Retail Decisions are market leaders in an industry which continues to grow exponentially. They produce payment fraud systems solutions for major blue chip clients globally, though the bulk of the business is currently coming from the major reatilers both in the UK and US. They are a Techmark 100 company which means that there will always be a level of institutional interest in the company. However, on top of this "forced" interest from the tracker funds there has throughout 2005 been sustained large buying from no other than Goldman Sachs and Barclays. These institutions together now have an investment of tens of millions of shares in RTD !

Website: www.redplc.comClick here to read the old thread

Shares Magazine had a cover feature back in early April entitled "ATOMIC! - Small is about to get VERY, VERY BIG - 7 stocks for the new technology revolution". It was no surprise to see Retail Decisions as part of the selection. Here's what Shares had to say: "Retail Decisions is a specialist software developer aimed at preventing credit card fraud. It owns a database of several million dodgy credit and debit card numbers against which it crosschecks transactions, but also has developed clever software which can spot strange patterns in your spending. This system is perfect for stopping phony credit card transactions. Investors could not ask for a better pure play on rising credit card crime. Perhaps the company's biggest challenge is scale but chief exec Carl Clump is attempting to address this with aquisitions, even if opportunities seem to be few and far between. In the meantime, Retail Decisions remains concentrated on developing in the card-not-present arena, where it already has fantastic experience and technology. The drive to win new customers should also be helped by the fact that it already serves so many blue-chip customers including Marks & Spencer, T-Mobile and, most recently, Federated Department Stores, the US owner of Macy's and Bloomingdales. Let's not forget, too, the company's highly profitable fuel-card business in Australia which grew 30% last year, making this year's forecast low single-digit earnings growth look on the conservative side." Retail Decisions have continued throughout 2005 to rake in very healthy profits from the Oz. fuel card business thanks to the "bonus" of high oil prices and favourable exchange rates. In addition, the extra revenue streams from new major US corporate clients will be starting to filter through. In the US, Retail Decisions appear to be chosen on many occasions over their main rival Cybersource which indicates just how well this company is doing. The demand for card-not-present (i.e. internet/phone shopping) fraud software is going to continue to grow and grow so RTD presents guaranteed success in this arena - backed up with the cash cow fuel card business which is being extended into locations other than Australia and we have a real gem of a company. Longer term target 1+.

An interesting acquisition

Retail Decisions plc

Acquisition of E Com Industries Pty Ltd

Australia's Largest Stored Value (Pre-Paid) Gift Card Operator



Retail Decisions ('ReD'), the fuel card operator and a world leader in card
fraud prevention and payment processing, is pleased to announce that earlier
today it agreed to acquire, with immediate effect, the entire share capital of E
Com Industries Pty Ltd ('E Com'), Australia's largest stored value (pre-paid)
gift card operator.


ReD is paying Aus$30m (c.12.9m) for the business (net of expenses) and is
funding the acquisition through a mixture of existing cash resources and new
debt facilities. The acquisition is expected to be earnings enhancing in 2006
and extends ReD's exposure to a new, exciting and high growth market.


Stored value cards are payment cards where the consumer can spend a
pre-determined amount that has previously been loaded onto the card ('
pre-paid'). Stored value cards can be 'single use' or 're-loadable' and be
designed for use at the outlets of single or multiple retailers.


The directors believe that the E Com acquisition represents an important
extension to ReD's existing card issuing business and provides a number of
commercial and operational synergies. These synergies include migrating E Com's
stored value gift card offering across other ReD regions, particularly the UK
and the US, and also cross selling opportunities in Australia.


Over the last three years E Com has been highly successful in the pre-paid gift
card market in Australia and has launched more than 30 gift card schemes for
blue chip retailers such as Coles Myer and Woolworths, Australia's two largest
retailers, Dymocks, a leading Australian book-store, Harvey World Travel and
Crabtree & Evelyn. E Com also operates its own multi-retailer electronic gift
voucher programme aimed at both consumers and the corporate incentive market
which it sells through a proprietary website
www.giftvouchers.com
.


E Com will be integrated immediately into ReD's successful Australian Fuel Card
business. The combined operation will be managed by Rob Hillan, who has been
the MD of ReD's Australian operation since its acquisition in 2000. E Com is
based in Sydney, employs 19 staff and has been acquired from a number of private
investors comprising mainly third party business angels, the main shareholders
being, Fun Enterprises Pty Limited, General Play Pty Limited and Security Mail
Pty Ltd. It was founded in 1998 by its existing Chief Technology Officer (CTO),
Michelle Deaker, who will be joining ReD as Product Development Director of
ReD's combined Australian business.


