18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

Comment from Zak Mir over at sharecrazy.com on the 19th July.


Zak Mir Re: Leadcom (LEAD) a leader ? [Re: PapalPower]
#396390 - 19/07/07 10:54 AM

We have seen a great bounce off the bottom of the 2006 price channel at 67p today, one that should start the process of an eventual 2006 resistance line projection target to 95p - the last 2006 resistance zone.

Consensus Broker Forecasts as at 29th July :


2007 PTP 11.43m
2007 EPS 6.35p
2007 DIV 1.54p


2008 PTP 16.46m
2008 EPS 9.30p
2008 DIV 2.35p


(2007 Interims will be 9th August)

10th July 2007 Altium Update now available :

http://www.esnips.com/web/LeadcomInfo/


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Ericsson have accepted the lower offer (just under 100$ a line) from BSNL and the work now commences. The acceptance came as Ericsson put the bank guarentee in place.

http://economictimes.indiatimes.com/Ericsson_accepts_BSNLs_GSM_tender/articleshow/2251658.cms

Ericsson accepts BSNL's GSM tender
2 Aug, 2007, 2226 hrs IST, PTI

NEW DELHI: State-run telecom firm BSNL's plans to expand mobile network are finally ready for take off with Swedish telecom vendor Ericsson on Thursday accepting the GSM equipment contract and submitting bank guarantee.

Ericsson has paid the guarantee and accepted the order for laying GSM lines, BSNL sources said.

When contacted, Ericsson officials also confirmed the payment of bank guarantee.

BSNL will now offer an advance purchase order (APO) to Nokia-Siemens, the second lowest bidder for the remaining quantity of the GSM tender. The public sector firm plans to lay a total of 14 million 2G normal voice lines in the tender.

The PSU had placed an Advance Purchase Order with Ericsson on July 18 and the Swedish equipment supplier had time till August 3 to submit bank guarantee.

With this, the long-delayed process of capacity expansion of BSNL network is about to start. BSNL has already lost substantial market share due to this delay.

Although BSNL was able to lower the price from the earlier $107 per line, it took about two months and the whole tendering process took about one-and-a-half years.

The government had earlier curtailed the GSM tender to half at 23 million lines from the original 45.5 million lines.

The purchase order was placed after BSNL got directions from Communications Minister A Raja, who had sought changes in the original contract valued at about Rs 20,000 crore as approved by his predecessor Dayanidhi Maran.

The order for 3G would be placed only after the policy on third generation services and spectrum availability is put in place.


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And now the fun starts, as BSNL will now issue a new tender for 2G/3G and 4G services, and estimates vary from 50m to 90m lines, and time frame of year end/9 months from issue.

So, look forward to 2008 with yet more big BSNL tenders, and add on to that around about 8 Billion dollars of Reliance India spend, and a few Billion more from the others (like Bharti Airtel etc..)

http://www.greaterkashmir.com/full_story.asp?Date=30_7_2007&ItemID=14&Cat=5

BSNL to invite global tender for 90 mn GSM lines next month

UNITED NEWS OF INDIA

New Delhi, July 29:

Unfazed by recent set backs in GSM expansion plans, state owned Bharat Sanchar Nigam Ltd (BSNL) is planning to add 90 million lines tenders, for which it will be calling all top players including Motorola.
The new tender will also include second, third and fourth generation technologies.
This is more than the double of the earlier tender amount of 45.5 million lines which was grounded after the new telecom minister Azhimuthu Raja wanted a probe into the tendering process which was awarded to Ericsson after Motorola was found a misfit on executing the project for technical reasons.
Sources said the new tender is likely to include future technologies like 4G but will also include 2G which is plain voice and 3G which includes advanced voice and data.
In 4G, data can be transferred at a rate of 100mbps, outdoor and One Gbps indoor. The new tender is expected to be similar to the earlier tender for 45.5 million lines: The new tender will also stipulate that about 50 per cent of the lines be GSM-enabled.
The equipment orders for the new tender are likely to be finalised by the year-end, sources said. BSNL union leader V A N Namboodiri said he would defer the indefinite strike call over the earlier delay in procuring 45.5 million GSM lines.
We will not go in for a strike now, but have decided to postpone the earlier plan. Instead, we will launch a nationwide campaign to highlight the important issues. We hope our demands will be met. We will also have a national convention in Delhi soon and all members from across the country will attend. BSNL unions had earlier planned to go on an indefinite strike to protest the PSU boards decision to halve the tender size from 45.5 million lines initially, in line with the wishes of Mr Raja. The BSNL unions wanted an explanation from both the PSUs management and also Mr Raja on the logic of linking the 3G component of the tender to the 3G policy.
BSNL had earlier in the month placed an advanced purchase order (APO) with Ericsson, its lowest bidder along with Nokia for the first phase of the equipment tender since the bidding process began in March 2005.
After Mr Raja assumed office, he said the bid priced at 107 dollars a line was too high and the tender has been delayed on this issue.
Motorola, disqualified from participating in the tender on technical grounds is looking for a comeback into the worlds fastest growing telecom market.

http://reports.finance.yahoo.com/w0?r=39984438:2

Date: 16-Jul-07
Author: Rich Church
Contributor: C.E. Unterberg, Towbin
Title: LEAD.L: Raising Estimates; Reiterate Buy

Synopsis

We believe Leadcom has significant room for growth. Drivers include expansion of wireless networks in Africa, India and North America, expansion of relationships with vendors, and through the acquisition of Ytelcom. The company raised its 2007 revenue forecast to at least $225 million, reflecting 1H07 results and the Ytelcom acquisition. Ytelcom had revenues of $55 million and $6 million in operating income in 2006. At the end of June 2007, it is estimated that Ytelcom had net assets of approximately...........................................


