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The Fire Services division continues to win contracts, with its "largest wet riser system yet" at what's set to be the tallest residential building in Europe:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-reaches-the-pinnacle-of-wet-riser-installation/
"Premier Technical Services Group PLC (PTSG) has started work on its largest wet riser system yet: at the 75-storey Landmark Pinnacle skyscraper on the Isle of Dogs, London.
Landmark Pinnacle is a 239-metre skyscraper under construction by developer Chalegrove Properties. It is set to be the tallest residential building in Europe and will have more habitable floors than any other building in the UK.
The system is split across three risers – low, mid and high – to provide wet risers across the 75 storeys above ground and two below ground level. The pumping system was commissioned in June to allow the system to be used during construction phase for firefighting purposes.
PTSG has significantly boosted its Fire Solutions capability in recent months, with the acquisition of market-leading companies in different areas of the country. With demand for its life-saving services continuing to grow, it is forecast to become the largest of the Group’s four business divisions."
Another very useful multi-year contract win for the Fire Services division:
Http://www.ptsg.co.uk/news/fire-solutions/its-can-do-for-ptsg-in-canning-town/
"Premier Technical Services Group PLC (PTSG) has been contracted for a major project to deliver a range of fire solutions at Brunel Street Works – a residential-lead regeneration scheme in Canning Town, London.
Galliford Try Partnership is constructing 975 mixed-tenure homes at the site off Silvertown Way in Canning Town on behalf of Opal, a joint venture between Galliford Try and Thames Valley Housing. The £400m development project, which has a four-year construction programme, will see the homes built across five distinct blocks, ranging from nine to 26 storeys in height. PTSG’s Fire Solutions division (north-west branch, formerly UKS) will deliver wet/dry risers, commercial and residential sprinkler systems across the whole project.
The project illustrates PTSG’s rapidly growing capability in Fire Solutions. Since it was established in 2017, Fire Solutions has become the Group’s second-largest division and as demand continues to grow, it could become the largest. PTSG delivers multiple niche specialist services and often forms sustainable relationships with clients who benefit from access and safety, electrical services and building access solutions, also offered by the Group."
The share price is moving up nicely again, as it has almost every day since the New Year.
Based upon the current forecast of 12.43p EPS for this year, PTSG are on a 2019 P/E of only 12.3.
Assuming that PTSG will soon be on the acquisition path again given the cash pile, one can see that P/E dropping to just 10 or 11.
Hopefully too the upcoming trading update will indicate that PTSG traded at least in line with expectations for last year, especially given the very positive outlook in late September.
Good to see the Firefighting division continuing to win work:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-reaches-the-pinnacle-of-wet-riser-installation/
"PTSG reaches the Pinnacle of wet riser installation
Premier Technical Services Group PLC (PTSG) has started work on its largest wet riser system yet: at the 75-storey Landmark Pinnacle skyscraper on the Isle of Dogs, London.
Landmark Pinnacle is a 239-metre skyscraper under construction by developer Chalegrove Properties. It is set to be the tallest residential building in Europe and will have more habitable floors than any other building in the UK.
The system is split across three risers – low, mid and high – to provide wet risers across the 75 storeys above ground and two below ground level. The pumping system was commissioned in June to allow the system to be used during construction phase for firefighting purposes.
PTSG has significantly boosted its Fire Solutions capability in recent months, with the acquisition of market-leading companies in different areas of the country. With demand for its life-saving services continuing to grow, it is forecast to become the largest of the Group’s four business divisions."
Last year's update was on 16th January, so not long to go. It should be rather good given the outlook from the interims:
"We remain both confident about continuing the positive revenue and profit momentum which is evident in the Group's results for the first six months of 2018 and also enthusiastic about our prospects for the future."
Numis has upgraded EPS forecasts to 11.9p for last year and 12.4p this year (2019). PTSG is extremely cheap on that basis imho.
Johns8773, the next results will be announced in March, but there will be a trading update in mid-January as per last year.
There's been another page - - 9 or 10 of them - of individual building contract wins etc since I last posted, but PTSG have just announced this which looks rather meaty and promising:
Http://www.ptsg.co.uk/news/ptsgs-regular-partner-engie-lands-40-year-contract-with-newcastle-council/
"PTSG’s regular partner, Engie, lands 40-year contract with Newcastle Council
Energy firm Engie has entered into a long-term contract with Newcastle Council worth £20m over the next 40 years.
