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who are heavily involved.
excellent recovery since the Brexit.
The Midas column has tipped Severfield today, saying that profits could double - should be a good week ahead: Http://www.thisismoney.co.uk/money/investing/article-4143554/MIDAS-TIPS-Steel-group-chance-doubling-profits.html
New highs - and another tip for SFR here: Http://money.aol.co.uk/2017/01/06/are-these-the-best-small-cap-shares-for-growth-investors/ "Build a fortune And I reckon Tyman's construction counterpart Severfield(LSE: SFR) is on course to deliver solid earnings growth too. Despite concerns over the impact of Brexit on the construction sector, Severfield continues to rack up new business at an impressive rate. Indeed, Severfield's order book clocked in at six-year peaks as of November, at £315m, providing the firm with terrific earnings visibility. And Severfield's presence in India also provides plenty of revenue opportunities. The company's JSW Severfield Structures joint venture secured £29m worth of contracts just last month to build a variety of commercial and industrial structures. And the amount of business is likely to keep rising as the Indian economy booms. The City has pencilled-in a 35% earnings advance at Severfield for the year to March 2017, creating a very-appealing P/E ratio of 15 times. And an anticipated 16% bottom-line charge in fiscal 2018 drives the multiple to a much-improved 12.9 times. Moreover, PEG numbers of 0.4 and 0.8 for 2017 and 2018 highlight its exceptional value relative to its likely growth trajectory."
N+1 Singer have just released their 12 top picks for 2017 - and SFR is one of them (along with IQE, which I also hold). They have a 98p target price, and summarise: "Severfield is the UK market leader in the design, fabrication and construction of structural steel, representing c.14% of total UK capacity. It has a strong management team whose turnaround plan is beginning to bear fruit. We believe that despite the recent jump in the share price, the current rating is undemanding and that the Group has the potential to achieve its FY20 PBT target earlier than expected. The order book provides a good level of revenue visibility and self help measures underpin a significant proportion of the Group’s profit target. Strong net cash (£24.4m in H117) leaves potential for significant cash returns to shareholders. With a market leading position, a solid order book and robust end markets, we believe 2017 will be another positive year for the Group. We maintain our Buy recommendation and 98p TP."
Looks like India is picking up a head of steam now: Http://www.investegate.co.uk/severfield-plc--sfr-/rns/contract/201612140700077730R/ "SEVERFIELD SECURES £29 MILLION WORTH OF CONTRACTS IN INDIA Severfield plc, the market leading structural steel group, announces that JSW Severfield Structures Ltd (JSSL), its 50:50 joint venture in India with JSW Steel Ltd, has recently been awarded a number of geographically diverse projects across India with a total value of £29 million (245 crores). Contract highlights · two high rise towers for a commercial complex in Kerala; · a large parking facility in Karnataka; · two industrial projects in Maharashtra and; · a technology building near Delhi The contracts were awarded due to JSSL's full design, fabrication and site erection capability, and its reputation for consistently delivering high quality products and services within differentiated programme times. Ian Lawson, Chief Executive Officer, Severfield plc, commented: "JSW Severfield Structures Ltd, our Indian joint venture, continues to perform steadily and develop a strong pipeline of work from new clients. These contracts are reflective of our ability to provide clients with world class engineering and bespoke design services."
Edison have released a new and very positive note. They've increased their forecasts....looks pretty cheap imho, and when you strip out the cash pile it's even cheaper: Http://www.edisoninvestmentresearch.com/research/report/severfield676011/preview/ "Severfield's (SFR's) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management's stated aim of doubling FY16 PBT by 2020 can sustain further progress."
and up above 5% with 15.2m shares: Http://www.investegate.co.uk/severfield-plc--sfr-/rns/holding-s--in-company/201611240852160480Q/
I have avoided Investors Chronicles advice since they said to avoid Stagecoach years ago when it was about 20p. However I think they have called SFR right, very impressive results.
The IC are definitive - Buy: Http://www.investorschronicle.co.uk/2016/11/22/shares/news-and-analysis/severfield-s-ambitions-look-well-grounded-HtZsVRaULOTdLKxiSMBqIO/article.html Extract: "The group's order book stood at £315m at the beginning of November, representing a six-year high, and a 17 per cent increase in just five months. Major contract wins in the first half include a tower project at 22 Bishopsgate, London and the Graphene Innovation Centre in Manchester. The backlog is expected to feed through into increased production volumes and revenues in the second half. Jefferies has upgraded its forecasts for March 2017 full-year profits and EPS to £17.9m and 5p, respectively, rising to £20.8m and 5.7p in 2018 (from £13.2m and 3.7p in 2016)." "IC VIEW: The group is set fair to achieve its target of doubling its underlying profit before tax over the next four years. Strip out net cash, equivalent to 8.2p a share, and Severfield trades at just 11 times FY2018 earnings - get your wallet out. Buy."