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Leadcom Announces New Win in the MEA Region

Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company', (LSE:LEAD), a
leading international provider of innovative telecommunication solutions, is
pleased to announce it has been awarded a significant project in Israel. The
value of the project is approximately US$12 million dollars, and will be
recognized in 2008 and 2009, building upon Leadcom's backlog for next year.

The scope of work rendered will include planning, deployment, integration and
maintenance of data networks. This new contract is with an existing customer of
the Company.

Management expects this project to grow in scope and value.

half year report out, obviously the market was looking for more...

outlook for second half very good though

i don't think LEAD will ever become a rocket, but it is not unreasonable to expect sp to continue to grow steadily, even if rather boringly

All is fine in my book. The results are weighted quite heavily to H2 (expecially with the acquisition) and should level out on margins by full year. Its the nature of the beast, you have excellent visibility, however within years you get lumpy income.

Note we are now going to quaterly reporting.

Nice to see the cash generation this time around.

http://www.investegate.co.uk/Article.aspx?id=20070809070500Z9242

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And a new contract win thrown in as well :


http://www.investegate.co.uk/Article.aspx?id=20070809070000Z9246

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As Leadcom, as announced today, now report quarterly, for a shorter term trade, I would suggest Q3 results are going to be very nice, and so will take some extra short term positions going into them, to ride alongside the long term holding.

Estimate, Q3 will be around 61m US$, giving a single quarter which should "nearly" equal the past half year in terms of profit and earnings.

Q4 being around 80m US$ and of course, being better than Q3 ;)

Trades look as though a large holding was being sold for the profit by the big boys, probably to satisfy quarterly targets 20% return in 3 mnths isn't bad really, likely to see buying back in and lots of it whenever their quarter end is.

I agree papal, could be another good time to do short-med term trading. Personally a little surprised sp didn't at least hold on the outlook. Thats the market for you.

i sold a slice several weeks ago but reckon i shall buy back today even if at more than the price i sold at (don't care!) ...... have already taken other money off the table this morning as markets look to be heading south at least today

Post from AFN, self explanatory :

"babysitter - 9 Aug'07 - 13:30 - 5986 of 5988

>>NJP

as a fellow poster on MW i am happy to put your mind at rest.

just back from tel aviv analyst meeting.

margins in H2 will compensate for drop in H1 to run in line with annual trend.

at least $140m confirmed for 2nd half, terminology of approx. in release due to NOMAD.

lots more interesting and positive info gathered but the kids want to surf, so off to the beach.

will be happy to clarify points after webcast and beach.

my target is 4.5 eps for H2.

holding tight as directors comfortable with 2008 forecast of $320-330m.

oh, and guess where is the next massive market? "

bought this morning at 65.75 to take my holding back up to 100% of norm

Webcast of todays results briefing is now available, link below :

http://viavid.net/player/dcem.aspx?sid=000042BF


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New Investor Presentation is available :

http://www.leadcom-is.com/siteImages/IR_H1_2007_August_07.pdf


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Latest update from http://www.armshare.com

And at the present price, we are now sub times 10 PER for current year, and nearing sub times 6 for forward (2008)


......................A June update reported that several new contracts with an aggregate value of $21.5 million have been awarded in the Central, Eastern Europe, Middle East, Africa region - the value will be recognised in 2007 and 2008; a new development is Cell-on-Wheels (CoW), which allows the swift deployment of temporary networks, thereby enabling operators to record revenues immediately, even before the completion of a permanent network - CoW can also alleviate excess load on operational networks.

Later in June, a definitive agreement was entered into to acquire Ytelcom SAS for an initial cash consideration of $15 million, together with deferred cosideration estimated to be c.$3 million based on the 2007 results - the funding will be from existing resources. Founded in 1967, Ytelcom provides similar services to Leadcom's in French-speaking countries in West Africa (mostly where Leadcom lacks a presence). In the year to December 2006, Ytelcom achieved sales of 44.2 million and operating profit of 4.7 million. The acquisition was completed in August.

The June update re the interim results to June 2007 reported that they are expected to show sales of $83 million (2006: $62 million) at margins similar to those achieved in 2006; including Ytelcom, the 2007 revenue target is being raised to $225 million (see final results to December 2006).

An August update reported that a contract in Israel worth c.$12 million has been won for delivery in 2008 and 2009.

The interim results to June 2007 showed sales of $84.6 million (2006: $61.8 million), pre-tax profit of $7.4 million (2006: $5.7 million) and adjusted EPS of 4.1c (2006: 3.8c). The company reported that gross margin was 27.7% (2006: 28.5%) - the fall was partly due to geographic sales mix; full year sales are expected to be c.$225 million.


Research Standing

We said "Analyis is more easily practiced on operators nearer home." Despite this Little Englander stance, this company's performance commands attention.

The company broker's note dated 3rd August projects EPS of 12.59c for 2007 and 18.29c for 2008 representing P/Es of 10.0 and 6.9 respectively based on the share price of 62.5p at 10th August and =$2.022.

good politician's stance ..... actually does not recommend buy or hold (one presumes not sell!), let alone give a target price

seriously punished today, good to see it recovering a bit. Someone has unwound a big position. Wish I had the ability to buy at this price, but overweight already.