15th September 2014
Stockbroker The Share Centre is tipping rising software group Incadea for intrepid investors willing to take on some risk.
Founded in 2000 in Germany, where the company’s research and development is still based, Incadea describes itself as the leading provider of enterprise software solutions and services to the global automotive retail and wholesale market.
Graham Spooner, investment research analyst at The Share Centre says that like many emerging software companies, Incadea’s product has the advantage of improving performance and efficiency, in this case for car dealerships.
The FTSE AIM All-Share member with a presence across 87 countries, serving a community of 67,000 end users, across 2,400 dealerships has good experience within the car industry. Since its inception it has established relationships with a number of well-known names including BMW, Nissan, Mercedes and VW.
Recently the company has been concentrating on developing into new emerging markets, especially across potential powerhouses such as Brazil, Russia, India and China.
Spooner, who recommends Incadea as a ‘buy’ for high risk investors willing to stick with it for the medium to long term, says: “Although increased costs hit full year results last year, management remain confident of meeting targets for this year and were keen to highlight the future opportunities as a result of increased pre-sales investment. This was demonstrated by a five year contract win in July worth $35m, a contract with Toyota Georgia in August and in September a contract with Bertel O Steen of Norway. The company is establishing itself across the globe in a niche market and has a significant pipeline, which we hope will deliver in the future.”
Over the past year its shares have eased by 3% but are up by 13% over six months.