E Com has grown rapidly since inception, with compound annual revenue growth of
93% over its last three financial years. In its last full financial year to 30
June 2005 E Com's revenue grew by 160% to Aus$5.9m (c.2.5m), achieving a gross
profit of Aus$3.1m (c.1.3m), representing a gross margin of 53% and delivering
a small maiden pre-exceptional operating profit of Aus$97,000 (c.40,000). E
Com had gross assets at 30 June 2005 of Aus$1.8m (c.0.8m) and net liabilities
of Aus$0.3m (c.0.1m).


Trading in the first four months of E Com's current financial year has been
strong with revenue up by over 90% compared to the same period last year and the
profitability of the business is benefiting accordingly from high levels of
operational gearing.


The market for stored value cards is growing rapidly. Industry research shows
that in the US, an estimated US$63 billion was spent on buying stored value
cards in 2004, which is expected to grow to US$257 billion by 2009. It is also
anticipated that around 10% of US gift sales in the 2005 Holiday Season will be
on buying gift cards (source: Giftex). The UK and European market is estimated
to be around five years behind that of the US but is expected to grow by around
30-35% annually over the next five years.


Half of the consideration will be funded from existing cash resources within ReD
Australia with the balance sourced from previously unutilised elements of the
18m facilities that were negotiated and announced at the time of the Group's
recent Fuelserv acquisition. To ensure the Group has sufficient working capital
in Australia going forward, the existing revolving credit facility with National
Australia Bank has been extended from Aus$17m to Aus$27m. The consideration of
Aus$30m is subject to adjustment based on the net asset position at completion,
but this is not anticipated to be material.


Carl Clump, CEO, Retail Decisions commented:


'We are delighted to be acquiring E Com. This is a very important acquisition
for ReD, which we believe will deliver significant shareholder value. In line
with our clearly stated strategy this extends our card issuing capability into a
new segment with excellent growth potential. In particular we are looking at
opportunities to combine E Com with both our Australian Fuel Card Operation and
our recent acquisition of Fuelserv in the UK. In addition we are already
working on launching E Com's services for our existing retail customer base in
the UK and subsequently the US.'

Strange that they buy this business outright having already had a rights issue to buy the Euro fuledcard business - I know the latter was more costly but I hope that there is no further share issue "on the side" to fund this acquisition.

Being funded by debt. Already arranged.

The new SETS/MM system is now in force on this and some other similarly sized stocks. Hasn't done the dealing sizes any good, and until a few minutes ago the spread was pretty lousy. Come back the dear old MMs?

Thanks 55011

Looking better now. The analysts phone in has got things going in the right direction. Spread and sizes much better.

55011, I am beginning to think you hold this share.

Hi Fred good news today ????? ;o\

I think it seems a sensible and hopefully a profitable deal.

...and so say all of us!

Director/PDMR Shareholding

RNS Number:1695V
Retail Decisions PLC
05 December 2005


Retail Decisions plc (the "Company")

Director Shareholding


The Company has today been informed that Jane Tozer, a non Executive Director of
the Company has today purchased 8,000 Ordinary 5p shares in the Company
("Shares") at a price of #1.25 per Share.


*These shares have been purchased in the name of Pershing Securities Ltd.


Following this purchase, Jane Tozer has an interest in 17,425 Shares, which
represents 0.02% of the Company's issued share capital.

If I had her name I might consider changing it. She holds less shares in RTD than I do. How much pay do non-execs get?

Buy Note From Daniel Stewart Dated 5/12/05 - Price Target 1.80:

