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This should set the cat amongst the pigeons nicely :o)) Whitman Howard have initiated coverage today. Their 85p target price would be a nice start, with 73% upside from the current 49p - and would still only be a P/E of 11. They forecast: this year : 7.4p EPS, 3.3p divi next year : 8.7p EPS, 3.6p divi At 49p that's a P/E of just 6.6 and a 6.7% divi yield.... Here's the summary: "There are numerous reasons to buy RTC. Improved visibility due to its exposure to recurring, higher margin, contracts in the robust UK engineering sector now account for c46% of revenues – up from 25% in 2014. Following a strong start to 2017 we forecast adjusted PBT growth of 16%, a ROCE of 19% and a sustainable dividend and FCF yield of 7% and 11% respectively. With a PE rating of just 7x we initiate with a BUY recommendation and a price target of 85p, representing 73% upside."
given the Q3 slowdown and following the strong Q4 recovery. I calculate 7p adjusted EPS, well ahead of 6p forecasts, adding back the £173k of amortisation. The 3p dividend is spot on forecasts - a 5.6% yield. The outlook is strong too, with a positive start to 2017 in all divisions. Ganymede should continue to thrive with the Network Rail contract, the smart meter opportunity etc. ATA should also benefit from the government focus on infrastructure spending, and GSS is stable with further opportunities. Plus the Derby Conference Centre is now complete in terms of investment, is re-let and better utilised (not sure Derby will get promoted this year though!).
Today's second RNS discloses that the CEO of Morson has now bought over 8% of RTC: http://www.investegate.co.uk/rtc-group-plc--rtc-/rns/tr-1--notification-of-major-interest-in-shares/201701270824323055V/ Here's his bio: Http://www.bloomberg.com/research/stocks/private/person.asp?personId=34599859&privcapId=5556563 But why has he picked up 8% of RTC on his own account? Presumably that means as an industry insider he simply sees it as a good bet at the least, and potentially is this putting RTC in play?
Confirming historic EPS is in line at 6.2p EPS, and also a positive outlook for this year with 7.7p EPS forecast: Http://www.investegate.co.uk/rtc-group-plc--rtc-/rns/trading-update-and-notice-of-results/201701270818283031V/ The 3p dividend forecast for each year is not insignificant too against a 56p share price :o)) The share price should climb back to 70p-80p now, and potentially a fair amount more imo if ATA is back to form as the results suggest, given Ganymede's long-term and secure Network Rail contract. They must have had an excellent H2 - I had my doubts about whether they'd make the numbers following the last numbers. Why they didn't RNS the ATA contract I posted earlier is beyond me.
CEO says "We are pleased that our trading is in line with market expectations. All of our group businesses had a strong end to the year and we remain confident that this positive momentum will continue in 2017."
Excellent news: Https://ata-recruitment.co.uk/a14/ "ATA Awarded Recruitment Contract for the £1.5bn A14 Improvement Scheme November 11, 2016 at 4:43 pm. ATA Recruitment are proud to be one of four agencies selected to source freelance and permanent staff on the £1.5bn A14 Improvement scheme between Huntingdon and Cambridge. Tom Peach, ATA’s Senior Highways Consultant commented, “The awarding of the A14 contract is a true testament to all of the hard work that the ATA team has done over the years to deliver a best-in-class service to our clients across the UK’s Highways and Infrastructure Markets”. The Highways England project, delivered by a joint venture between Costain, Skanska, Balfour Beatty and Carillion, aims to enhance the safety of drivers, combat congestion, connect people, unlock economic growth and improve the environment. The scheme, stretching over 21 miles, is one of the largest road projects in the UK and is due to take around 3 years to complete, opening to traffic in mid-2020. Rachel Skelton, ATA’s A14 Account Manager said, “ATA are excited to be working closely with the A14 team to help deliver this flagship project and help to achieve Highways England objectives of a safer and more efficient road system that is going to drive economic growth to the region”. The scheme will generate a huge number of freelance and permanent opportunities over the life of the project and ATA Recruitment will be seeking skilled individuals such as: •Site Engineers •Site Supervisors •Site Managers •Site Agents •General Foreman •Project Managers •Planners •Quantity Surveyors and more etc"
Wrong thread...