Brief analyst comment FYI: Http://www.building.co.uk/news/severfield-eyes-market-beating-figures-after-interims-tonic/5085041.article Extract: "Chief executive Ian Lawson (pictured), who was brought in to turn around the loss-making business by chairman John Dodds in November 2013 after leaving Kier earlier that year, said he expected profit for the full year to be ahead of expectations. Cenkos analyst Kevin Cammack said: "These are cracking interims featuring stand-out margin growth from 4.3% to 7%." He added that he expected full year profits to be around £18m, up from his previous estimate of £16.5m. Lawson added: "We have a strong platform from which to implement our strategy, which targets to double our underlying profit before tax over the next four years and continue to create value for our shareholders." The firm increased its dividend by 40% to 0.7 pence."
good thinks to come here i hope.
H1 results are terrific, and most importantly full year results will be "comfortably ahead of expectations". Lots to go for given order books etc. SFR was always rated at a premium in the past - if it returns to those valuations then we could see 100p+ over the coming months: Http://www.investegate.co.uk/severfield-plc--sfr-/rns/half-year-report/201611220700097610P/ "I am delighted with our strong performance in the first half, which has continued since the period end. Margins are significantly up, our order book has continued to rise to a six year high whilst our pipeline remains steady. In combination with the strong cash generation in the first half, this has given us the confidence to increase the interim dividend by 40% and we expect profit growth for the full year to be comfortably ahead of expectations."
Just bought another 5363 @ 64.1. Lets see if it shows up.
I topped up with a further 5,000 shares yesterday, and still no sign it does make you wonder?
My buy from 2 hours ago still not showing, 4858 @ 63.82.
True, I'm looking forward to the results next week. Hopefully the results will lift this past current resistance, and then the month on month rises will then continue.
Nice.
Http://www.fool.co.uk/investing/2016/11/11/these-2-engineering-stocks-could-enrich-your-portfolio/ "An impressive recovery Looking at other engineering firms, I see shares in structural steel supplier Severfield (LSE: SFR) have also been through some ups and downs of late, though a rally since early July has seen them recover to a loss of 4% over 12 months — but over five years we’re looking at a 39% fall. Earnings have, however, grown nicely over the past couple of years, and there are double-digit EPS rises on the cards for this year and next. That would give us a forward P/E of 13 for the year to March 2017, dropping to 10.5 on 2018 forecasts — and suggests PEG ratios of 0.5 for the next two years, where around 0.7 or lower is generally considered a good growth indicator. On top of that, the firm’s dividends, which were curtailed in 2014, have already been reinstated and are set to show some nicely progressive gains — after yielding 2.7% this year, analysts are expecting increases of 23% and then 22% which would take the yield up to 3.7% by March 2018. In its AGM trading update in September, Severfield told us that its UK order book stood at £268m as at 31 August and had “remained at a very strong level in the period following the EU referendum result“, adding that “Our pipeline of potential future orders has also remained stable with a good balance of work across all key market sectors“. In addition, an order book of £37m in India apparently “continues to generate an encouraging level of new opportunities amid signs that economic optimism in the country is beginning to increase“. First-half results should be with us on 22 November, and I’ll be looking for more signs of an impressive recovery."
The CEO is very positive today.... Http://www.yorkshirepost.co.uk/news/severfield-wins-contract-for-london-s-newest-city-skyscraper-1-8216175 Extracts: "The Thirsk-based firm has been appointed the steelwork contractor on 22 Bishopsgate in the City of London. Analysts said the prestigious contract will be worth up to £50m as Severfield helps to build one of the top three tallest buildings in the City of London. The contract was awarded based on Severfield's reputation as the steel company behind Wimbledon’s No. 1 Court, London's tallest building The Shard and Tottenham Hotspur FC’s new football ground." ""We are particularly encouraged by the industrial sector," said Mr Lawson. "Orders are coming through, especially on the retail side of things. Things seem pretty good. The pipeline is robust with opportunities going forward. "The business went through a lot of turmoil three or four years ago, but we've put those woes behind us." He added that the contracts demonstrate the breadth of the group’s capabilities and the quality of its order book. "The group has a longstanding history of working on iconic London buildings such as The Shard, London Bridge Station and Wimbledon No 1 Court. Our design, experience and engineering skills have resulted in a strong pipeline across a range of sectors."
RNS - great to see the high profile 22 Bishopsgate win, as well as a number of others totalling £72m: Http://www.investegate.co.uk/severfield-plc--sfr-/rns/contract/201611030700071848O/ The UK order book was already at around "its highest position for over six years" at £268m, so this should take it to even higher levels.
Another rise! How long before investors catch on to this share?!
Canaccord have a Buy and an 80p target here: Http://www.ftsenews.co.uk/2016/09/26/outstanding-analyst-ratings-for-severfield-lonsfr-7/
Agree with your assessment. Infrastructure projects galore, and SFR a beneficiary. Add to that, the end of the cheesegrater comedy and potential for divi increases, SFR looks a steal. Re: infrastructure potential, KLR also looks in right place at right time.
I post on here regularly, pointing out the growth potential, and the theorising about the construction projects that SFR could be involved with just confirm it. The economy will be bolstered by big infrastructure projects in the forthcoming years, and SFR are ideally placed to take advantage.