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Interesting that on PTSG's web site they expand slightly on the AGM trading statement with this rather nice additional paragraph:
Http://www.ptsg.co.uk/news/ptsg-reports-continued-growth-agm-statement/
"These results demonstrate the effectiveness of PTSG’s growth strategy and its impressive performance across the UK. The multitude of long-term contracts signed across all four divisions in the first half of 2018 is a strong sign that the organisation’s business success looks set to continue, and its teams are ready to deliver the high-quality niche specialist services they are known for to its ever-expanding portfolio."
Plus as well as a variety of other, smaller contract wins, a nice big contract won for Nationwide:
Http://www.ptsg.co.uk/news/access-safety/nationwide-building-society-invests-ptsgs-expertise/
"Premier Technical Services Group PLC (PTSG) will be visiting all branches of Nationwide Building Society across the UK to undertake a range of fall arrest testing services.
The Group’s specialists will inspect, test, repair and replace a range of equipment including staircases, handrails, ladders and anchor points. Falls from height remain one of the most common causes of injury in the workplace and planned preventative maintenance of this kind is crucial in ensuring buildings remain safe for all users."
And good to see PTSG's expertise being used at a Scottish salmon farm:
Http://www.ptsg.co.uk/news/access-safety/ptsg-hatches-safety-plan-scottish-salmon-farm/
I note the following encouraging news for PTSG:
Https://www.constructionnews.co.uk/data/week-in-numbers-soaring-fire-works-and-profit-margins/10032405.article
"Fire safety tenders post-Grenfell
The number of tenders for fire safety work issued by the public sector hit 221 in the year since Grenfell, compared with 142 in the preceding 12 months.
The figures, compiled by public sector procurement analyst Tussell, represented a 56 per cent year-on-year increase. Local government has led demand for fire safety work, with the number of tenders increasing from 49 in the year before the Grenfell fire to 98 in the year since."
Good rise today but still off its highs. It would be nice to see this above 200p again. Still a 10% rise even on the back of a newspaper tip is hard to match. Especially when the overall market is a bit soggy!
Are the reason behind the rise here this morning given the fan base
Great tip for PTSG today in the Mail on Sunday by Midas should see decent buying coming in, and quite rightly at these levels having consolidated for a while:
http://www.thisismoney.co.uk/money/investing/article-5877725/MIDAS-SHARE-TIPS-Making-buildings-safer-sure-bet-growth-PTSG.html
Good to see the hint that further acquisitions are likely - plus the ambition to triple the size of the business:
"PTSG is actively eyeing up prospective deals, as well, which will fuel growth."
"A stated ambition of expanding PTSG into a £500m business – almost tripling in size over the next few years. Brokers have pencilled in revenues of around £68m and profits of £14m this year. A 12.5% increase in the dividend to 1.8p is forecast, but this is primarily a growth stock".
I like the emphasis on growth too:
"this is primarily a growth stock, rather than an income-generating share.
Midas verdict: PTSG provides essential building services across the UK. The company has more than 17,000 customers and looks after 150,000 properties so it does not rely on any individual business or sector for work. Teasdale is driven and ambitious and the shares, at 178p, should do well. A good addition to investors’ portfolio, particularly for those looking for a long-term growth story."
Can't ask for more at this stage. Trading nicely in line with expectations, terrifically confident and a very positive outlook. I particularly like the regulatory compliance aspect, as well as the high revenue visibility: "Contract renewal rates remain high and a number of significant three to five year contracts and framework agreements have been signed across all disciplines with new and existing customers" And "unprecedented demand for Fire Solutions with UK Sprinklers trading 50% ahead of the acquired business." For the record, the only main analyst forecast out there is Numis' of 12.2p EPS this year (with a 2p dividend).
