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We already know from the trading statement that the results will be good, showing around 11.2p historic EPS. Plus a £7.5m cash pile and a 3.9p dividend. Forecasts for the current year are 12.25p EPS with a 4.1p dividend. That's a current year P/E of only 8.8 at current 108p, or with the cash pile stripped out nearer 7.5 to 8, plus an almost 4% divi yield. There's been some excellent contract wins recently as well. For example, for TMW: Http://www.thedrum.com/news/2014/05/20/mccain-foods-appoints-tmw-digital-agency "20 May 2014 - 1:06pm | posted by Ishbel Macleod | 0 comments McCain Foods appoints TMW as digital agency McCain Foods has appointed TMW to handle its digital account, following a four way pitch. etc" And for Fever PR: Http://www.gorkana.com/news/consumer/pitch-wins/fever-wins-sky-pitch/ "Fever wins Sky pitch 23 April 2014 Sky has chosen Fever as its retained agency to develop and deliver campaigns for internet TV service NOW TV after a four-way pitch. etc"
A further addition to the Health division: Http://www.creston.com/uploads/1400082291_Creston_Walnut_announcement.pdf "14 May 2014 Consumer neuroscience specialist Walnut to strengthen insight offer Creston plc (LSE: CRE), the insight and communications group, is pleased to announce the addition of Walnut Group, a consumer neuroscience consultancy, to the Group. Walnut will further strengthen Creston’s insight offering, with its market-leading neuroscience capabilities available to other Creston companies to support branding, marketing, advertising, research and PR work for clients. Walnut was founded by Dr Cristina de Balanzó, one of the country’s leading exponents of the measurement of the unconscious. Prior to establishing Walnut in January 2013, Cristina was a strategic planner at McCann Erickson and then global head of neuroscience for TNS. She is an expert in the application of neuroscience to marketing and advertising campaigns and is well known as a lecturer and conference speaker. etc"
20 May 2014 - 1:06pm | posted by Ishbel Macleod | 0 comments McCain Foods appoints TMW as digital agency Share2Tweet9 0 in Share . 0Share11 McCain Foods appoints TMW as digital agency McCain Foods appoints TMW as digital agency McCain Foods has appointed TMW to handle its digital account, following a four way pitch. TMW will manage digital media, website, content and social media for McCain Foods. Mark Hodge, marketing director at McCain Foods, said of the appointment: “TMW impressed us with their FMCG expertise and particularly their knowledge of reaching our target audience online in a relevant way. We are looking forward to working in partnership with them to really take our digital communications forward in line with our exciting marketing plans over the next 12 months.” The agency will also look to amplify McCain’s sponsorship of Emmerdale through digital channels as part of the account. Of the win, Melanie Schouw, business director at TMW, said: “We’re thrilled to be working with such an iconic brand as McCain. Their ambition in digital makes this opportunity all the more exciting for us an agency and we can’t wait to get started on the next phase of their digital journey.”
.....yet still well and truly on a single-digit P/E with consensus 12.25p EPS forecast this year, plus a 4.1p dividend.
topped up at 92p & 82p a couple of months ago when all was doom and gloom. Now all this optimism is bothering me...
CRE was tipped as a Buy yesterday as follows FYI: Http://t1ps.com/shop/page-article/action-article.show/id-130025754 "Creston - Trading update 1 Days ago (2014-04-28 12:45:32) Marketing services company Creston (CRE) has announced in a brief update that following an improved second half performance it expects revenues and headline profits to be in line with consensus for the year to March. Revenues will be £74.8 million, down slightly from last year's £75.2 million, with cash (excluding deferred consideration) ahead of expectations at £7.5 million. Creston has also announced that David Grigson, Non-Executive Chairman,will be stepping down following the firm's AGM on 8th September. He will be replaced by Richard Huntingford, a member of the Board since September 2011. This follows news earlier this month that Kathryn Herrick, former Vice President Finance for Europe, Middle East and Africa at technology firm Equinix, will begin as Chief Financial Officer in July. She replaces Barrie Brien, who took over the CEO role at the end of March from Don Elgie. A brief but reasonably encouraging update from Crestion. In particular we note that the update implies revenues growth of 1.1% in the second half, which is a good sign after the firm posted a 4% revenue fall in the first half of the year. While the current management changes are not fully implimented yet we would hope to see further comments on strategy from the firm when results are released on 11th June. Valuation... Creston shares have recovered since the disappointing performance at the interims, and at the current 111.75p the firm is capitalised at £67.4 million. Of course, a fallback in the economy remains one of the key risks to the investment case, as are the loss of major clients and the volatility in marketing budgets. However, we note that Creston appears to be benefitting from trends recently reported in the recent IPA Bellweather report, which reported that marketing budgets in the UK saw their biggest increase in 14 years in Q1 2014. The markets are now looking for pre-tax profits of around £9.4 million for the full year just finished, which implies an earnings multiple of around 9.9 times. The implied yield is 3.2% given the interim payment of 1.2p per share and that the firm is now looking to move towards a one-third/two-thirds dividend split. On balance, we believe that Creston remains one of the more solid firms operating within the industry and one of the cheapest in valuation terms. "Buy"."
