IDE Group Holdings Plc (TIA) AI Stock Analysis

• Market Cap: £31.93M
• Dividend Yield: N/A
• Average Volume (3M): 3.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -12.11%
• EPS Growth: -106.04%
• Country: UK
• Employees: 290
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.04
• Shares Outstanding: 39,909,832
• 10 Day Avg. Volume: 2,057
• 30 Day Avg. Volume: 3,223
• PEG Ratio: -0.02
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 4.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: 80.00p ▲(0.00% Upside)

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and elevated leverage), partially offset by improving operating cash flow. Technicals are supportive with price above major moving averages and positive MACD, but the very overbought RSI raises near-term risk. Valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Improved Cash Flow

The improvement in operating cash flow indicates better cash management and provides a stronger foundation for future investments and debt servicing.

Gross Margin Improvement

An improved gross margin suggests enhanced cost management and operational efficiency, which can lead to better profitability over time.

Recurring Revenue Streams

Long-term contracts provide stable income, reducing revenue volatility and enhancing financial predictability, supporting sustained business operations.

Negative Factors

Declining Revenue

A consistent decline in revenue over the years indicates potential challenges in market demand or competitive positioning, impacting growth prospects.

Ongoing Losses

Sustained losses and negative EBIT margins highlight profitability challenges, which could limit reinvestment and growth opportunities.

High Leverage

High leverage poses financial risk, potentially constraining the company's ability to invest in growth or weather economic downturns.

IDE Group Holdings Plc Business Overview & Revenue Model

Company Description

Tialis Essential IT PLC, through its subsidiaries, provides network, cloud, and IT managed services to public and private companies in the United Kingdom. Its cloud and hosting services include co-location, private, public, and hybrid cloud, DR and business continuity, and cloud migration; network and connectivity service includes cloud connectivity, multi-protocol label switching, local and wide area network, and distributed denial of service protection services; collaboration services comprise hosted telephony and unified communication; managed services include remote infrastructure management, tech bars and on-site resources, field and smart hands, threat protection, and professional services; and device management services comprise procurement, configuration and integration, deployment, management, and retirement services. The company was formerly known as IDE Group Holdings plc and changed its name to Tialis Essential IT PLC in November 2022. Tialis Essential IT PLC was founded in 2005 and is based in Edinburgh, the United Kingdom.

How the Company Makes Money

IDE Group generates revenue primarily through its diverse service offerings, which include managed IT services, cloud computing solutions, and high-speed connectivity services. The company charges clients on a subscription basis for ongoing services and support, while also earning revenue from one-time project fees for specific IT implementations. Significant partnerships with leading technology providers enhance its service capabilities and contribute to its earnings, providing access to cutting-edge technology and expertise. Additionally, IDE Group may benefit from recurring revenue streams through long-term contracts with clients, ensuring a stable income flow.

IDE Group Holdings Plc Financial Statement Overview

Summary

IDE Group Holdings Plc is showing some progress in managing costs and improving cash flow, yet it continues to struggle with revenue growth and achieving profitability. High leverage and past negative equity positions underscore financial instability. The company must focus on sustaining cash flow improvements and achieving positive net income to ensure long-term viability.

Income Statement

The company has faced declining revenue in recent years, from $28.16M in 2019 to $20.84M in 2024. Gross profit margin decreased from 22.8% in 2019 to 28.8% in 2024, indicating some improvement in cost management. However, consistent net losses and negative EBIT margins highlight ongoing profitability challenges.

Balance Sheet

The company is heavily leveraged with a debt-to-equity ratio of 1.23 in 2024, compared to negative equity in 2020 and 2021. The equity position has improved slightly, but overall financial stability remains a concern due to high liabilities relative to assets.

Cash Flow

Operating cash flow improved significantly in 2024 to $1.89M from $658K in 2023, leading to stronger free cash flow growth. However, cash flow is not yet sufficient to cover net income losses consistently, though there is positive momentum in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.95M	20.84M	22.41M	14.46M	14.46M	11.53M
Gross Profit	3.36M	6.01M	6.65M	5.05M	6.27M	2.55M
EBITDA	-660.00K	-204.00K	1.39M	2.43M	956.00K	956.00K
Net Income	-3.15M	-3.19M	-1.54M	-587.00K	-1.98M	-18.48M
Balance Sheet
Total Assets	14.74M	14.29M	16.77M	15.42M	15.94M	22.31M
Cash, Cash Equivalents and Short-Term Investments	537.00K	854.00K	274.00K	414.00K	349.00K	693.00K
Total Debt	4.38M	5.01M	4.82M	4.61M	18.11M	17.36M
Total Liabilities	11.21M	10.22M	10.19M	9.45M	24.57M	30.91M
Stockholders Equity	3.40M	4.06M	6.58M	5.97M	-8.63M	-8.60M
Cash Flow
Free Cash Flow	-1.52M	1.86M	583.00K	1.27M	560.00K	2.03M
Operating Cash Flow	-1.50M	1.89M	658.00K	1.48M	588.00K	2.11M
Investing Cash Flow	98.00K	-28.00K	-75.00K	-208.00K	-614.00K	-154.00K
Financing Cash Flow	1.32M	-1.28M	-723.00K	-1.20M	-318.00K	-1.95M

IDE Group Holdings Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TIA, the sentiment is Positive. The current price of 80 is above the 20-day moving average (MA) of 73.60, above the 50-day MA of 71.54, and above the 200-day MA of 69.13, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 67.05 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TIA.

IDE Group Holdings Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCT	75 Outperform	£2.96B	21.96	41.77%	2.05%	51.50%	11.62%
TRD	72 Outperform	£43.57M	22.87	44.27%	2.69%	30.01%	138.65%
MTEC	69 Neutral	£51.50M	39.25	10.36%	―	20.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£190.36M	76.77	1.35%	3.01%	-31.46%	297.44%
TIA	50 Neutral	£31.93M	-6.37	-67.57%	―	-12.11%	-106.04%
TPX	50 Neutral	£18.93M	-2.52	-17.47%	―	-5.84%	55.30%

IDE Group Holdings Plc Corporate Events

Director Ian Smith Increases Stake in Tialis Essential IT Plc

Ian Smith, a director at Tialis Essential IT Plc, has acquired 31,000 ordinary shares of the company, increasing his beneficial interest to 1.70% of the company’s issued share capital. Smith, who is also the CEO and major shareholder of MXC Capital Limited, along with MXC, now holds a combined 68.7% of Tialis’s issued ordinary share capital, indicating a strong control over the company.

The most recent analyst rating on (GB:TIA) stock is a Hold with a £68.00 price target. To see the full list of analyst forecasts on IDE Group Holdings Plc stock, see the GB:TIA Stock Forecast page.