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Shareholders will collect a 3.85p dividend this year, rising to 4.24p next year - a 7.2% yield rising to 7.9%.
It's possible some are buying for the 1.3p interim dividend, for which you have to be on the register by this Friday.
Over the next 18 or so months shareholders should collect over 8p per share of dividends.
Given that RTC will hopefully at least achieve the forecast 10p EPS this year, rising to 11.6p EPS next year.
So the downside should in theory be minimal, whilst a decent set of results might see a rather nice re-rating. And in the meantime if the share price continues to sleep the dividends will roll in.
Bit of an upturn starting here. About time too :o))
Good to see just a 5k buy causing a 1p tick up.
Whitman Howard have reiterated their 95p price target.
They've also kept their forecasts of:
this year: 10p EPS, 3.85p dividend
next year: 11.6p EPS, 4.24p dividend
They summarise - and note that 80% of profits are recurring with £125m of visible forward revenues:
"2018 interims | Upbeat interims confirm full year forecast
Adjusted PBT at the interim was £0.83m representing growth of 27% with management remaining confident of ‘continuing the performance in the second half’. Trading on a 2018 PE of 6x and offering a dividend yield of 7%, having increased the interim dividend by 8%, we maintain a buy recommendation and price target of 95p (72% upside). At this level, the 2018 PE rating and dividend yield is still only 9.5x and 4% respectively."
"RTC continues to be undervalued. RTC’s valuation/growth profile continues to compare favourably to its small cap recruitment peer group. This is despite the fact that c80% of gross profits (ex the Derby Conference Centre) are recurring and it has visible revenues of c£125m over the next three years. This confirms our belief that RTC is undervalued and that 95p reflects a fairer value."
..and there's also an almost 7% dividend yield too with a forecast 3.85p dividend this year....
(re-posted as the first try didn't work!)
Very good H1 results, with 4.38p basic EPS up 22% and PBT up 31% (and I assume the adjusted EPS used by the analysts will be higher).
Forecasts from Whitman Howard are for 10p adjusted EPS this year, which looks pretty nailed on, given the extremely confident outlook:
"The optimism that we expressed earlier in the year has been justified by a highly satisfactory set of results. We remain confident of continued strong trading, in line with expectations, during the second half, and of delivering our ambitious growth plans across all our Group businesses "
ATA and GSS are going great guns. Ganymede has gone backwards - but imagine the upside in this H2 and going forward now that (1) Network Rail contract levels have returned to normality, and (2) when smart meter deliveries improve next year as outlined.
Cash/working capital could be better, but are due to good reasons as explained (ATA contracts and a specific customer now resolved).
Overall RTC are looking very cheap on a current year P/E of just 5.5....
Very good H1 results, with 4.38p basic EPS up 22% and PBT up 31% (and I assume the adjusted EPS used by the analysts will be higher).<br /><br />Forecasts from Whitman Howard are for 10p adjusted EPS this year, which looks pretty nailed on, given the extremely confident outlook:<br /><br />"The optimism that we expressed earlier in the year has been justified by a highly satisfactory set of results. We remain confident of continued strong trading, in line with expectations, during the second half, and of delivering our ambitious growth plans across all our Group businesses "<br /><br />ATA and GSS are going great guns. Ganymede has gone backwards - but imagine the upside in this H2 and going forward now that (1) Network Rail contract levels have returned to normality, and (2) when smart meter deliveries improve next year as outlined.<br /><br />Cash/working capital could be better, but are due to good reasons as explained (ATA contracts and a specific customer now resolved).<br /><br />Overall RTC are looking very cheap on a current year P/E of just 5.5....
Confirmation that the UK is to almost double its troops in Afghanistan. This has to be good news for RTC:
Https://www.independent.co.uk/news/uk/home-news/uk-troops-afghanistan-nato-donald-trump-british-army-kabul-a8441436.html
Next month's interims should have a confident tone given both this news and the AGM statement:
"I am pleased to report that the Group has traded well since the publication of the 2017 results in February and we continue to experience a strong demand from both new and existing customers.
The Board is confident of the trading prospects of the Company in the current financial year."
The UK are about to almost double their number of troops in Afghanistan - this is good news for RTC's GSS division: Https://www.telegraph.co.uk/news/2018/05/17/islamic-state-threat-sees-britain-prepare-send-hundreds-troops/
Good to see a mere 15k of buys causing a 1.5p rise. A shortage of shares available?
which should be well received by the market. Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RTC/13608448.html "I am pleased to report that the Group has traded well since the publication of the 2017 results in February and we continue to experience a strong demand from both new and existing customers. The Board is confident of the trading prospects of the Company in the current financial year."
Reported spread on this site isn't the spread being offered by brokers today
Why is there such a large bid/ask spread on this share? It shows at 8.47% (at present price sell at 59p, buy at 64p.
