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@comeonvog costain have installed new software that is incredible advanced they lost close 100m because of not pricing jobs properly. All new projects are put on this software that will be digital contracts the software has the ability to adjust at the slightest fluctuation manpower materials soil compositions etc and the construction firm and the company that commissions the project are tied into the software the software will provide a profit for the construction company that work on tiny margins this is real advancement and protection for construction firms .
COSTAINonly I think we all get that, but will they make any meaningful profit and will the government allow them to. Watchdogs will be watching government spend and how they award contract's. On top of all that as i have stated before with covid all projects will take longer to complete. The one hope i have is get this brudy Brexit sorted out with a deal or the UK will go into a deep recession no amount of building will rectify. IMO
Keep the faith . construction is the only solution for this government . Mop head will soon announce building programs that will involve local companies and run up the biggest debt ratio post 2WW Galliford costain Balfour all have healthy order books (they've got work) . When the service sectors start sliding to a non return. Construction will start to show it's strength it will be the core of the uk recovery
The whole of the construction sector is under pressure, difficult to make profit in this environment and with low profit margins they have little scope to improve. 60's next week i fear, about time our inept government stepped in and started to show some support or we wont have any industry at the end of all this. IMO
74.80. I expect 70p to be broken shortly
Not a bad win steady work over the years if I read it correctly 60 m per year if they were able to get there 2% of profits that's 1.2 million in profits.
On a company value at 85 million 1.2 million profit contract would be a massive contract win if they got there 2%
Not massive - but worth having.
Great news for GFRD....a very big and long timeframe contract
Hi Peter
They do seem to have a nasty habit of taking on really stupid contracts though! This is low margin work, so a high PER is not on the cards, but the assets seem to make this undervalued. Given the state of the EU withdrawal and the virus, it may still be best to sit on our hands.
The trouble is that we have thought that since about 120p.
Market cap 93.3m
Cash 197m
PPIs valued at 41m
Debt -57m
Therefore total assets exceed market cap by £181m?
PER is 9.5 and Price to Book is 0.77. Annual statement to end of June 2020 stated results 'in line' and all sites now back at work.
heading back towards 100p now it seems
seems to be looking up. Very cheap here and and a fraction of the highs. Some director buys would help
Have to say that I really like the setup here. Coming to the end of a large falling wedge with plenty of support around. Some bullish divergence on the RSI. Going to try to get in below 80p Monday morning I think and then post some rampy charts on twitter.
wonder if thats the bottom hit
74.88
2019 lost 33 million exceptional charges total loss of 15.8 million
2020 lost 54 million exceptional charges total loss 34 million loss also showing in 2019 section on 2020 was 64 million loss for 2019.
I need an edit button.
wish you well but remember
GFRD construction 2016 profit 15 million around 2.1% profits
2017 lost 88 million exceptional charges total loss of 88.8 million
2018 lost 45 million exceptional charges total loss of 29 million
2019 lost 33 million exceptional charges total profit loss of 15.8 million
2020 lost 54 million exceptional charges total profit 34 million loss also showing 2019 was 64 million loss on 2020 results.
but you get the picture is why I'm very wary of GFRD.
linden home use to keep construction running how long will that 200 million Bovis payment for linden homes money last.
Another way of looking at it GFRD group had net debt of 45 million, Bovis took the 100 debt note away should have left 55 million cash plus the 300 million cash given by Bovis = 355 million minus any tax on the 300 million and they have 197 million left.
Every year they say things have improved.
I think the lastest I saw was something around 1% profit margins hoping to get 2% in 2022 I think they gave up on that target for 2021.
They closed down Morrison construction if I recall correctly to save money yet still lost money all the while the profits % keep going down.
All the construction companies seem to be hitting loss year after year at the moment.
GFRD has the most money so will last the longest but there is risk tho also reward if they can finally turn it around
yep in tranching in gradually. Ill double up at 70p if it gets there. No real concerns given the cash position £190m with £140m of cash liquidity, no debt, £40m in other assets. Predicting a return to profitability in the current trading year and management say theyre currently meeting those expectations as all construction sites now back up and running. Divi will return as soon as they are chasflow positive also and id expect a huge move here as and when that happens.
Adding to that 90% of orderbook for 2021 is secured already with over 80% in public sector, Boris is going to go on a "build build build" stimulation package post covid to get the economy moving which will only benefit this company too.
3.2billion order book and growing with 2022 largey secured as well..
This is an easy one to nibble away at and see it 100%+ next year plus divi returned.
I’ve bought in again. It’s way too cheap. They should be trading absolute minimum mid 80s
Bought in a couple of months ago - felt the fundamentals were good - debt free and a good order book. Still feel the company is undervalued but guess they need to prove profitability. Sold because I can’t see the bottom here. The market doesn’t like the business -auto trades are ridiculous, continuous volume of low value sells are manipulating this share. I’ll buy back again once it’s stabilised but when that will be who knows? Time to cut my losses. GLA
scaling in. This is looking far too cheap
75.28p.
I do not think they will hit 50p and I doubt,t even 60p surely the risk v reward v cash flow would balance out, and with the 194 million in the bank versus the company value of 60 million surely this would out weight the dangers by so much that it could not happen until more news comes out. but we do live in strange times.
I think they need to show a full year on their own with-profits and no losses.
I am tempted with the 194 million in the bank but 194 million in the bank means nothing to shareholders if you don,t see any of it.
Big risk if they pop out yet another loss next year.
They hope to get 10 million before tax if lucky and if everything goes right and no exceptional claims maybe 8 million after-tax they may pay out 3 million like a 3-4% payout.
Why risk it when banks and insurances are likely to pay out between 5% and 10% next year.
GFRD would actually make more money buying LGEN shares with the 194 million and getting 9.5% returns.
The best outcome is a takeover or merger.
let us hope the board is amazing and they get that 2% returns in 2022 onwards with no claims. then things could be very different.