a lot of room to beat market estimates and surprise on the up side. Not a bad thing in my opinion.

capa

well done--I knew I should wait a bit longer to get back in! long term we're in a winner though so a few pence shouldn't matter---I hope.

I totally disagree with investec estimations on sales they are way to low! Rcg only down 2p today and look at the rest of the market.