Lots of new contracts announced on PTSG's web site, but this article is probably the most important regarding a "PTSG-installed sprinkler system" suppressing a fire this week: Http://www.ptsg.co.uk/news/fire-solutions/importance-fire-suppression-systems-highlighted-lewisham-fire/ "Importance of fire suppression systems highlighted by Lewisham fire One year on from the Grenfell Tower tragedy, the importance of reliable fire safety systems has never been clearer. In the time since the fire there have been 221 tenders published for fire safety work – a 56 per cent increase on the previous year. Much of this has been driven by housing associations and local governments looking to ensure that their residents will remain safe in the event of a fire, following recommendations from the Royal Institute of British Architects (RIBA) and the National Fire Chiefs Council among others. The benefits of effective fire protection systems were made clear on the first anniversary of the tragedy, when a fire broke out in a Lewisham tower block. Although around 150 people evacuated the building upon being alerted, the fire was effectively suppressed by a PTSG-installed sprinkler system, allowing the London fire brigade to bring the fire under control. Domestic sprinkler systems are highly effective, and there have been no multiple fire deaths in the UK as a result of a fire in a dwelling with a working sprinkler system. RIBA recently recommended that fire suppression systems are installed in all new and converted residential buildings, and PTSG’s Fire Solutions team has undertaken many contracts in this vein across the UK. The Group’s Fire Solutions division also offers dry and wet riser installation, testing and maintenance, as well as fire alarm, fire extinguisher and emergency lighting testing and maintenance. This wide-ranging fire protection package has seen the company partnering with several local governments and housing associations to devise the most effective fire safety solutions for hundreds of domestic and commercial properties throughout the country."
This item re PTSG's performing compliance/safety testing on a wind farm is pretty interesting news. This must be a pretty huge new market. Also, I wonder who {PTSG?) performs the same work on offshore wind farms? This would presumably be very high margin work given the obstacles: Http://www.ptsg.co.uk/news/access-safety/ptsg-makes-testing-breeze-dumfries-wind-farm/ "Premier Technical Services Group PLC’s (PTSG) Access & Safety team has travelled to Scotland to carry out compliance tests at a Dumfries wind farm. Skilled engineers tested a range of equipment attached to the turbines’ towers and nacelles, including fall protection systems, ladders, winches and eyebolts. These tests ensure that the equipment is all safe for use, which is especially important considering the inherent risks that come with working at height. PTSG’s Access and Safety division works on a range of suspended access equipment including building maintenance units, cradle systems, travelling ladders and gantries, providing testing, inspection and maintenance services to ensure they are safe for use. The team comprises some of the industry’s most experienced specialists, finding solutions to any height safety equipment problems that are tasked to them. The Group carries out work on a huge range of interesting structures, including wind farms, satellite dishes and bridges, using the expertise of its teams to find the most effective and efficient solutions."
For the record, PTSG have today been added to the Telegraph's AIM-quoted Inheritance Tax Portfolio, which should guarantee further coverage in the newspaper every so often: Https://www.telegraph.co.uk/investing/shares/questor-inheritance-tax-portfolio-seven-new-additions/
Nice bounce since Wednesday. I just get the feeling that a seller may have been cleared. The AGM trading update will be on Monday 18th June - not long now. The incredible lightning storms earlier this week - including one which took out Stansted Airport for a while - may just have perked some additional interest for PTSG's services.
PTSG seem to have now become the Government's preferred provider, which is rather useful. Here's yet another contract win, this time for lightning protection and fall arrest testing services at the Land Registry's 14 sites around the country: Http://www.ptsg.co.uk/news/electrical-services/ptsg-lends-hand-hm-land-registry/ And a win to provide electrical testing services at Burnley General Hospital: Http://www.ptsg.co.uk/news/electrical-services/ptsg-wins-electrical-services-contract-burnley-general-hospital/