It wouldn't surprise me to see CRE tipped in various places given the P/E of only 8.8 and a 3.8% dividend yield. There was very little stock available on Friday, so any buying may have a decent effect on the share price. And it's currently boom times in CRE's sector: Http://www.thedrum.com/news/2014/04/16/ipa-bellwether-marketing-budgets-see-biggest-surge-14-years "17 April 2014 - 6:03am | posted by Jessica Davies | 0 comments IPA Bellwether: Marketing budgets see biggest surge in 14 years with traditional media outstripping internet spend for first time in 3 years Marketing budgets have seen their biggest increase in 14 years, with almost 30 per cent of companies registering an increase in budgets during the first quarter of 2014, according to the latest IPA Bellwether Report. This is markedly higher than the fourth quarter of 2013, during which only 11 per cent of companies listed an increase in marketing budgets, with 12.3 per cent the highest for the whole of 2013. Nine per cent of companies registered a fall in marketing budgets, which, along with the 30 per cent that cited an increased, resulted in a net balance of a 20.4 per cent quarterly rise. etc"
Interesting trades reported, with a 100k buy at the full 110p offer and a late buy of 20k at 110.23p, above the 110p offer price. Plus sells are achieving almost the mid-price. I'd say there's some stakebuilding going on.
Edison have a new note out today: http://www.edisoninvestmentresearch.com/research/company/creston They forecast 12.4p EPS and a 4.1p dividend this year, which makes CRE look very undervalued - as they themselves note in their conclusion: "Valuation: Discount remains substantial The share price remains at a substantial discount to the sector of 35% on a calendarised 2014 P/E and 31% on EV/EBITDA, which is primarily a reflection of the current earnings plateau. Clarity on the strategy for moving profits and earnings ahead and delivery against market expectations, as well as a continuing strong net new business win position, will help close the valuation gap."
Excellent news from today's year end trading statement: - in line with 11.2p EPS expectations, leaving CRE on a P/E of just 9.5 - with a 3.9p forecast dividend - and a £7.5m cash pile, ahead of expectations "Barrie Brien, Group Chief Executive, commented: "I am pleased with the second half performance in which we have achieved revenue growth over both the first half and the same prior year period, putting us in line with consensus. Following the busy period of pitching in the first half of the year, new business wins had a positive impact as expected"."
This really is undervalued, happy to sit and wait, finals next month, now generally debt free with the economy picking up these should do well.
A further win for CRE alongside Lowe - this time OFGEM: Http://www.campaignlive.co.uk/news/1229996/ "DLKW Lowe wins energy awareness brief By Jeremy Lee, campaignlive.co.uk, Wednesday, 05 February 2014 10:47AM Be the first to comment DLKW Lowe has picked up the advertising account for the electricity and gas regulator Ofgem after a competitive pitch process managed by the Crown Commercial Service. The agency won the business alongside Creston’s TMW and Fever PR following a pitch that began in November, and has been briefed with creating a campaign to help consumers understand a new regulatory regime brought in by Ofgem’s retail market review. The review introduced restrictions on the number of tariffs that energy suppliers may provide and standardised charging structures to make it easier for consumers to understand the energy market and choose a supplier accordingly. Tom Knox, the chairman of DLKW Lowe, said: "We are delighted to have been given this opportunity, as this is one of the most important issues facing consumers today and it is vital that the reforms that Ofgem have initiated are widely understood and that consumers have the tools they need to make informed choices about their energy supply.""
