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They forecast 13.6p EPS this year with a 1.9p dividend:
Https://www.edisongroup.com/publication/earnings-growth-undervalued/23892
Summary:
"FY18 results met market expectations but PTSG’s share price performance
over the last six months has been weak, in contrast with rising earnings
estimates over this period.
Acquisitions have been a good fit in our view and with a prospective net debt:EBITDA below 1x we still consider the company’s financial position to be set conservatively.
A PEG of c 0.7x and FY19 P/E of 7.2x provide a gauge of the weakness of sentiment for PTSG, which we expect to deliver a double-digit three-year earnings CAGR."
Interesting to see 1.02m shares just notified at 104p - perhaps the clearance of an overhang which has caused the price decline.
Yes, not sure what is is ? Big sales going through looking at the timings and the price movement I think these are sells and not buys. Anyway I have taken then the 40% hit on these just don’t trust the board.
If you read the latest company accounts they seem a bit dodgy, for example £500k of interest free loans for key personnel. Also unusually there is a auditors note
“We consider there to be a specific risk associated with the consultancy services given Trinity was subsequently acquired post year end. We have focused on the judgements taken by management in recognising the consultancy services income of £1.6m as other operating income in the current year rather than accounting for the two transactions as linked transactions (by reducing the purchase price by the amount of the consultancy income).”
what is going on with this share , all we hear is good news and the price drops , am I missing something ?
Very nice contract win with the rather huge Sodexo:
Http://www.ptsg.co.uk/news/electrical-services/testing-times-with-new-sodexo-contract/
"Testing times with new Sodexo contract
Premier Technical Services Group PLC (PTSG) has signed a new contract with Sodexo, the French food services and facilities management company, for supplying testing services across multiple disciplines.
Sodexo is one of the world’s largest multi-national corporations, with 420,000 employees representing 130 nationalities. They have a presence on 34,000 sites in 80 countries. PTSG has been contracted by Sodexo on numerous occasions over the past few years, with a notable project taking place at Diageo’s London headquarters. In the new contract, PTSG has secured work at eight sites so far, with a great many more to come.
Engineers from across the Group’s Electrical Services and Access & Safety divisions will carry out the testing of lightning protection systems, fixed wire and portable appliance testing and the testing of fall arrest equipment.
PTSG’s contract with Sodexo is typical of the Group’s multi-disciplinary capabilities. In supplying a number of different services, clients can save a considerable amount of time, effort and expense in finding different service providers."
Terrific results, with 11.86p EPS slightly ahead of Edison's expectations and up 22% from last year.
Nicely confident outlook, with 2019 starting well.
Fire Solutions is roaring ahead post-Grenfell, but it's great also to see Access & Safety and Building Access also expected to continue to thrive.
Debtor days have reduced nicely to 88 days (from 97) and cash conversion continues to improve.
With 13.86p EPS forecast this year, a 124p share price looks extremely cheap imho.
Agreed, good news. A vote of confidence from HSBC - extending banking facilities by a further £10m, and at reduced margins too.
So PTSG save money and have further security to allow further growth both organically and via acquisition:
Https://www.investegate.co.uk/premier-technical--ptsg-/rns/increased--50-000-000-banking-facilities-agreed/201903250700118032T/
Results out tomorrow.
Very positive statement re new banking facilities , 3 x better figures since 2015, share price should reflect this of north of £2
Lots of new contract news on the web site, but PTSG describe this in particular as a "major" new contract win:
Http://www.ptsg.co.uk/news/electrical-services/ptsg-to-go-to-school-in-swansea/
"PTSG to go to school in Swansea
Premier Technical Services Group PLC (PTSG) is to undertake lightning protection remedial and upgrade works for the City and County of Swansea.
In a major new contract, PTSG Electrical Services Ltd. will bring the lightning protection systems at a number of educational establishments, of which there are around 100 in the County of Swansea, up to a first-class operational standard."
Excellent trading update issued whilst I was on hols.
Great to see the improvements in net debt, cash conversion and debtor days. And:
"Trading during the first six weeks of the current year has been strong, and recent acquisitions are performing in line with management expectations."
The results in just over two weeks should provide further pep to the share price.
After the recent Triton Fire And Security acquisition acquisition forecasts for this year are now 13.6p EPS, with a 1.9p dividend.
That's a P/E of 9.1,
That's being corrected today Rugs. Very strong today and like you I was shocked given the statement that this din;t jump more strongly when it came out. Still way off its highs so there should be more to come here.
No reason for the dramatic price collapse over past few months or no reason why the price has risen 2-3p ????
Hopefully the decent volumes today and the bounce indicate the exit of the likely institutional seller.
The share price has imo been smashed down to a ridiculous level due to a combination of a poorly carried out sell programme by an institution and concerns over the likes of Interserve which have no bearing on PTSG.
