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with a number of pleasing aspects, including: - increased overseas revenues again - increased percentage of digital/service revenues - 10% increased dividend - new borrowing facilities at reduced cost - reduced net debt again - certainty over pension contributions Https://www.investegate.co.uk/communisis-plc--cms-/rns/communisis-plc-interim-results/201708030700069656M/ Certainly not spectacular, but reiterating unchanged expectations for the year means CMS remain decent value at this price imo. Particularly given the long-term nature of much of their work.
Hold fast, and keep the faith!
...early August should hopefully provide another fillip to the price. I'm buying more tomorrow if it stays in the 46s!
Great to see CMS expanding into scanning and archiving, which offers predictable and recurring revenue streams. The likes of RST trade on very high multiples because of this. Note that the first client is "a major high street bank". Https://www.communisis.com/news/investment-in-state-of-the-art-inbound-services-expansion "State-Of-The-Art Inbound Services expansion Press release • 27 June 2017 Communisis invests £1.6 million in Inbound Communication Services Communisis has opened its first commercialised scanning site situated in our Leeds facility. Although we at Communisis already operate on clients’ premises, this is our own dedicated facility utilising leading hardware and software technology. The facility has been designed to allow Communisis to offer our clients the ability to manage multiple inbound communication channels, resulting workflows, compliance and data management so as to provide their customers the best possible customer experience. We work collaboratively with clients to build a solution that meets their requirements in a way that supports their strategic objectives and is adaptable to the changing market environment. Some benefits that our clients will see include: Straight Through Processing (STP) - Automated extraction and validation allows STP, resulting in reduced operational costs and quicker, or near instant customer re-engagement Digital Archiving & Retrieval - Content and case management service, helping to control records and the storage of the images with the associated metadata to ensure client communication agility and data regulation compliance Improved CX – Effective inbound communication and data management allows Communisis to provide the link to client outbound communication systems, which enables a positive and seamless customer experience Secure Document Handling – ISO27001 compliant site is secure with double lock entry systems (via swipe card and access PIN number) with security cameras covering all operational areas. Initial x-ray of items through to secure document destruction ensures total customer information security Forms Design - Improvement to outgoing documents combined with the use of market leading technologies (dynamic PDFs) to enable better automation and STP 24 Hour Operation – Anytime processing ensures that challenging client and regulatory SLA’s can be comfortably satisfied Centralised and distributed scanning – The investment in a hybrid model gives us the ability to scan centrally or from anywhere in the world UK Data Centre – All data is securely stored at our UK based facility The new facility has the capacity to receive and process 300,000,000 physical pages of paper per year generating 600,000,000 images. This is likely to increase to meet future demand. Our first client is a major high street bank and is currently in the ‘proving phase
Nice to be tipped once more. However, it's even better than the below, as the writer is incorrect - the EPS is expected to rise this year to 6.2p EPS this year (from 6.07p last year): http://www.aol.co.uk/money/2017/06/23/2-dividend-giants-that-could-make-your-fortune/ "Those seeking generous dividend yields also need to check out marketing giant Communisis (LSE: CMS). Even though the Leeds business is expected to suffer a 5% earnings slip in 2017, its ability to create lots and lots of cash (free cash flow soared 7% in 2016, to £12.9m) is expected to keep dividends rolling higher. Indeed, a 2.6p per share bounty is currently predicted, up from the 2.42p dividend shelled out last year. And the dividend is expected to move to 2.7p in 2018, helped by an anticipated 5% earnings increase. As a result, Communisis carries weighty yields of 5.4% and 5.6% for 2016 and 2017 respectively. And I reckon the company's ambitious growth plans should continue to deliver explosive shareholder returns. These projections are built on extremely solid foundations. Dividend cover rings in at 2.2 times and 2.3 times for this year and next, while the strong balance sheet should soothe the concerns of even the most jittery investors (net debt fell 23% last year, to £30.4m). Communisis is becoming an increasingly important cog in the marketing strategy of the world's biggest companies and institutions, and the firm is casting its net far and wide to bring in new business. Consequently revenues generated abroad leapt eight percentage points in 2016, to 26%. And the creation of a US office this summer could prove a significant step in the company's growth programme."
I would like to know how this business is doing. How the Hmrc set up work is progressing - any new clients or awards ..... Us shareholders are rather left in the dark
Well that trade certainly worked- plus 20% in less than a fortnight! Here's hoping we're now headed for the 60s!
Just added at 46.5p. Fall seems crazy given the momentum the next set of figs are likely to show (LV, L&G, and Sony to name 3 new contracts which will kick in). feels like a steal, but of course you never quite know what might be going on in the background with these mid-sized companies.
Good question - it's off 20% on no news whatsoever. Irritating!
Anybody any ideas why the recent fall in sp? It appeared to be doing so well at circa 55p?
Nice plug for CMS in the new Diary Of A Private Investor column in the Telegraph: Http://www.telegraph.co.uk/investing/shares/diary-private-investor-have-cash-hand-buy-shares-have-brexit/ "I have also bought more Communisis, which has gained big new contracts to send out communications for large organisations such as HM Revenue & Customs." I think this usually gets published in Saturday's print edition if I'm not mistaken, or is it in today's? In either case it should bring in some buying interest.
