Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Wow - a $60m contract win covering the next two years.....this certainly is "significant".
RAI have finally delivered on those large contracts they've talked about.
And from a "new global client" too. The order book is looking very healthy now at $188m:
Https://uk.advfn.com/stock-market/london/ra-RAI/share-news/RA-International-Group-PLC-Major-New-Contract-Awar/83060977
5 years of lukewarm & infrequent Rns , zero publicity (ever, no poddys , investor shows or even a lil' Directors talk then wham bam thank you Mam back into the (private) hands of the 'Fam' .
As would of been the plan from Day 1 of IPO.
Thanks for playing.
I'm disappointed that this has held such a high mcap during C19 . I would of liked to seen a bit of serious value ie low 20s or teens but que sara .
As ever , you need to be careful of no news shares combined with such a high BoD ownership.
Ownership = votes.
They could take this private or delist in a heartbeat and there's nothing you can do about it & there's no better way of doing it than running the SP into the ground , shedding bagholders leaving no serious objectors.
Good news via Rns will be narrated in the most lukewarm terms yet bad news will be screamed from the rooftops.
They ipo on Aim in order to pay down debt or gain a serious war chest then the 5 year downward spiral compounded by only bad news begins its journey to eventual delist.
Remember a, 3p offer to someone who bought at 2p is a handsome result. Not so to a LTH.
Not saying that's what this is , AND , I'm actually a fan BUT there are a few flags here that makes me happy to sit & watch for now.
Good luck all.
Sold out today, which is a shame because I like the company and it's ethos and still feel what it offers investors is unique. I have been invested for over 18 months and did plan to stick around longer. However, only one new contract win this year and the Covid-19 update advising a material revenue shift to 2021. In my opinion the share price will shortly head in one direction, the lack of a trading update is telling and previously released info doesn't point towards positive interims. The share price does appear to currently be propped up entirely by Cenkos hoovering up the shares for the company, so as long as that lasts the share price won't budge. I hope I'm wrong and that holders see a positive set of interim results.
I agree with you, pickedpeck. I suspect the geographical regions in which RA operates are a turn-off to some but, as you and I understand, they overlook the high creditworthiness of the customers, the risk mitigation via geographical diversity and the high barriers to entry for cost-comparable competition.
I’d have bought more if the shares were more liquid: top-notch company.
28th of May, so on the register on the 29th for payment 9th of July, 1.25p makes the yield 3.33% , not bad for a company with 26% revenue growth, 18% backlog increase, and 17.5% EPS growth with single figure P/E ratio.
Apart from the small free float I really don't understand why this is not more attractive to value investors.
26% revenue growth, 35% increase in PBT, 18% increase in order backlog.
(All numbers in USD)
2019 2018
Revenue
69,064 54,805 (26% increase)
Underlying profit
13,259 12,761 (4% increase)
Profit before tax
13,259 9,827 (35% increase)
Basic EPS (cents)
7.4 6.3
Net Cash (end of period)
21,393 27,804 (decrease but increase in NAV)
Dividend per share (recommended)
1.25p 1.0p (25% increase)
Order Book
141.0 119.2 (18% increase)
RA International Group PLC
("RA International" or the "Company" and, together with its subsidiaries, "the Group")
Results for the year ended 31 December 2019
A year of strong progress
RA International Group PLC (AIM: RAI), a leading provider of services to remote and challenging locations around the world, is pleased to announce its results for the year ended 31 December 2019.
2019
2018
USD'000
USD'000
Restated1
Revenue
69,064
54,805
Underlying profit2
13,259
12,761
Profit before tax
13,259
9,827
Basic EPS (cents)
7.4
6.3
Net Cash (end of period)3
21,393
27,804
Dividend per share (recommended)
1.25p
1.0p
Financial highlights
· Full year revenue increased 26% to USD 69.1m (2018: USD 54.8m), of which USD 46.0m was delivered in H2 (H2 2018: 28.7m).
· Underlying profit increased 4% to USD 13.3m (2018: USD 12.8m) of which USD 10.7m was earned in H2 2019 (2018: USD 5.5m). Exceptional costs relating to the Company's 2018 Admission to AIM make up the prior year differential in underlying profit and profit before tax.
· Profit before tax of USD 13.3m (2018: USD 9.8m) increased by 35% and was in line with expectations.