From the Mail - great to see the highly respected Giles Hargreave backing CRE (and HVN, which I also hold): Http://www.thisismoney.co.uk/money/investing/article-2565525/Back-best-British-profit-recovery-As-economy-booms-share-success-home-grown-businesses.html "SMALL COMPANIES The FTSE 250 Index – consisting of the 101st to the 350th largest companies – has outperformed the FTSE 100 in recent years. Giles Hargreave of investment manager Hargreave Hale says: ‘Smaller firms are best placed to benefit from the UK recovery. There are so many to choose from with huge scope to outperform.’ Hargreave is backing recruitment company Harvey Nash as well as marketing services company Creston. He says: ‘Both of these firms will flourish as the jobs market improves and companies spend more on marketing and advertising.’"
Another quoted company win for CRE's PAN Communications following the win of SDL - this time a NASDAQ-quoted company: Http://www.businesswire.com/news/home/20140224005213/en/Carbonite-Selects-PAN-Communications-Global-Agency-Record#.UwxxYtGPOUk "Carbonite Selects PAN Communications as Global Agency of Record Leading Provider of Backup and Recovery Solutions, Carbonite partners with PAN to Focus on Public Relations, Content Development and Digital Media February 24, 2014 09:00 AM Eastern Standard Time BOSTON--(BUSINESS WIRE)--PAN Communications, a public relations and digital media agency for the technology, consumer and healthcare industries, was selected by Carbonite (NASDAQ: CARB), a leading provider of backup and recovery solutions, to serve as its PR agency of record and to support the company’s shift to the small to medium sized business (SMB) market and increased focus on the channel. etc"
I note this positive write-up from Shareprophets: Http://www.shareprophets.advfn.com/views/4060/creston-plc-a-tip-of-the-year-update "Marketing services group Creston plc (CRE) was one of my tips of the year – and, having risen to a current 109.5p, the shares have performed well thus far. The following updates my view post a trading update from the company earlier this month. The trading update reported that “the board is comfortable that the full year results will be in line with market expectations” after a “good improvement” in operating profit margin and improving 1% decline in third quarter (to 31st December 2013) like-for-like revenue against the corresponding 2012 period. Although the company remains “cautious with regard to the ongoing impact of the volatility in some of our clients' marketing budgets”, it notes reassurance from “successful pitching for new business in the period and by the outlook captured in yet another positive recent IPA Bellwether report in terms of increased marketing spend”. Researcher Edison backed this latter point up – commenting in a following note that “the various market forecasters are all anticipating stronger growth in the marketing and advertising sectors in the UK for 2014, with some help from ‘even year events’, but mostly as a consequence of a more positive economic environment… (the) rapidly shifting backdrop favours agencies such as Creston with a digitally focused offer”. The researcher is forecasting a full-year pre-tax profit of £9.4 million, generating earnings per share of 11.3p, rising to £10.3 million and 12.4p respectively next year. I continue to believe the latter year numbers are quite possibly conservative on rising client sentiment and contract wins feeding through and, though a return to revenue and earnings growth does still need to be proven, also continue to consider there to be rating uplift potential on this being delivered. With a prospective still 3.5% dividend yield whilst a further re-rating is awaited, the shares continue to look to offer good value."
Excellent news from CRE's USA subsidiaries - a series of contract wins, including in particular the brief for Alere, who are a huge $3 billion m/cap company: Http://www.bulldogreporter.com/dailydog/article/pr-agency-news/cooneywaters-group-signs-new-clients "February 6, 2014 Cooney/Waters Group Signs New Clients Cooney/Waters Group (www.cooneywatersgroup.com), a group of leading healthcare communications companies, announced significant new client wins at each of its sister agencies. The range of new engagements further diversifies the group’s client base across pharmaceuticals, healthcare technologies and diagnostics, consumer health and nutritional supplements, as well as non-profit and international organizations. Among the new and expanding clients within CWG companies are: • Cooney/Waters—Corporate and product communications for Alere, the global leader in point-of-care diagnostics • The Corkery Group (www.corkerygroup.com)—Strategic communications and media relations for the Water Supply and Sanitation Collaborative Council, a United Nations agency focused on improving sanitation in developing countries • Alembic Health Communications (www.alembichealth.com)—Executive communications support for the Center to Advance Palliative Care, the leading healthcare professional resource for palliative care program development and growth “We continue to grow at each of our sister companies and in a wide range of healthcare industry sectors,” said Timothy Bird, President/COO of Cooney/Waters Group. “By offering an unparalleled scope of strategic marketing and communications solutions, advocacy relations and issue-oriented communications, our clients tell us we are uniquely able to help them address today’s complex healthcare communications challenges.” Many of these new client engagements include DJM (www.djmdigital.com), a Creston Health sister agency which expanded to the US in July 2013, as CWG’s digital service offering. DJM creates leading-edge websites and mobile applications, animation, outdoor media, video, and exhibition displays for health and life sciences companies."