Bye then.
...if only for the dividend, but that is one awful graph! Seems to be an underlying problem. I look for bargains, but I'll hang on with this one, maybe Network Rail have something in the offing?
News that the Derby Conference Centre is doing well post-revamp: Http://www.derbytelegraph.co.uk/pound-1m-conference-venue-upgrade-saves-jobs-and-brings-in-a-further-150-staff/story-29799293-detail/story.html "Derby Conference Centre staff numbers set to top 300 after £1m revamp By Derby Telegraph | Posted: October 15, 2016 The number of people working at Derby Conference Centre is doubling after a £1 million revamp prompted a string of businesses to move in. Mike Ebbitt, managing director of the conference centre, part of the RTC Group, said a recent refurbishment meant staff numbers would soon hit 300 – up from 150 during 2015. Businesses that have moved to the centre in recent months include logistics firm Wincanton, railway training company ARC Academy, broker portal SortRefer and children's coaching company Premier Sport. Mr Ebbitt also revealed RTC Group considered moving from the centre, on the corner of London Road and Ascot Drive, when its lease expired last year. However, he said the unique nature of the site and the growth of Derby's business scene had prompted it to sign a new 15-year lease, thus safeguarding jobs in the city. Mr Ebbitt said: "We've saved jobs in Derby and we've brought jobs to Derby – and it's cost us £1 million. "SortRefer are based towards Stoke but recently moved into our Burdsall Building and are going to have around 100 employees here. "Wincanton wanted a central UK base and are renting our Chapman building. That's about 30 additional staff here. "ARC Academy have six trainers here and have got around 40 trainees coming here already. "And Premier Sport, who provide PE coaches for schools, have six to 10 people here." Derby Conference Centre, which is housed in the former London Midlands and Scottish College of Rail, first opened in the 1930s grade-two listed art deco building in 2007. It was refurbished to allow it to host conferences, meetings, social functions and weddings. Earlier this year, the venue launched its new business lounge, which provides a quiet space for business people to work. Its facilities include private meeting pods, complimentary parking, superfast broadband and refreshments. The centre also revamped its Wyvern Bar, Stephenson Restaurant, reception and toilets, which were upgraded in keeping with the art deco style. The venue's lecture theatre is also to be refurbished to provide additional and more flexible facilities for conference organisers. A planning application to increase the number of parking spaces from 180 to 300 has been submitted. Dale Kelly, resource and sales manager at ARC Academy, said moving to the conference centre made sense. He said: "The site is a brilliant as we are able to do the majority of training on-site. Derby is a great location and has great transport links. The building and the grounds are picturesque and very presentable, which reflects th
I believe they call that market manipulation and is a criminal offence.
yep fake news
Rumours of a 21 million buy out from Addecco?? dont know if it is true or not but a paper caslled recruiter printed an article??
The recent results were steady as she goes, and the subsequent fall was unjustified imho. Given the long-term Network Rail work, the continuing presence in Afghanistan and the likely improvement at Derby I'm happy to hold and perhaps pick up some more given the prospects. With forecast 8.6p EPS, the P/E is now down to only 6.7 for this year. The 3.3p dividend is another big incentive to hold. Finncap said post-interims: " good set of results RTC has generated £0.513m of PBTA in 2016 (H1-2015A; £0.464m PBTA), an 11% increase, and 2.7p FD EPS (+15%). Net debt of £3.9m has reduced significantly YoY from >£4.5m in a half year in which the company has invested significantly. The 1.1p dividend is in line with our expectations (+10% YoY). • Strong performance from Ganymede RTC’s Ganymede business, which supplies contingent / temporary staff mainly to the rail and energy sectors, had a very encouraging H1, with sales and operating profits up 41% and 68% respectively, with margins up from 5.8% to 6.9%. This is largely on the back of last year’s Network Rail win, now successfully brought on stream, and ongoing for a further five years. • Mix changes elsewhere Beyond Ganymede, temp is rising as a proportion of ATA’s business, focusing on grey/white collar recruitment in specific sectors. This is a long term strategic objective which has been quickened by the softening perm market. GSS, the overseas business, has held steady, a good result, and significant investment has been made into the Conference Centre and largely completed in H1. • Post-Brexit vote, forecasts retained We retain our forecasts, bearing in mind the steady, long-term characteristics of the Ganymede business in particular and the likely upside in the Conference Centre as the investment starts to take effect; and will revisit the detail at a later point in the year. The company highlights the “unsettled” conditions which are clear to all following 23rd June, but appears to be making a good fist of driving the business forward. Buy."
