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And a good new article about 10 successive years of growth: Http://www.ptsg.co.uk/news/ptsg-celebrates-10-years-of-successive-growth/ Extracts: "PTSG celebrates 10 years of successive growth Premier Technical Services Group PLC (PTSG) is celebrating its 10th anniversary today [28 February 2017], marking a decade of successive growth and expansion which has led to the company’s position as one of Europe’s leading specialist service providers. PTSG was founded by John Foley, Paul Teasdale and Bob Morton in 2007, with the objective of becoming the UK’s leading provider of specialist services through a combination of organic growth and acquiring businesses in niche markets. Over the last ten years, the business has grown rapidly to become the leading supplier of façade access and fall arrest equipment services, electrical testing, high-level cleaning and training solutions for over 15,000 customers. The company cares for more than 150,000 assets worldwide, and boasts a 450-strong team operating from 16 UK-wide locations to deliver a complete solution for its clients.... ....This strong market position can also be traced back to the sustainability of the company’s financial strength. It has a contract renewal rate of 88 per cent, the UK’s largest repair and maintenance contract base in Access & Safety and an efficient business model in all sectors, which has contributed to the winning of a number of industry awards, including CEO Paul Teasdale being named IOD’s Director of the Year and Yorkshire Post’s Entrepreneur of the Year in 2016. PTSG has also won a hatful of FM industry awards with organisations ranging from M&S, Unite Students, SES Engineering Services and Tubelines (TFL). The Group’s growing reputation for being able to deliver a vast range of niche services has seen its portfolio of clients swell, and it currently carries out work for a diverse range of companies and organisations, including the Royal Air Force, Carillion, Mitie, Bilfinger, the Co-operative Group, IKEA and many, many more. Paul Teasdale added: ““PTSG was created to fill a gap in the market for demand for a specialist business offering niche services. Today we are the UK’s foremost provider of specialist services. Since 2007 we have prided ourselves on recruiting the brightest talents in the industry as well as investing heavily in training and development as we believe that being a great place to work makes us a great company to do business with. “Looking to the future, as we continue to grow, we will continue to deliver based on our business philosophy of delivering well and delivering safely. This will be done by strengthening our teams where necessary, targeting planned investment in equipment and resources and maintaining a tight control on budgets. “I am confident that with our current resource pool and our approach to business PTSG will rem
http://www.ptsg.co.uk/news/access-safety/ptsg-keeps-law-in-order/ "Premier Technical Services Group PLC (PTSG) has agreed a three-year contract with nationwide law firm Irwin Mitchell Solicitors to provide a full range of niche services at the business’s offices. PTSG will perform a multitude of installation and testing works at Irwin Mitchell’s 14 offices across the UK. The services will include works from all four specialist divisions, such as electrical testing, fire and dry riser services, building and window cleaning, cradle and lightning protection services and much more. Irwin Mitchell is the biggest full-service law firm in the UK, with the largest personal injury practice in the country. It was established in 1912 in Sheffield, where its headquarters are still based, and it now operates in 15 British cities. PTSG is the leading provider of niche specialist services in the UK. One of the Group’s greatest strengths is its ability to bundle a diverse range of services into one competitively-priced package. Clients often expand their initial order to take advantage of the time, quality and cost benefits that come with using just one specialist service provider."
Heading for new recent highs now...
Http://www.ptsg.co.uk/news/access-safety/ptsg-renews-partnership-with-unite-students/ "Premier Technical Services Group PLC (PTSG) is continuing its partnership with Unite Students by renewing a contract to provide multiple services at the company’s portfolio of student accommodation buildings. PTSG, which won a top Premises and Facilities Management (PFM) partnership award with the team from Unite Students in 2015, supplies a range of services including testing works and certification at more than 50 accommodation blocks. Its cradles division completes maintenance works at a number of sites and also delivers site-specific risk and method statements. The renewed contract begins in March and will last for one year. Unite Students is the UK’s leading operator of purpose-built student accommodation. The organisation provides a home to 42,000 students in more than 120 properties across 23 of the UK’s largest university cities. This is just one of many contracts the Group has renewed thanks to outstanding delivery of original work, boasting a contract renewal rate of 88 per cent. Over its 10 years of operation, PTSG has grown to become an international multi-disciplinary service provider with thousands of clients across the public, private and voluntary sectors."
