New thread for new ticker RAS


http://www.moneyam.com/InvestorsRoom/posts.php?tid=10776#lastread

4

Here is the earlier write up over the summer by GCI :

http://www.growthcompany.co.uk

XKO - BUY

Companies: XKO 21/06/2006

Under straight-talking chief executive Simon Beart, XKO has repositioned itself as a revenue assurance provider through acquisition and beaten forecasts for the year to March. We have sold and reinvested successfully, shown a good bit of footwork, and had a hell of a good year, reflected Beart.
After selling its Government and Financial Services arm, XKO reinvested the proceeds via the August acquisition of UBM, followed by the smaller acquisition of Powerdebt in December, deals which built scale in the fast-growing revenue assurance sector, where XKO is now generating superior returns. Revenue assurance, which entails the identification of unbilled revenues as well as the collection of previously invoiced debt, provides the real excitement for investors, with UBM (whose core customers are the major UK energy utilities) having already won a substantial contract with an oil major since acquisition and Beart confident of taking further slices of the gas and electricity markets this year.
XKO also retains a software division supplying IT services and applications to the building supply chain and specialist distributors, where encouraging organic profits growth of 13% was struck last year.
Despite recent corporate machinations, XKOs adjusted pre-tax profits sparked up from 3.8m to 5.4m last year a 42% leap on revenues lifted 19% to 27.6m. Investors were also treated to a 9% rise in dividends to 1.2p on the back of strong cash flow.
XKO trades on a historic p/e of 8 times, with the market yet to grasp the significance of the UBM deal, which has dramatically improved the quality of earnings as well as prospects. We think XKO looks great value. Buy.

James Crux
Market cap: 44.2m
PE Forecast: n/a
Share price: 106.5p

Revenue Assurance, Fraud, Credit and Cost Management Solutions Market to Reach $562 Million by 2010.................................................


http://www.xchangemag.com/hotnews/6ah30162652.html

This post from III makes interesting reading, and shows the reduction in EPS to present forecasts now the software division is sold (but as we know that now makes XKO debt free pro forma..........)
If the Software side was only delivering single digit growth makes sense to get rid of it for some cash, and then put this into higher growth higher margin revenue assurance and grow that side.



12-09-06 Re: Luke Heron tips XKO - Text kurafu-san 3

Here is the text - cant copy the graph...

The software sector is hardly in vogue at the moment, though there is a price for everything and that price has been reached with AIM listed XKO. This company is arguably the leading software and services provider to the utilities markets and the building supply chain. Its present position has been forged via a gradual refining process which has seen the current management team offload parts of the old business, whilst adding to the mainstay with key acquisitions.

Following the disposal of the group's Government and Financial Services Division in March last year, coupled with the acquisition of UBM in August 2005, XKO now comprises two divisions - Revenue Assurance and Software & Services. The group has also made a further addition to the Revenue

The Revenue Assurance division specialises in complex Revenue Assurance and debt management for major utilities. This involves the identification, negotiation, receipt and repayment of unbilled or over billed gas, electricity or water on behalf of utility customers. It is this division that has been hailed as the New Jewelof XKO. To illustrate this view, the division has more than delivered on expectations, to the extent that the full 8.5 million pounds earn out, related to FY 2006 EBIT performance, was triggered.

Meanwhile, whilst the Software & services side is only delivering a low single digit growth performance, it is a robust performance nonetheless as margins improved from 12.2% to 16.1% in the last reporting period. This division will one day be sold. That might be tomorrow, it might be in three years time - there is no rush. The management will sit and wait until the right deal emerges.

The bottom line is a group that should comfortably generate pre-tax profits exceeding 8 million pounds for the current year, which on a full tax charge will equate to earnings of 12.75p per share. This should fund a dividend payout of 1.3p. For the following year, pre tax profits should be up above 10 million pounds, equating to earnings of 15.7p per share, putting the stock on a forward earnings multiple of 6.2. As we approach the traditionally more active quarter of the year in terms of smaller company interest, coupled with the growing realisation that this stock is cheap - I expect a re-rating to occur. Whatever way we look at it, the stock is cheap. At 97.5p, there is at least 50% upside over the next 12 months or so. BUY.

Key Data

EPIC: XKO
Mkt: AIM
Spread: 95 - 100p

I believe that the Nov SCSW is out at the weekend, and with XKO in their Growth Portfolio it will be interesting to see what comments they make after the Software side sale and the results coming up. I would hope they agree with everyone else that its a good move and that with higher maring earnings coming in now, and with acquisitons to come, that XKO is one to buy.