ENGIE is a French multinational electric utility company, headquartered in La Défense, Courbevoie, which operates in the fields of electricity generation and distribution, natural gas, nuclear and renewable energy. This new contract will see Engie providing design, build, operation and maintenance of district energy schemes as well as contributions to funding and a project development role in partnership with NCC.
Engie is an established, first-tier partner of Premier Technical Services Group PLC (PTSG). Engie has contracted the Group’s engineers to provide a range of expert services over a number of years, including access maintenance work at Liverpool Central Library and fixed wire and emergency light testing at hospitals and a police station in Wales.
Partnership working has featured strongly in PTSG’s portfolio of 17,000 buildings over the last 11 years. Other first-tier partners include Skanska, Mitie and Multiplex. The Group has also partnered a large number of organisations which are household names in the UK, including Marks & Spencer, British Airways and HSBC.
PTSG received the Partners in Corporate: Private Sector award at the 2018 PFM Partnership Awards. This was for the design and installation two of the world’s largest BMUs at The Scalpel in the capital, through the Group’s London-based cradles specialist, Integral Cradles."
can anyone tell me when the next set of results are posted?
There's been almost two pages of contract wins and other news - 18 items - since I last posted, mostly re individual sites.
However, this new contract is pretty meaty, being fire protection, lightning protection and emergency services at 800 properties.
Hopefully this will also lead to further work at the rest of Metropolitan's 38,000 sites:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-awarded-contract-at-800-metropolitan-housing-sites/
"PTSG awarded contract at 800 Metropolitan Housing sites
Premier Technical Services Group PLC’s (PTSG) has secured a contract to carry out a range of electrical services and fire solutions at a portfolio of properties for a London housing organisation.
Metropolitan Housing provides housing at different levels of affordability for people living in London, the South East, East Midlands and East of England. Founded in 1963, the development consists of around 38,000 properties and Metropolitan is a member of the National Housing Federation and the G15 group comprising London’s largest housing associations.
PTSG’s skilled engineers are due to visit approximately 800 sites across the South East to deliver lightning protection and emergency lighting services and fire inspections. These are just a few of a wide range of services offered by PTSG’s team."
PTSG with its inbuilt qualities of necessity under compliance and regulation - and the astounding growth of the fire services division post-Grenfell - should come largely unscathed from any sector dips.
Current forecasts of 11.8p EPS this year and 12.5p EPS next year take no account of any further acquisitions with PTSG's available cash.
So the current year P/E at 140p could almost be in single figures soon.
Amati VCTs have just sent out their October newsletters - in it they note that "We took part in a placing for Premier Technical Services Group as they announced another earnings-enhancing acquisition".
Good to see the well-regarded Amati funds investing here.
Nice - a contract win for electrical maintenance work at 154 properties for Staffordshire Council, through to 2020 and likely 2021:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-protects-staffordshire-county-council/
"Premier Technical Services Group PLC’s (PTSG) Electrical Services division has secured a contract to carry out the electrical inspection, testing and maintenance of a number of sites within the Staffordshire area.
Founded in 1900, Staffordshire County Council is the top-tier local authority for the non-metropolitan county of Staffordshire. The Group has secured a contract to carry out electrical maintenance work on 154 of Staffordshire County Council’s properties.
The contract with the council is due to run from the 1st December 2018 to 30th November 2020; the client has proposed the option of an additional one-year extension on the project, running through until 30th November 2021.
PTSG Electrical Services will test electrical services and systems that conduct electricity around buildings to meet the BS 7671:2008 standard – a five-year mandatory requirement. The Group’s Electrical Services division has previously worked on similar projects, such as carrying out electrical testing and installations work for both Bath and North East Somerset Council, and Sandwell Borough Council."
Rivaldo. belated thanks for your recent posts. Was away. I need the price to get back close to £2 before breaking even but will stick with it as all these contract wins must mean something.... rgds
More contract wins on the web site - this is a decent-looking one, maintaining 350 Royal Mail properties for 3 years, so good recurring income:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-secures-three-year-contract-with-royal-mail-property-facilities-solutions/
"PTSG secures three-year contract with Royal Mail Property & Facilities Solutions
Premier Technical Services Group PLC (PTSG) has secured a three-year lightning protection contract with Royal Mail Property & Facilities Solutions.
