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That's ended the financial year at 96.5p, just above the 95.2p to achieve the year on year target for the first year of the LTIP. Can start on the senior managers next year 40% target now for full vesting.
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CTP&ArticleCode=h8tpxxoq&ArticleHeadline=Implementation_of_Long_Term_Incentive_Plan
And announcement of the dividend for the full year.
Gone a long way since the speaking clock. Organisations will do just about anything to avoid speaking to customers if there's nothing in it for them, and save money. Bet the programmers can't wait for conversation between actual humans to end. Still, glad Castleton is there with all the rest of them if there's money to be made.
Out of interest I have done a little quick research into that. Basically, Alexa is a chatbot, now used as what is termed a 'headless user interface', programmed to learn with experience and respond to the most common calls from customers ( those who have not yet become digitally engaged ) and pass them on electronically into the housing management system, avoiding the cost of human interaction ( estimated time saving of 25% at call centre ) until for example, in the case of a repairs request, an operative is despatched. Stewart Davison, formerly head of business development at Capita Housing, provided proof of concept in 2017, and has today congratulated Castleton on picking it up and making that concept a reality. Slightly contrary to what I said earlier, it seems a practical cost saving measure which could prove attractive. Housing Solutions Homes, who I presume to be piloting this for Castleton, are the best judges and they seem to like it.
But I should say it may have earlier uptake, because if I understand correctly it will be implemented at the association end of things, rather than different bits and bobs being installed at tenants premises.
Yes. It shows inñovation and the ability and willingness to provide whatever customers decide they want on a fully integrated basis. It may be a bit like IOT, which never took off in social housing but may yet. The Agile mobile ( Castleton's entirely in social housing this month for free ) is IOT ready for when that has another go at coming into fashion.
I think that is more likely, as you mentioned, to do with reassuring potential and existing customers, signing expensive long term contracts, that products are future proofed and that they can and will be efficiently upgraded using evolving technology.
Presentation under way with Alexa. I expect some comment with final results as to the extent to which Amazon Alexa will feature in customer service.
I do not know the basis of the options but they amount to only £64k at today's price and 0.08% of shares following admission. So a little boost for certain employees.
Future of Housing Services 2019 Conference in London tomorrow. Castleton hosting session with Housing Solutions on new AI development.
https://www.castletonplc.com/events/future-of-housing-services-2019/
Demonstrating commitment, in collaboration with customers, to stay at the forefront of technological advancement in the sector.
Conference and exhibition starts at Liverpool tomorrow.( Scotland Roadshow same day also ) Castleton exhibiting, and now say of themselves:-
"our combined solutions are used more than any other provider to the sector, making us the No. 1 supplier in Social Housing."
It is in any event a profit taking, at no cost to other investors, with another holder taking the shares on at 95p for the future.
Forget that. I was looking at HL website which only shows 3 large trades. Should have known better. Can't rely on general sites.
Some big trades popped up from yesterday. Guessing, perhaps inter party £475k sell and buy, with both sides later reported to market. But good for us however you look at it.
On what I can see, Castleton absorbed an extra £24000 sales today, and the share price still made progress.
starting again for this year. Scotland first up.
https://www.castletonplc.com/events/castleton-roadshow-scotland/
Little turnaround during the day today.
Wouldn't surprise me if Kestrel were selling some ( as they did this time last year ) Usually at the back of things.
1p or so going to 1.5p or so next financial year, if justified by earnings. But it is sensible to take things in stages. It would be disappointing if the company does not achieve 10% growth, particularly as full vesting of the LTIP requires performance sufficient to grow the share price by 40% per year in subsequent years also. But that last is the top end requirement. Within the figures and the extent to which they may be proved correct, Finncap anticipate that quality of earnings will increase as a proportion of revenue, which is what I anticipated was likely, with that trend continuing next financial year, and they refer to 2019 itself as a year to excel. It is all subject to the business proceeding as planned, and benefitting from one or two new larger managed services contracts, alongside the cross-selling. There is much to report in the final results on developments this year, and there will be the usual outlook guidance. But first the trading update in April.
That last should read dividend of 1p per share.
Approaching year end, and if previous timetable followed there will be a pre results trading update early April.
Last year company stated results would be in line with expectations of not less than :-
£23.1 million revenue representing continued double digit organic growth, and
Adjusted EBITDA of not less than £5.0 million.
