Looks like these Guys like it aswell. 'Share Of The Week' at everyinvestor.co.uk
ANOTHER SOFTWARE DEVELOPER WITH MASSIVE GAINS POTENTIAL. 12/5/2003

Bond International Software

Business Summary
Provision of software, hardware and related support services, principally to the recruitment services.

Market: AIM
Website: www.bond.co.uk

Bond International Software, although only a tiny company, has a leading position in the market for software for recruitment businesses. After a disastrous year in 2002 the company slashed costs, especially in its US operations, and has just reported a return to modest profits for the first half of calendar 2003. But the excitement in the share price is the potential for the soon-to-be-launched Version 11 of its software.

Version 11 may sound no big deal but the company has been working on this for years and says the improvements are so massive that it is really a new product. Chief executive Steve Russell says the product will be launched with an important customer signed up. Even more significantly he says that there is scope to sign up some giant customers for the software. A single order could be for as much as 5m which would have a transforming impact on a company with sales last year of 6.4m and a market capitalisation of 4.9m.

I should caution here that managements at small software companies are not noted for their pessimistic outlook on life. A more down-to-earth note from stockbrokers, Seymour Pierce, published after the latest interim figures, forecasts sales rising to 7m this year and 7.5m next, with profits of 300,000 and 500,000 respectively. Even that provides reasonable underpinning for the present share price, but Russell says those forecasts could be left way behind by events. Analysts are paid to make assumptions about the future but they can hardly factor into their forecasts sales from unknown customers for a product that has not even been launched yet. Alan Matthews, author of the Seymour Pierce note, says that he has not built into his numbers any upside for Version 11.
Massive cost-cutting restores profitability
Bond received a bloody nose in 2002 from an over-ambitious expansion in America. It built up a far-flung sales and support operation with 55 employees to service and build the expected fast-growing US arm of the business. The catastrophic attacks on the World Trade Centre on 11 September 2001 were a commercial disaster for the group. New orders for software dried up completely and the business began haemorrhaging cash. In a spectacular slash-and-burn exercise the US labour force was cut from 55 to 6. Amazingly, the group claims that this has been done without destroying the ability of the US arm to operate successfully.

The result of the staff cuts is that administrative costs have dropped from 4.85m to 2.95m. At the same time turnover has crept up from 3.18m to 3.37m enabling the group to turn a 2.1m loss into a 155,000 profit. Profits are also helped by capitalising 75 per cent of the anticipated 1m cost of developing Version 11. These costs will be amortised against revenues once the product is completed.

At the same time as cutting overheads drastically, the group has been focusing on building recurring revenues from customers. These are sales from maintenance, support services and from the managed service package. In the latest year recurring revenues represented 70 per cent of overheads against 37 per cent the year before. The plan is to build recurring revenues to cover 100 per cent of overheads so that new license sales will be pure profit. If the company can reach this position by 2005 and make big license sales the impact on the business will be dramatic.

Who;s who of recruitment giants already customers
As well as having what it believes to be an exciting new product the group also has a formidable customer base with a whos who of the worlds leading recruitment businesses like Manpower already clients. In the UK the group is growing its managed services business through a relationship with recruitment and support services giant, Hays.

Bond’s software helps recruitment companies manage the personnel they are supplying to their customers right across the relationship. Version 11 is a vastly upgraded product that is compatible with third party databases rather than requiring bespoke systems. This has the advantage that customers can configure their systems to their own particular requirements while still using highly cost-effective software. The company claims that there is already considerable interest from potential customers, hence its confidence that some large orders will be signed over the next couple of years.

The risks are obvious. There could be delays in launching the product. Customers may not respond as hoped. But meanwhile there are positive developments including signs of life in the recruitment market, an improving order book with more large prospects in the pipeline and a major deal in the UK and two in the US already won in 2003. The shares look a solidly based speculation with the potential to really hit the jackpot. ENDS.

Quite a breathtaking report with fair warnings given. I think the most important aspect being that the brokers have not even factored anything in yet for version 11 and they have to my knowledge a BUY note on it whith a further add note after the results on the 9th.

GF PDYOR.

Heres the note from the brokers in PDF format.

http://www.seymourpierce.com/pdf/Bond%20International%20Software-mmnote9thSeptember2003.pdf

GF

Marked up at the open. Could see agood day in store.
GF.

Up 12.1% now, well worth a punt.

gf

Its stil up and bombing.