Responsible for maintaining and upgrading one of the largest corporate real estates in Europe, Royal Mail Property & Facilities Solutions owns over 2,600 sites.....
....The Group’s skilled engineers are due to visit approximately 350 properties over the next three years to service and maintain lightning protection systems....."
Edison produced an update note on the new acquisition whilst I was on hols which hasn't been posted here:
Https://www.edisoninvestmentresearch.com/research/report/premier-technical-services-group527982/preview/
They've increased EPS forecasts to 11.8p EPS this year and 12.5p EPS next year (with 1.8p and 1.9p dividends).
Of course, they also have the firepower to make the already flagged fire services acquisition, which should further improve next year's forecasts.
Here's an extract re the new acquisition and the conclusion:
"There is an obvious opportunity to capture post-inspection repair and maintenance revenues, which Guardian does not currently carry out and also to cross-sell services to Guardian’s client base with which there is limited overlap."
"Valuation: Adding to growth momentum
Share price weakness and an earnings-enhancing deal have increased our three year EPS CAGR from 9% to 11% now and reduced the current year 13.2x P/E and 11.8x EV/EBITDA multiples down to 12.0x and 8.4x, respectively, by FY21.
Loads of news flow over the last couple of weeks on the web site, but these in particular are worth mentioning.
Firstly, PTSG have secured a multi-services contract at VISA's centre in London - this is the type of cross-selling win which PTSG's strategy is all about:
Http://www.ptsg.co.uk/news/access-safety/ptsg-puts-money-visa/
"Highly trained engineers from across PTSG’s four divisions will attend the site to provide lightning protection, fall arrest works, high-level cleaning, fixed wire testing and portable appliance testing (PAT).
The Group was awarded this contract as the client was specifically looking to source multiple niche services from just one provider."
Secondly, there's been a plethora of wins in sprinkler systems, fire services etc:
New residential development in Wembley:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-installs-sprinklers-london-housing-development/
New development in Tottenham:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-protect-residents-apex-house/
DLR railway station:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-installs-sprinklers-dlr-station/
New hotel in London's Trocadero:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-sprinkles-magic-london-trocadero/
Rugs, the share price has only fallen because institutional demand has been sated by the recent 157.5p placing to fund the Guardian acquisition - alongside the downturn in the markets of course. It's interesting that PTSG has been pretty solid compared to most. Any hint of good news, including any of the promised further acquisitions, and PTSG should zip back up pretty quickly imo.
Concur this company has great potential and all its recent purchases can only add to its attraction. So why in your view has the price been heading south ?
RNS - Danske Bank have increased to 4.64% from 3.3%, and now have a total of 6.18m shares:
Https://www.investegate.co.uk/premier-technical--ptsg-/rns/notification-of-major-holdings/201810181347035048E/
...and there we have it - 157.5p, which is a tiny 2.2% discount to the prior share price:
Https://www.investegate.co.uk/premier-technical--ptsg-/rns/result-of-placing/201810160700081145E/
Hopefully we'll see a nice share price rise now.
Excellent news tonight - a £20m fundraising to allow what looks like a very good £11m (net of in-house cash) acquisition in Electrical Services, which will be earnings-enhancing in the first year.
And will facilitate further acquisitions which are already lined up, including one in the Fire division.
No doubt the bookrunners will complete matters pretty quickly and we'll get a pricing RNS tonight or tomorrow morning.
An initial £11m looks a bargain relative to the acquiree's historic £8.3m revenues and £1.8m operating profit - together with high cash generation, a better debtor profile and also their own complementary and proprietary software:
Https://www.investegate.co.uk/premier-technical--ptsg-/rns/acquisition-and-placing/201810151651001039E/
Lots of news flow on the PTSG web site, but here's just one which is more significant, being this prestige - and possibly quite large - job installing sprinkler systems in a redevelopment at Regents Crescent in London:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-installs-sprinklers-new-landmark-development/
"PTSG installs sprinklers at new landmark development
Premier Technical Services Group PLC’s (PTSG) Fire Solutions division is currently working on installing sprinkler systems to a landmark development at Regents Crescent in London.
