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Have been watching from the sidelines for a while but couldn't resist any longer this morning so a toe in the water at long last.
Competitor Morgan Sindall, +12.5% on very positive outlook. Market asleep on CTO.
Agreed it is cheap, which has little to do with it's solid fundamentals, but more to do with the lack of demand for the shares. I guess it's not exciting enough for many traders/investors, if you look back over the past 5 years it has generally traded within a range of 75p-125p. I bought back in here last September and although up almost 20%, it's been one of my slowest movers.
There is no questioning the quality of their business, as they keep winning fabulous high profile contracts, but I feel to really see a big move in the SP, they need to attract more institutional investment, but perhaps at the moment they are too small and the stock is too illiquid.
Cenkos' forecast today is for 15.4p EPS this year, with a 4p dividend, against a 92.4p share price.
CTO have £10.2m net cash against a £40m m/cap, and most importantly the order books are still rising and now total £456m.
One to squirrel away in the SIPP
Nice contract win yesterday - and the link with Morgan Sindall bodes well going forward:
Https://www.tclarke.co.uk/tclarke-wins-major-engineering-services-project-at-royal-devon-and-exeter-hospital/
"TClarke wins major engineering services project at Royal Devon and Exeter Hospital
2/2/21: Strong Growth in infrastructure continues with our success working alongside Morgan Sindall Construction to deliver an extension and improvements programme for the Emergency Department for this Devon hospital.
The works, which are phased to allow for continued operation of existing facilities, involve a new three storey 3,500 square metre building, including teaching facilities, eight new resuscitation bays, new plant room and a specialist children’s emergency department, with paediatric bays and a separate reception area.
Along with the Emergency Department improvements we have also been selected to work with Morgan Sindall Construction to deliver a new 4 storey plant room to serve the ICU.
Rob Faro, Director, UK South, commented:
“We have spoken about our ambitions to grow our healthcare business and we are delivering against those ambitions. TClarke has the specific capabilities that the NHS is looking for, including our substantial in-house offsite manufacture operation, expertise in smart and digital buildings, leadership in engineering towards net zero carbon and our proven strength and agility as a supplier.
“Congratulations once again, to our expert healthcare teams who are steadily building success upon success. We take nothing for granted and we will keep on working hard to earn and deserve these successes. This is another excellent project for us, delivering a facility of great value for local people.”
Brian Rice, Regional Director for Morgan Sindall commented:
“We have worked closely with TClarke over the last couple of years to design and plan these complex works at Royal Devon and Exeter Hospital, their attention to detail, engineering expertise, knowledge of healthcare environments, ability to deliver outstanding value and approach to open book collaboration is second to none and we are delighted to have them as part of our team”."
I bought some of these back today on the dip.
Cenkos' forecast today is for 15.4p EPS this year, with a 4p dividend, against a 92.4p share price.
CTO have £10.2m net cash against a £40m m/cap, and most importantly the order books are still rising and now total £456m - CTO apparently already have secured work underpinning 95% of this year's revenues.
That's a very solid place to be going forward.
Hopefully Simon Thompson will feature CTO again soon, and I seem to remember SCSW cover CTO too.
Very positive update.
Excuse the rubbish written in my previous post, should have written 'for three shares' and not '@ 3p'; senility more advanced than I imagined!
So far today, there has been 26 trades marked @ 3p (plus a few @ 2p as well). Has anyone got any idea what it's all about?
Thank you for that info, Scooby.
That is excellent news. I wonder why they haven't updated us with an RNS? I should stop being lazy and check their website, I just assumed that any news update would have made its way to us via an RNS.
Definitely a good time to top up then. Lets hope it's the excellent news that we know this company usually delivers.
That's interesting. Lets hope for a good update. They reduced their outgoings in the initial lockdown, so, now, profits should be even higher whilst the SP is still massively undervalued!
Fingers crossed for a positive update
Per CTO's website - Financial calendar - 28/01/21 Trading Update
So confirmed on Thurs then.
Just added more on the back of checking out
https://www.tclarke.co.uk/news/
Seems that 2021 has gone off to a flyer.
CTO has not posted these news on RNS so - lazy investors will NOT know that:
- for 2021 - CTO has just won a major contract with Cambridge Uni (I don't think this is included in the forward order book of 2020) + they've been appointed by Cambridge Uni in the past and this is a new MAJOR contract.
- Also 5/1/21 - TClarke’s specialist engineering services selected as one of the £10.5bn NHS framework winners across the UK = loads of new projects to build up that order book for 2021/22.
Perennially cheap and underrated but bottom line - they know what they are good at, and they do it well to, sticking to their knitting and at margins of 3%.
I will put my neck on the line - it's going to be a good 'un
Also based on the RNS on 26/11/20 - why not
Per Nov 20's RNS - SP spiked back up - no reason why SP is at current levels - it's too cheap at present.
So me thinks - SP will touch 102p by 1st Feb 2021.
Again today buys being marked down as sells. It'll be interesting to watch the sp reaction if there is an update later this week (according to a post elsewhere).
Don't believe all you read re buys/sells. The online quote just now was 90.2/94.8p but in reality you could sell @ 90.304p and buy @ 91.488p; I've just bought a few more at the later price but its been marked as a 'sell'.
Apologies, in the last few days*** there seems to be a lot of sells.....
There seems to be a significant amount of trading activity today in comparison to the average day, in particular, sells..... Does anybody have an idea as to why?
Such an outstanding update which shows what a bargain the current SP is!
The order book is higher than ever, revenues are higher than 2019 and, with the latest restructure, the groups expenses have also decreased. We peaked at 140p just before COVID, we're now 95p yet the trading updates show that we're in a stronger position than ever! Of course, market uncertainty and brexit will be in peoples minds, however, construction seems the main sector to be booming during these challenging times. So glad to be holding at these prices. Good luck everyone, I'm so surprised that this company doesn't receive more attention.
'During the second half of the year, TClarke has been successful in winning new projects from clients across a wide range of sectors. Our forward order book has increased to £422m. This is a significant result for the Group and is £61m (17%) higher than at the same point in 2019. Reassuringly, revenues of £257m for 2021 have already been secured, against an equivalent figure of £232m at this time last year and up from £191m when we announced the Group's interim results in August. This is testament to our strong reputation among our clients and we have been consistent in maintaining our strict tendering assessments, to ensure that we are accepting work that meets our margin expectations.'
Divend time soon, this should be well over 110p already !
Fantastic RNS
This is going to be big !
UK construction growth suffered a surprise slowdown in August as the sector continued to cut jobs, a survey showed.... market sentiment I guess
Saw this pop up on a screen today
oversold on RSI.
not sure what is holding it back...looks in decent position going forward
Simon Thompson is great at picking good value stocks, this is a good company and should be good upside IMO!
I hope he will do A SLP article soon, also a good company!
Simon Thompson, Investors Chronicle journalist, has just published a positive article.
Last week's half-year report:
"The Board proposes to consider dividends for 2020 once the results for the year can be forecast with reasonable certainty. "