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06-04-2011, 05:31 PM
(This post was last modified: 06-04-2011, 05:31 PM by Nick.)
Hi MW,
I view it positively since it increases CSE market share in the UK healthcare IT industry. But since I am not certain about its financial impact to the profitability, I cannot estimate how good it is haha !
CSE Global is a tech firm dealing with system integration and automation. It ventured downstream years ago into the applications of these technologies in the O&G, mining, healthcare and recently energy power plants in Asia. They have been dealing with the UK mental healthcare sector for quite a few years already.
This report written after a Management visit in Dec 2010 speaks about the UK healthcare segment in great detail:
http://www.remisiers.org/cms_images/CSE-0212101.pdf
As of 4Q 2010, the Group outstanding order-book stands at $394.2 million of which $119.2 million is from healthcare segment.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Oh I see, haha so that's the case! It does make it clearer, thanks. Didn't know it was a tech company, always somehow had the impression it was in oil and gas meaning a support role. Guess I was wrong!
If this is indeed a case of business expansion, it will be positive news and if they can build on the momentum, then they probably can increase earnings and cash flows in the near future. 
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06-04-2011, 05:48 PM
(This post was last modified: 06-04-2011, 05:51 PM by Nick.)
(06-04-2011, 05:39 PM)Musicwhiz Wrote: Oh I see, haha so that's the case! It does make it clearer, thanks. Didn't know it was a tech company, always somehow had the impression it was in oil and gas meaning a support role. Guess I was wrong!
If this is indeed a case of business expansion, it will be positive news and if they can build on the momentum, then they probably can increase earnings and cash flows in the near future.
It is a common misconception. I guess it doesn't help that the company's website has an oil rig right smack at the top ! Essentially, a tech firm which chose to get its hands dirty. I guess they had no choice - you can't just develop products and get someone else to fix it up and maintain it. You don't get to benefit from the entire value chain. On the flip-side, it is not easy to understand its business due to its global network and various industries it works in. Even till today, I don't full appreciate its scale.
http://www.cse-global.com/index.html - Feel free to visit their Group webpage and from there, view the websites of their various subsidiaries and divisions to learn more.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Business Times - 07 Apr 2011
CSE Global wins Royal Cornwall Hospitals contract
By WONG SU-JIN
CSE Global Ltd was awarded the Royal Cornwall Hospitals Trust's (RCHT) Emergency Department Information System contract yesterday.
The contract was won by CSE Healthcare Systems, a business division of CSE Global (UK) Ltd, which is a fully-owned subsidiary of CSE Global Ltd.
Oceano, CSE's new integrated hospital patient management system, will first be implemented within the emergency and casualty departments at Royal Cornwall Hospital and West Cornwall Hospital.
The system, including an emergency department (ED) system, is intended to provide an interactive interface for triage, ordering, observations, clinical documentation, discharge, coding, reporting and patient tracking.
It was developed using Microsoft technologies, including Silverlight, WCF, and SQL Server.
The contract was awarded to CSE following a six- month procurement process and an ad in the Official Journal of the European Union (OJEU) for a system to be used across multiple emergency care facilities in Cornwall.
Tony Slade, emergency medicine consultant at RCHT, said: 'Modern IT systems play an important part in delivering safe, high-quality care to our patients. We have looked carefully at a number of systems to find the right one capable of meeting our needs and are looking forward to reaping the benefits we expect Oceano to bring.'
Alistair Eaton, director of strategic development at CSE Global (UK), said: 'In winning the contract with Royal Cornwall Hospitals, we have taken another major step along the road to becoming a recognised force in the hospital systems market and not just a supplier of mental heath and community health systems.'
The contract is not expected to have any material impact on CSE's profit for the current financial year.
CSE Global's share price closed at $1.27 cents yesterday, down one cent.
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Some information about CSE to share:
- CSE was listed in SESDAQ in Feb-1999 at $0.42 (FY1998 revenue $47mil, market cap of $100mil then)
- CSE is now valued at $1.27 (FY2010 revenue $448mil, market cap of $655mil)
- Growth has been funded entirely via cash flow and debt
- Consistently paying about 40% EPS as dividend since listing
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(21-02-2011, 09:21 PM)Nick Wrote: (21-02-2011, 09:13 PM)egghead Wrote: Even though the dividend declared is lower than what I hope for, I'm not too unhappy. The strengthening S$ is causing some trouble though...
I was expecting record dividend payout too. But the Management has decided to utilize the profit to reduce its debt by $49 million thereby reducing its net gearing to 0%. I guess this is also fine with me.
Forex risk remains an issue though the overall impact was lesser than I had anticipated.
Hi,
CSE-Global currently has abt $28m(undiscounted) operating leases commitments, I think this should be adjusted and included be in the debt calculation as well.
rgds
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Hi, maniac
Where do you find the $28m operating lease? Thanks!
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16-04-2011, 06:08 PM
(This post was last modified: 16-04-2011, 06:10 PM by Nick.)
Hi Egghead,
I believe you can find the details in page 63 of the Annual Report (the second part) - http://www.cse-global.com/pdf/CSEFS2010.pdf I think this refers to the outstanding rent payable to the property owners (like Cambridge REIT) over the course of the next few years. Is there a need to include it in the debt position - I don't think so since this is an expense item in the P&L Statement.
I expect forex to be an issue in Q1 results. They haven't announced any major contract win yet for the automation segment hmm.
What do you think ?
On another note, have you received the Annual Report from CSE ?
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Hi Egghead, Nick,
The operating lease is an off-balace sheet financing, thought maybe it is prudent to add that into the liability. Just my opinion, and anyway, the amount should be still manageable.
cheers
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Thanks, Nick and maniac
I'm aware that CSE did a sales and lease back (with Cambridge) for its Ubi property years ago. It is not clear if the $28m refers to only this property or include others (overseas?). However, I see the lease commitment more as an expense. Unless there is going concern with the company, I tend not to worry too much about it; except whether the lease is above or below market rate.
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