A very earnings-enhancing acquisition, with a net £0.9m cash acquiring £0.3m PBT and expanded capabilities. Extremely cheap on a P/E of only around 3.5: Http://www.investegate.co.uk/premier-technical--ptsg-/rns/acquisition-of-nimbus-lightning-protection-limited/201701160700071846U/
Lunchtime has brought the buyers out....
Good news. The "board's" expectations are normally in line with market expectations at minimum and are often better than market expectations. So PTSG should be earning at least 6.82p historic EPS - with 7.7p EPS forecast for this year.
Http://www.ptsg.co.uk/news/electrical-services/a-pipe-dream-come-true-for-ptsg/ "A pipe dream come true for PTSG Premier Technical Services Group PLC's (PTSG) most recent acquisition, UK Dry Risers Ltd, is ending 2016 on a high, having carried out a record number of installations this year. The total length of systems installed is enough to cover over 440 football pitches. The company has installed over 29 miles of galvanised steel pipe in total throughout the year, seeing a boost from its introduction to PTSG's broad and varied customer base. The pipes have been installed on a variety of contracts nationwide, with projects completed at several converted historic buildings, luxury developments, hotels and shopping centres, among many others. Dry and wet riser systems are specially designed fire-suppression systems required in high-rise commercial and residential buildings. The risers are used to distribute water throughout all levels of the buildings in the event of a fire, allowing fire rescue teams to fight fires from outside multi-storey buildings. With the acquisition of UK Dry Risers Ltd, PTSG's electrical services division now provides a complete fire services solution, helping to ensure the safety of electrical equipment, installing and maintaining emergency lighting and installing systems like these to protect buildings of all sizes from fire."
PTSG themselves have just posted an extremely positive Business Review for 2016, which surely points once again to a good year end trading update in the next couple of weeks: Http://www.ptsg.co.uk/news/2016-business-round-up/ "As for business performance, PTSG is stronger than ever, reporting solid growth and hundreds of impressive contract wins throughout 2016. Its acquisition of UK Dry Risers and UK Dry Risers Maintenance in July has added yet another specialist service to the Group’s portfolio, and introduced the benefits of its bundled service provision to many new customers. The contract renewal rate now stands at 88 per cent – the highest yet achieved in the Group’s nine-year history. Having already published a strong interim report earlier this year detailing impressive organic growth and high returns, PTSG looks forward to continuing this trend well into 2017." And there's four pieces of contract news in the last few days - that's 11 posted in December alone: Http://www.ptsg.co.uk/news/access-safety/ptsg-to-carry-out-multiple-services-at-john-radcliffe-hospital/ Http://www.ptsg.co.uk/news/electrical-services/ptsg-carries-out-fire-service-installation-at-west-quay-shopping-centre/ Http://www.ptsg.co.uk/news/high-level-cleaning/ptsg-roped-in-for-the-stratosphere-once-more/ Http://www.ptsg.co.uk/news/access-safety/ptsg-attends-standsteds-newest-hotel/ Http://www.ptsg.co.uk/news/2016-business-round-up/
Wow - First Pacific took 9.8m of the 10m shares placed by the directors, having already held 5.4m shares. They now go above 17% with 15.2% of the shares in issue: Http://www.investegate.co.uk/premier-technical--ptsg-/rns/holding-in-company/201612211016554771S/
yes I noticed that, the fact that we have risen well recently certainly suggests good news, maybe delayed buys and why we have risen
Up again today - seems to be ticking up every day now. Still only on a P/E of 11 for the year about to start, with a PEG of only 0.85 and more acquisitions likely.
December has begun with four new contracts already: Premier Technical Services Group PLC’s (PTSG) electrical services division has been contracted by North Kent College to provide electrical testing services for its campuses across the county. Http://www.ptsg.co.uk/news/electrical-services/ptsg-secures-five-year-electrical-services-contract-with-north-kent-college/ Premier Technical Services Group PLC (PTSG) has been contracted to carry out lightning protection works at One Puddle Dock in London, as part of a large-scale, £20 million refurbishment of the site. Http://www.ptsg.co.uk/news/electrical-services/first-class-opportunity-for-ptsg-at-network-rails-new-london-office/ Premier Technical Services Group PLC (PTSG) has secured a five-year contract to carry out electrical testing at Cheltenham College. Http://www.ptsg.co.uk/news/electrical-services/ptsg-goes-back-to-school-at-cheltenham-college/ Premier Technical Services Group PLC (PTSG) has been contracted to install lightning protection for a new development at 73-89 Oxford Street, Europe’s busiest shopping street, with around half a million daily visitors. Http://www.ptsg.co.uk/news/electrical-services/ptsg-secures-contract-at-new-site-on-ndons-oxford-street/
Two Buys - and a tick up on each of them. Not much stock around?