In the event, full year result was revenue up 15% to £23.3 million (FY17: £20.3 million)
Adjusted EBITDA up 17% to £5.1 million (FY17: £4.4 million)
Castleton has set itself a minimum 10% year on year growth target. Housebroker FinnCap set market expectations. FinnCap forecast :-
Revenue of £26.5 million ( adjusted upward from £26.3 million ) If achieved, a 13.7% increase.
Adjusted EBITDA of £6.3million. If achieved, a 23.5% increase.
Also a dividend of 1.1%.
I just put that up as a reference point to the limited information to be released in April.
6 and 7 March. Biggest conference and exhibition of the year for tech suppliers in sector.
https://www.castletonplc.com/events/housing-technology-conference-2019/
There should be an announcement of any change in status of options.
With all the recent developments the company seems to be going along well, following it's plan for growth. I think we'll be alright.
Don't know the exact terms, and it's all aspirational, but though they've been up there already I'm hoping it needs to and will be pushed back to 95p at 31st March before looking at next year's FinnCap 125p and LTIP 133p.
22nd. March 2018
'Under the LTIP, fifteen Senior Managers have today been granted options (the "Options") to acquire new ordinary shares of 2 pence each in the capital of the Company ("Ordinary Shares"). The Options are exercisable at the nominal value of the Ordinary Shares and represent approximately 1.7% of the current issued share capital of the Company. The LTIP provides for the Options to vest in stages dependent on the share price growth, with full vesting being dependent on the Company's share price growing at 40% per annum over the three year period from a base price of 68 pence, being the share price at the date the Board resolved to establish the LTIP.'
Castleton's position within the thriving market seems straightforward. It has recurring long term revenue, so the main risk comes from the potential of new entrants winning existing contracts with better solutions. That risk is minimal, given their now established position as a focused major provider with a full suite of fully integrated products, in-house product development, and given the barriers to entry and the cost to contracted customers of switching from satisfactory services. Castleton seems to be progressing steadily, and must continue to anticipate and satisfy the future needs of current customers, it's model being based on the existing large customer base and cross/upselling, and attracting new customers over time. One must remember that it has only recently gained full referenceability arising from complete suite implementations, to secure the larger and more lucrative fully managed services contracts. On future bottom lines, after next results, Castleton ends licence fee payments of £600k per year for the popular Agile mobile this month ( with no additional final payment as per original terms ) whereupon it comes at no cost to Castleton. I anticipate steady progress will be shown over the current financial year, and for future periods there will be a significant amount of free cash when set alongside the £617k operating profit in the last 6 month period. That is probably at least partially behind the announced intention by RNS but not yet formally declared to pay a (small) progressive dividend for the current full year.
Not going to Castleton's or any other suppliers strength in the market, yet another report showing the investor attraction of the UK social housing market in which Castleton operates.( with additionally Australia and ROI )
Bromford brings new American investors into UK housing with £100m deal at just 3%
NEWS
01 Mar 2019
BY LUKE CROSS
Bromford has raised £100m from five American investors at a spread of just 135 basis points over gilts, in a deal that brings another two new US funders into UK social housing.
The 20-year private placement priced at an all-in coupon of 3.01 per cent.
The spread is equal to the pricing of its longer-dated own name issuance last year, but well inside where its public bonds are currently trading on the secondary market and significantly below recent own name issuance from other large housing associations.
Five investors took part in the deal, which was siigned today (March 1) after Bromford completed roadshows in the US, Canada and London last month and presented to 15 prospective funders.
Of the five investors on the deal, two are new to sector, which follows a recent trend of new funders coming into social housing, particularly from America.
Social Housing revealed in January that Network Homes had secured £175m from six American investors, including one new funder.
Bromford’s order book was three and half times subscribed, which the group said highlighted “the strong level of interest from investors despite the prevailing uncertain economic climate and unprecedented difficulty recently observed in the UK markets”.
The latest funding package comes after Bromford – which owns and manages 44,000 homes and has the sector’s leading credit rating – raised £300m from UK sterling investors last year with an own name bond at 135bps, making it one of the tightest HA own name spreads of the year.
The group has also recently completed a three-way merger that has brought Merlin and Severn Vale together under the Bromford umbrella.
Bromford is planning to deliver more than 1,000 new homes each year, with a target of 14,000 homes over a decade. It was announced as a Homes England strategic partner last month.
Seen both sides of that one now though - sell and buy both reported.