George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
> there was a serious buyer just before the close of business today, but sellers seem to have had the upper hand since your "post" on the 2nd. Kev. Normally, the recent weakness in the share price would indicate caution in front of the anticipated trading statement. I just get the feeling that something is not quite right, which is a shame as a well covered dividend yield of �4% + is an attractive proposition. I suspect that the market needs information/closure on the fraud situation....
Personally, I think it worth topping-up at this price. Unfortunately I don't have any spare funds at the minute. The next trading update is due within the next 2 weeks or so. Let's hope it's a really good one and leads to a higher share price (once the sellers have gone).
It looks like an institutional seller dripping their stake into the market to me, which supports the same pattern we've had over the last 3 years with stock rotating from institutions /funds to PI's. It can't go on forever though. Apart from Miton, the only funds with decent sized stakes are Chelverton 1m, JP Morgan 1.25m, Cavendish 877k, alliance trust 763k, Hargreave Hale 407k. Hargreave have been selling in the last 6 months as have JP Morgan, although JP Morgan haven't sold any in the last 3-4 months. So, whoever is selling it can't go on forever as that's not alot of stock JP Morgan and HH have to shift
... she goes again. That's 10% over the past couple of months ..... any thoughts?
....and possibly the fraud problem...
Spread tightened up now and lots of volume on the book. Although tbh I think the seller at 80 is fake and trying to entice sellers out, so they can get it sub 80. I think the problem if there is one is guilty by association. CLLN, IRV, it was BBY a couple of years ago.
... and from a dealing view the near 9.5% turn is unattractive. Of course this will narrow with increased volume > but there never seems to be much volume. The general disinterest and hence the poor rating cannot be put down to the pension deficit alone as many co's have this problem .....so there must be a problem
This must be the most frustrating share ever. I cannot for the life of me see why a company paying a 4.2% dividend, with net cash of �2.5m, likely profits of �7-�10m, who have stated they will beat expectations from as early as February can have a market cap of �33m. That's a crazy P/E Ok , I know they have a sizeable pension deficit but that will have improved since the interims as interest rates are rising, which should have helped the share price. In addition they have recently won the double tower hotel in London each tower over 50 floors so that should provide an increase in the order book as Bishopgate hasn't fully worked it's way through and more importantly provide a decent sized project to support any downturn in 2018 if that does happen due to Brexit. Crazy
Yes, you are correct it's a very long article and i must admit I didn't read it all (speed read) I have some funds in CTO and I feel this company have bags of potential for growth. Marginally disappointing that the sp remains flat(ish) and the daily trades are minimal. A dividend was paid today and the dividend was a good yield for a small company. I intend to stick with CTO for some time and I may top up from time to time. ATB
New article about the recent acquisition - good to see CTO driving home the point about their move into the technology and big data space. Here's the intro and a paragraph about the potential use of Big Data (it's a long article): Http://www.tclarke.co.uk/news/the-strategy-driving-our-eton-acquisition "The Strategy driving our ETON acquisition Posted: 04th October 2017 TClarke Group Managing Director, Mike Crowder and ETON Director Jamie Ward set out the strategic picture behind TClarke�s acquisition of Integration specialists ETON Associates Technology is a strategic growth area for the whole construction sector The Construction marketplace is moving rapidly towards integration of all building systems and digital networks. This is being driven hard - both by end users and equally by principal contractors. Both see big benefits - in the efficiency of the building and the efficiency of the construction programme. Big data is transforming the world of property management by allowing building owners, users and operators to measure, manage and improve efficiency - whether that be by saving energy or using space in far better ways - but that only happens once you have integrated ICT systems delivering all the data you need. For principal contractors, the increasing complexity of data, security and alarm networks has added to the complexity of construction programming. On major integration projects we can now simplify this for them - allowing them to deliver high quality - but with less management and simplified construction planning, dealing with one supplier instead of four. Giving TClarke complete control for major integration projects This acquisition gives us complete control to deliver major integration projects. It is the perfect addition to our substantial existing capabilities - and we know through practical experience. Because ETON are not only market leaders, this team is one we have worked alongside on landmark projects like 22 Bishopsgate, Bloomberg Place, HM Treasury and Angel Court for over 20 years. So we know each other very very well, we share values and we know their teams and their leaders very well." "Now is the perfect time This move makes so much sense at this point in time because the technologies are now there to match the concepts. Big Data is a global reality now and it will have a massive impact across construction. For example, one global industrial company we know has a target of dropping their energy consumption by 1% and this would net them $1bn. It was not possible just a few years ago because the technology was not there. Now with IP addressable metering you can pick up 20 lines of information from a single meter and the potential to learn from the data and make savings can become a reality. The only 'But' is that you have to have truly intelligent buildings or you can't get the data you need to access the savings. As we move
Good to see buying at the full 85p offer price today. Here's news of a prestigious new contract win re London One Nine Elms, which must secure a further chunk of earnings for next year: Http://www.constructionenquirer.com/2017/09/22/t-clarke-bags-london-twin-tower-me-job/ CTO will get a very nice re-rating at some point: "T Clarke bags London twin tower M&E job Aaron Morby Building services specialist T Clarke has secured the electrical shell and core package for London’s One Nine Elms twin tower residential and hotel complex. Multiplex is main contractor on the £700m One Nine Elms project, which consists of the 200m tall City Tower, 165m tall River Tower and the luxury 5-star Wanda Vista hotel. The deal is a major coup for T Clarke helping to boost the firm London order book. It will be on site in 2018. One Nine Elms is being built for Chinese developer Dalian Wanda and ranks as the largest single property investment in Europe by a Chinese property developer."
