# RHP - Rhipe Limited



## malachii (23 February 2006)

OK - must start out by declaring an interest in this stock - I do own shares in this company - please do your own research!!!!

I came across FRR a few weeks ago and starting building a stake - normally I'm a trend trader but this one caught my attention for fundamental reasons.  It has been around for decades (although only listed in march last year) and has really good financials as well as paying an annual yield of almost 10% fully franked!  I studied it for quite a while and the reason I think the yield is so high is because the market is only factoring in one div (it has only paid one since floating - the other only being declared today) - giving it a yield of about 5% - but when you factor in the second div it comes out at about 10%.  

The only real negative I could find (and it is a serious one) was that one of their major contracts (with coles) is due for renewal in march and if they lose that - their income for 2007 onwards would take a hammering!  I think this risk is fairly small but it is still there!!!

Management seem to be recognising that they are really reliant on two main contracts and are now starting to diversify by buying bolt on businesses.  This seems to be working - but is still a bit early to know for sure.

From a technical point of view it has been up against the 80 centish barrier for quite a while and broke through it today (on the interim profit announcement) so things are looking up.

Anyway - one to research and would be very interested in anyone elses thoughts on this company.

PLEASE NOTE: I own shares in this company - please do your own research!!


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## clowboy (24 February 2006)

*Re: FRR - Frigrite Limited*

Well I work for coles as a dairy manager so can shed some inside info,

1) Having contracts with coles is really crap, they will force the price down so low with so many conditions that it really is hardly worth while doing business with them.

As an example the contract for collecting/maintaning trolleys at the centre I work at is valued at ~$2000 a week which includes collecting them when dumped several km's away etc.  This centre is a rather large one and the contractor has about 4 people (fulltime) on the books plus has to maintain a ute and trailer.  If the trolleys are empty we are entitled to make a claim (I think $50 per occasion).

2)  I personally don't think much of their technicians.  (in hindsight I wish I had done an apprenticeship with them)  All they ever seem to do is bandaid any problem that comes along.  This may seem good on a profit side of things but bear in mind that they are paid a fixed price no matter how many callouts they attend.


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## niknah (25 June 2008)

*Re: FRR - Frigrite Limited*

These guys may no longer be profitable, I'm glad I sold earlier.
Never going to buy a >10% dividend stock again.

From the announcement yesterday...


> Frigrite now further revises its expectations for the 2008 full year financial result, down to an
> underlying EBIT outcome of between a loss of $1m and a profit of $0.5m,


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## BooASX (29 November 2013)

*Re: FRR - FRR Corporation*

Something is going on with the price, enthusiast newbie/bot maybe? Some fud/rumours floating about equity fund/rebirth? The mining camp purchases don’t seem to lead anywhere, establishing new mines/camps in the current environment seems unlikely.


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## Lisa Edwards (7 December 2013)

*Re: FRR - FRR Corporation*



BooASX said:


> Something is going on with the price, enthusiast newbie/bot maybe? Some fud/rumours floating about equity fund/rebirth? The mining camp purchases don’t seem to lead anywhere, establishing new mines/camps in the current environment seems unlikely.




FRR Corporation dives into the clouds with acquisition

Source : http://www.proactiveinvestors.com.a...-into-the-clouds-with-acquisition--50871.html

Frost & Sullivan: Greater demand for cloud services to be driven by need to reduce IT spending in weaker economic outlook for Australia in 2014

Source : http://www.frost.com/prod/servlet/press-release.pag?docid=284458752


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## System (9 April 2014)

*Re: FRR - FRR Corporation*

On April 9th, 2014, FRR Corporation Limited (FRR) changed its name and ASX code to Rhype Limited (RHP).


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## System (9 December 2014)

On December 9th, 2014, Rhype Limited changed its name to Rhipe Limited.


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## MrChow (5 March 2017)

Anyone have thoughts about Rhipe as a business?


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## greggles (26 July 2018)

MrChow said:


> Anyone have thoughts about Rhipe as a business?




If you'd have bought in when you posted you would have done very well for yourself. Rhipe Limited has risen from 34c in June 2017 to $1.265 today. It has gapped up this morning and is looking like a breakout.

