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A 10k buy this morning and another move up. Bouncing nicely now.
first one shows here as off book (it was online via hargreaves)
second hasn't appeared
https://www.londonstockexchange.com/stock/RTC/rtc-group-plc/company-page?lang=en
thanks for the welcome :)
Good to see you here UKInvestor. There are absolutely no share trades showing today as yet - is your buy still waiting to be published?
It's because of me, horrible spread but looks interesting value?
Nice move up :o))
I wonder if it's anything to do with this good news for RTC's Ganymede today. The comments about the boom in provision of rail worker demand are perhaps even more important than the contract win itself:
Https://www.wales247.co.uk/coleg-y-cymoedd-on-track-to-deliver-next-generation-of-rail-engineers
Extract:
"Coleg y Cymoedd on track to deliver next generation of rail engineers
By Rhys Gregory 7 hours ago
One of the largest further education colleges in South Wales has teamed up with leading rail industry names to train the next generation of skilled railway workers and create hundreds of apprenticeships.
Coleg y Cymoedd has partnered up with Protech Rail Engineering – a Treforest-based firm which provides engineering and construction expertise to the UK industry – to create the ‘Protech Training Academy’. The programme is designed to equip the country’s future workforce with the skills and experience needed to meet future demand.
The collaboration will also see Protech Training Academy team up with industry partner Ganymede, a national supplier of rail industry personnel, who will be the first employer to engage with the partnership, providing apprenticeships to learners on the programme. The company has recruited an initial 11 apprentices and is expecting to take on up to 100 over the next two years with opportunities for full time employment following their apprenticeships.
Demand for skilled workers in the rail industry is set to soar following the announcement of multiple major rail infrastructure projects across the UK, as well as concerns over the loss of skills faced by the industry over the next few years due to its aging workforce. Estimates suggests that 28% of current rail industry employees are aged over 50 and City & Guilds predicts that an additional 120,000 people will be required in the sector over the next five to ten years to fulfil the requirements of upcoming schemes.
In Wales alone, Transport for Wales has revealed a ten-year programme of major investments to improve the country’s transport network including three quarters of a billion pounds to electrify the core valley lines as part of the South Wales metro project, £800m to develop new faster, greener trains as well as £194m to improve existing stations and create five brand new stations.
etc"
Are these very good results or what at first look?!
Here we have a £4m m/cap company at 45p which has made 4.66p EPS and £1.1m operating profit when badly affected by the pandemic, and has £1.9m net cash!
Admittedly £1.5m of VAT has been deferred, and the divi has been suspended for the foreseeable future.
But overall this is surely a very creditable result, and certainly better than I expected.
It's also encouraging that RTC "believe we are well placed to capture opportunities that will emerge through the Government's social housing and electric vehicle initiatives which will drive long term demand across the sector."
There's a lot to read through, but still.....
https://uk.advfn.com/stock-market/london/rtc-RTC/share-news/RTC-Group-PLC-Final-results-for-the-year-ended-31/84391542
Probably not! :)
Nice jump so far today, not apparent so far why. Anyone??
Are you still here, Rivaldo? You've gone very quiet!
If you Google Ganymede and HS2 you get the following confirmation that HS2 are indeed a Ganymede client (though I can't specifically find this extract on the actual web page!):
"www.ganymedesolutions.co.uk › disciplines › rail
Rail · Ganymede - ganymede recruitment logo
Ganymede Solutions specialises in Manufacturing, Infrastructure, Civil, ... and clients such as: Network Rail, Natural England, HS2, Environment Agency."
So I assume that today's HS2 approval could be very beneficial to RTC via its Ganymede division....
Https://www.ganymedesolutions.co.uk/disciplines/rail
"Supporting original equipment manufacturers, train and freight operators and national main contractors, Ganymede recruit across all stages of rail projects, including design and development, build and installation and testing and commissioning.
Our rail division is one of the leading suppliers of contingent labour services in the industry, supplying more than 1,500 onsite personnel to the rail industry across the UK. As a RISQS approved supplier, we provide fully qualified multi-disciplined personnel to work in partnership with our clients on national rail, underground and metro system projects.
RAIL RECRUITMENT
?We recruit for a wide range of jobs across rail, including operations, rolling stock, civil engineering, systems and labour supply.
Hover over each area below for a preview of the specific jobs we recruit."
Good to see RTC getting decent coverage on Sharecast:
Https://www.sharecast.com/news/aim-bulletin/rtc-group-issues-positive-fy-trading-update--7258922.html
Continuing to move up here. It only needs a little press or tip attention and we'd surely see at least another 20%+ move up given the very cheap fundamentals and high recurring income from Ganymede, plus the scarcity of available shares.
Hopefully the rise will continue all the way to the results on 24th February, when we'll likely get new forecasts for 2021 which the market can look forward to.
Per a post elsewhere, Whit man howard have retained their 100p price target - that's 53% upside from the current 65.5p.
They summarise as follows:
"RTC* – RTC.L, 62p, Mkt Cap £9m, Buy (TP 100p)
2019 PBT in-line and improvement in the net debt position
RTC has released a positive trading update for the 12 months to December 2019 which not only confirms that PBT is in-line but also the continued downward trend in net debt. Our 2019 PBT estimate is £1.9m while our current net debt forecast is £4.1m (down from £4.5m at December 2018). Given recent updates from across the recruitment sector which have invariably led to downgrades this is a reassuring update and underlines its strategy of been able to rely on recurring income from its Ganymede and overseas GSS divisions for c60% of revenues as we expect the growth in these two divisions to offset anticipated declines in the UK based ATA recruitment division. The improved cash position also gives us confidence that our dividend forecast for 2019 of 4.2p (2.4x covered) representing growth of 8% is achievable.
