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I don't think a £225 - £250m mcap is ridiculous (80-90p).
Think it's too cheap based on known metrics, even those critical of the broadly flat net cash FY24 projection have to acknowledge that's a £25-30m cash increase. They clearly say the current cash pos is down to favorable cash flows but that aside, it's still bloody strong cash generation.
UK companies are so unbelievably beaten up. A P/E of 10 should see this at £200m - £250m and that's before you look at cash in bank or business growth opportunity (water/AMP). Joke valuation.
PS
And current CEO wants 3 x dividend cover when previous was roughly 2 x.
Will be roughly 4p when all washes through imho
Ant1986 - Yes, and as you've already alluded, I'm topping up on the hope that the new government will see infrastructure investment as the obvious way to kick-start and grow the economy. I'm not expecting any 'bagging' here, but a steady improvement will suit me as a LTH.
Mainstreet
There was a rights issue in 2020 which raised the shares in issue substantially. So that's a big part of it. The other big part is that the 1.2p equates to £3.3m as a cost which is the maximum he can pay without having to overpay the pension fund. This agreement runs to 2027, but as he noted in the report, the annual pension position review is 31/3. He may use that as a way to pay a higher divi. He has the cash but he's very cautious....Overall the business is back from its disaster jobs to a level where the Market Cap was previous double (say 2017..) what it sits at today!
Mixture of macro environment and overall balance sheet strength. It's very similar, relatively, to Kier's declared dividend.
Indeed, a very flat response to a robust result, though it's only been an hour in fairness.
Can't believe more hasn't been made about the bullish 4.5% operating margin. That's £58.5m profit on £1.3bn turnover. Cost is trading at a complete snip against that projection.
Analyst call, tomorrow.
What a crap reaction from the market.
no wonder firms want to list in the USA
Question from a newbie. Sorry if the answer is obvious and I missed it.
In 2018 they seemed to have a similar T/O and profit. But the dividend was 15p. Why is it only 1.2p now?
In 2024 no amortisation, reduced one offs, and lower contributions to the pension fund. Perhaps the parsimonious divi.
"Ahead of Market Estimates"
First class numbers all round but the one that stands out for myself
"High quality forward work4 position of around three times FY 23 revenue."
Then look at the cash Costain has versus the market capitalisation. £164M v £188M. No its not a misprint.
I was looking at the operating margin progression and it’s well on track. At 3.8% at present and a very bullish reinstatement of 4.5% in 2025 with goal at 5% - it’s a business changer.
Dividend very welcome too, had half thought it wouldn’t come with others slightly lower than expected.
We should see the UK PLC back infrastructure and then we have the tailwind too.
Spotted this in Galliford’s results - “ Our Environment business continues to benefit from high levels of AMP7 spending by our water sector clients.”
Should transfer here very well?
Lucky on my trade lost 15 the other day if helds be 100/s down , RATHER take a quick loss then see my account get behind .VERY STRANGE the constant sells . Overall up but will stay out now
Well I took the opportunity for a top up into my ISA on the drop and and I'm looking at this for the longer term.
It's got the lot. Profits, Large new contracts and so much cash on the balance sheet.
If they reinstate a progressive dividend then I'd probably look to reinvest it also.
I think this as well. Fantastic trading statement. Suggestions that dividends will be paid again. Also the CEO will host a call with analysts and investors the day after the results. Unlikely to be doing all this if management have bad news for the market.
If you read the last trading update, it’s hardly signaling problems. They are talking about reintroducing a dividend. Slammed this on not much volume to daily 100ma.
Feels very much like trying to turf holders out ahead of decent results.
Tree shake - could be. Someone knows what they are doing. I hasten to admit I am a bit in the dark here.
Is this a tree shake by market makers?
I started to build a position at the back end of 2019, expecting BoJo to follow-up on his infrastructure projects. We all know what happened shortly after that.. However, as much as I dislike Starmer and most of his cronies, I do believe Rachel Reeves is both a smart cookie and a realist. As such, I'd be surprised if civil engineering doesn't feature heavily in her pledge to build the economy. Fingers crossed.
Playtowin - My thoughts exactly. Very impressive location, and recent events considered, they probably negotiated pretty favourable terms.
Bril news and a a good sign.
Better placed also for further business wins.
Ignore me-it was leasehold.
Plus the cash from whatever they do with the Maidenhead office site...
No theory here.
Spread is always daft though. I keep thinking what an easy takeover target this is. £170m mcap with the same in cash.
Just rechecked and there does not appear to be any current short positions. All the more curious other than speculation!!
Sizeable drop in SP over the last 6 weeks.
Cannot find any specific reason(s) other than slight increase in short positions.
Any ideas?