Numis' forecast for this year has been INCREASED to 13.6p EPS - leaving PTSG on a P/E of only 7.9. Crazy.
Looking at the late afternoon trades yesterday somebody has confidence in the company....
I sold my 2500 shares yesterday morning. They were held by Hargreaves Lansdown - and I tried to sell them on-line in a normal fashion. But I was repeatedly told that this could not be carried out in the current market conditions. I was surprised - since the EMS is 3000 shares, so there should have been no problems in getting a bid/offer quote. So I requested a Fill or Kill order with a minimum price of 128p (at the bottom of the displayed band), and this was carried out. Thereafter the price continued to fall. My initial holding goes back to October 2016, with a later top-up on July 2017. At that stage everything seemed to be going well, with lots of orders, and the share price rose accordingly. I remain puzzled by the size and speed of the current price fall.
Kilo
Thanks yours. . have been here since Nov '17 so my average is around £2/share. Don't have the courage to average down, again, and still reckon this company seems to be making all the correct moves and regularly gaining new contracts. Will wait a little longer before I seriously think of bailing out. rgds
I don't know what has caused the collapse. Since I feared that there was some bad news that had not become public knowledge,I bailed out at 128p. Its possible that someone has carried out a more in-depth analysis of the acquisition of Trinity (announced 21st January) and come to the conclusion that its not good news (at least in the short term). But I'm simply guessing. Another possibility is that some (future) major buyer is first attempting to ramp down the share price by placing a succession of modest sales. However I jumped while I still had a reasonable profit.
has caused the sudden collapse in the price ?
Cannot see any news or big recent sales to cause price to fall. Have others any idea ?
Plenty more new contracts and installations on the news pages, but this one makes good reading post-Grenfell re installing sprinkler systems in a 60 apartment residential scheme - and this comment is also encouraging:
Http://www.ptsg.co.uk/news/fire-solutions/ptsg-makes-prestons-first-independent-living-scheme-fire-safe/
"Engineers from PTSG Fire Solutions Ltd. continue to experience an extremely high demand for their specialist services."
New note from Edison - they increase EPS by 10% for this year and now see 13.6p EPS:
Https://www.edisoninvestmentresearch.com/research/report/premier-technical-services-group131641/preview/
Extracts:
"Trinity acquisition enhances earnings by c 10%
PTSG has announced the acquisition of Trinity Fire and Security Systems along with a brief trading update noting that FY18 ended in line with management expectations. Trinity brings in a scale presence in electrical/electronic systems, while its expertise complements PTSG’s existing Fire Solutions capabilities and expands the combined service offer. We have increased our earnings estimates by c 10% and, on this basis, the stock is trading on FY19 multiples of 11.3x P/E and 8.7x EV/EBITDA."
"Valuation: Growth expected and to be delivered
PTSG’s share price has started to rebuild from the lows seen in December and the Trinity deal should further support this momentum. The 2017–20 EPS CAGR is now 14.6% on our estimates giving a PEG of c 1.1x and resulting in FY20 valuation metrics of 10.5x on a P/E basis and 7.6x for EV/EBITDA."
Numis say Buy and reiterate their 250p target price:
Https://endigest.com/2019/01/21/numis-reconfirmed-premier-technical-services-group-lonptsg-as-buy-has-pt-of-gbx-250-00-gagnon-securities-raised-its-netgear-ntgr-holding/
PTSG now have a marvellous and consistent record of EPS growth:
Https://uk.webfg.com/equity/Premier_Technical_Services_Group
2015 4.87p EPS
2016 7.63p EPS
2017 9.73p EPS
2018 11.86p EPS
Numis' increase of 10% today implies that this year they're now forecasting 13.7p EPS.
That's a current year P/E of only 11.2.
Numis have raised their forecasts by 10% for this year.
That means they now go fo around 13.7p EPS. Which puts PTSG on a current year P/E of only 11.2, which is far too low imo for a business which is increasing EPS by over 20% every year:
https://www.investorschronicle.co.uk/shares/2019/01/21/news-tips-glaxosmithkline-william-hill-superdry-more/
"Premier Technical Services Group (PTSG) has acquired Trinity Fire and Security, as part of its strategy to expand its fire protection business. Investors welcomed the £10.8m deal, sending the share price up more than 4 per cent in early trading. House Broker Numis has increased 2019 profit and EPS forecasts 10 per cent in response."
Excellent news today:
- trading is nicely in line with expectations
- and a transformational Fire Solutions acquisition from cash
Trinity seems like a bargain. It's costing a net £7.7m, yet now makes £2.2m EBITDA, and the £5m deferred is based on achieving stretching targets.
Plus two-thirds of Trinity's £37m revenues are recurring as they're largely based on regulatory compliance, so won't be disappearing anywhere for Brexit, recession or anything else.
With PTSG's record for cross-selling, margin enhancement etc Trinity should be more than capable of fast growth from here.