Looks like a large countrywide contract win for Centrica: Http://www.ptsg.co.uk/news/access-safety/ptsg-cooking-gas-centrica/ "PTSG cooking with gas for Centrica Premier Technical Services Group PLC (PTSG) has secured a multi-disciplinary contract with the British gas and electricity supplier Centrica. Multi-disciplinary teams from PTSG will be deployed across the UK to carry out lightning protection and fall arrest testing, providing the vital certificates that demonstrate that Centrica sites are safe and compliant for staff and visitors. Centrica is the largest supplier of gas to domestic customers in the UK and one of the country�s largest electricity suppliers. This nationwide contract will see PTSG operatives travelling to 115 Centrica sites to provide these vital specialist services...." Another decent-looking one for Leeds Council: Http://www.ptsg.co.uk/news/electrical-services/ptsgs-class-act-contract-new-leeds-schools/ This one is described as "a significant Access and Safety contract at Mailbox Birmingham": Http://www.ptsg.co.uk/news/access-safety/ptsg-delivers-contract-mailbox-birmingham/ And another at Syon Park: Http://www.ptsg.co.uk/news/building-access-specialists/syon-gantry-safely-removed-ptsg/
Amati are large investors in PTSG, and their quarterly newsletter just out yesterday features PTSG nicely: "Premier Technical Services Group (�PTSG�) - PTSG is the UK�s leading provider of a range of building maintenance and safety services. These include tall building access and fall arrest equipment, lightning protection and electrical testing, steeplejack and rope access services, and fire solutions. The group employs more than 600 people across 17 UK sites, and services more than 150,000 buildings for over 17,000 customers. Despite more than twenty acquisitions over the last ten years, PTSG has no more than a 9% market share across its divisional activities, which illustrates both how fragmented its end markets are, and also the potential for further consolidation. By their nature, PTSG�s services are mainly non-discretionary and recurring, often linked to annual insurance reviews or building inspections, and involve skilled engineers so that margins are attractive. Alongside its acquisitions, PTSG is achieving solid organic growth with the potential to enhance this through cross-selling. At present, 90% of clients take only one service line. Following the Grenfell tragedy, there is significant demand for the sprinkler systems and dry risers supplied by the fire solutions division. PTSG is run by a very experienced management team, who previously built and sold a similar services group to Interserve plc for �120 million in 2006. The company is held in the TB Amati Smaller Companies Fund, the Amati AIM VCT and the Amati AIM IHT Service."
Interesting RNS on Friday, with the Company Secretary sheltering some shares from tax in his ISA. Now why would he do that I wonder.... Https://www.investegate.co.uk/premier-technical--ptsg-/rns/director-pdmr-shareholding/201805111041178099N/ And another impressive-sounding contract win: "PTSG WINS GOLD CONTRACT WITH DECATHLON Premier Technical Services Group PLC�s (PTSG) Electrical Services division has received an order to carry out a number of specialist services at Decathlon superstores across the UK. Skilled engineers will be deployed to Decathlon�s 26 UK stores to carry out fixed wire testing (FWT), portable appliance testing (PAT) and lightning protection services to ensure that its employees and customers, as well as the stores themselves, are protected from electrical faults and lightning strikes. This will be no mean feat, as the average size of Decathlon superstores is around 4,000m�. Decathlon, founded in France, is the largest sporting goods retailer in the world. The company currently has over 1,100 stores across 38 countries, with its first UK store opening in 1999. PTSG has a large portfolio of retail clients, including recent contract wins with Tesco, Morrisons and DFS. In 2016, the Group received the Partners in Retail award at PFM�s partnership awards for its outstanding work to provide fall arrest services at M&S stores across the UK." hTTp://www.ptsg.co.uk/news/electrical-services/ptsg-wins-gold-contract-decathlon
Http://www.ptsg.co.uk/news/electrical-services/ptsg-keeps-london-hospitals-operating-pat-services/ "PTSG keeps London hospitals operating with PAT services Premier Technical Services Group PLC (PTSG) has completed essential Portable Appliance Testing (PAT) at several London hospitals. Work was carried out on behalf of CBRE at St Mary�s Hospital, Charring Cross Hospital and Hammersmith Hospital, which are all part of the Imperial College Healthcare NHS Trust, and Royal Berkshire Hospital and Chelsea & Westminster Hospital. The sites required rigorous assessment followed by detailed planning in order to manage the logistical challenges when working on NHS sites and provide consistency, continuity and quality of testing. A Contract Manager was appointed for the duration of the contract and the same PAT team was also maintained throughout the contract, with a lead engineer on site providing a point of liaison for the client. Work at these hospitals will continue and a review of this contract will allow continued improvement of our work at these sites. etc" And: Http://www.ptsg.co.uk/news/delivering-safely-manchester-airport/ "Delivering safely at Manchester Airport Premier Technical Services Group PLC (PTSG) has been awarded a new contract to deliver works for one of the UK�s biggest and busiest airports. The Group will carry out investigative works on a cradle used for maintenance works on the skylink walkways between the terminals and rail station at Manchester Airport. The work will be undertaken on behalf of the airport�s FM provider, Mitie. PTSG is carrying out a range of specialist testing services for Manchester Airport. etc"