Here are some snippets from the Momentum Investor rec from last month FYI. "Premier Technical Services - Provider of specialist safety services enjoys 50% eps upgrades 73p Epic code: PTSG (Momentum Investor) The support services sector has been under the cosh due to problems particularly at Mitie, which is focused on low skilled services like mainstream cleaning and security where competition is fierce and operating margins are only c. 5%. MITIE has also taken a multi million pound hit from the national minimum wage and cited a slow-down in local Government business. In such an environment, however, even the good businesses get dragged down and shares in PTSG, which provides specialist services for commercial buildings such as fall-restraint systems for working at height, electrical testing, fire prevention and high level cleaning, have come sharply off a recent high of 97p. One vexed question we asked CEO Paul Teasdale when we spoke to him over the month was whether PTSG has suffered from the same problems but he says categorically not. It’s quite different because it provides specialist niche services, which the big players like MITIE simply don’t want to do and last year it enjoyed operating margins of 20.5% while it has virtually no local council exposure. He also highlighted his firm’s break-neck growth with eps forecasts for the year ending 31 December 2016 upgraded from 4.6p at the time of the float in February ‘15 to 6.8p now, with 7.6p expected in FY ’17. Access and Safety div op margins of 16.7% in FY-15. PTSG is the market leader and only national designer and installer of fall arrest or fall restraint systems for working at height. Demand for services driven by legislation with high renewal rates at 88% Electrical services - From a standing start in FY’10 profits have increased rapidly to £2.5m last year, with operating margins a fine 24% and Numis expects profits to double again to £5.2m by FY’17." They finish off with: "The stage looks set for a banner couple of years for PTSG, which is now eyeing up significantly larger acquisitions in view of its greater size thanks to its strong balance sheet; it has £4.5m of un-used bank borrowings while there are c. £6m of expected earn-outs over the next three years, which will be financed by internal cash flows. Teasdale is also excited about the potential for cross-selling with less than 5% of clients taking more than one service. The MITIE shock-wave has created a terrific buying opportunity and with the shares trading on a soon-to-be prospective PE of only 9.6, they should be standing significantly higher in a year’s time. The low PE suggests investors don’t believe its outlook is robust but Teasdale rubbishes this by noting that at the start of every year over 50% of expected revenues is already booked thanks to its spine of repeat business from testing, inspection an
FYI this is how Numis summarised PTSG in their initiation note from last month, with a 125p target: "PTSG Initiating Coverage Strong growth, high returns Premier Technical Services Group (PTSG) offers an attractive combination of rapid revenue growth, high margins and ROCE. It is the market leader in the provision of specialist services in Access and Safety, Electrical Services and High Level Cleaning, yet has less than 10% share. We forecast an EPS CAGR of 19% (2015-18), but expect PTSG to continue its track-record of EPS upgrades. Trading on a 2016 PE of 11.5x and EV/EBIT of 9.9x, we think the shares are significantly undervalued. We initiate with a BUY recommendation and 125p price target (60% upside). Strong revenue growth. PTSG has delivered a 24% revenue CAGR 2009-15 (14% organic, 10% acquired, we estimate). Its addressable markets are worth around £600m, implying a PTSG share of c.6%. Its activities are highly regulated, creating both barriers to entry, and high levels of repeat business. Renewal rates on maintenance contracts are high (88% in 2015). PTSG has undertaken 20 acquisitions since its formation in 2007. We expect PTSG to continue taking market share both organically and through further acquisitions. Sector leading margins. PTSG has consistently delivered gross margins >50% and adjusted EBITA margins >20%, 2012-15. The specialist services, and unit rate pricing (rather than cost plus) lend themselves to high gross margins in inspection, testing and maintenance services. The attractive EBITA margins are generated through a combination of scale, national coverage, and use of technology, that serve to maximise engineer utilisation and leverage costs. Attractive returns. Between 2010-15, post-tax ROAIC has averaged c.42%. Post-tax return on operating capital, which more closely approximates the return on organic investment, has averaged c.74%. We think that management has established a strong track record of significantly improving the profitability of the businesses that it acquires, driving attractive returns on that investment. We estimate that the company has c.£5m of headroom against current facilities to undertake further deals."
