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Whitman Howard have revised their forecasts slightly to 9.9p EPS, with a 4.16p dividend.
Next year's forecasts are 11.4p EPS with a 4.57p dividend.
The illiquidity here tends to magnify the share price reactions.
Two out of three divisions are doing well, and the company has reiterated confidence going forward, not least by increasing the already weighty dividend.
Revenues have increased very nicely at Ganymede and GSS, but profits haven't increased at the same rate so not quite enough to offset the profit reduction at ATA. I wonder if there's been some heavy investment to fund this growth in Ganymede and GSS, with those costs reducing or paying off further from H2 (plus amortisation and depreciation have increased by £91k year on year).
Last year got an update and results till June at end of July. It's a lovely dividend, but it will be nice to get some news.
A 16k buy at 62p has moved the price up 2.5p. Just shows what might happen with any decent demand. A reminder that forecasts are for 10.5p EPS with a 4.24p dividend, rising to 12.5p EPS and a 4.66p dividend next year - against a 62.5p share price.
Hopefully RTC is now establishing a base at around 60p ready for a push upwards.
We know from the AGM statement that RTC are trading well, but with all the hot spots around the world I'd have thought the GSS division will continue to thrive for some time to come.
Continuing to tick up on small buying.
Great to see these new recent highs (and a few more posters on this bb!).
Note that RTC will go ex-div this Thursday for the 2.55p final dividend.
Up another 2.5p today on just £4k of buys, so evidently still barely any stock around.
Healthy to see increased volumes going through, with 67k shares traded so far today.
Forecasts are for 10.5p EPS with a 4.24p dividend, rising to 12.5p EPS and a 4.66p dividend next year - against a 67p share price.
...as proven by the 1.5p tick up this afternoon after just a £1k purchase!
Good to see a 10k buy just now at the full 68p offer price. Apparently there is not much stock around today - just 100 shares maximum are available to buy online.
Meanwhile the online quote on the Bid is 65p for up to 15k shares, so looks promising for an advance from here.
...and again today. New 18-month highs now.
Great to see a 10k buy moving the price up 1.5p just now. Perhaps not much stock around. This stock is ridiculously undervalued imho.
Today's AGM statement shows RTC delivering the goods once again. Nice and solidly in line, cautiously confident, and interestingly:
"we continue to experience demand from both new and existing customers"
Forecasts are for 10.5p EPS with a 4.24p dividend - against a 63p share price.
News of January expansion for Ganymede in the North West "Due to contract award" not posted here before
Https://ganymedesolutions.co.uk/featured-posts-2/ganymede-expands-its-rail-division-in-the-north-west/
"Ganymede expands its rail division in the North West
Ganymede, a leading supplier of complex labour logistics within safety-critical environments across the infrastructure sector, is expanding its rail division in the North West of England.
Due to contract award, Ganymede is investing in the expansion of its office in Crewe to support its plans for growth and commitment to deliver excellence to its clients in the North West from January 2019.
etc"
Still a 6.7% yield at 63p. Forecast EPS of 10.5p and a strong Balance Sheet. A bullish outlook too.
Extremely undervalued imho.
Nice move today - good to see a 9k buy at the full 64p offer price just now.
I note SMS's announcement this morning of the roll-out of SMETS2 smart meters to SSE's customers - I assume that RTC's Ganymede will be providing staff for this and that the SSE delay is now clearing?
"Smart Metering Systems PLC (SMS.LN) said Monday that it has signed an agreement with SSE Energy Supply Ltd., a unit of SSE PLC (SSE.LN), to supply up to 200,000 nondomestic smart meters to its customers.
The metering-services company said it will supply SMETS2 meters, the next generation of smart meters, to SSE's customers."
Terrific results out whilst I was on hols. Worth summing up in black and white:
last year : 9.4p EPS, 3.85p divi
this year : 10.5p EPS, 4.24p divi (forecast)
It'll just take a little buying interest, whether institutional or via a press tip, to move the share price up nicely given the fundamentals and prospects.
As Whitman Howard say
"Even at our price target of 100p the 2019E PE rating and dividend yield would still only be 9x and 4%. Not bad for a company which generates c50% of revenues from recurring sources, has built a solid foundation and is highly optimistic about its future"
Great results - still loads of upside going forward - great yield
Interesting chart after today's move up! About to finally break upwards perhaps.....
