Arrowpointwww.arrowpointtechnologies.com TICKER: ARWP EXCHANGE: PLUS
Arrowpoint Technologies is a holding company which offers information technology products, services and solutions to the retirement and financial services industry, primarily in the USA, through its subsidiary companies based in the USA and in India. Arrowpoint was admitted to the PLUS market in London in October 2009. It was established by two Indian entrepreneurs with a track record of building large IT enterprises. The Company operates in the USA and India and has developed IT products for the US retirement industry where it has a leading position in the provision of Defined Benefit (DB) solutions; its operations are supported by senior actuaries, software architects and developers in the United States and in India. The Company has three principal operating divisions: Lynchval Systems Worldwide, Inc. - retirement industry products and solutions in the USA; Arrowpoint Technologies Private Ltd (India) -offshore services; and KeyTech Inc (USA) -consulting and integration services.""
The headline interim results to 30 September 2010 show a decline of around 11% in revenue compared with the same period last year, and a consequent reduction of EBITDA from US$0.9m to US$0.05m. Behind these figures lies the depressed market in the North Eastern USA for Arrowpoint's consultancy services, but economic recovery should see a return to growth in this business.
Despite the harsh market, Arrowpoint's pension business saw significant improvements in product delivery and client delivery, helped by a strengthening of senior management at Lynchval in February 2010.
A conservative DCF analysis yields an equity value of US$54.8m, corresponding to a target share price of 17.3p at the prevailing rate of exchange.