The Grade I-listed Regent’s Crescent links the West End and Regent’s Park and is set to be converted back to the residential use for which the original 19th Century building was intended.
etc"
And more good PR for sprinkler systems post-Grenfell here:
Http://www.ptsg.co.uk/news/fire-solutions/thisweekinfm-com-recommends-sprinkler-systems-fire-protection/
A sudden burst of buying, the most recent being £21,000 at 189p, has caused a nice rise.
Perhaps an overhang has been cleared.
Lots more news flow, including this which looks sizeable given Biffa have almost 200 sites across the UK:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-doesnt-waste-time-biffa/
"Premier Technical Services Group PLC’s (PTSG) Electrical Services division has been contracted to provide fixed wire testing for Biffa, the UK’s second-largest waste management company....
...This contract will see electrical engineers visiting all Biffa centres across the UK, including waste management sites, head offices and distribution centres. Fixed wire testing is a vital service protects buildings and employees from the two main electrical risks: fire and electrical shock."
And this is a prestigious - and likely technically demanding - win:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-works-style-versace-tower/
"PTSG works in style at the Versace Tower
Premier Technical Services Group PLC’s (PTSG) Access & Safety division has secured a high-level design and installation contract with Britain’s first fashion-oriented homes.
The Versace Tower in London has been named ‘Britain’s first branded building’. Located in Knightsbridge, building work on the tower began in August of this year and is due to reach completion in late 2020. The tower is 50-stories high, with options ranging from one-bedroom apartments to entire-floor studios.
PTSG’s skilled team will work on a 3D building information modelling (BIM) compliant design for its supplier to manufacture. Once these steps have been completed, engineers will then be able to begin installation work on site.
Engineers are due to visit the site in the latter half of 2019 to begin the work. PTSG’s qualified engineers have a vast amount of experience working for prestigious, high-profile clients such as this, having recently completed several access and safety projects for Burberry."
I saw PTSG present yesterday. IMO they were extremely impressive once again and I remain very confident about the future.
In no particular order:
- Electrical Services is twice the size of any UK competitor, but still has a relatively small slice of the market
- BEST testing margins are 15%, and the aim is to get to 30%
- Fire Solutions should achieve £15m-£20m turnover next year (it already has a £10m order book), against £6.2m turnover in the last H1
- PTSG are aiming for an Electrical Fire acquisition before next year's H1
- PTSG have 17,500 customers and 150,000 buildings. No customer has >3% of revenues. And PTSG has no exposure to retail/the High Street
- significant pipeline of acquisitions. 40 potential acquisitions in total, currently working on 12. After a consolidation phase, the next 6 months should be "very active"
- they've looked at 60 companies in the last year, so are very choosy. They want to achieve 10 times their money from acquisitions
- there's "no pressure on margins whatsoever"
- high barriers to entry. It's difficult for others to compete with PTSG's scale and efficiencies
- £3.5m of cross-selling in H1, and should double this year
- PTSG achieve £1 of additional service/maintenance revenues for every £1 of new business won, so high recurring income
- Fire Solutions have a £54m business pipeline, with a 6-9 months time lag. PTSG win 1 in 4 in that division, and 1 in 2 to 1 in 6 elsewhere
- re acquisitions, PTSG won't pay more than a multiple of 5 times PAT unless in special circumstances given the quality etc. Pipeline will cost from £1m to £15m each
- debt reduction in H1 was ahead of expectations. PTSG are aiming at a £4m reduction in the year, and achieved £2.2m in H1
- re debtors, DSO is around 130 days for the core business. This is standard for the industry. It's slow, and PTSG are improving - see the improved 81% cash conversion - but this is just a feature of the sector. On the flipside there is very little bad debt given the blue chip customer base
Numis today reiterates buy rating and increases target price to 250p (from 220p):
Https://www.sharesmagazine.co.uk/news/market/6141367/Broker-Forecast-Numis-issues-a-broker-note-on-Premier-Technical-Services-Group-Plc
see this marked down this morning in view of the damn good results. Maybe some expectations were even higher.