Tick up and some nice buying. Results not far away now.

XKO Group PLC
09 November 2006

EGM - Change of name

XKO Group plc, is pleased to announce that, at an extraordinary general meeting
held earlier today, the Company has passed a resolution to change its name to
Revenue Assurance Services plc to reflect its new core activities.

For further information please contact:

Simon Beart Chief Executive 07710 444370
William Good Group Finance Director 01932 575207

14/11/06

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2006

Revenue Assurance Services plc (formerly XKO Group plc), the Revenue Assurance
provider, announces its interim results for the six months ended 30 September
2006.

KEY POINTS

* Strategic transformation completed into Revenue Assurance which exhibits
superior growth prospects and higher operating margins than the
hardware and IT services industry.

* Sale of all legacy hardware and software assets for #28.5m
(gross) has provided resources to fund acquisitions in Revenue Assurance
utilities sector.

* Turnover of #7.93m, an increase of 25 per cent. over the previous six months
ended 31 March 2006.

* Profit on continuing ordinary activities before tax #2.1m giving adjusted(1)
basic earnings per share of 5.0p.

* Dividend proposed of 0.4p per share, an increase of 52 per cent.

* Strong cash generation in continuing activities with adjusted operating
profit(1) to cash conversion ratio of 103 per cent.

(1) Adjusted for share based payments and the amortisation of intangibles and
discount applied to deferred consideration.

Commenting on the results, Simon Beart, Chief Executive said:

"We have transformed the Group's prospects and competitive position. The Revenue Assurance market is buoyant, driven by the cost pressures facing our customers and the complexity of their processes.
The Group now enjoys low levels of debt, strong operating cash flows and
competitive margins. Volumes with new and existing customers are encouraging and we are confident that further progress will be made in the second half".

50K MM buy in there earlier, should be and deserves to be a decent reaction to very good results.

We should break up through 120p I would hope in the near term.

From AFN :

edcrane - 14 Nov'06 - 09:50 - 41 of 41

Teather & GReenwood comment following results .... raising forecats and BUY recommendation

When Will the Market Recognise the Value Here?

Revenue Assurance Services Plc, formerly XKO Group, has reported interim results this morning, its first since the disposal of the ERP software business and therefore completion of its strategic transformation into a focused provider of revenue assurance services, currently to the utility sector. H1 results, stripping out the contribution from the disposed software business, delivered revenue of 7.93m, adjusted PBT of 2.82m and diluted EPS, on the same basis, of 4.73p. An interim dividend of 0.4p was awarded representing a 52% increase over the previous period reflecting the strength of underlying growth and cash generation.

On the back of this, we have raised our FY 2007 revenue target from 14.6m to 16m, and increased our clean PBT forecast from 5.25m to 6.25m. Our EPS estimate rises c11% to 9.8p, and we have moved our total dividend forecast up from 1.3p to 1.8p. We have been less aggressive with the revisions we have made to our FY 2008 and FY 2009 forecasts, simply as acknowledgement both of the fact that timing of unbilled error discovery is, by its nature, difficult to predict, and to reflect the fact that there was already the assumption of new contract wins underpinning our previous numbers. Our FY 2008E EPS figure moves up to 11.5p, from 11.2p, while our FY 2009E number rises to 13.8p, from 13.6p.

Looking ahead, there is much to attract the investor to this stock. The new entity is now a clearly focused business, operating within a premium growth market with both organic and acquisition-related opportunities available to sustain and, potentially, enhance this growth profile. The balance sheet has significantly strengthened, the business model is highly cash-generative (cash conversion in H1 was c103%), while any concerns over the re-tendering of contracts have been overblown. A calendar 2007E PE of 8.5x also looks outstanding value against a support services sector where multiples in the mid to high teens are common. We are retaining our 140p target which represents a multiple of only c12.5x calendarised 2007 earnings and firmly reiterate our Buy recommendation.

Bloody new thread to set up again.........

I'll do it tonight, as it takes effect from tomorrow :


XKO Group PLC
14 November 2006
XKO Group plc
('XKO' or 'Company')

With effect from Wednesday 15 November 2006, XKO will change its name to Revenue Assurances Services plc and have a new ticker symbol 'RAS'.

XKO's main business activities are now centered on revenue assurance activities
following the acquisition of UBM and Powerdebt in 2005 and the disposal of the
Software and Services Division earlier this year.

This information is provided by RNS
The company news service from the London Stock Exchange

New thread for new ticker RAS

http://www.moneyam.com/InvestorsRoom/posts.php?tid=10776#lastread