thanks Rivaldo, high hopes for this company
News dated 1 day ago: Http://www.ptsg.co.uk/news/electrical-services/scotland-puts-national-trust-in-ptsgs-lightning-protection-services/ The last couple of paragraphs are interesting in terms of (a) recurring income and (b) recent successes: "The contract will see the Group's highly skilled engineers at 20 sites across Scotland, testing lightning protection systems and carrying out servicing and repairs wherever necessary. All works will be carried out to British Standards, and as ever, will demonstrate the commitment to quality and safety on which PTSG has built such a strong reputation. This announcement follows a number of other recent contract wins for PTSG's Electrical Services division for lightning protection services; including a national framework with the major UK retailer Timpson, and contracts with Anglian Water and Ofsted; further enhancing the Group's reputation as one of the leading suppliers of niche specialist services across the UK."
Http://www.thecerbatgem.com/2016/09/27/premier-technical-services-group-plc-ptsg-given-buy-rating-at-numis-securities-ltd.html 67% upside isn't bad at all....
Excellent results - and much confidence for the future, including the likelihood of more earnings-enhancing acquisitions. With H2 benefiting from the two recent acquisitions, it's possible to see forecasts of 6.84p EPS being beaten. On not far off a single-figure P/E we should see a decent rise from here: "Interim Results 2016 Strong growth, high returns Premier Technical Services Group PLC ("PTSG" or the "Group"), the niche specialist services provider, announces its interim results for the six months ended 30 June 2016. Key highlights -- An excellent start to 2016 with revenue of GBP18.5m (2015: GBP11.7m) an increase of 57% -- Organic growth contributed strongly at 21% -- Operating profit growth of 47% to GBP3.7m reflecting strong growth and cost control -- Gross profit of GBP9.5m up 49% -- Integration of the 6 '2015 businesses' has been fully completed with a strong contribution to growth in H1 -- New sector expansion with two further acquisitions in 2016 of UK DryRisers and UK DryRisers Maintenance Ltd. -- Strong contract wins and renewal rate >80% -- Adjusted EPS of 3.19p up 44% -- In line with our progressive dividend policy the interim dividend has been increased by 52% to 0.70p per share (2015: 0.46p per share) John Foley, Chairman of PTSG, said: "We have a distinctive, scaleable and efficient operating model which can deliver a broad range of niche specialist services on a national basis. We serve a fragmented, broad customer base and currently provide services to more than 100,000 buildings on behalf of over 12,500 customers. We have identified a pipeline of carefully selected acquisition targets which can in due course further expand our range of service offerings. We intend to continue along the path of producing organic growth on existing and acquired business through the expansion of our service offerings and by gaining market share due to the increased scale, range and efficiency of our activities. The Group is trading in line with recently upgraded market expectations and we continue to face the future with confidence."
Bought a few of these myself and added some this morning - I picked today's lot up at less than mid-price, so some may still be available at a bargain rate. Results are due in less than 2 weeks, and we already know that they'll be good, trading in line with recently upgraded expectations. PTSG are barely on a double-digit P/E, and pay a reasonable dividend. Nice recurring income too.
According to PTSG's website they have won 9 contracts since 30th June including work in Iraq and Barbados. hxxp://www.ptsg.co.uk/news/ Looking forward to a record set of results.
Freefloat is about 22%. The IPO last year gave the company a good push into the limelight. Mark Slater seems to like it and talked in detail at last years investor conference. I wouldn't be surprised if the CEO fattened up the company with bite sized acquisitions, stripping out overlapping cost and so on. Then float another 30+% into the market. on a good growth track record. PEG of 0.29 Chairman and CEO own 27% each. That's a good amount of skin in the game - which I like alot
Lots of buys today but the mm's were happy to dole these out at 87.5p so I joined the party. Results look solid even if the full year pre-tax profit has slipped. The outlook seems strong especially if the acquisitions can be made to work. A very niche area with strong barriers to entry and I am looking forward to good growth this year and a rerate of these.