A couple of months ago I went to a PTSG presentation. Anyway, I came across the notes again, so here's a summary: - current turnover run-rate is �60m (up from 2017's �52.9m). The target is �100m in the next 2-3 years - conditions for compliance services post-Grenfell are the best Teasdale has seen for 30 years. Compliance service jobs are not a choice, they're recession-proof, and they're high-margin work - "unprecedented" demand at present - and it's coming from regulatory drivers (fire, sprinklers etc) - no more than 5% of customers take more than 1 service at present, so there's a huge cross-selling opportunity - each �1 of compliance work wins generates another �1 of additional repair/compliance work - very dominant position in lightning protection. Lighting installation installations can make between �10k-�20k (more than I'd thought - the price for the sprinkler systems acquisition was agreed in Feb'17, but only completed in Sept'17 (which explains why it was so cheap). This business has doubled its order book since acquisition - renewals are 85%-90% of revenues every year - no one client has over �1m exposure, and the small Carillion debt is the only bad dent PTSG have ever had. Interserve's debt is only �200k - PTSG have just won a �1.7m contract from Hackney Council for sprinkler systems in 95 tower blocks - there are several thousand 3 and 5 year contracts, so very high recurring income - PTSG's Clarity software, entirely developed in-house, could well be licensed out (another Facilities Management company with 56,000 employees thought it was terrific) In particular, the CEO stated that PTSG are working on around 12 potential acquisitions, costing from �1m-�35m.
Yet another new governmental contract, at prisons across the country: Http://www.ptsg.co.uk/news/critical-work-uks-prisons/ "Critical work in the UK�s prisons Premier Technical Services Group (PTSG) is carrying out essential electrical services at prison sites across the UK for Gov Facility Services Limited (GFSL). The contract will see engineers from PTSG�s Electrical Services division carrying out PAT testing and testing, maintenance and installation of fixed wire systems and residual current devices (RCD). Her Majesty�s Prisons and Probation Service (HMPPS) runs 109 of the 123 prisons in England and Wales. In 2018, the Ministry of Justice (MoJ) created new government-owned facilities management company GFSL to deliver FM work at 52 prisons across the UK. This work includes reactive maintenance and planned building repair work. FM is a critical service for HMPPS and there is an ongoing need for a continuing service. etc"
Http://www.ptsg.co.uk/news/keeping-department-transport-estate-moving/ "Keeping the Department for Transport estate moving Premier Technical Services Group PLC (PTSG) is delivering electrical servicing across the UK for the Department for Transport (DfT). The contract sees engineers from PTSG�s Electrical Services division carrying out work at the broad range of DfT buildings and facilities, which comprises everything from lighthouses to driving test centres. PTSG�s experts are conducting fixed wire testing and Portable Appliance Testing (PAT) at the DfT�s buildings up and down the country. Fixed Wire testing (also known as periodic testing) protects buildings and employees from the two main electrical risks � fire and electrical shock." And also: Http://www.ptsg.co.uk/news/towering-test-manchester/ "Towering test in Manchester Premier Technical Services Group PLC (PTSG)�s expertise will be called on by construction company BAM at Manchester�s world class statement building No 1 Spinningfields. PTSG will provide engineers to work alongside team Allianz, the engineering insurance provider to test and certify the prestigious site�s building maintenance units (BMUs), which are used to assist in the maintenance of the towering structure. etc"
