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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.
N+1 Singer will be updating their forecasts after tomorrow's results. They expect the results "to strike a positive tone following upbeat recent reports from sector peers (notably Morgan Sindall). The acquisition looks a very sensible fit, as T Clarke’s clients are demanding ever more sophisticated systems to control their buildings. The combination enhances T Clarke’s range of services in the targeted growth area of Intelligent Buildings." The acquisition alone will probably result in 4% EPS upgrades - hopefully the results themselves will prompt additional upgrades.
Good news. Looks like a sensible - and sensibly priced - acquisition, with £2m plus deferred buying £0.3m PBT, £0.7m net assets and an entrée into a new, complementary sector. Plus it's earnings-enhancing next year (and not this year probably only because CTO are on such a cheap rating already!): Https://www.investegate.co.uk/clarke-t---plc--cto-/rns/acquisition/201708070700042171N/
Looking positive before next week's results.....
I get something like. Projected profit =£9m. Number of shares = £42m. So, EPS = 21.4p. I suggest 8 x earnings as this is the construction sector = 170p less 5p as the cash is less than the pension deficit by about that amount = 165p. However you call it a share price of 85p is crazy low.
that with current market cap of £35m, strip out net cash of £9m (circa 20p/share?) reported at last results (I know this could have gone up/down since), expectations of underlying EPS now >11.3p/share; if we say a modest 10 x earnings a price of 130p is in reasonable? Any thoughts ahead of results on 8th August?
N+1 Singer note that CTO are presenting investment roadshows on both 24th July and 8th August. Good news.
N+1 Singer have left forecasts unchanged, but hadn't assumed any recovery at all, so expected the share price to rise by around 3p-3.5p today....hope they're right :o)) "Clarke has reached an out of court settlement for the recovery of £1.43m (by 31st December 2017) in relation to the financial irregularities identified within its subsidiary, DG Robson Mechanical Services Ltd (DGR). This represents approximately half the £2.8m identified as having been misappropriated within the original announcement of 31st October 2016. T Clarke continues to pursue other third parties in order to recover the balance of the misappropriated funds. We had prudently assumed no recovery in our forecasts and therefore consider this positive news this morning and expect to update our forecasts alongside the interims on 8th August. £1.4m represents c.4% of the current market cap and we would therefore expect the shares to respond accordingly."
Good news - £1.43m more cash to come in following stage one of the fraud monies recovery, with more hopefully to come: Https://www.investegate.co.uk/clarke-t---plc--cto-/rns/fraud-update/201707170700031744L/ Which is actually pretty material in respect of a £35m m/cap.
Https://www.investegate.co.uk/clarke-t---plc/rns/notice-of-results/201707111524057571K/ Since there's no commentary we can assume that nothing's changed since the AGM statement, which of course stated: "we expect revenues and profits for 2017 to be ahead of current market expectations". Enough said!
when there are only buys...argh!!
languishing. Clearly undervalued...One day...
Still attacking the high area at 90 but still can't quite get upwards and onwards. Patience required. there can only a finite number of sellers at 90
Seems cheap but refuses to budge!
Worth remembering the AGM statement from only two weeks ago - this year's forecast is now up to 11.92p EPS (with a 3.46p dividend), but that should be conservative with say 12.5p+ EPS likely and perhaps even the 14p EPS suggested above: Http://www.investegate.co.uk/clarke-t---plc--cto-/rns/agm-statement/201705050700072409E/ "Our confidence for the medium term is underpinned by this ability to secure significant projects in the markets where we operate. As a result of new project wins our replenished order book has for the first time surpassed £400 million and as at the 30th April stood at £402 million an increase of 22% since the beginning of the year. As a result of the strengthening order book and based upon current project programmes we expect revenues and profits for 2017 to be ahead of current market expectations, which are revenues of £300 million, underlying profit before tax of £6.1 million and underlying EPS of 11.3p."
Moving up to new recent highs, and AT trade buying at 93p now.
CTO's modus operandi is changing fast from a "mere" electrical contractor to a company able to provide the entire M&E package at far higher margins - and in-house using the new expanded facilities. It's these types of situations, where the market hasn't yet fully appreciated the changes taking place at a company, where one can benefit from a substantial re-rating whilst the company continues to perform. Worth noting that online is improving fast - I can now only buy a maximum 15k shares at 90.82p, whilst I can sell at least 20k at 88.5p.
