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The year end trading update will be on 31st January per the company web site - and it should be terrific given the last "ahead of expectations" update.
The share price has risen nicely recently (except for today!) - hopefully a lot more to come on a P/E of only 6 or so.
Here's an interesting new article from the CEO:
Http://www.tclarke.co.uk/city-confidence-is-still-building-upward/
" CEO Insight : City confidence is still building upwards
15/1/19 Mark Lawrence, Group CEO
The City of London Corporation’s recent release of this image, showing how the City skyline is going to look in 2026, is a timely reminder of the underlying confidence in our developer client base in this sector.
The list of landmarks includes five buildings over 30 storeys which are currently under construction (of which 3 are TClarke projects) and identifies seven more towers which have planning consent including 1 Undershaft, 2-3 Finsbury Avenue, 100 Leadenhall St, 40 Leadenhall St, 130 Fenchurch and 1 Leadenhall St – over 250 storeys of new towers in total.
Our ongoing dialogue with our developer and principal contractor client base confirms that confidence is still strong. Stepping back from the current political uncertainties around Brexit, it is worth mentioning that in this our 130th year, we have experienced many political and economic ups and downs.
And this is a time of great change. From a macro-economic point of view, as much as Brexit may dominate our newspages, it is just one of a series of global mega trends – including globalisation, data and mega-cites – many of which will only serve to reinforce London’s importance as a global centre.
Within the context of our clear strategy, strong financial position, agile organisation, market-leading technology offering and growing market appetite for our services, the picture for TClarke remains distinctly positive."
Peter Maskell buys nearly £35k shares. He was appointed a year ago, so it's not an automatic gesture of loyalty: he's obviously careful and he's waited until he really knows the company - and now comes in with a good solid purchase. And it not as if he's not experienced:
"Peter Maskell is 59 and after studying Electrical and Electronic Engineering at Kingston University he joined Philips Electronics where he worked for 37 years.
For the last 20 years he held a number of senior management positions in both the UK and Europe. Â His last position at Philips was as Chairman of the UK group which had significant business interests in both the healthcare and lighting sectors.
In the last 5 years, he managed the transformation of Philips' UK Lighting business from product supplier to a full service, systems and solutions provider, thus fully exploiting the opportunities and benefits offered from the advent of solid state LED lighting and fully connected digital solutions beyond just illumination.
Peter is also a non-executive member of the board of the University of Surrey."
Yuh, I like it.
Good morning.
Having read the tip from Simon Thompson a couple of times now I have to say it is very encouraging for any holders.
The company has a nice low P/E ratio, especially compared to other similar companies.
Cash of £4.8m, 4% divi and NAV of 52p.
Revenues have steadily grown since 2010 and underlying profits have increased but only in the last 4 years. All in all, a good report.
The negatives I see, and reasons why I will hold off investing here at the moment are:
The current share price is hitting resistance and so anyone buying now could find them self buying at the top. If it breaks through it’s good, but with the current market turmoil of brexit, interest rates, US and China we may well be attthe start of a bear market.
Even though revenues have grown yoy since 2010, 2010-2014 showed profits in a decline which highlights the low profit percentage of currently 2.8% (though on a positive this could end up 3% for this year). So with a low percentage profit it would not take too much to see profits drop.
Add to this the company has a pension deficit of approx £19m.
The upside is pretty good but I’d rather wait on the outcome of current market traumas and see whether we do get a bear run or not.
It will be interesting to see in the coming week whether those that bought in on the tip at 10am -11am sell out for a 5 % profit especially that £50k odd trade.
Certainly one to watch and I wish everyone success.
Thanks for the post rivaldo CTO is in great shape and prospects looking forward are very favourable, this tip from IC has just arrived at the right time to remind possible future investors what a good company this, plus it also seems to of stemmed the slide in sp from recent highs.
of the IC in IC Alpha - 17 pages worth.
His first target is 141p. Here's an extract already posted elsewhere:
"Market opportunities TClarke has been expanding its core offering, while continuing to build a reputation and track record of delivering large-scale mechanical, electrical and ICT projects. This has substantially increased the range and scope of opportunities available to the company in recent years, a key reason why its order book has boomed. Partnership is a key feature of the business approach nationwide.
