The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Wow. Hold no shares - wish I did - but exceptional results!
Consistent profits of 15% or more in the past 2 yrs or more= SRP...this is it ...
Seems this sector (post Interserve, Carillion, lesser extent Bab****) is deeply unloved despite good profits and fundamentals. Obviously not as sexy as a loss making fintech, but I would have thought a fairly safe place to park some money.
Serco expects over 50% jump in H1 profit on COVID-19 services
A full update on trading will be given in our pre-close statement on 30 June.
As good as the DWP contract award is £350m, it is not material warranting an RNS in its own right , so why also announce the upgrade on the 14th and not wait until the 30th Pre Close and bash it all together in one hit.
As an old dog, IMO DYOR it could be it leaves space for other good news to flourish (guess), a double jab of +ve's so to speak, which should mean a Interim Divi announcement , or some sort and pay-out guidance to shareholders for 2021 that show growth. They have the cashflow no doubt - however, SRP has not shaken off the COVID bad press of 2020, nor the inconsistencies in 2020 profit guidance and the results reliance on test and trace. The expansion into the US defence - WBB is a master stroke and not factored into the SP. This is very different company to 2019, far more financially stable, solid, more diverse income streams, just wish Sterling would fall. This will re-rate over time as trust is rebuilt. GLA GN
I've followed Serco for sometime and the Aug 20 crash after 'uncertain outlook remark in H1 results pushed the share down 10% to £1.54, the SP has been very nervous before trading and\or results announcements. The pre close Dec 20 - statement - couldn't reinstate divi's and covid related work would diminish in 2021, held the SP back until March when divi's were restored - £1.37
Since then SRP has acquired WBB $300m from cash\debt high 10% margins in the US and announced significant contract wins, VIVO £3.8bn, DWP £350m, Goose Bay £870m, however SRP is held down at £1.30 despite all this transformational progress and after completing £40m share repurchase and final divi paid. The concern is the fall off of the lost sub deal and COVID related work retreating in H2 . Those tailwinds have been more than overcome with the actions set out above. At £200m recent 2021 guidance generates EPS of around 12p a forward PE ratio of 10.8, possible yield on 3p Int & Final divi 2.3%, looks really cheap with modest downside risk. On the April & June announcements SP hit £1.45, could happen again but should stay there DYOR IMO GLA I'm in.
trading update next week ,we could see some upside then,
They can put any target they want on it but it still bumps along like a dead rat in a river !
Serco: Numis upgrades to buy with a target price of 180p.
Significant UK defence contract win; strong current trading underpins increase to 2021 guidance
VIVO contract win and increase to 2021 guidance
It's in but still clearing,Cheers
not yet ... was paid Friday so should clear any day now.
Anyone had theirs paid yet?
It’s certainly undervalued. This sector together with Telcos are just unloved at the moment. Hang in there. Sentiment changes.
I bought into this a while ago at 138 ish but it seems to go nowhere, even given the super-lucrative contracts they have and have won during covid. I am at a loss why this isnt doing better especially with the share buybacks ??? Mind you Capita is the same. I traded CPI at 50p now it just seems to bump along circa 40p the market seems to hate these stocks ??
This is a very boring company. I have been looking to sell the shares without incurring a loss. Banked a small profit on this one.
Maybe it is the company own share buy back. Look like it will be trading side ways for sometime to come. Wonder if there will be break through from current level
Just noticed someone stumped up 8 million today in buys for this beautiful price!! That would make me feel confident!
It would be wonderful if CAPITA paid a dividend ... but that won’t ever happen! Seems to be disliked massively at the moment and even with a bright future ahead. Weird Covid world!
* lower than it was ...
The dividend was less about value and more about a token ... don't forget its the first dividend in 7 years so this is a major milestone, I would imagine they have been cautious with this one. Whilst I have some reservations about whether the buyback programme was the best use of cash it will increase the share price as they are planning to cancel c.50% of the shares bought once the programme finishes later this year. Either way I'm disappointed with share performance, the share is now now than it was before guidance was upgraded earlier in the week.
I think you are right here about the dividend part, at the moment there is little reason to buy a fairly unsexy share like this unless it paid a decent dividend, which is even more underlined by the fairly decent earnings...
The company needs to pay out much bigger dividends rather than doing buy back which has only deceased the share price, unless there has been the trick to keep the price low while buy back is going on. Can somebody shed some lights if such thing is possible?
This share has the same disease as Capita, making profit all indications and order book good, but disliked by the market....