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just added some at 77p...initial target over £1 , not unreasonable to consider 1.20p + looking at chart
https://twitter.com/surprised_trade/status/1127847826992652289
Good to see PTSG starting the week strongly and continuing the bounce - a nice 50,000 buy just now at 82.6p.
PTSG is a buy and build model, consolidating regional businesses into a nationwide solution.
If you are a multi-site organisation, you can contract with one of the UK PLC FM organisations for compliance services (expensive and risky Carillion/Interserve) or deal with lots of regional businesses to fulfil not sending the board of directors to jail. PTSG has become a one stop national shop for compliance which is a more cost effective route and simpler solution that the two alternatives.
This type of budget is driven by legislation and would be a the top of the spend list for most mature organisations.
£200m Government funding for cladding replacement will benefit PTSG. The larger multisite organisations will want to use PTSG. One company, one big invoice, one solution.
Debtor days is an issue but getting better. There is a simple solution. PTSG does not issue the compliance certificate until payment is made.
I am part owner of a UK national FM business. Having met the directors of PTSG and understand the strategy I am very comfortable with the plan. UK PLC FM share prices have been battered. This is a high margin business with 88% renewal rates and long term contracts and growing.
At some point PTSG will be purchased by one of the big FM companies. John Foley has a successful history building a nationwide FM business and selling the company to a large player:
hxxps://www.birminghampost.co.uk/business/maclellan-group-goes-to-interserve-3983203
Major top up today.
.... have been following this stock since Sept '17 (200.5p) & at last, with the government taking over the funding a spotlight may well shine on PTSG.
Not before time.!
Grenville will help this cladding issue remaining in the news & as you say the Stock has a modest rating.....
It's interesting to note, regarding yesterday's story re the Government's proving £200m for cladding works, that owners of buildings will have just three months to claim the funds.
Which suggests that there will be an imperative to get the works completed relatively quickly.
Apparently "166 private buildings out of 176 identified with the cladding after the fire in June 2017 have yet to start removing the material":
Https://www.bbc.co.uk/news/uk-48211833
"The £200m bill to replace Grenfell Tower-type cladding on about 150 private high-rise blocks in England is to be met by the government."
"Owners of private buildings will have three months to claim the funds, with one condition being that they take "reasonable steps" to recover the costs from those responsible for the cladding"
Markets always overreact. PTSG perhaps flew too high, but has now overreacted too far the other way given a current year P/E of only 5.5.
Note also the comment that PTSG's markets "are underpinned by compliance demand".
Plus there will be more news flow from the AGM on 17th June in only a month's time.
the renewed pressure to replace the cladding on private tower blocks should give even more business to PTSG. Some developers like Barratt have funded remedial work but Berkeley Homes has some 20 schemes identified as having unsafe cladding. I am way out of the money with this share so need the price to more than double before approaching breakeven
Since my ill-timed post of 15th April (sp had fallen 15% as of last night), I have been trying to catch a falling knife and averaging down as PTSG has looked woefully undervalued for some time. So quite hopeful with this morning's update that all is not lost :-)
GLA
GS
PTSG are confidently on track for 13.6p EPS this year, which makes them look ridiculously undervalued at 69p.
Recent acquisitions "are performing ahead of management expectations". And "a number of significant three to five year contracts and framework agreements have been signed across all disciplines", showing PTSG's visibility of future income:
Https://uk.advfn.com/stock-market/london/premier-tec-ser-PTSG/share-news/Premier-Technical-Services-Grp-PLC-Trading-Stateme/79883575
https://www.bbc.co.uk/news/uk-48211833
"Grenfell Tower: Government to pay £200m for safer cladding
28 minutes ago
The government is to cover the £200m bill of replacing Grenfell Tower-type cladding on about 150 private blocks in England with a safer alternative.
Housing Secretary James Brokenshire had previously said the bill should be footed by the owners, not the taxpayer.
But he acknowledged the long wait for remedial work to be carried out had caused anxiety and strain for people living in those high rises.
He said owners had been trying to offload the costs on to leaseholders.
Seventy-two people died when a fire destroyed Grenfell Tower, in west London, in June 2017, in one of the UK's worst modern disasters.
It took minutes for the fire to race up the exterior of the building, and spread to all four sides.
etc"
Since this month's SCSW is just out, it's probably reasonable to post their view on PTSG from their last issue. This was when PTSG were at 127.5p:
Https://www.scsw.co.uk/article.php?id=8004
"Premier Technical Services - Fire safety acquisition drives growth
127.5p Epic code: PTSG
I’ve just come away from meeting CEO Paul Teasdale post the release of 2018 results. Helped by the two recent acquisitions performing better than expected (M&P Fire running 80% ahead of when bought and Guardian +50%), sales are up 31% to £69.1m, operating profit +40% to £14.9m and eps +22% to 11.9p.
Turning to the two issues that have dogged it - share based payments and debtor days: the incentive scheme ended in 2018 and debtor days have improved by 16 days to 120 days. PTSG’s free cash flow increased by 152% year on year to £5.8m (this is after £1.5m of restructuring costs) with the underlying trading cash conversion increasing by 7 percentage points to 72%. This year will also see the first contribution from Trinity, which will help take compliance and testing to 70% of the business, reducing installation to 30%. Based on eps of 13.6p this year, the shares are not expensive. Strong hold."
Mr Smiley, would you be so kind as to buy again? I want an even lower price at which to top-up.
I just cannot understand how this has got so low - and then goes lower still. TRYING to restrain myself from topping up till you can see the trend has changed, it's really hard....