Hold both so good news, good to see the relating here.
A "flagship account" win for CRE's Pan Communications agency: Http://www.businesswire.com/news/home/20140121005076/en/Customer-Experience-Management-Leader-SDL-Selects-PAN#.Uvs_7dGPOUk "Customer Experience Management Leader SDL Selects PAN Communications for Global Strategy, Content Development and Influencer Marketing January 21, 2014 09:00 AM Eastern Standard Time BOSTON--(BUSINESS WIRE)--PAN Communications, a public relations and digital media agency for the technology, consumer and healthcare industries, was selected by SDL, a worldwide leader in customer experience management, as its global agency partner. “We are thrilled to partner with this global leader and look forward to building the relationship as we enter the New Year.” PAN Communications is tasked to manage global public relations strategy for SDL in addition to social media, content and influencer marketing. PAN will lead efforts to reinforce SDL’s market leadership and build awareness of its expansive product portfolio. SDL chose PAN for its ability to present creative campaigns that drive awareness across key markets and truly integrate programs with other areas of SDL’s marketing priorities. This is a flagship account for PAN as SDL works with 42 out of the top 50 global brands. “SDL is a company that provides seamless global customer experiences across all brand interactions. We recognized PAN’s capabilities to leverage our assets and product strengths and turn our public relations efforts into an ongoing news cycle,” said Jessica Hohn-Cabana, vice president of global communications at SDL. “PAN has been a diligent partner, committed to setting metrics and applying measurement to our PR initiatives. We have already seen tremendous value and results from the partnership.” SDL plc maintains a global infrastructure across 38 countries and is publicly traded on London Stock Exchange. The company’s customer experience technology enables marketing to customers throughout the buyer journey, turning them into brand advocates. SDL helps build brand loyalty by leveraging customer and social data in order to deliver engaging and contextual experiences across languages, cultures, channels and devices. “Being selected by a leading brand such as SDL is a testament to the quality work of our technology and service focused teams,” said Nicole Messier, vice president of technology accounts, PAN Communications. “We are thrilled to partner with this global leader and look forward to building the relationship as we enter the New Year.”"
Good to see t1ps.com now upgrade their stance to Buy from Hold: Http://t1ps.com/shop/page-article/action-article.show/id-130025160 "Creston - Interim Management Statement & Stance Upgrade 3 Days ago (2014-02-06 11:39:03) In an interim management statement for the period 1st October 2013to date, marketing services company Creston (CRE) reported an increase in both revenue and profitability compared to the first two quarters of this financial year and the prior year period. Growth in profitability was driven by a "good improvement" in operating margins, along with a 1% increase in revenue compared to the prior year period. However, like-for-like revenue (which excludes the impact of acquisitions) fell by 1%, although this represents an improvement when compared to the first half of the financial year. There were several important new business wins during the period including the digital and CRM account for Virgin Trains and the social media account for Unilever's Stork, Bertolli and ice cream brands. There were also some notable synergy wins and referrals as a result of the recent co-location strategy. These included a contract for the Federation of Small Businesses and the British Chambers of Commerce (for market research, PR and digital advertising), and for Canon (market research and digital advertising). In terms of outlook, the firm said it remains cautious with regard to the ongoing impact of the volatility in some of its clients' marketing budgets but is reassured by the successful pitching for new business in the period. It also pointed to yet another positive recent IPA Bellwether report in terms of increased marketing spend. Management remain comfortable that full-year results will be inline with market expectations. Assessment & valuation... The improving performance at Creston is in tune with the latest IPA Bellwether Report, which showed that marketing budgets were revised up for the fifth consecutive quarter in Q4 2013. The report revealed a net balance of +11% of