Http://www.fool.co.uk/investing/2017/03/29/2-great-value-dividend-shares-for-your-isa/ "Top value Communisis (LSE: CMS) has seen its share price continue to gallop higher in recent weeks, the stock rising 23% in value since the turn of the year alone and hitting record tops of 56p earlier in March. The marketing ace pumped to those peaks after announcing that total revenues edged 2% higher during 2016, to £361.9m, with profit before tax jumping 15% to £16.7m. Despite its sustained skywards share price charge, however, Communisis still offers splendid value for money in my opinion. While the business is anticipated to endure a 5% earnings fall in 2017, Communisis is expected to bounce back with a 5% rise in 2018. And these predictions result in P/E ratios of 9.3 times and 8.9 times respectively, scandalously-low valuations in my opinion, given the communications play’s rising success with huge clients across the globe. Big player Communisis inked new deals with the likes of HMRC and Sony last year alone, and already counts the likes of Lloyds, Amazon and BP amongst its customer base. The company now sources just over a quarter of all revenues outside the UK, versus 18% just a year ago, and is poised to establish a base in the US this summer to boost trade in the world’s number one economy. And I believe Communisis’s super growth outlook should keep dividends shooting northwards well into the future, helped by its ability to chuck out heaps of cash — free cash flow rose 7% last year to £12.9m. In the meantime, projected payments of 2.6p per share for 2017 and 2.7p for next year should sate the needs of yield-hungry investors. These figures yield 4.8% and 5%, respectively."
Looking good. And still easily on a single-figure P/E, and with high recurring income.
Edmond Jackson has written positively and at length about CMS today: Http://www.iii.co.uk/articles/397181/stockwatch%3A-underrated-and-5-yield Intro and conclusion: "Stockwatch: Underrated and a 5% yield Which traders are casting the better verdict? Straight after prelims for FTSE Small-cap marketing services group Communisis (CMS), the chairman designate snapped up 100,000 shares at 49.9p, and Richard Griffiths, a Monaco-based investor and the group's largest shareholder, continues to raise his stake to over 21% as of 9 March. It appears Griffiths, who owned only 13% a year ago, is picking up stock from Slater Investments who, I recall, was an enthusiastic holder but has sold down from about 5% in early February to below 3% where it need make no further disclosures." "The stock's risk/reward profile looks well-balanced at the current share price, but its modest rating means further contract wins can drive upside into a 60-70p range. Possibly, Slater got jaundiced by the sluggish top line, while Griffiths is clearly more confident as Communisis is positioned to capture further sizable contracts."
Nice uptrend now and new recent highs. There was some AT trade - institutional - buying at 54.6p and 55p earlier today.
Griffiths is certainly committing to CMS - he's up to 44.5m shares now. Must have cost him not far off £20m: Http://www.investegate.co.uk/communisis-plc--cms-/rns/holding-s--in-company/201703101222371692Z/
Now over 21%.
Decent-sized director buying - a non-exec buys 100,000 shares at 49.9p: Http://www.investegate.co.uk/communisis-plc--cms-/rns/director-pdmr-shareholding/201703091527540659Z/
Bouncing now after initial profit-taking after the recent rise. Liberum have a 75p target and conclude as follows: "Valuation - Trading on 0.4x sales, a P/E of 8x, and a FCF yield of 12% CMS is still lowly valued despite the recent bounce in the shares. This partly reflects the challenging pension backdrop and the mixed track record of acquired businesses. However, there is evidence that the digital operations are better positioned going into FY17 and at a group-wide level the willingness of management to focus on a cost management programme helps add visibility to profit forecasts. We believe future growth in earnings and cash, together with a potential reversal in the longer-term outlook in the pension deficit, can support a re-rating towards our Price Target of 75p (equivalent to an FY16 P/E of 12x)."
The only negative I can see is the increase in pensions deficit, but this is affected by other factors and may well decrease. The business is going well with growth and a constant increase in dividend, debt is being paid down so I remain an investor here for the foreseeable. Next stop 60p........ hopefully
Hmmm, I wish ! This has been a frustrating share over the last 18-24 months, once again good results in excess of expectations, and it goes down, again ! Just doesn't appear to be belief in the market despite results and many tips & recommendations, I suppose that is why it appears to remain "good value", but the days of 60-70p seem a long time ago now ! Fortunately i'm a LTH so my average is well below the current price, just shouldn't have added all those extra shares on weakness during 15/16, oh well you live and learn - hopefully ?
Results are nicely ahead of expectations.... - 6.07p EPS compared to forecast 5.8p EPS - £16.7m PBT compared to £16.4m PBT - 2.42p divi slightly ahead of 2.4p forecast Decent FCF and debt reduction too. And a positive outlook: "Trading in the early months of this year has started in line with expectations and the board is looking forward to another positive year for the Group."
you just know this will be going up tomorrow when the results come out....chart says buy We wait in anticipation
Tipped here as the cheapest of "10 great growth stocks at reasonable prices": http://www.iii.co.uk/articles/394123/10-great-growth-stocks-reasonable-prices?context=LSE:CMS
Going well here - I bought CMS and CTO on the same day in early February and very happy to see them both storming ahead. Plenty to go for in both cases imho.