Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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No idea why the lack of comments here but this has been a fab share for me, only wish I'd averaged up on what in hindsight was a no brainer from my initial buy just under 40, and I'd never been so certain in advance the recent results would be good, I initially bought double what I would normally and that's worked well
Anyway sold now with a lovely bagger, good luck for anybody staying the course
Next is SAL 180p
Next MLVN 60p
I was right then. Predicting 60p in few weeks, which achieved today. Iam on 156% profit
The margin seems low purely because they are using the gross salaries of their fee earners/workers and the actual commission earned from each one will only be a small percentage of that. When you take that figure, which would be a much more accurate revenue figure, you then have all the costs to deduct before getting to the profit.
They like to keep their commission hidden as it is commercially sensitive no doubt
One thing I can’t get my head around is the turnover and gross profit. Their margin is tiny which doesn’t allow them to invest much into developing the business. I wish they would concentrate on reducing costs to improve the despicable margin.
Think the mcap is nearer £5m and when company was doing well a few years back, the SP was in the 70s and mcap was nearer £10m so it's always been a relatively small company.
Dividend was circa 4p in those days. If they go back to a 2:1 split, hopefully the final dividend will be around 2p (3p for the year). So, this may just be the start of the recovery with quite an uplift still to come. Let's see. Think they need a few reporting periods of positive progress to fully get back there.
Market totally missed this, been watching since 15 but missed the rns this morning. £1m half year profits so "2m full year and reinstating a dividend, all for a £2m mcap. WTF !
Also "strong order book in excess of £200m" and "The Group continues to be focussed on cash generation", no debt except for a small invoice discounting facility of £1.5m
Market is sleeping on this one. Completely amazing. 60p incoming in next few weeks
Market completely missed this one
I feel like there are multiple factors at play here.
- COVID has hit this company hard on the bottom line putting a squeeze on profits.
- The company operates on a small margin.
- The contract is for around 15-20mil a year making up around 20% of revenue, so whilst we see it as a big contract win as does the company, in the grand scheme it isn't game changing.
- Post COVID should see the profit ratios increase as restrictions ease.
- £7mil MCAP is probably still undervaluing this company based on future earning potential, but the market has to weigh up current risk factors against this also.
All in all, I can't see the SP getting much more traction than it currently has and will only progress further on further contract announcements or results showing a positive movement in profit. So much depends on market sentiment these days.
All IMO DYOR
too be fair there are numerous companies on aim with a market cap much greater than RTC that loose millions year on year so a 7 million mcap is ridiculous really.
Yes mate this is what I read also. The disconnect from the RNS to the rampers is staggering. Why do people make out the contract is worth 150 million when it’s not. It’s a terrible thing when people trick people into buying with a false narrative. Why did the sp go up so high yesterday on this news it makes no sense
Check the recent results and you can see they have 80-90M revenue and only 1-2M profit. So this new contract isn't anything crazy. Just read the rns's of results
Honest opinions only here because I have read so much bull**** of late that common sense should prevail. Right is this contract of 150 million worth £1 minimum sp? Or is this contract only worth pocket money to RTC?
Bid above the sp now should move up soon
Buyers are back. Could be a very good afternoon.
Prime People also pretty cheap in same industry (I do own it)
This was trading at 75p pre pandemic and 51p March this year. Fair value definitely north of here. I can see it going on another run today.
Missed this today but not for me looks like the share price will drift off into the sunset like many many other one day wonders.
At the moment cash is only £1.2M on £86M revenue
check out the company Audit before saying its an opinion.
its not opinion its facts.
margins are low hence Mcap was £5M on £86M revenues
GLA and Dyor
not Opinion this is fact
They were awarded the same contract in 2015, and saw a similar spike in share price.
It later settled down again when the realisation sets in that RTC have a Profit margin of around 1.5%.
So £100m per year over five years, £20m per year.
At 1.5% profit margin, that’s £300,000 profit.
At a PE of 10, that’s £3m of additional value.
Today’s ramp has already added nearly double that.
Biggest Drawback is the Margin of 1.5%
had the margins been better then Sp would have been a better place
They were awarded the same contract in 2015, and saw a similar spike in share price.
It later settled down again when the realisation sets in that RTC have a Profit margin of around 1.5%.
So £100m per year over five years, £20m per year.
At 1.5% profit margin, that’s £300,000 profit.
At a PE of 10, that’s £3m of additional value.
Today’s ramp has already added nearly double that.
Today's AGM statement is somewhat optimistic and augurs well, though hardly enough to send the shares spiralling upwards :o))
The main business of provision of contract staff to the infrastructure and railway transportation sectors and internationally is doing pretty well, whilst recruitment and smart-meter installation has now picked up. The hotel and conference centre will also start to recover now lockdown is easing. There's no guidance for this year yet.
Last year RTC made 4.7p EPS, whilst pre-pandemic forecasts for 2021 were 11.9p EPS. If RTC can show decent progress from last year's 4.7p EPS - especially with decent net cash against the £4.2m m/cap - then there should be reasonable upside at some point. It's just a question of patience until then:
Https://www.investegate.co.uk/rtc-group-plc--rtc-/rns/agm-trading-update/202104210700020892W/
Schwee, RTC had a very healthy £1.9m net cash as at 31st December last. This was before paying a hefty deferred quarter's VAT, but still shows that RTC are in decent financial health as regards its cash - they generated £5.1m cash from operating activities last year.
Blather about revenues etc, but nothing on debt. Any business only survives on its cash availability, so disappointing that there is a radio silence.