web analytics

27 Nov | incadea

In a continuation of our shift away from a portfolio lopsided by speculative mining plays toward a portfolio lopsided by companies with a recurring revenue model, in early October we took on a bunch of incadea (the lower cap i in incadea is part of the branding), buying 1,237 shares at 98 pence.

Here’s the incadea company spiel:

incadea is the leading provider of enterprise software solutions and services to the global automotive retail and wholesale market. With a proven industry focus and expertise, incadea is the vendor of choice for car manufacturers and their dealer networks around the world.

So what exactly are enterprise software solutions?

Let’s start with a little wikipedia definition of enterprise software:

Enterprise software describes a collection of computer programs with common business applications, tools for modeling how the entire organization works, and development tools for building applications unique to the organization. Enterprise software aims to improve the enterprise’s productivity and efficiency by providing business logic support functionality.

Hmmm, not sure if that helped or hindered, but let’s move on.

In the case of incadea their enterprise software solutions (collection of computer programs) are available in 21 languages and run on the latest Microsoft technologies.

Specifically, incadea’s suite consists of:

  • incadea.engine (their dealer management system)
  • incadea.myengine (their next generation dealer management system)
  • incadea.cvrm (customer and vehicle relationship management system)
  • incadea.bi (business intelligence solution)

incadea.engine – the companies main offering – enables car dealers to control all aspects of their dealerships, including vehicle sales and aftersales service, parts and service management, even human resources.

For those of you who know your software, there’s a ton of pertinent info on the incadea website detailing the minutia of each of the four programs as well as information on the Microsoft architecture that backs the whole deal up.

Needless to say, this is pretty cutting edge stuff and from the little I’ve read, incadea’s offerings (subjectivity alert) stack up pretty favourably against their competition.

Having floated in May 2012, incadea is a relative newcomer to AIM though their business is already well established. With a presence in 78 countries incadea supports more than 2,000 dealerships of market-leading car manufacturers including Original Equipment Manufacturers (OEMs) BMW, Mercedes Benz, Nissan, Opel, Porsche, Qoros, Renault, Toyota and Volkswagen.

incadea’s first set of results for the 6 months ended 30 June 2012 all look very encouraging with a focus on expansion into emerging markets.

Highlights included the following:

  • H1 sales up 64%
  • strong demand from OEMs expanding in BRIC and other emerging markets
  • significant wins and roll-outs in China (including first Chinese OEM customer), Hong Kong, Russia (after taking full control in May), Europe, India, Malaysia and Mexico
  • substantial revenue visibility for the remainder of 2012 and well into 1st Half 2013
  • Achieved positive operational cash in H1 which is continuing as planned into the rest of the year.

I’ll leave the closing remarks to incadea CEO, Werner Leinauer in his Operational Review:

incadea is operating in a favourable business environment with OEMs expanding their dealer networks in BRIC and other emerging markets where demand for cars has remained strong and industry commentators expect sustained growth over the next few years.

Key to incadea’s success is its innovative market-leading technologies, products and services which the Board believes add significant value to the efforts of OEMs in standardising their dealer management, customer and vehicle relationship management, and business information systems on a global level. As a result, the Company is achieving significant revenue and market share growth.

Thanks again for dropping by.

Check out a range of UK investment options over at Investing.co.uk.