As far as I can see even the shorts have closed.
The consistent & continually drop in this SP for no obvious or disclosed reason if something I've not seen before. Seems clear a select few know something the rest of us don't.
The short held by Lombard appears to have been reduced/closed (may not be zero)
This may be the answer to the buys that were seen
https://shorttracker.co.uk/company/GB00BV9FPW93/
Hate to agree with you, Bram, but it looks incredibly suspicious. If those are real buys then how on earth has the price not changed? Tomorrow will it be up 5-10% from the off? There's me and many more been waiting for the sp to begin to look like stabilising and then.....?
Lots of big buys going through today - has this been manipulated for someone to buy in?
There’s a few reasons to question this company.
1 only 2 independent external directors
2 MD and CEO related - both surnames Teasdale and Chair also founder so again hardly a challenging sceptic
3 Questionable acquisitions in short succession that are significant relative to original size and therefore most of balance sheet propped up with intangibles of £40m
4 history of increasing share count each year significantly and dilutive effect
5 only £124k of cash on balance sheet at year end given £10.4m overdraft
6 disproportionate size of share scheme costs - over £2.3m
7 more a symptom but a few hedge funds short including Lombard odier that goes over 0.5% FCA disclosure threshold
For the record here's what SCSW had to say in their last but one issue (s/be OK to post now as enough time has passed):
"Premier Technical Services - 10% upgrade to forecasts
(Sharewatch) There was another upgrade after PTSG bought Trinity Fire & Security. Established 22 years ago, Exeter-based Trinity specialises in testing, maintenance and installation of fire and security systems. PTSG is paying £10.8m in cash upfront plus up to £5m based on performance over the next two years.
It therefore doubles the existing Fire Solutions offering (sprinklers and dry and wet risers) and takes it into fire detection and alarms and some security related services.
Trinity’s revenue run rate is c.£40m of which c.£24m is recurring from its maintenance base of 8,500 contracts, generating EBITDA of c.£2.2m. Trinity has c.£3.1m of cash so is bought on c.6.2x operating profit and is eps enhancing from day one, even before synergies from office and employee productivity. Numis has increased its 2019 pretax profit and eps forecasts by c.10% to £19.9m and 13.6p, respectively. Buy."
In order to guarantee a further price fall, I bought in today... more seriously it is very hard to see bad trading news hard on the heels of:
- a "no reason" RNS,
- an increase in bank facilities (bank due diligence - ha ha)
- a final results RNS that contained the statement "2019 has started well as we continue to deliver against our strategy to seek sector dominance in the markets we serve, and the Board is both confident and enthusiastic about the Group's prospects and performance"
- and what look like good contract wins.
I am guessing that whatever happens over the next few days/weeks, this time next year LTH's should be smiling.
GLA
GS
News that PTSG have won multiple contracts via CBRE for a variety of services at 800 sites for BT, plus presumably many others for Dulux and BUPA:
Http://www.ptsg.co.uk/news/ptsg-wins-multiple-contracts-for-household-names-for-cbre/
"PTSG wins multiple contracts for household names for CBRE
Premier Technical Services Group PLC (PTSG) has won major contracts with Dulux, BUPA and BT – all of which are under the CBRE umbrella.
The CBRE Group (Inc.), a commercial real estate services and investment firm, is the largest company of its kind in the world, managing 41 million square metres of assets across 20 countries. PTSG has a long and successful history of work with CBRE. In 2018 the Group attended the CBRE Preferred Supplier of the Year Event for the third year running, held for CBRE’s specially selected supply chain partners.
Engineers from PTSG’S four divisions will perform fixed wire and portable appliance testing, testing of fall arrest equipment and testing of lightning protection systems at sites for BUPA and Dulux as well as 800 BT sites throughout the UK.
CBRE is one of many large international organisations with which PTSG has long-established working relationships. Often beginning with the delivery of a single specialist service, contracts are invariably extended to include services from PTSG’s other divisions. This ‘bundled service provision’ is beneficial for clients, saving them the time and expense of finding multiple specialist service providers."
Yes, it's hard to see where they are going wrong. Shorts are rising, but still less than 1%, and only one company disclosed. There has to be a bottom somewhere, but of course....where? Too late to sell, for me, if I'm organised I'll top up: just a matter of trying not to catch the fallingknife. It's useful that they issued the "no knowledge" RNS as surely they can't do that and then come up with bad news. Can they?! :)
or it often is when the sp has been falling steadily and LTH's are finally talking about cutting their losses. Looking at past RNS's PTSG issued a "no knowledge" RNS in Feb which would suggest trading is OK. SCSW has covered them pretty consistently and likes the company. It is not always right in terms of timing but barring the odd hiccup its judgement is pretty good. I have not bought yet because I think the market may suffer more Brexit shocks before the year is out, but at this price, the company looks tempting with EPS of nearly 14p in the current year before acquisition synergies on an sp of 85p today. Could prove to be very cheap. And if Corbyn gets in I would think PTSG is in a sweet spot in terms of government spending. If we don't all get nationalised that is...
GLA
GS
This is looking similar to what happened at k3c over the past few weeks, kept on going down while sellers were in the know, then came the poor trading update and after that the rise, that might be the time to buy if that is what is happening
Morning Rugs. I am starting to get spooked out here after being a big fan of the company. The fall is relentless and doesn;t seem to have a support level. I am watching closely and won't be too far off selling.
hope this was you Rivaldo.......
Really don't understand why this well-run and profitable company has not attracted more buyers especially with the price dipping so low. rgds