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Agree. If you were to try and work out the enterprise value to ebitda ratio for example, you would end up with a negative enterprise value!!!
Crazy valuations here
£17m more cash in 6 months!! That's £34m annual. High quality profitable business this, big things to come!!
GFRD
Balance Sheet
The Group has maintained a strong cash position, leaving us well placed to manage lockdowns and to continue to support the business. Average month-end cash for the six months ended 31 December 2020 was GBP158m (six months to 30 June 2020: GBP141m). The Group has a PPP asset portfolio, no debt and its period-end cash at 31 December 2020 was GBP209m (30 June 2020: GBP197m).
Order Book and Outlook
We continue to see a strong pipeline of opportunities in our core sectors and in line with our disciplined approach to risk management and contract selection. Our strong position in the public and regulated sectors positions the Group well to benefit from increasing Government construction and infrastructure spending. At 31 December 2020 the Group had a high-quality order book of GBP3.3bn (H1 2020: GBP3.2bn), benefitting from recent contract awards which align to our strategic focus. Notable awards include Thames Water's GBP590m AMP 7 framework, our appointment to the GBP10.5bn NHS Shared Business Services framework and our appointment to the GBP2.1bn Construction West Midlands framework.
RI = Rights issue?
You can never rule it out in this industry, although GFRD has a lot of cash so not sure it would need one if that is what you mean?
Government is committed to spending big on civil engineering so that is a favourable factor. But if you want to get a better idea on the company you should read the RNS history - no one knows any more than you can learn from those.
Interested in potentially investing in GFRD.
What is the outlook?
Potential RI?
PREMIER MITON GROUP PLC - up from 5.17% to 10.07%.
Constructions could resume even amid isolation.
Perhaps it is a tactical wait for well-off contracts.
Yes, positive update is expected. Galliford are sitting on a massive cash pile and growing it. No debt, healthy order book, UK govt's appetite in infra investment, dividend resumption - I see 200p near term. I am holding since days of 80p and will not move until I get 200p or more (dividend is a bonus).
Galliford try Trading Update on 20th Jan 2021,, Could get positive sentiment in share price after trading update and expectations to turn profitable results and also expected dividends resumption.
Lacking a trading update
I think I'm right in saying that at least one previous lockdown has seen work continue. Wasn't such a sentiment included in a fairly recent trading statement - or perhaps it was said at the AGM?
Should be a trading statement next week. I’m feeling pretty positive it will be ahead of expectations. I’m also expecting this to crack on share price wise too ..thoughts ?
Trading update around 11th Jan would be good however lockdown news driving this down.
Hold fire, we need to be nearer to 200p. Things are about to get so good!
The best Christmas present long-suffering shareholders could have been given...
Galliford try wins new NHS contracts at 11 different lots valued between £15m to £35m each contract
https://www.gallifordtry.co.uk/news/news-centre/galliford-try-wins-place-on-nhs-framework/
Ammu,
With the company currently making a loss, operating in a low margin industry and failing to create even decent returns on their invested capital, I can't say I see their cash situation as overly important. Don't get me wrong, I think the net assets are a big positive, but enough of a reason to take this stock to over £2 per share? I doubt it. That would leave absolute no margin for error; which is quite concerning, especially when you consider that over 50% of their current assets are 'trade/receivables'. Will they receive every penny of that? Furthermore, current assets don't quite cover current liabilities, even when those receivables are included. To conclude, there are a lot of question marks here imo, and at to warrant £2 per share, I would expect a much more positive overall picture. I think the current SP is acceptable and I think those invested will probably make a nice profit, but it's not for me right now. If it sees 80p-90p per share again, I'll consider an entry, but until then, I'm happy sitting this one out
Can you send another link?
https://twitter.com/**********/status/1339507281579413505?s=21
You forgot to take cash into account in your calculations.
Current no value attached to business!!
Imo: due the underwhelming earnings that are forecast for the company in FY21 according to the most recent annual report.
Revenue forecast for next year is c. £1.2bn with an operating margin of 1.5% = £18m. Deduct central costs of c. £10m and you're left with £8m net income.
@ £2 per share, the market cap would be around £222m. A net profit of £8m would leave GFRD with a P/E ratio in excess of 27.5. I personally wouldn't pay anywhere near that premium for a company that appears to have low growth potential and operates in a capital intensive industry.
I was invested in GFRD earlier this year, but when I ran these numbers, I sold immediately for a small loss just before the big decline. If you do continue to hold, I wish you well. I haven't looked into GFRD's forecasts beyond FY21 btw; you might find value there.
Watch this move !
This SP Is considerably undervalued. Debt free, Massive order book, sold off unprofitable part of the business, returning to profitability after restructure. Should be £2.00 all day long.
Hi All
I believe the next few years there will be so much building there won’t be the man power to handle it!
I only hope when pricing they have taken this into account, because they will be paying through the nose for labour.
Just my opinion
So please Gfrd don’t price to cheaply