Good to see someone spotting what's happening here: Http://citywire.co.uk/money/david-kempton-two-new-share-buys-and-two-howlers/a1048162?ref=citywire-money-latest-news-list "I have added to my T Clarke (CTO) shares, encouraged by its acquisition of building management services provider Eton Associates last month. T Clarke is much more than a boring old electrical contractor; apart from a record order book, up 23% at nearly £400 million, electrical demand is growing strongly. We need it for our banks of computers, mobile phones and soon robots, virtual reality and artificial intelligence – it is even involved in developing facial recognition building entry systems. On a projected year price-earnings ratio of 6.9, price to earnings growth ratio 0.8, dividend yield of 4.1%, cover of 3.5 times and cash of £9 million, the shares look too cheap and I’ve just bought some more."
A few AT trade buys at 85p have moved things along early today. Still lots of upside from a P/E of 6.9 imho.
....which is good. Except that Malcolm's got his figures wrong. The current year forecast is 12.14p EPS, with a 3.46p dividend. That's a P/E at 83p of only 6.8 (NOT 12), and a divi yield of 4.2%. Oh well. Which makes CTO even more of a bargain :o)) Https://www.*************.com/views/31234/victorian-engineer-stays-up-with-times-as-the-order-book-hits-record-high Extract: "Victorian Engineer Stays Up With Times as the Order Book Hits Record High By Malcolm Stacey | Wednesday 30 August 2017" "In the first half of this year, profits were up by 8% to £2.5 million. The interim divi was hiked by 20%. The current yield is 4%. The P/E ratio I have is a modest 12. Revenues for the first half were £143 million. So the company is operating on low margins which can only attract new custom - and it has a strong order book, with more business on the horizon than it's ever had before. There’s an opportunity to buy on a dip at the mo. On August 7th the share was 90p. Now it’s around 80p. For the reasons above, I believe it to be undervalued. This is a firm which has been so successful for so long, that it’s hard to see it going into reverse, especially as the world’s reliance on electricity and other engineering marvels keeps on getting stronger."
Turning upwards now - perhaps our seller is finished? A 6k buy at 81.5p has caused an early move up.
"The fact that the fraud COULD happen is a worry. A similar fraud...." Where on earth did this come from??????????? Thank you Ronaldo for your very relevant post.
from CTO's web site - a new office in Portishead and a full article about encouraging progress and 80% secured revenues in the South West, which was the one black spot in the H1 results: Http://www.tclarke.co.uk/news/portishead-office-builds-on-expanding-client-relationships-in-south-west "Portishead office builds on expanding client relationships in South West Posted: 24th August 2017 Rob Faro, MD of TClarke South West introduces some of the project wins and the strategy behind TClarke’s expansion in the South West with a new office in Portishead - one of four new TClarke operations around the UK. It really is a very simple story: we’ve been building steadily in the South West and our strategy has been highly effective. We have had a couple of project delays and cancellations, but we move on and the real picture is very straightforward. In the South West, we have already secured over 80% of our revenue target for the next two years, along with securing places on some longer-term frameworks and maintenance contracts - and it has all been based on the solid, long term TClarke principles of good people, good work and good relationships feeding more work. Main Contractor relationships are stronger than ever Relationships with main contractors like Kier, Willmott Dixon, Sir Robert McAlpine and Midas Construction have grown stronger and stronger, based on proof of what we can deliver and our ability to be good partners. We set out to build those relationships and make TClarke a leading name in M&E in the South West a few years back - Portishead is opening because those relationships have delivered opportunities for us and we are taking them. Relationships have driven major project wins Opportunities have led to a series of substantial project wins going forward. The Aspire project involves the upgrading of three military bases at Bulford, Tidworth and Perham Down. We have won work on substantial, high-end retirement living developments in Falmouth and Portishead. These are with Midas and end user Pegasus Life. We have also won projects with Willmott Dixon at the Plymouth History Centre and The University of Gloucester Business School and Growth Hub, both significant developments in the region. And right now, as we are about to hand over the Derriford Research Facility, which has further established the TClarke name for delivering complex M&E solutions in the South West, the picture is clear. We know that there are no short cuts to delivering quality - you need good people and good relationships, we know that construction has its challenges too; but you can see here in Portishead, through quality relationships in the South West, we have been able to expand our presence effectively, economically and in the TClarke way."
The fact that the fraud COULD happen is a worry. A similar fraud at COSALT a few years ago eventually led to such a loss of confidence in the Bod, that the company folded. Whilst not suggesting that could happen here, it indicates a lack of management control and that, although being addressed, is usually cause for a downgrade.