Retail Decisions (ReD), a leading provider of services to the payments industry, has announced the acquisition of E Com Industries, Australias largest supplier of electronic stored value cards, for 12.9m. The acquisition is complementary to ReDs recent acquisition of Fuelserv (see note 14th November 2005), as ReD looks to expand the breadth and depth of its card-issuing and processing offering.
E Com, founded in 1998 by the current CTO and based in Sydney, hasaround 50% of the Australian gift voucher market. Revenues in the year to 30th June 2005 were 2.5m, up 160% on the same period last year and the company has achieved 93% compound growth over the past three years. The company also reported a small maiden operating profit. The transaction will be funded through an 11m increase in debt and 1.5m from existing cash resources.
Although the consideration looks full in terms of historic performance we expect E Com to contribute 6.1m of additional revenues and 1.5m of EBITDA in FY06, increasing to 8.8m of revenues and 2.8m of EBITDA. This suggests a forward transaction multiple of 8.6x. The increased level of debt will increase net interest payable by 0.9m but interest cover will be a healthy 19.7x.
E Com is the only independent provider of stored value solutions with access to the entire bank-acquiring network in Australia. The company boasts a blue chip client base of retailers (Woolworths, Coles Myer, Dymocks, Harvey World Travel and RM Williams). It has also expanded into New Zealand and had planned a launch in the UK.
E Com derives its revenues from electronic gift card programme management (62%), voucher sales (24%) and the balance from the pass-through of operational costs of managing gift card programmes. This represents a mix of set-up and transaction fees as well as the value of vouchers sold.
A stored value (pre-paid) card enables a user to spend a pre-determined balance that has been previously loaded onto the card. The cards can be single use or reloadable and can be limited to one ormultiple merchants. Card types include gift, incentive, insurance claim, benefits, loyalty and pre-paid fuel cards.
The European pre-paid market was estimated to be worth 20-25bn in 2003 and is forecast 30-35% CAGR over the five years to 2008 (Source: Mastercard). An increasing percentage of UK retailers are now offering gift cards.
As noted in our note of the 14th, Fuelserv has historically turned down a number of potential customers because of credit control issues. Through this acquisition, ReD will be able to address this market with a pre-paid card. There is also scope to cross-sell E Coms offering into ReDs existing Australian fuel cards business as well as launching gift cards in the UK, US and Europe.
Revised forecasts reflect the impact of the acquisition as well as the share consolidation (effective November 28th). The impact of the acquisition is to increase FY06 earnings by 5.2%. The enlarged group is trading on a FY06 PER of 14.0x. We believe that ReDs high revenue visibility and cash generation makes this rating undemanding. We maintain our BUY recommendation and set a revised price target of 180p, equivalent to 19.1x FY06 earnings.

But ........ we aint goin anywhere fast are we !!

having said that blue at 0.5p every day we'll get there ;o\

Douggie, it is better to buy a slowly well built house than one put up on poor foundations and with flimsy material. It is climbing quite nicely.

it's all foundations here .............. start the building !

Looks like the foundations have just sunk.

First SETS auction this evening. I dare say folk are still trying to adjust to the new systems. It seems to wobble in thin trading, and the buys versus sells are not necessarily a guide to overall price movement. Today is a pretty good example of that.

Not having L2, I do not know who the key players are. Last time I did have L2, I was playing a stock where the named MMs were never on either the bid or offer, and if they approached either then that proved to be a good signal to act. Indeed they were mostly extremely keen to keep their distance from the action. Unless of course they were playing anonymously........ A happy time!

SETS is not all that some make it out to be. Caveat emptor, as always.

Another day. Another angle. Anyone wanting some of these in a hurry has "had it". Max buy size is 1,500. You don't see many buyers, Not surprising. "The market" is not allowing it. Want to sell. Go right ahead! But no takers.

So what do we make of all this. Very thin conditions, bigger fish behind the scenes(just as in the good ol' MM days) trying to accumulate without causing the price to soar? GS and MAN are "in" and probably want more. A decent stake they can later sell on at a profit.

Who knows. Isn't the Stock Exchange the greatest enigma going?

And here is another statement of confidence, issued at 11.08 and coming just after a 42,200 "X" trade.:-

Director/PDMR Shareholding

RNS Number:2737V
Retail Decisions PLC
07 December 2005

Retail Decisions plc (the "Company")

Directors' Shareholdings

The Company has today been informed of purchases of Ordinary 5p shares in the
Company ("Shares") by Directors of the Company as follows:


Director No. Shares Date of Price per
Purchased Dealing Share (p)
Nigel Whittaker - Non-Executive Chairman 9,584 06/12/05 131
Richard Amos - Finance Director 8,334 06/12/05 128
Geoff Westmore - Non-executive Director 8,334 06/12/05 131
Carl Clump - Chief Executive 8,000 07/12/05 127.4


All these shares will be registered in the names of the respective Directors,
with the exception of Nigel Whittaker, who's shares will be registered in the
name of SG Hambros Bank & Trust Ltd.

Following these purchases, the resultant holdings of these Directors are as
follows:


Director Total Holding
Shares %
Nigel Whittaker - Non-Executive Chairman 600,000 0.77
Richard Amos - Finance Director 30,000 0.04
Geoff Westmore - Non-executive Director 225,000 0.29
Carl Clump - Chief Executive 138,563 0.18


Further enquiries:

Richard Amos
Group Finance Director
Tel: (01483) 728700




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

RDSBBBDDSGGGGUR

.

.