Activities

Provision of secure transaction systems and services to the international banking, telphony, retail, and security markets, using a range of smart and magnetic card solutions

In the recent Agm the chairman said "the company has made a positive start to the financial year and the board remains optimistic about prospects for the business."

Pre-tax losses have also nearly halved from 6.4 mln to a loss of 3.4 mln on cost cutting. They have also had a successful fund raising.

Also chart indicators show that it may be time for the next leg upwards past recent resistance at 7.5p. and please remember you are responsible for the timing of your own buying and selling actions.




gf.

An extremely measured post from a regular over on the iii boards which makes very interesting reading...........Would welcome any thoughts/comments from Douggie, Capetown, et al


Are we going to be in profit for the next 6 months?

As a result of the recent financing, IDD are saving about 0.4million per year.
Therfore saving of 200K in this 6 month period.

Previous 6 month period was:

Turnover 6.61million
Earnings -1.22million

So effectively, the loss should be under 1million for the current 6 months without any cost savings as a result of re-structuring/the Polish plant etc.

Interim Results for the six months ended 30 September 2005:

"gross profit margin improved sharply to 6.2% from 1.35%"

With gave a loss of 3.12 on a turnover of 19.38. This implies a fixed operating cost for the company 0.26 (gross profit) + 3.12 = 3.38million

Half a year would be 1.69million fixed cost. Actual loss for the half year was 1.22, implying 0.47profit. (6.2% of 6.61 gives 0.41, implying that my guesses are fairly accurate.)

What does this mean?

It means that in order to make a profit, the turnover now needs to be increased from the size sold in the interim period when they had reduced production due to transfer of plant to Poland(allowing for the reduction in profit requirements due to the refinancing). So IDD need to be aiming for a turnover of 32million in order to break into profitability. Of this, they have an ongoing rate of production of about 18million over the years. Of course this doesn't factor in any of the savings from the Polish plant.

Every 62K saved per year by this plant equates to a reduction in 1million in the 32million break even turnover figure.

The previous costs were based on a Petersfield production of 80 million Cards per annum. IDD is planning initially to produce 150 million cards per annum in Poland rising to 250 million per annum in 15 months (i.e by Feb 2007). Based on the above calculations, merely producing at 150 million per annum will project the company into profitability. 250 million would result in profit of about 3 million per annum.

http://www.id-data.co.uk/News/newscurrent.htm to get most of the figures.

Bottom line is that IDD have the production capability to be extremely profitable. The predictions on production for the Polish plant indicate that they can ramp up the sales in order to do that. The question is - How fast will they ramp up the production, and how much of the initial production is custom delayed from the period of moving into the Polish plant.

Hi Mr mole,
A verygood post indeed,
Have to say i am loosing confidence and patience with idd,i was very dissapointed that with idd cards now being more of a reality the sp did not move up but down ,
Also no trading update from the company does not give me too much confidence,i thought the directors would of at least given us a trading update by now,
As for the spread widening again to as much as 20% there is reduction in trading.

I hope i am wrong as i have quite a large holding but NOT selling at .80pence

im not betting on their production capability. their order book is the issue. im easy with the risk at this price. would add .90p>

im not betting on their production capability. their order book is the issue. im easy with the risk at this price. would add .90p>

has everyone out there gone stale?

Hi partus I look in everyday ......there realy is nothing to be said is there ! .. ?

I live in the hope that sp will begin to rise ... but have lost hope that I will ever
return to profit here .. I have held far too long about 85% loss now ;-/......

not even enough left to make it worth selling what is left

Join the club - we can live in hope!

douggie i assume from your loss you bought sept03 the sp that autumn went from under 2p to over 8p and toched 12p intraday i bought at 2p and sold at 6p i'm back in at.9p will sell at 3p . i've been in and out of this stock for 4 yrs. and turned a50% profit but its been hard work.now we're bobbing along at the bottom it can only get easier and the patient will be rewarded. and i'm begining to think that idd might even turn a profit! regards to all

I'm a sort of 2.9p guy myself...What comforts me was the huge institutional buying in Aug/Sep 05 and the fact that they are still on board and patient enough to wait it out. It wasn't just two or three firms which waded in then..it was a load more than that. They have many bright boys and girls on their (the investment cos that is) team that analyse prospective company's to death and I hope that they've got it right on IDD.

CARDBASE turned a profit and I'm hoping for good things on the finals in May. Not unduly worried about the lack of RNS statements - remember last year...the RNSs were regular and the price dropped after each one.

Looking forward to the summer.

i guessed you were 2.9p moley

Yup corect parthus I bought at 7.5p on way down from 12p had 1 oportunitity to take profit was on holiday early Jan 2004 ... ;-/

have expected much of time a reversal .... maybe 1 day ... ;o\

but not today............... now RED again .............................!

me and my big mouth ... led to some serious dumping ..... ;-/

not that serious . largest sell 600,000 and he must have been strapped for cash or just got bored. i couldn't free up any cash today would of liked to of added. happy to sit tight anyway until we see a significant spike in volumes. sometimes trading can be bloody boring!

Getting so bored with this stock,and very frustrating watching its steady decline from its lows of 1pence after restructure,now .80.

We must be close to results soon,have noted no recommendation on the td site??,

All the new investors still on board whch is a good sign i guess,

Also checked on idd website to see when results are out,NOTHING.

Good luck to all who hold.

Hi capetown.....given that the interims were in November I'm guessing that the finals are in May. I'll have to have a shuftie at the TDW company details area to see if there are any dates mentioned. For the sake of a few weeks, it's worth hanging on. I suspect that any recovery in SP will be quick. Hasn't been the flyer in 2006 (thus far) we were all hoping for, but I'm sure our patience will be rewarded.

Morning Mr Mole

Nice 3.3 million BUY!!!

Morning capetown....someone's got some faith at least!!

Its somewhat restored mine,
Must see more volume as we get nearer to results

I've got that sinking feeling going
d
o
w
n...... fast now ... ;-/