· Net cash at 31 December 2019 of USD 21.4m (2018: USD 27.8m). The decrease was primarily due to increased trade receivables and accrued revenue at year end resulting from an extremely active November and December.
· Proposed final full year dividend of 1.25p per share (2018: 1.0p per share).
Operational highlights
· Awarded new contracts, uplifts and extensions to existing contracts of USD 90.9m during 2019
(2018: USD 62.0m).
· Order book of USD 141.0m (2018: USD 119.2m) at year end, up 18% from 2018 year end.
· Further diversification of client base with revenue from government and commercial customers making up 44% in 2019 (2018: 38%).
· Strong increase in IFM services contracts to USD 28.6m (2018: USD 23.1m) of which USD 10.4m was high value hospitality service contracts (2018: USD 6.0m).
· Significantly expanded operations in South Sudan and Mozambique and entered Denmark and Libya executing projects in 11 countries during the year (2018: 9 countries).
· Further streamlined the project delivery function through the implementation of a group-wide Management System (RAMS) and by adding the supply chain team to the Project Management Office.
Results were very good:
- revenues well ahead of Cenkos' expectations
- 7.4c EPS gives a very cheap historic EPS at 39p
- huge order books
- over $21m net cash which will increase given large Q4 activity/resultant debtors
The outlook is naturally cloudier, and Cenkos have withdrawn forecasts. But RAI's activities are must-haves, and it shouldn't be long before they're operating normally once restrictions start to lift.
I get the feeling that RAI are exactly the type of company that will receive an enhanced level of activity because of the pandemic rather than be adversely effected. They are the very definition of an essential service.
Significant $15.6m contract win news - that's the largest value contract announced for almost two years and secures a decent chunk of revenues going forward:
Https://uk.advfn.com/stock-market/london/ra-RAI/share-news/RA-International-Group-PLC-New-USD-15-6m-Task-Orde/82159005
Paid in dollars, international agency contracts unlikely to be adversely affected by CV19, dividend...
Good opportunity to buy in here.
Five trades in the day, two buys, two much smaller sells and one in the middle shouldn’t equate to a 9.5% drop. This is an artificial mark down, of anything the virus outbreak will lead to an increase in demand for the type of services RAI offer.
This is getting silly now, I’m quite content to ride it all out.
Thanks, PP, for your response: you’re kind. I fully agree on the issues surrounding shares being tightly held: this is a definite buy-and-hold for me (absent adverse news, of course); I suspect you share that view.
Thanks also to rivaldo for posting the Cenkos update; much appreciated.
Agreed. Also the fact that they pay a small (but hopefully growing ) dividend is a positive sign.
Just an extra thought. With 80.7% of shares not in public hands, and Jupiter and Black Rock holding a further 3.0 and 4.9 respectively, the share free float here is pretty low. According to morningstar Jupiter currently have 3.0%, down from 5.2% in October. In total that means only about 12% of shares are actually on the market. A lot of the balance will also be tightly held but below the notifiable threshold.
That represents both a risk and an opportunity. The low float will make the share illiquid but potentially volatile on news that creates demand - good results in April being the obvious next potential catalyst for that.
Hi CYB, I think that's an excellent summary of the position here. The only thing I would add is that the geopolitical situation in and around the countries in which they operate creates an environment where revenue opportunities for RAI will continue to grow. The fundamentals all seem to be in place, I agree the stock market listing has to be an enabler to growth or exit, or both. Either way it represents a decent opportunity for private investors as the high percentage ownership by management will put institutions off.
This is a fascinating one I bought last week: these are some very high level notes - some of which is obvious stuff. Market cap GBP69m, 2,000 employees.
79% owned by wife (CEO) and husband (COO) team. It does construction, facilities and supply chain & logistics mgmt in places such as South Sudan, Somalia, Mozambique and the CAR, also a bit of middle east. So it looks like "barge pole" material, but...
Pros
1. Founded 2004 and has geographical diversity in its projects and is expanding its regions and countries.
2. The management team are ex-NGOs and international development bodies. I suspect this is their life's work. They take modest salaries for directors of a listed company.
3. Barriers to entry in the areas they operate are very high - great as competition for tenders (especially by experienced parties with a proven track record) will be low. Presentation says competition is much larger companies who bid much higher prices.