I took some profit at 80p ish and when the price spiked just before the results I managed to sell the rest at about 70p mainly because of that director sell. I also have shares in PRP which seemed much better value and produced sparkling results rather than the just as you put it "OK" of RTC. I consider myself lucky for once to have read it right with RTC, fingers crossed with PRP. Market sentiment makes everyone a bit jittery so although I'm sure both companies will do well eventually, it's a bit like changing lanes in a traffic queue short term.
A bit confused at the drop in the share price following the recent results as they seemed ok to me. If the forecasts are anywhere near the 2017 PE will be below 7 and the yield over 6%!
FYI the interims will be out on the 10th August per the company web site: Http://www.rtcgroupplc.co.uk/investor-centre/financial-calendar/ Broker forecasts remain at: this year : 8.6p EPS, 3.3p divi next year : 9.5p EPS, 3.7p divi And good news for RTC as the Afghan support contract will be extended for at least another year to end of 2017. They are having to send additional troops rather than reducing numbers Http://www.bbc.co.uk/news/uk-36753390
Good to see Oryx increasing their stake quite fast. They had 905,000 on 3rd June and now have 1,208,500, so have bought another 303,500 shares and are above 8%: Http://www.investegate.co.uk/rtc-group-plc--rtc-/rns/holding-s--in-company/201607051314152988D/
I bought some of these before the close on Friday to take advantage of the dip following the directors' share sale. Having been following RTC for aeons this seemed like a good time to buy in. The interims next month will imo almost certainly be good, given that if they weren't the reputation of the CEO would be ruined forever having flogged a tranche of stock to someone with the reputation and status of Christopher Mills. The involvement of Christopher Mills (being Oryx's fund manager) in a microcap stock like RTC has to be extremely encouraging. Oryx International Growth Fund now have a 6% stake, i.e 905,000 shares, in this tiny £6m m/cap stock. Most unusual. With 8.6p EPS and a 3.3p dividend forecast this year, RTC are on a P/E of only 8.1 with a 4.7% dividend yield. Pretty cheap imho.
Quite pleased with todays results, anyone not like them?
Quite a pleasing set of results this morning, anyone not like them?
Thoughts on todays half years results Revenues up 16.6% Margins increased 2.5% Group profit down by 5.6% Operating profits up 8.6% to £507k Profit before tax is down 1.7% to £398k 675,581 Ordinary Shares repurchased (approx 4.4% of capital) Seem to be waiting on a lot of trade receivables, its up from £8.2m to £11.2m in contrast to trade payables which are only up from £4.1m to £5.3m Cash is up from £69k to £158k but rather fruitless exercise given the value of shares repurchased during the period and the near £1.8m increase in trade receivables vs payables. What is worrying though is that borrowings have been increased from £2.4m to £4.7m, this whilst a dividend is being paid. The cash-flow position in general looks pretty grim at half year but it often does for RTC so perhaps they will turn it around in the second half. One to avoid until at this price though, next trading update due early 2016 http://www.investegate.co.uk/rtc-group-plc--rtc-/rns/interim-results/201507240700299546T/
Someone bought£30k today. Ex divi on Thursday... perhaps got in for that :D
Back to my buy in point. :P