companies registering an increase in budgets during Q4 2013, down slightly on the series record of+12.3% in Q3. The fact that marketing & advertising spend is one of the last areas of economic activity to pick up in a recovery suggests that firms like Creston should do well should the UK economic recovery continue to assert itself. Of course, a fall back in the economy remains one of the key risks to the investment case, as are the loss of major clients and the volatility in marketing budgets. The shares have rebounded since the disappointing performance at the interims, and at the current 96p Creston is capitalised at just under £58 million. The markets are now looking for pre-tax profits of around £9.4 million for the full year, which implies an earnings multiple of around 8.3 times. The implied yield is 4% given that the firm is now looking to move towards a one-third/two-thirds dividend split. On
This article from just yesterday confirming that Havas are looking at making a number of acquisitions. Havas of course already own 6% of CRE. The most relevant part is the focus on data analytics, which points particularly to CRE's digital expertise and research ability: Http://online.wsj.com/news/articles/SB10001424052702304450904579366572322155360 Extracts: "These opportunities include organic expansion and acquisitions in emerging Asian and South American economies, as well as in Havas's mainstay European and U.S. markets" "In Europe and the U.S., which together contribute more than 80% of revenues but where growth prospects are weaker, "we are focused on buying some expertise," particularly by acquiring companies specializing in data analytics and solutions, the executive said."
A 276,839 share buy at 98p was reported late yesterday from the previous day, and this morning we had a further 100,000 share buy reported late at 98.5p from yesterday - 0.5p above the 98p offer price. It seems the MMs are trying to keep this one under the radar :o)) Singer's say Buy with a 119p target: Http://www.wkrb13.com/markets/255811/creston-plc-receives-buy-rating-from-n1-singer-cre/ "Creston plc Receives Buy Rating from N+1 Singer (CRE) Posted by Nolan Pearson on Feb 3rd, 2014 // No Comments Creston plc (LON:CRE)‘s stock had its “buy” rating reiterated by stock analysts at N+1 Singer in a report issued on Monday, American Banking & Market News reports. They currently have a GBX 119 ($1.96) price target on the stock. N+1 Singer’s price objective indicates a potential upside of 26.26% from the company’s current price.... ...A number of other analysts have also recently weighed in on CRE. Analysts at Nplus1 Brewin upgraded shares of Creston plc to a “buy” rating in a research note to investors on Friday, January 10th. They now have a GBX 119 ($1.96) price target on the stock. Separately, analysts at Liberum Capital reiterated a “buy” rating on shares of Creston plc in a research note to investors on Friday, January 10th. They now have a GBX 125 ($2.05) price target on the stock. Finally, analysts at Liberum Capital reiterated a “buy” rating on shares of Creston plc in a research note to investors on Tuesday, December 3rd. They now have a GBX 125 ($2.05) price target on the stock."
Edison have a new note just out today, reiterating their forecast of 11.3p EPS for the year ending next month, against a 96p share price, with 12.4p EPS next year, and a 3.9p dividend: Http://www.edisoninvestmentresearch.com/research/company/creston They conclude: "Valuation: Substantial discount The share price remains at a substantial discount to the sector of 48% on a calendarised 2013 P/E and 20% on EV/EBITDA, narrowing to 34% and 17% respectively for 2014. This is primarily a reflection of the current earnings plateau. Clarity on the strategy for moving profits and earnings ahead and delivery against market expectations, as well as a continuing strong net new business win position, will help close the valuation gap."
Bought back some of these this morning. A decent trading statement this morning - in particular that CRE are "comfortable that the full year results will be in line with market expectations." This sounds very confident, and perhaps hints that with continued economic recovery, and the digital advertising oom, results could even be ahead of expectations. Forecasts are for 11.2p EPS and a 3.9p dividend for the year ending next month. A P/E of 8.5 and a 4% divi yield are pretty tempting, especially with DE now gone and a "new broom" taking the company forward.
What makes you say that, seagull?
Always thought this would re rate once Don disappeared.