It all looks good here. So I hope for more good news. As for risks... The main risk is inflationary pressures squeezing profitability. This could put a lid on share price growth. The fraud is quantified and is not going to have a material impact on their overall performance.
from CTO about the complete package they now offer: Http://www.tclarke.co.uk/news/why-is-22-bishopsgate-a-true-gamechanger "Why is 22 Bishopsgate a true ‘gamechanger’? Posted: 05th May 2017 TClarke’s Group CEO Mark Lawrence explains why 22 Bishopsgate merits that title and changes the landscape for both the commercial office construction sector and the TClarke group. This is a world-scale construction project with 1.275 million sq ft of office space, plus 100,000 sq ft of amenity space for 12,000 occupiers. Sir Stuart Lipton of Lipton Rogers calls it “a new Vertical Village campus, reflecting the City’s ever changing consumer base.” Pierre Vaquier, the CEO of the building owners AXA IM - Real Assets, says “22 Bishopsgate will deliver a new standard of workplace.” When you look at the project specification, both of those statements are readily validated; that’s why it is a very big deal to be involved, as TClarke are, in delivering the full range of M&E services. A new standard for intelligent office buildings When you walk into 22 Bishopsgate, advanced recognition systems will identify you automatically and give you entry to the building. The building’s systems will have the ability to then go on to find your team’s location on that day and the specific workspace you’ve been allocated. You will then get access to all of the services that you need - from lockers to gyms and so on - as well as your computer and, crucially, your data. If you pause to think all of that through, you can see that this makes huge differences to the way in which people can occupy, manage and use their space and services. Everything has the potential to become far more dynamic and far better attuned to the ways will want to work and collaborate with colleagues. The TClarke package is complex and comprehensive When you realise how advanced the building will be, you can understand the significance of being selected to deliver not just one but the whole series of mechanical, electrical, fire alarm, information systems and the extra low voltage packages. Bringing a building like this to life, helping to maximise the practical buildability of design, identifying key areas of challenge and opportunities for value creation and then having the capability and scale to deliver through the construction phase is a world-scale engineering challenge. We recognise the scale of the challenge and also the opportunity, working with Multiplex, to establish our expertise and leadership in the market, doing something that takes the whole industry forward. A project with strategic potential for the TClarke group TClarke is a highly skilled, value adding engineering business. We work on some of the most complex and challenging construction projects and this is what allows our people to remain among the most skilled and expert in the industry. This new standard of intelli
Good to hear that the huge new pre-fab facility has gone smoothly: Http://www.tclarke.co.uk/news/an-early-peak-at-our-vast-new-26000-sq-ft-stansted-prefabrication-facility "An early peak at our vast new 26,000 sq ft Stansted Prefabrication Facility Posted: 05th May 2017 TClarke’s new purpose built prefabrication facility at Stansted in Essex is a massive upgrade and investment in capability for our clients and their projects. A few weeks before the official opening, Director Richard Exell gives us an early peek inside the building. What we have here is a Prefabrication Facility, staffed by our own very high quality directly employed teams, operating on a considerably expanded basis, to deliver a lot more. We’re investing here because we are a world class operation and we want to support our clients - and their end users in the most efficient way for their projects. Prefabrication is one key element in the advancement of construction and the delivery of safer, faster, more complex projects - and buildings that can do more for their occupiers over their lifespans. This expansion gives us a considerably enhanced capability for our clients, our directly employed team is expanding, the range of technical services is expanding and the quality of the environment for our people is also considerably enhanced. Right now, a few weeks ahead of launch, we’re all tired but very pleased as a team to have brought the project in, on time, on budget."
Good news - and shows CTO's transformation from solely an electrical contractor: Http://www.tclarke.co.uk/news/southbank-place-is-our-largest-mechanical-project-to-date "Southbank Place is our largest mechanical project to date Posted: 05th May 2017 TClarke’s selection to work with Principal Contractor Canary Wharf Contractors is a major success as TClarke London Director Barrie Nightingale explains. This is a landmark project on London’s Southbank and our scope comprises mechanical and electrical packages for shell and core on two towers and also the M&E fit out on Building two. For anyone who has an interest in TClarke, this project win is worth taking note of because it shows how our strategy in our core London M&E business is developing. If you have followed the business over the last few years, you will know that in London only a few years ago we were solely an electrical contractor. You will know that we acquired a mechanical business with the purpose of growing our mechanical capability to match our electrical capability and compliment it. Strategically, this would open up a very much larger market to our services and it would also give us the potential to tender for integrated projects. Southbank Place is our largest to date and it is precisely the kind of very large scale combined M&E project for which TClarke would not previously have been able to compete. Of course it is easy to talk about ‘capability’. It is far, far harder to develop the practical excellence and to deliver the TClarke service onsite, day after day - and build a reputation in this industry. That takes time and it takes a lot of people working hard and doing a very good job. So selection for Southbank Place represents a moment to recognise the quality and commitment of the people in TClarke London who have built our mechanical business in the last few years, working project by project to earn an opportunity like this - they really are helping to secure our prospects for now and the future."
Good to see continued AT trade (institutional) buying today in 5k and 10k lots. It won't take much to bring new recent highs here.