| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 385.25 | 32 |
| Intrinsic value (DCF) | 161.25 | -45 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 5.81 | -98 |
Triad Group plc (LSE: TRD.L) is a UK-based IT consultancy firm specializing in technology solutions for the public, private, and not-for-profit sectors. Established in 1988 and headquartered in Godalming, the company offers a comprehensive suite of services, including IT consulting, business insights, staffing and recruitment, software development, and project delivery. Operating primarily in the UK, Triad Group serves clients across diverse industries, leveraging its expertise to drive digital transformation and operational efficiency. As a niche player in the competitive IT services sector, Triad focuses on tailored solutions, though its small market cap (~£47.9M) and recent financial struggles highlight challenges in scaling against larger competitors. The company remains relevant in the growing UK IT consultancy market, where demand for digital expertise continues to rise.
Triad Group presents a high-risk, speculative investment opportunity. Despite a modest dividend yield (6p per share), the company reported a net loss of £1.01M in FY 2024, with negative operating cash flow (£1.47M) and a diluted EPS of -0.061. Its beta of 1.376 indicates higher volatility than the market. While the IT services sector offers growth potential, Triad's small scale and financial instability raise concerns. Investors should weigh its niche consultancy expertise against fierce competition and operational inefficiencies. The company’s cash position (£2.05M) provides short-term stability, but sustained losses could pressure liquidity. Only suitable for risk-tolerant investors betting on a turnaround.
Triad Group operates in a highly fragmented IT consultancy market dominated by global giants and agile mid-tier firms. Its competitive advantage lies in its UK-focused, client-tailored approach, offering specialized services like software development and project delivery. However, its small size limits economies of scale and bargaining power compared to multinational peers. The company’s recent financial underperformance (-£1.01M net income) suggests operational challenges, possibly due to pricing pressure or project delays. Unlike larger competitors with diversified revenue streams, Triad’s reliance on the UK market exposes it to regional economic fluctuations. Its staffing and resourcing services face stiff competition from recruitment-focused IT firms. While its long-standing presence (since 1988) lends credibility, Triad must innovate and potentially consolidate to compete effectively against better-capitalized rivals.