CTO have won a place on four regional airport frameworks worth up to £450m..... http://www.tclarke.co.uk/news/transport-division-selected-for-manchester-airport-group-3-year-framework "Transport Division selected for Manchester Airport Group 3 year Framework Posted: 09th August 2017 Following the release of our Interim Results earlier this week, TClarke is pleased to announce the following additional new contract win. Supported by our Nationwide coverage our Transport Division has been awarded a place on the MAG (Manchester Airports Group) EMA Small & Medium Works Framework covering M&E projects up to £3 million at East Midlands, Manchester and Stansted Airports. The Framework will run for an initial three years commencing immediately. Read Construction Enquirer's coverage here." http://www.constructionenquirer.com/2016/11/18/take-off-for-four-airport-frameworks-worth-450m/
Latest forecasts from N+1 Singer FYI: this year : 12.14p EPS, 3.46p divi next year : 13.16p EPS, 3.66p divi This summary of CTO's new manufacturing operation hasn't been posted here before - well worth a read, particularly the concluding para re Big Data: Http://www.tclarke.co.uk/news/stansted-is-tclarkes-centre-of-manufacturing-excellence "Posted: 07th August 2017 As TClarke announced the acquisition of ETON Associates, it was also announced that ETON’s precision controls manufacturing operation would be relocating to our newly opened Stansted Manufacturing operation. Group CEO Mark Lawrence highlights the power and potential of the whole operation. A series of high quality manufacturing operations under one roof At Stansted we have a 26,000 Sq ft purpose built manufacturing operation, where we will be manufacturing and prefabricating a range of mechanical modules and pipework, manufacturing a range of precision controls and associated equipment for our Healthcare Division and also manufacturing complex control panels for our newly acquired Buildings Management Systems operation. Put that together and you have a sizeable and very powerful manufacturing operation that can develop into a true centre of manufacturing excellence and practical innovation that’s dedicated to supporting our clients’ projects. Meeting the challenge of increasing building services complexity As the complexity of building services increases, so the challenges of maximising value, speed and efficiency - both in the construction process and in the end result you deliver for the building owner or user - also increases. What you can see with TClarke is that we are amassing the full range of skills and expertise that clients and principal contractors will need in order to meet those challenges fully. The market has an appetite for TClarke quality services and approach Technology and the arrival of Big Data is now sweeping through the property industry, transforming the needs that end users have for their buildings. It is this market-driven demand that we have identified and are meeting with TClarke services. People know that our brand stands for directly employed, highly skilled and highly motivated teams. What you see in Stansted is one aspect of the changing face of Building Services and we’re glad to be driving things forward for our clients."
Great to see CTO getting some press attention. The shares are much too cheap and are due a re-rating imho - hopefully this will kickstart that process: Http://www.thisismoney.co.uk/money/investing/article-4805538/MIDAS-TIPS-Historic-firm-T-Clarke-electrifying-Britain.html I particularly liked the emphasis on the growing need for ever more complicated electronic systems and technology: "Electrical work plays an increasing role in almost every commercial building and retail outlet. There are more computers, mobile phones and other electronic devices than ever before and electronic systems are used for everything from security to temperature control. T Clarke is also involved in cutting-edge technology, such as systems that use facial recognition to let employees enter a building and move around it and can even predict where staff are likely to go once they arrive at work. Midas verdict: T Clarke has been in business since Queen Victoria was on the throne. The group was innovative back then and it remains so to this day. At 76½p, the shares seem too cheap and the dividend is a further attraction. Buy."
today.
i would suggest two reasons: 1. It appears there were a number of short term speculators who bought before the results who closed the moment they saw the results weren't going to drive it higher 2. I think the £2m loss in the Central and South division was enough to spook a few people. Memories of CLLN, IRV, BBY - some really don't like any form of surprise or hint of accounting wizardry. I don't see it this way. I see it as the company being completely transparent at the first possible opportunity and they do state it will make a profit in the second half. The market can stay irrational for some considerable time...
Anybody explain why the price fell so much after the results. Thought they were good (apart from the southern area) with a higher than last year future order book and an increase in the divi. Are things really that bad that justifies a fall of 10%?
N+1 Singer today increase their EPS forecast to 12.1p for this year and increase next year's to 13.2p EPS after yesterday's acquisition. They see £10m net cash at the end of this year rising to £12.3m going forward - against a £38m m/cap (basem1, I assume cash is seasonal - it was lower last H1 and increased greatly at the year end).. They see an intrinsic value of 100p+. The results are good, though not as blow-out as I'd hoped (as igoe said) due to the disappointing performance in one area (Central and South-West), which should be remedied in H2. The order book is still large, though also has slipped slightly to under £400m since the last update - presumably due to Central and South-West. Remains undervalued and a quality outfit. The share price has fallen first thing as short-termers have sold, as many were expecting blow-out results which didn't materialise, due to one area's underperformance. I'd expect a big bounce from the initial markdown to 73p or so.