With the support of long-term clients and partners, the company opened offices last year in new geographic locations (Dumfries, Portishead and Birmingham) and was immediately rewarded with significant contracts. Moreover, the company has recently opened new offices in Liverpool and Manchester. Building upon existing established relationships, bids totalling £40m have been submitted across a range of projects in these areas. TClarke has also secured a place on the four-year £400m Liverpool-based Procure North West Framework. This highlights an agile response by management and one that is exploiting a brand built on high quality delivery from its in-house teams. It makes sense to target new regional markets in this way as TClarke’s financial strength and reputation, allied to the quality of work and integrated service offering, means the company can offer partners the confidence they need when they are looking to build their projects.
There is no doubt there are opportunities to exploit in both Manchester and Liverpool. Manchester is booming and is now Europe’s second largest digital and creative hub. Salford Quays, where TClarke has located its new office, contains Media City UK. That’s important as the £1bn second phase of the project will see 211,000m² of space built, thus creating a major opportunity for TClarke to tap into. In Liverpool, there are plans afoot to build 3 million sq ft of office space. Vast schemes are planned, including the £5.5bn Liverpool Waters project (which will occupy derelict dock spaces at Central Docks) and also Wirral Waters which will transform 500 acres of the Birkenhead docklands into an internationally recognisable destination.
Many of the company’s traditional principal contractor partners have been making their moves in the city, so this looks the right time and the right place for TClarke. Admittedly, Brexit has created uncertainties, but the macro effects of globalisation, particularly the gravitation of organisations and business ecosystems to the most attractive hub cities in the world, is also having a powerful effect. This has been beneficial for TClarke in London and it has helped build significant market share in places such as Cambridge, where the company has a track record of delivering laboratory, research and education project...."
Extracts from N+1 Singer's note this week FYI:
"Strong FY18 performance with EPS upgraded 12%
Specialist building services group TClarke has reported strong trading in FY18.
Operating profit is expected to be 11% ahead of our previous forecast, driven by
better than expected revenue and margin progression (approaching management’s
3% target). The outlook statement strikes a confident tone, supported by a record
order book, which stood at £403m in November.
We have increased our EPS forecasts by 12% and 15% in FY18 and FY19. Our FY19 revenue forecast is 70% covered by the order book, giving us confidence that earnings momentum will continue.
We believe the shares are attractively valued, trading on an FY19 P/E rating of 5.3x, and believe a peer group rating is justified. We also note the attractions of a >4% dividend yield."
"Record order book supports outlook
TClarke’s focus on higher quality work is paying off, with progression in the margin profile across FY18. Despite this focus, the order book continues to grow, standing at a record £403m in November (up from £370m at June 2018). The order pipeline also remains strong, with an encouraging level of opportunities which meet TClarke’s tendering criteria. Looking to FY19, revenue of £230m is already secured (2017: £190m), representing 70% of our forecast."
I saw CTO's presentation at Mello London - it was extremely encouraging and impressive.
Great to see the share price finally responding to the terrific trading update. Still lots to go for imho.
Apparently Miton needed cash for another investment, and took the opportunity to top-slice given that Regent Gas were in the market for shares. Incidentally, CTO had no prior connection or contact with Regent Gas, who apparently are friendly stakeholders looking for a home for the excess cash they're throwing off (they've also taken a large stake in INSE).
The cash pile is large - which is great - but is necessary. For example, CTO are going to make a large downpayment at some point soon (can't remember what for, but I seem to remember this would be £9m). So the cash pile can be volatile.
With 14.7p EPS now forecast for the year about to end, and 16.3p EPS for 2019, a minimum share price of say 110p-120p should be quickly achievable in decent markets.
If the perception of CTO continues to improve - and/or there's finally a lack of sellers - then perhaps a P/E of 8 or 9 and a share price of 130p-150p is achievable.
Wow :o))
PBT hugely ahead of expectations.
Order books up strongly.
Margins up.
What more could you want...
Https://www.investegate.co.uk/clarke-t---plc--cto-/rns/trading-update/201811270700055392I/
Nice !
https://www.investegate.co.uk/clarke-t---plc--cto-/rns/trading-update/201811270700055392I/
Little tick up today. News due I wonder ?