From Allenby Capital this morning - very encouraging that RTC are on track to have achieved 10p EPS (with a 3.85p dividend) even despite the various headwinds faced last year as listed below.
Which makes the forecast 11.6p EPS (and 4.24p dividend) for this year look pretty achievable:
"RTC Group plc (RTC.L, 56.5p/£8.3m)
Full year trading update to 31.12.18 (25.01.19)
? RTC released a brief year-end trading update stating that trading is in line with market expectations.
? The Chairman stated that continued growth of revenue and profit and an improvement in the net debt position is extremely pleasing.
? Results will be announced on or around 25 February.
Allenby Capital comment
It is encouraging to see a continuation of the improvement in headline numbers posted at the half year which showed revenues up 17% and PBT ahead by 31% especially given its (minor) exposure to Carillion, lower than expected volumes from Network Rail and government approval delays impacting Ganymede Energy"
From broker Whitman Howard via Research Tree - they have a 95p target, which sounds about right at present and would give a current year P/E of 8.2 and over 70% share price upside from here.
If some of their anticipated news flow comes in then there could be upgrades all round as these are presumably pretty large-scale contracts.:
https://*********************/companies/uk/training-recruitment-services/rtc-group/research/whitman-howard/estimates-confirmed/66e3e89f-cfc3-40b4-91d6-605e1b6febba
'We expect a number of announcements in 2019 which could positively impact our estimates. We expect RTC to announce a 1yr extension to its current Network Rail contract to include the period up to 2021, confirmation that it is bidding for the next five year Network Rail programme i.e. CP6, clarification that it is bidding for new work from Network Rail which is outside the remit of its traditional 5yr rolling contracts, new contract wins in GSS and an acceleration in the smart metering contracts as SSE is currently operating at levels below the guaranteed minimum. These events, plus the ongoing favourable trading will support our current 2019 PBT estimate of £2.1m representing growth of 16%.
Since the 2018 interims, sentiment has weighed against RTC due to the weaker first half trading and higher than expected net debt position. Given today’s update successfully addresses both these issues, the valuation/growth metrics are attractive. Even at our price target of 95p the 2019E PE rating and dividend yield would still only be 8x and 4%. Given the recent PE exit multiple for Harvey Nash was 11.5x we do not believe our price target is unreasonable for a company with a proven and experienced management team.'
Agree - looking good.
Great to see confirmation that trading is nicely in line with expectations, particularly given the slow pace of the smart meter roll-out.
The current share price is particularly low on a P/E of 4.7 given that market expectations are:
last year: 10p EPS, 3.85p dividend
this year: 11.6p EPS, 4.24p dividend
next year: 13.1p EPS, 4.66p dividend
Whitman Howard's 95p target sounds about right at present for a current year P/E of 8.2.
If some of their anticipated news flow comes in then there could be upgrades all round as these are presumably quite large-scale contracts.
Interesting - and long - article on RTC's Ganymede here from only 3 weeks ago:
Https://www.railstaff.uk/2018/11/21/ganymede-at-20/
Extract:
"Ganymede is now the primary supplier of contingent labour to Network Rail in the London North Eastern (North), Wales, Western and Wessex regions and secondary supplier in the East Midlands along with other Tier 1 contractors across the UK."
"Looking ahead, Ganymede has big plans to build on its success. Paul added: "We obviously have HS2, Northern Powerhouse Rail and Transpennine coming up. We see there is a lot of growth in the rail market and we want to continue to be a supplier of choice for Network Rail and the Tier 1 contractors in IP [Infrastructure Projects] and outside of IP."
SSE's interims this morning report decent progress on their smart meter roll-out:
Https://www.investegate.co.uk/sse-plc--sse-/rns/half-year-report/201811140700032616H/
"In the six months to 30 September 2018, SSE reached a significant milestone and has well over one million smart meters on supply. During the same period, SSE began rolling out small volumes of the enduring SMETS2 meters ahead of a full transition from SMETS1 to SMETS2 in 2019. In line with its ambition, SSE continues to perform well compared to industry benchmarks on safety, customer satisfaction, electronic billing and energy efficiency advice, according to the BEIS quarterly benchmarking report."
The roll-out is of course slower than initially hoped due to SSE's ongoing energy division merger with nPower, and also the continuing argument about the effectiveness of SMETS1 meters.
Still, a progressive rollout will have a very positive impact on RTC's Ganymede division, and if the rollout accelerates with the introduction of SMETS2 meters then that effect could be dramatic.