"Premier Technical Services Group PLC (PTSG) is delivering a five-year contract across the UK for the Department for Work and Pensions (DwP). All four divisions of PTSG are working on the contract covering the safety of buildings in the DwP�s estate. Specialist engineers from the Group�s Access and Safety, Electrical Services, Building Access Specialists and Fire Solutions divisions are ensuring building and electrical safety and that operatives at the buildings can work safely. The contract is being delivered on behalf of FM service provider Interserve. The DwP estate comprises more than 700 buildings throughout the UK. PTSG�s work over the five-year contract will ensure that the DwP can provide safe, effective, compliant and accessible spaces across its estate for their employees and customers. Interserve PLC was awarded a five-year facilities management contract by the DwP in October 2017. The deal provides mechanical, electrical and building maintenance. PTSG�s divisions deliver consistently high-quality products and services to specialist markets that can be safely relied on at all times" hTTp://www.ptsg.co.uk/news/ensuring-safety-dwp/ Note: Interserve PLC was awarded the five-year facilities management contract by the DwP in October 2017 and was worth �227m. Interserve will provide the DWP estate with mechanical, electrical and building maintenance. The company will also provide cleaning, catering, waste disposal, removal and secure destruction of confidential waste services to over 700 buildings throughout the UK, covering over 1.3 million square metres of space. hTTps://www.investegate.co.uk/interserve-plc--irv-/rns/dwp-chooses-interserve-for-fm-contract/201710200700021236U/
Worth noting how much of this is essential, non-discretionary work, and also how much is for blue chips who can be relied upon to pay up for and repeat such work: Working nationwide on essential maintenance for the Nationwide: Http://www.ptsg.co.uk/news/working-nationwide-nationwide/ More essential maintenance at Scottish Power's HQ: Http://www.ptsg.co.uk/news/powering-utility-providers/ Safety equipment testing for ITV: Http://www.ptsg.co.uk/news/safety-top-itv-towers/ PTSG appointed by Interserve for work at various Ministry of Justice sites around the country: Http://www.ptsg.co.uk/news/electrical-services-ministry-justice/ And for safety services at St James's Market in London: Http://www.ptsg.co.uk/news/stepping-st-jamess-market/ And at the Four Seasons Hotel in Tower Hill: Http://www.ptsg.co.uk/news/ptsgs-specialists-check-ten-trinity-square/ And at the Dolphin Shopping Centre in Poole: Http://www.ptsg.co.uk/news/safe-access-dolphin/
PTSG have rather generously made available to everyone both the Telegraph tip and the ENTIRE issue of SCSW with PTSG's tip (it also includes tips for SCH and KAPE which I also own): Http://www.ptsg.co.uk/news/ptsg-features-daily-telegraph-sharewatch/
Tate Gallery: hTTp://www.ptsg.co.uk/news/ptsg-height-tate/ Morrisons: hTTp://www.ptsg.co.uk/news/supermarket-safety-morrisons/ Four Seasons: hTTp://www.ptsg.co.uk/news/ptsgs-specialists-check-ten-trinity-square/ "PTSG�S SPECIALISTS CHECK IN AT TEN TRINITY SQUARE Premier Technical Services Group PLC (PTSG) has completed a high-level cleaning and maintenance project at the iconic Four Seasons Hotel Ten Trinity Square. etc"
Looks like PTSG are really getting noticed now, what with the SCSW tip on the weekend as well. Here's the start of Questor's tip: Https://www.telegraph.co.uk/investing/shares/telegraph-questor-share-tip-buy-ptsg/ "Questor: loyal customers, essential products, strong growth and proven managers � buy PTSG 11 April 2018 � 7:39am �Things are shifting underneath the market�s feet. At times like this you want to own stocks that are not affected by any of it.� This is the view of one smaller companies investor, who was referring to concerns over such developments as the �trade war� between America and China and the recent sell-off among the giant technology stocks. �We want stocks that are not subject to sidewinds from things we can�t control,� added the investor, David Stevenson of Amati Global Investors. �One example is Premier Technical Services Group (PTSG), which we hold in our UK Smaller Companies fund.� The firm provides essential specialist building services such as installing and maintaining fire extinguishers and..."
http://www.ptsg.co.uk/news/ptsg-awarded-new-heathrow-contract/ "PTSG AWARDED NEW HEATHROW CONTRACT Premier Technical Services Group PLC (PTSG) has been awarded a contract to carry out a range of tests at London Heathrow Airport. PTSG�s fall arrest teams will provide testing and inspection services at Terminal 2 of the UK�s premier international airport. Skilled operatives from the company�s Access and Safety division will carry out work to test anchor points for systems that ensure the safety of those working at height and undertaking maintenance work at the airport. A statutory inspection of anchor points at T2�s Plaza Premium Lounge will also be undertaken. The work will provide optimal safety for Heathrow�s people and will be carried out to avoid any interruption of the day-to-day operations at this busy terminal. PTSG�s fall arrest teams have provided testing and inspection services with MITIE at Heathrow Airport for over three years. PTSG has designed and installed innovative mansafe systems at the airport and access solutions provided by the company are helping to maintain the airport�s leading worldwide status."
Great article in SCSW this weekend. In particular. they're "already" talking to "15-20" targets, so more acquisitions are likely soon.