Research from companies house shows Regent Gas has £48m of net assets of which £36.5m is cash, although presumably about £2.75m lower having bought all these T Clarke shares. Further research shows the directors Nandal and Deep Valecha pop up on the Sunday Times rich list with a wealth of around £128m for 2017. Plenty to buy T Clarke without the need to raise cash. (so no banker is going to get a tip off about this if that's the case)
Regent do all the stuff up to the meter and T Clarke do all the stuff after the meter.
So, Regent could buy T Clarke with the cash in their bank account. Who knows whether it's an investment or they have some other purpose. Sometimes these things take a while to play out.
Hi APAacquisitions.
I kn ow nothing about Regent Gas per se. Except that they're very astute investors, as they've also taken a large stake in one of other undervalued holdings, INSE :o))
Here's their web site - I'm assuming that they have an investment arm which takes guidance fro their main commercial business re PLCs that they come into contact with and like the look of. Which is encouraging I suppose....
http://regentgas.co.uk/
Hi Rivaldo. Do you know anything about Regent? Is it an investment or hoping for takeover from them?
Kind regards,
AP
Regent Gas have again increased their stake - they now have 9.12%, or 3.813m shares:
Https://www.investegate.co.uk/clarke-t---plc--cto-/rns/tr-1---notification-of-change-of-holding/201809261533160529C/
That's around 350,000 shares more than just two weeks ago.
https://drive.google.com/file/d/1eM1zY9hJ5J-iA4vAfvscdo3GRpFT5Qtm/view
Current forecasts are 13.2p EPS this year rising to 14.1p EPS next year - a P/E of 6.5, falling to just 6.2.
And here's good news re the new Climate Solutions division:
Http://www.tclarke.co.uk/news/tclarke-climate-solutions-partner-status-achieved-with-mitsubishi
"TClarke Climate Solutions : Partner Status achieved with Mitsubishi
Posted: 08th August 2018
TClarke Climate solutions are pleased to announce we have achieved Business Solutions Partner status with Mitsubishi Electric within our first three months of trading. This is a great achievement and will enable us to meet the criteria set out by many of our corporate & commercial clients, we look forward to working in partnership with Mitsubishi and continuing to further develop our relationship.
Download our climate solutions brochure >"
The mid-price is up to 88.3p now - I assume after the 100,000 share buy at 87p earlier today.
Would like to see some more brokers giving a recommendation but it has nver happened in my memory. Could help a lot.
Nice start - the mid-price is now up to 87.6p.
As regards the order book, N+1 Singer pointed out that at £370m it's "well above the long term average of £282m".
And we know that this is despite CTO's cutting out lower-margin and lower quality work.
The share price is ridiculous when you think that forecasts are for 13.2p EPS this year, rising to 14.1p EPS - and at this rate are likely to be beaten.
Plus CTO have a healthy cash pile.
Plus already fully secured revenues for this year and already 50% for NEXT year.
Yep. Expect a holdings RNS from one our big boys soon.
In this case it appears there is a large buyer in the background happy to absorb lots of stock within the spread...
I often wonder why MM's keep the quoted spread so wide when the spread they will actually deal at is much smaller. It discourages business. Of course sometimes that is their intent as they are working a large order and are deliberately holding the spread wide as they only a one way order flow to balance their books.
Today it's 85ish to sell, well within the spread but if you want to buy they want very close to the full offer. It suggests to me the MM would prefer you sell rather than buy. Of course if they raised the offer to 85, they might get more sells to balance their book but it might also appear that the price is rising and encourage more buying = the opposite of what they want.
Too many times I've waited for the headline spread to close and watched the price move away from me. These days if I see a price I like I execute the trade. I don't always get the best price but I've found I have less regrets
Checked for a live bid price.
The spread is nothing like it is being shown as on the 3 sites I have checked, a big spread always deters me and probably others from buying.
Haven't been able to find N+1's recommendation. Please tell where you got it.
Press reports tomorrow with any luck.
N+1 Singer are very positive, with a 104p share price target which they say could be exceeded.....
"Shares attractively valued
In our view, TClarke is overdue a re-rating. The shares trade at a substantial discount to peers (33%-35% on a P/E basis), despite maintaining earnings forecasts (9% and 7% EPS growth forecast), strong earnings visibility and an attractive yield at 4.4%. We believe a sector rating is justified - a blended average of peer group multiples implies a share price of 104p. We believe the shares could exceed this level as EPS and order book growth is delivered."