4. Clients include the US & UK govts, aid agencies (eg UN), NGOs and corporates. High quality counterparts - credit risk managed.
5. Listed for about 18 months, now have liquidity and structure which allows them to tender for bigger projects.
6. Significantly growing their "revenue backlog": It's USD166m at last report, up from USD119m. This is their pipeline. Quite how scientific this is, I am still trying to ascertain.
7. Targeting bigger, longer term contracts with services revenues.
8. Prior year PE is 6. Very low for a growing company with a cash pile an a decent contract pipeline.
9. Cash pile at 31 Dec 18, USD26m (29% of market cap).
10. Dividend yield 2.5% more than three times covered. Expected to increase.
11. CFO bought GBP60k's worth in Dec 2019.
12. Price/NTAV = 1.5.
13. Revenue growing.
14. Institutional shareholders are in (despite the huge ownership by management.
15. Management highly aligned with other shareholders, but see A below.
16. Take sustainability and integrity seriously. Good... and also, this will be good for winning tenders too.
Cons
A. No control at all by IIs/PIs given founders own 79%.
B. Key man risk on founders.
C. Geographies in which they operate, but they are diversified.
D. Potentially lumpy contract awards and potential delays could make for lumpy revenues and volatile earnings.
E. Interims showed margin under a little pressure, but recent update suggest revenue marginally ahead for 2019 and earnings "broadly in line" with expectation.
F. Share liquidity given tightly held.
Surely they'll plan to grow it and sell it?
Constructive thoughts most welcome.
Hi pickedpeck
I joined you here today after RAI came up on one of my Stockopedia screens. Good to see you here too.
I guess everyone here has watched it, but I thought this prez to be a good intro to the business.
https://m.youtube.com/watch?v=ArhzvOGW03M
I think the recent slight fall back in price looks like small investor boredom rather than anything fundamental. We're likely to get FY19 results in April which Will likely be the next trigger for change, If revenue is ahead and profit maintained in line with expectations then I would hope to see something of a boost to the price.
The last announcement did quote a drop in backlog, it would be good to land a few projects in between now and the results.
Hopefully back to 53p or so soon as the first stage of the recovery.
The biggish (84762) buy this morning was me, no agenda other than a long term hold.
Just the summary from today's Cenkos note - they say RAI look "significantly undervalued"
"RA International Group Plc
Contract win and confident trading update
RA International has announced a new contract win and FY19 trading update. RA has been awarded the second phase of a contract with Cherokee Nation Mechanical LLC, working on behalf of the US Department of State and the Bureau of Overseas Buildings Operations. This second phase of the contract, worth US$9.1m, will see RA providing construction services at a US Embassy in East Africa and should complete by end 2020. We estimate revenue of US$37m plus will be delivered during H2/19 with RA confirming FY19 revenue is expected to be slightly ahead of expectations with profitability broadly in line. This represents a very strong H2/19 performance (over 60% FY19 revenue) with contracts delivered over all service channels.
? New second phase contract with Cherokee Nation Mechanical LLC. The US$9.1m second phase of the contract with Cherokee Nation Mechanical will involve RA providing a variety of upgrade and refurbishment works at an East African US Embassy. This continues and increases the amount of support work RA provides for the US Government. The first phase of this contract, already underway, is anticipated to be substantially complete by 31 December 2019. Phase 2, announced today, is expected to complete by end December 2020.
? Robust trading update with confident outlook. Since admission to AIM in June 2018, RA has increased its focus on customer diversification and broadening its geographic spread, as well as bidding on larger, longer duration contracts. Success from this has been clearly demonstrated with the number of contract awards throughout 2019. With successful delivery of contracts across all service channels throughout H2/19 RA expects FY19 revenue to be slightly ahead of expectation with profitability broadly in line. We have therefore left current forecasts unchanged with our FY19E revenue forecast of US$60.2m.
The current order book is US$148m, with US$55m contracted to be delivered in 2020, representing over 83% of our current 2020 revenue forecast and giving confidence in the outlook for 2020.
The shares trade at a FY19E PER of just 6.1x and EV/EBITDA of 3.3x, falling to 5.8x and 2.6x 2020E respectively, and look significantly undervalued. The 2019E prospective yield is 3.4%, covered 4.7x."
£59m NAV with no debt at last results, single digit PE ratio, backlog for next year already at last year's revenue implying 20-30% growth. What's not to like?