Due to the diversified source of earnings, we believe, RTC should enjoy a higher rating (currently trading at a discount to the small-cap recruiters), with it trading on a 2019 PE rating of 6x and offering a yield of 7%. Even at our price target of 100p the 2019E PE rating and dividend yield would still only be 10x and 4%. We maintain our buy recommendation with the prelims expected on Feb 24th."
Bunsenburner123, the share price is up 10% already so the verdict is apparently clear :o))
At the now 67.5p the P/E and divi yield are still crazily low given the forecast 11.4p EPS and 4.57p dividend this year.
How do you think the market will react to this news?
Excellent - today's update confirms trading nicely in line with 9.9p EPS and 4.16p dividend expectations.
Plus there's rightfully cautious optimism for the current year.
Which puts RTC in line for 11.4p EPS and a 4.57p dividend this year.
At 61p that's a P/E of just 5.4 and a 7.5% dividend yield!
Https://uk.advfn.com/stock-market/london/rtc-RTC/share-news/RTC-Group-PLC-Trading-update-and-notice-of-results/81591692
It's going to be a busy 3 months for RTC per the investor calendar below. Hopefully this will be the year of the re-rating, if RTC can live up to the confidence shown in the outlook in the interims:
"we remain confident of continuing our satisfactory performance in the second half of 2019"
27 January 2020 – Trading Update
24 February 2020 – Final Results
22 April 2020 - AGM Update
,,and up yet again on just a £3.5k buy. Evidently not much stock around.
Once again, the P/E is ridiculously low at 61p assuming the meeting of these latest forecasts - and the divi yield is around 7.7%.......
last year : 9.9p EPS, 4.16p dividend
this year : 11.4p EPS, 4.57p dividend
and again today - just £3k of buying has caused another tick up....
Good to see a mere 8k buy at 60p cause a 2p rise.
The year end trading update is due in the next couple of weeks or so - last year's was the 18th January.
Worth reiterating the latest forecasts - at the current 60p share price that's a P/E of just 5.3 and a 7.6% dividend yield!
this year : 9.9p EPS, 4.16p dividend
next year : 11.4p EPS, 4.57p dividend
which should reduce costs and increase synergies:
Https://ganymedesolutions.co.uk/news/ganymede-announce-new-end-to-end-service-offering-following-merger-with-ata-recruitment/
"Ganymede announce new end-to-end service offering following merger with ATA Recruitment
Dec 11, 2019
Ganymede, a leading supplier of contingent labour to the infrastructure sector will provide a new focused end-to-end service offering to the industry in 2020, following a merger with the infrastructure and transportation divisions of its sister company, ATA Recruitment.
From January 2020, Ganymede will be able to offer the rail, construction, energy, highways and water sectors a complete suite of diverse people solutions. From design, project management, commercial and engineering staff to on-site labour, Ganymede can now support clients throughout the full lifecycle of infrastructure projects, from tender to completion.
ATA Recruitment, also part of the £90m Derby-based RTC Group, boast over 50 years’ experience in white-collar contract, permanent and executive recruitment, and have supported some of the UK’s biggest rail and infrastructure projects. This expertise combined with Ganymede’s workforce solution management capabilities makes the newly expanded Ganymede business a clear partner of choice for major infrastructure companies across the country.
Operating within the same markets, and sharing many mutual clients, the decision to merge the infrastructure and transportation divisions of ATA Recruitment was made with client offering and ease in mind.
Paul Crompton, Managing Director of Ganymede who continues to head the business, said: “I’m delighted to announce the merger of Ganymede with the infrastructure and transportation divisions of ATA Recruitment, which will create a large-scale business, offering a holistic client proposition. The aim of the combined business is to support our clients with diverse people solutions, offering the relevant skills to design, build and maintain infrastructure across the country. This is an exciting chapter in the growth of Ganymede which will create opportunities for our existing staff, alongside new jobs and a commitment to make a positive impact on wider society”.
From January 2020, Paul Crompton will also oversee ATA Recruitment as he is appointed as Managing Director to drive forward ATA Recruitment’s existing engineering and manufacturing division, which will continue to operate from their established offices in Leicester and Leeds.
With the merger of ATA’s infrastructure and transportation divisions officially taking place seamlessly with Ganymede from the start of January 2020, clients will continue to receive the excellent level of service that the company strives to offer, along with the additional benefit of a much larger service offering from their regional offices in Derby, Doncaster, Crewe, Milton Keynes, London, Portsmouth and Cardiff.
etc"
Great to see some activity here on what should be a very quiet day. Maybe Network Rail have had to increase their usage of Ganymede staff after all the flooding and landslip etc recently?
Still looks great value on forecast 11.4p EPS and a 4.57p dividend for the year about to start.
Excellent news this morning, and proof that Ganymede are doing a good job for Network Rail:
Https://www.investegate.co.uk/rtc-group-plc--rtc-/rns/contract-extension-for-network-rail/201911120700070376T/
Looks like RTC will be continuing to supply into Afghanistan for some time to come following Trump's cancellation today of the peace deal with the Taliban.
As a reminder, the latest forecasts from Whitman Howard dated 15th August are:
this year : 9.9p EPS, 4.16p dividend
next year : 11.4p EPS, 4.57p dividend