The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
I think those SWS articles are not very useful IMO. They are kind of AI generated, just looking at some key numbers. If you are going to invest in small caps and AIM stocks, you need to go deeper than a few headline numbers. Yes it has got a lot of debt, but sounds like it has headroom. Below is info from the RNS regarding the debt.
The debt facilities consist of a £70.0m senior finance facility and an undrawn revolving credit and overdraft facility of £25.0m, both maturing in November 2025 but with an option to extend for a further 12 months. Including cash balances of £36.6m, the Group had access to £61.6m of combined liquidity at 1 July 2023.
Nicely done. I should probably get some more here.
For clarity, my buy was the UT listed at 1635 for about £6k at 9.94p
I am in too with a first purchase at 9.99p, I think that is a good average?!
I am in.....A dividend paying,forward looking company,very well run....at a ridiculously low valuation.....I think must be worth more ,with fantasic management pulling all the right moves.....
Yes thought results were ok, and not surprised by recent outlook, seeing this again and again on many quality building companies. Now is probably the time to be buying. I would rather divi was cancelled though.
Full year EBITA expected to be between £23-30m compared to last year of £32m. Dividend is a sign of confidence.
That panic selling yesterday now seems pretty silly, particularly those desperate trades at 9.5p
I think management have done a fairly decent job even if the SP is at an all time low
In the context of the recent 33% drop in share price and the shape of the economy these results are not bad at all. They could probably hold back on some investment to support the outlook but they are looking to the other side of this mess and being prepared for the recovery. The increase in leverage is disappointing but there is a £10m payables outflow in there
Metrics going wrong way and trading has slowed considerably of late
Who read the rns yesterday then? Should be investigated with 3m+ volume
Well in present climate, seems a good set of figures.
A divi is a slight bonus.
Well done to management.
Gla
Tbh today's trading looks dodgy full stop. What is with all these single digit 'o'trades?
2 large trades for close to £100k at 9.5p at 1600 the day before results is pretty suspicious. Is it possible they are doing a raise? Surely not given the relatively low leverage. It price behaviour seems otherwise. Hopefully not an acquisition! Ah we’ll find out in the morning.
Market cap now £70m…
Only a few pence from the all time low in December 2020 after the rights issue. The issue was done at a price of 10p. So not a single holder in this company is up at this point in time. Since then they have grown sales and EBITDA despite making significant divestments, have introduced a progressive dividend policy and refinanced their debt at very favourable rates just before interest rates took off.
Current MCap of £80m is less than total debt, suggesting financial difficulties, although leverage at December was only 1.3x and should now be less. The covenant requires the ratio to be below 3x. They have a huge amount of headroom
Nonetheless, the SP is down around 33% in less than 2 months...are there insiders who have been given a hint about results tomorrow? For some reason a large holder has certainly decided to pull the pin in the last couple of weeks
They confirmed at the AGM in June that results are on track for H1 so is their nervousness about the outlook and strategy? The reaction tomorrow will be interesting, current trend suggests an all time low will be breached
1 day early this year!!
28/09/2023 at 07:00 (UTC+01:00
Half Year 2023 Results for HSS Hire Group plc
Results for the 26 weeks to 1st July will be released at 7am and available on the RNS feed on our website:
hTTps://www.hsshiregroup.com/investor-relations/rns/
Apart from the demise of Buckingham, and a higher than usual number of building companies going bust, the industry seems to be holding up well
Some good news about HS2 would no doubt be a boost but that seems unlikely
I'm reading several RNS's from building-related companies and not seeing anything in the outlook that suggests anything negative is expected. I've asked all my UK contacts in the construction industry and they report the same, they are busy things are OK. We shall see what HSS has to say soon.
I had not seen that note before, dont know if it is a new idea, but it is very handy. The whole sector is so cheap - for a good reason, but if you have the patience you can lock in some real bargains.
Had a look at the Zeus note Darton mentioned, its quite useful thanks for sharing. I could copy and paste all the data into excel and move some numbers around.
Sector HSS definitely the cheapest in the sector on most metrics, with Speedy not far behind. Speedy is 60% larger and with more free float and liquidity so would expect a premium. Speedy dividend yield is 2x that of HSS but HSS has double the coverage, taking the approach of paying a sustainable growing dividend while Speedy is paying out all its spare cash. Both have similar cash flow yield. HSS's capital light, technology driven, services business is a key differentiator. Still early days and its not easy to value these businesses separately
Both are trading on EV/EBITDA of 2.5-3x, P/E of 6, net debt/EBITDA of
Adjusted EPS was 5.25p. They lost some inventory which resulted in a large one off non cash cost. SP tanked which is when I started getting interested. But yes HSS is cheaper
Yes I will also look at Speedy, but the collapse here seems more interesting. If the dividend was maintained here, at 0.54p then the yield is about 4.5% at 12 pence a share. However, last year they did almost 3p EPS.
Speedy also seems to have issues, with EPS last year of 0.5p. That would put them on a very PE. Which is what this site shows for both. I prefer the PE of 4 for HSS. Looks like Speedy are trying to diversify as well, but only scanned. More home work. Thanks Ragn!
I'm also curious about Exponent. They have been in for over 10 years, made some money in the beginning, but since then down over 90%. Doubled down in the capital raise at 10p. They have seat on the board, will be intimate with the company, surely an opportunistic MBO has crossed their mind...
https://www.exponentpe.com/our-portfolio/hss-hire
Speedy also looking like very good value, similar valuation to HSS, higher dividend payout ratio for an >8% yield
Thankyou Bangrak. Very little action this morning on my L2 screen for HSS. SFE making new lows on £200 prints. Fun and games.
I will take a good look here over the weekend, but what is the angle with the 30% private equity? That could be interesting.
Dartron, it's rare i see someone discuss something on LSE who actually knows what they are doing, well done very refreshing. A bulletin board full of sensible people discussing reality but the majority don't want the reality they want a fluffy fan club and endless speculation. The price action here appears to me that someone just said let's get it down at any cost by bots trashing the order book on any weakness, traders bailed at the usual points. I saw it as a buy myself.