Whitman Howard's note with a 95p target price is worth a read as it outlines exactly why RTC deserve a higher rating than their sector comparators - and certainly higher than the current P/E of 6: "2017 Prelims | Adjusted PBT ahead of expectations Adjusted PBT at �1.5m for the 12 months ended December 2017 represented growth of 22% and was ahead of our expectation of �1.4m. In turn, this supported dividend growth of 13% against an expected 6%. Net debt was �4.4m though allowing for an unwind in receivables of �1.5m in January 2018, the underlying net debt position represents a significant improvement on the December 2016 position. Looking forward, we are leaving our adjusted 2018 PBT forecast unchanged representing adjusted PBT growth of 25% but note RTC�s commentary of �pursuing acquisitions�. Our 2018 forecast is underpinned by the material contributions expected from the SSE contract which becomes fully operational in 2018. We also introduce a 2020 PBT forecast implying a 3yr CAGR in PBT of 18%. Trading on a 2018 PE of 6x and offering a dividend yield of 6%, we maintain our buy recommendation and price target of 95p. At this level, the PE rating of 9x is in-line with peers. Benefit of having a diversified stream of income was demonstrated in 2017. ATA, GSS and the Derby Conference Centre (DCC) all reported increased operating profits which was able to offset the decline at Ganymede. ATA benefited from higher contract numbers and better cost control (the conversion rate was 25% vs 22.9%) which more than offset a decline in permanent gross profit. GSS was able to arrest its previous decline in earnings as a major client expanded its workload and GSS was able to win a new client � this allowed the divisional operating profit to increase to �0.5m against an expected decline to �0.2m. The DCC benefited from being fully let following refurbishment in 2016, while the decline in operating profits at Ganymede from �2.3m to �2.1m was attributable to less demand on its Network Rail CP5 framework. Dividend is sustainable. The dividend remains an attractive feature with RTC now yielding 6%. We believe this to be sustainable with the dividend cover being 2.4x and the actual expense being met from free cash flow. RTC deserves a higher rating. c80% of gross profits (ex DCC) can be viewed as recurring and confirms our argument that RTC deserves a higher rating as it should not be valued as a cyclical recruitment company e.g. visible revenues exceed �125m over the next three years. Its valuation/growth profile compares favourably to its peer group (Empresaria, Gattaca, Parity and Servoca), all of whom offer lower earnings growth in 2018 and a lower dividend yield, yet all trade on higher PE ratings. This confirms our belief that RTC is undervalued and that 95p reflects a fairer value for a company with its superior growth outlook."
Good to see a late tick up at the close. Looks like there was a seller out there today keeping the price down, selling in 5k/10k chunks, so hopefully the tick up is a sign that his stock has run out.
Whitman Howard today reiterate their 95p target price. They've increased their EPS and dividend forecasts for this year to 10p EPS (from 9.8p EPS) and a 3.85p dividend. This increases to 11.7p EPS next year and 13.3p EPS the year after, with 4.24p and 4.66p dividends.
Great results, with 8.06p EPS beating forecasts of 7.4p EPS and a very confident outlook for this year: Https://www.investegate.co.uk/rtc-group-plc--rtc-/rns/final-results-for-the-year-ended-31-december-2017/201802260700058573F/ - GSS has won a new contract and is thriving - Ganymede's new SSE contract is doing really well, and it has significant long-term recurring income - ATA is also performing well in temp work Plus RTC are promising a more aggressive growth strategy, with potentially acquisitions to come. EPS is well up on last year, helped by a smaller tax charge. It would have been even better but for a small provision re Carillion, but it seems that Ganymede may well benefit in bigger style from Carillion's collapse. RTC are looking pretty cheap at this price, particularly with such high guaranteed income. With over 9p EPS forecast this year, things are looking good.
Great to see the CLLN hit is de minimis. I suspect it's included as a written off debt in PBT in the normal course of business, so expectations are after the write-off: https://www.investegate.co.uk/rtc-group-plc--rtc-/rns/award-of-sse-plc-contract/201707251453100534M/ The last forecasts I saw from Whitman Howard were: last year : 7.4p EPS, 3.3p dividend this year : 9.8p EPS, 3.6p dividend This puts RTC on a current year P/E of 5.7, let alone a 6.5% yield, which seems ridiculously cheap. You'd be unlikely to ever see RTC trading on racy multiples. However, the SSE contract running until December 2020, plus the rail maintenance work, gives RTC an unusual degree of certainly for the sector, so could see a re-rating to a P/E of say 10 or 11 if things go smoothly. Which would give a share price of say 100p-110p.
rtc on the watchlist, is there something I am not seeing, looks a really good share, targeting turnover 150m and growing dividends, but low mc, usually a reason behind.
really low PE here
I note this week's news that Trump is sending another 4,000 troops to Afghanistan, and wants other countries like the UK to do more too. The UK is already sending another 85 personnel there. Which is all likely to be good news for RTC's GSS division: Http://www.telegraph.co.uk/news/2017/08/21/donald-trump-address-nation-outline-new-afghanistan-strategy/
Whitman Howard have issued a new note post-results, with a 95p target price and the following forecasts: this year : 7.4p EPS, 3.3p divi next year : 9.8p EPS, 3.6p divi to Dec'19 : 11.2p EPS, 3.9p divi With 76% of gross profits (ex DCC) recurring per Whitman Howard, RTC are a completely different kettle of fish than their sector comparators and should be rated at a premium as such - never mind on a current year P/E of only 8.9.
Online I can only buy a maximum 2,500 shares at 74.97p, whilst I can sell 15,000 at a premium at 72.85p. Looking good.
Been some big buys going through since the RNS not seen many sells
Reported late again I see!
Brief highlights from Whitman Howard's note: - RTC now have 76% recurring income. RTC should not therefore be seen as a typical cyclical recruitment company - PBT forecasts have been upgraded by 13% and 11% for 2018 and 2019 - price target increased to 95p - P/E of 7 for 2018 based on 9.8p EPS and a 4%-5% divi yield means they say Buy - dividend cover rises to 3x in 2019 due to free cashflow - interims will be next month Note also that these upgrades only reflect the "contracted minimum" of the £28m contract.