Well look at this fantastic TA from Investtech has broken through the ceiling og the upward price trend. The chart was at close of businees last night so come Monday we should have a BUY reco on this from Investtech.

gf

goldfinger, I wish you well on this one - its all relative..:>)

Many thanks TomL, think we could have another good one in the morning.
GF.

A new contract signed and the CEO also hints at other new customers.

Bond International Software PLC
22 September 2003


FOR IMMEDIATE RELEASE 22 September 2003


BOND INTERNATIONAL INTERNATIONAL SOFTWARE PLC

BUPA Healthcare Professionals choose Adapt Staffing Software


Continuing its success in the Healthcare Staffing Market, Bond International
Software has recently concluded an agreement with BUPA Healthcare Professionals
to implement the world-leading staffing software, Adapt, within BUPA Healthcare
Professionals' businesses. The deal, worth 300k, will be implemented over the
next 18 months.


BUPA Healthcare Professionals has a national branch network supplying nurses and
carers, a specialised business providing doctors and a London based business,
Strand Nurses Bureau, which provides homecare. BUPA Healthcare Professionals'
clients include the NHS, independent hospitals, care homes, industry and private
individuals. BUPA Healthcare Professionals has annual turnover of over 50m.


Helen Parr, Operations Director of BUPA Healthcare Professionals, said 'BUPA
Healthcare Professionals' focus is on finding the best people for the job and by
choosing Adapt as our preferred long-term partner we hope to be able to perform
this role more efficiently. Importantly, the system can be tailored to the
various working practices of the different specialist businesses.'


Tim Richards, Managing Director of Bond UK said 'The healthcare staffing market
is becoming increasingly important to us worldwide and we are delighted that
this prestigious client has chosen to implement Adapt.'


Bond, which is this year enjoying its 30th anniversary, is the world's longest
established provider of staffing software and with over 28,000 users in 36
countries.


BUPA Healthcare Professionals is part of BUPA, the UK's leading, independent
health and care organisation.



...ends...



For further information contact:

Tim Thompson/Nicola Cronk
Buchanan Communications Ltd Tel: 020 7466 5000


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



Best not let this one get away, down a tad with the whole market today, but long term strength will show through.

GF.

Im sure we would have had further rises in this one today after the new contract if it were not for Global markets taking a pasting.

Stay in because there is far more to come and management are hinting at new contracts on the way.

GF.

As per above. Keep an eye out.

gf.

GF
Just wanted to say that I sincerely appreciate you sharing and contributing your views and information on this site - altho I take note of the "dyor" point, I have shares in INC,GXN,BDI,JCR(will hold and see what happens in winter), and they are shares that I would not have scrutinised without your input
Thank you
Anna

GF
What's your update/view on BDI?

Anna, yes BDI, forgot about this one and left it off my list above thanks for the reminder. Well it has lost a bit of momentum theres no doubt about that but with it having a very high Beta this one is going to look beaten up more than others in down times. I think you should hang in there and lets hope that post thursday when the Interest rates are decided we start to see the small caps revving again. Incidentatly both Evil K and Tom Winnifrith remain very bullish on the markets this side of xmas, a good thing as usually these two are rather very cautious on stocks as in the present market conditions. Heres hoping for further contract news.

GF.

ps, heres one for you to have a look at and one I have bought for the long term on Friday, Caldwell Investments, CDW. They make a new revolutionary Sun canopy, ok, ok, not very sexy but they have got the patent on an attachment that hooks onto the canopy and could quite easily be a world leader. Both JIM SLATER yes Jim Slater, and Evil Knievil have bought large holdings in this company. Well worth checking out the RNS news on the company in paticular the Trade Fairs were the company displayed its new product and also note thet have moved into a big new building ready for manufacture.
Please DYOR. Have a nice day .

GF.

Thanks GF - will check it out

Any BDI holders out there? I'm wondering whether to sell and buy CYH as short term rise might be greater......

Im still holding and hoping for contract news on BDI. I suppose it depends on your investment style - short term or longterm etc, good luck whatever you decide.

cheers gf.

Hi GF -
I have a mixture - some I'm holding for the longer term but like to capitalise on short term opportunities - not sure enough about this so will probably hold (knowing my luck, the BDI news comes when I'm out!) - thanks again for your feedback
Anna

Anna, did you run the rule over Caldwell Investments CDW ????. Well worth a punt.

cheers gf.

Do you know what kind of short term period on CDW? Have a cash flow situation to consider - cheers

Anna, its a steady eddie riser so may not suit your present position.
cheers gf.

:-) thanks GF