They released their Unaudited FY18 Financial Results today and they seem to be growing the business very well indeed.

RHP is one of those companies that you wish you'd seen the potential of when it was much cheaper, but didn't.


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## aus_trader (28 July 2018)

Growth could continue in the near term due to contract wins such as Microsoft Kiwi public cloud program and also due to introduction of dividend payments. Dividend was increased too compared to the first one.


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## rnr (26 May 2019)

Current ATH since 2014 is $2.48 established less than a month ago and hit 3 time during last week.
Where to from here? Will price break above the ATH or fall back to the $2.00 mark.


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## galumay (26 May 2019)

Its certainly priced for stellar growth currently, my range of value based on the guidance for FY19 is under $1, so lots of future growth priced in. At least its debt free and being so capital light the earnings drop straight thru to free cash flow.


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## rnr (9 June 2019)

Since the May 26th post, price has moved down to make a double bottom @ $2.01 on June 4th rejecting a further move lower at that stage. Friday's close was $2.29 which is $0.19 below the ATH.


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## Ann (9 June 2019)

@rnr I had a look at this on EOD, does this look like a potential Broadening Wedge forming to you? I see the Twiggs Money Flow on your chart shows a falling away from that first high at the end of April. This suggests it might have the potential for a bearish outcome? I also note the 50dsma appears to be offering support but the 21dsma may well be a resistance, although the previous price levels don't appear to be too responsive to the 21dma set on simple. Your thoughts?


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## rnr (9 June 2019)

Hi Ann,
Given the different methods we choose for charting, the patterns you have drawn on your charts would be totally different if they were drawn on my charts For example where you see a Broadening Wedge I see a Rectangle. As to the question of support and resistance I would have to, at this point in time, refer you to the High (resistance) & Low (support) of the rectangle.
Cheers,
Rob


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## Trav. (18 November 2019)

Another stock that is trending well for me. 

Bounced of support and was trending up over the last few days. Small bump in road today (hopefully) and will continue to shoot for $3.00


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## tinhat (19 November 2019)

I bought into this a few days ago. Resistance around 3.10.


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## Trav. (21 November 2019)

Ouch down 11.27% today, there goes my profit.


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## rnr (21 November 2019)

I'm just not getting this and I'm failing to understand the logic!
I see today's report as distinctly positive and yet price was marked down by approximately 11.27%.
My estimates of resistance are: level 1 @ $2.40 & level 2 @ $2.01 and yet we see RHP closing @ $2.44 after a day of positive announcements.
????


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## Trav. (16 December 2019)

2 x green days in row....phew!!

Hopefully the bottom has been found and we can have a go at $3 ( well maybe 2.40 then 2.50...you get the picture  )


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## Dona Ferentes (19 April 2020)

Following the withdrawal of *rhipe Limited’*s market guidance for the financial year to 30 June 2020 and the cancelling of its interim dividend,
_- Prudent? or, what else is there? Cash burn, tenuous engagements/ growth?_

  .... following the close of the third quarter to 31 March 2020, the Company continues to be pleased with its performance during unprecedented times with management continuing to closely monitor trading activities. The highlights of the unaudited trading results for the nine months to 31 March 2020 (compared to the same 9-month period to 31 March 2019) were:
• Sales growth of 32% and Revenue growth of 19% versus pcp.
• Growth in sales of Microsoft’s Cloud Solution Provider products continue to drive our sales and revenue trends and growth in Microsoft Office365 and Azure products remain broadly consistent with previous announcements.
• Operating profit up 14% to $9.7m excluding investment in our new Japanese joint venture versus pcp.  Operating profit growth was up 5% including the investment in Japan versus pcp.
• Our new Japan joint venture has now signed up 10 partners with the first sale, albeit small, occurring in March 2020 for the purchase of Office365 licences.
• Cash at 31 March 2020 was $23.5m


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## Dona Ferentes (20 April 2020)

and a Trading Halt .... Capital Raising


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## Dona Ferentes (25 August 2020)

looking to continue its recovery:

_The financial results for FY20 show rhipe’s resilience in the face of the COVID-19 global pandemic. Despite economic headwinds resulting from the pandemic, the Company has continued to grow across geographies, products, and services. In FY20 rhipe delivered an operating profit, excluding our investment in rhipe Japan, of $15.0m and reported EBITDA of $11.6m, a year on year increase of 17% and 16% respectively.  Importantly, the operating profit of rhipe’s core licensing business grew 36% or $3.3m compared to the FY19 financial year. _

_During the second half of FY20 the Company undertook a capital raise of $32.5m, net of costs, to enable rhipe to take advantage of future acquisition opportunities. As a result, rhipe is pleased to report that our year end cash position was $60.9m, compared to a cash position of $25.5m at the end of the prior year. Excluding the cash proceeds from the capital raise our cash position increased by $2.9m in the financial year despite $2.8m paid in dividends and $2m cash payment in relation to our acquisition of a Melbourne based software encryption product called SmartEncrypt in August 2019. _

_In addition, the Company continues to invest in its Platform for Recurring Subscription Management which many partners and vendors use to help build and grow consumption of their cloud licences in Asia Pacific. The Directors believe that the cash position of the business will continue to be strong and as a result the Board has announced a final dividend of 2 cents per shar_e.

6 months, daily


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## Dona Ferentes (29 April 2021)

*Highlights of Q3 YTD FY21 Results * 

rhipe has continued to deliver solid revenue growth of 15% driven by continued momentum in Microsoft public cloud products including Office 365 and Azure, with growth in our solutions and services business
Microsoft Office 365 seats at 31 March 2021 were in excess of 775,000, with the monthly seat addition continuing around the 16,000 seats per month in the current financial year.  
Group operating expense growth was 5% in the 9 months to 31 March 2021 with increased investment in Q3 likely to continue into Q4. 
Group operating profit of $13.2m was up 36% year on year due to solid revenue growth alongside careful cost management. This is consistent with first half results for this financial year.
rhipe expects its full year operating profit for the financial year ending 30 June 2021 to be in excess of $18 million *ahead *of previously disclosed guidance of $17.5 million.

Recently, RHP moved to acquire 100 percent of the share capital of emt Distribution Pty Ltd (Australia) and emt Distribution Pte Limited (Singapore).  

*emt *is an _Australian headquartered cyber security distribution specialist that focuses on sourcing innovative security software vendors and working with channel partners, to deliver both on-premise and cloud-based security solutions, aimed at protecting companies against cyber security attack..... Services provided by emt include pre and post sales technical support and professional services._ 

so, another layer of consultancy? The existing  Rhipe cyber security software offering is centred around Microsoft’s product stack and also the recent launch of rhipe’s own SMB focused encryption product “SmartEncrypt”.

rhipe _provides cloud and technology solutions, giving partners business advisory and deep domain technical expertise to operate in the growing cloud market. rhipe is focused on subscription software licensing in Asia Pacific, tied in with Microsoft Office 365 implementation and other global vendor solutions_.


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## Dona Ferentes (1 July 2021)

_rhipe_  notes the recent Oslo stock exchange announcement by Crayon Group Holding ASA (CRAYN.OL) in which Crayon stated it is pursuing an acquisition of a leading player with a similar business model.   

rhipe confirms that it has received a confidential, non binding, conditional proposal from Crayon (www.crayon.com) to acquire 100% of the shares in rhipe by way of a scheme of arrangement for $2.50 per rhipe share (less any dividends or distributions declared by rhipe after the date of the proposal).  

The Proposal assumes a net cash position of rhipe at closing of at least $31 million, and a few other conditions.

...
- _up 20% to $2.50_


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## Dona Ferentes (2 July 2021)

and closed at $2.55 , above the offer


one analyst reckons there is more in it


> _Our preliminary estimates put Rhipe - if being acquired at the peers’ multiple with our estimate of synergies - at $2.66. With a more typical control premium on top of this, that would equate to $3.40. We would expect further interest (if around) to generate a price closer to $3. We note this excludes any vendors that may be brought to Rhipe_.


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## System (8 November 2021)

On November 4th, 2021, Rhipe Limited (RHP) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between RHP and its shareholders in connection with the acquisition of all the issued capital in RHP by Crayon Software Experts Australia Pty Ltd, an indirectly wholly-owned subsidiary of Crayon Group Holdings ASA.


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