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Short to medium term expecting decent returns
Slower than expected start to a couple of major contracts secured earlier this year will hamper its near term performance. first half operating profits are now expected to be “significantly lower” than the prior year.
We needed some hard facts regarding profitability, and now we have them - and they're dire. Big fall in the stock warranted and understandable here - very disappointing. Not worth selling at these levels IMO, but not feeling like a big recovery is close either.
Here, silver lining
4 huge buys this morning.....maybe a time for this to move on that great news the other day......dust has settled now!
Revenue* up 14% to £151.8m (2016: £133.5m) o Second half revenues up 10% to £78.3m (H2 2016 £70.9m) · Adjusted operating profit** up 22% to £8.8m (2016: £7.2m) o Operating margins improved to 5.8% (2016: 5.4%) · Adjusted profit before tax** up 17% to £8.2m (2016: £7.0m) · Profit before tax £1.6m (2016: £2.2m) · Adjusted diluted earnings per share** up 21% to 11.9p (2016: 9.8p) · Earnings per share 3.3p (2016: 4.0p) · Proposed final dividend up 20% to 1.2p (2016: 1.0p), giving a total dividend for the year up 20% to 1.8p (2016: 1.5p) · Net debt as at 31 March 2017 £2.5m (31 March 2016: net cash £0.2m); significantly improved operating cash inflow before investments · Order book stable at £145m as at 31 March 2017 (31 March 2016: £143m - after Polish adjustments): o UK order book up 4% to £82m (2016: £79m) reflecting continuing strength of infrastructure and planning markets o International order book maintained at £63m (2016: £64m (like for like)) · Order book will be boosted by post year-end wins of c.£50m announced on 2 June 2017 · Group exposure to defined pension liabilities closed out, with return of £0.5m net of tax surplus to WYG * Including revenue from Joint Ventures ** Before separately disclosed items Operational overview: · 12% increase in UK revenue to £107.6m (2016: £96.3m) reflecting strong performance across almost all services lines, despite project delays in the fourth quarter · 80% increase in Middle East & North Africa including Turkey (MENA) revenues to £23.8m (2016: £13.2m) as EU funded projects come through strongly · 15% reduction in revenues in Europe, Africa & Asia (EAA) reflected the results in our Polish operation, partially offset by growth in Africa and Rest of World ·
· Order book stable at £145m as at 31 March 2017 (31 March 2016: £143m - after Polish adjustments):
but let's not get carried away. It's£50m over 3 years so 17m per annum or a 10% increase in expected revenues over the next 3 years. Bear in mind that the last RNS was slightly disappointing, and whilst this get's them back on track, it's not life changing. Couple of other things - we don't know at what margin these contracts have been priced - also, there's plenty of stale bears in this stock who've been waiting for a bounce and have sold into it. I would expect these to clear soon, and then we should see a steady rise back to the 130s. However, I think we'll need to see some more hard numbers, particularly covering profitability as well as sales. Patience required.
On this as with the lovely projected revenue, increasing Divi etc it looks like a belter. I'll certainly be adding into the ISA as she looks like an ideal Tuckaway. Some peeps will be confused by the lack of a rise here and will sell out which may cause a nice buying opportunity next week, with the election combo might get a juicy holding for a snip.....we'll see.
Might fly up next week Ppl are on holidays and nervous of elections
£50m contract and a 5% rise??? Can someone enlighten me please?
Same here Mozax!! My £10k showed as a sell at 8:01
I agree with both of you. Looking at the latest RNS, it isn't clear, especially for someone new looking at the company. I had to clarify it by looking through previous RNS's. Having looked through them, Draft's understanding seems accurate to me.
That's fine, apology accepted, and I agree with you. But, The problem lies in the fact that it is not clear, so the market is not clear. It's that simple.
under the DIO PSP UK framework, as DIO's preferred Principal Support Provider (PSP) for new projects in both the Central and Southern regions of the UK. The amendment to our existing PSP framework is initially for one year but can be extended in one year increments up to a maximum of three years. We estimate that our expanded Delivery Partner role under the new model could double our existing £12m per annum revenue in each of the next three years. that £12mill you are talking about is for that specific framework - they are not referring to the their company turnover in my opinion feel free to call them to clarify by all means of course apologies if my last post came across as rude - it was a knee jerk reaction from me AND I APOLOGISE
So you are happy that they have announced to the market this morning that the annual revenue is £12M? Or are you saying, don't do anything, whilst you are arranging funds?
The Board expects revenue for the year to exceed £150m representing year-on-year growth of c. 13%, in line with market expectations, but has revised its expectation of operating profit (before separately disclosed items and share based payments) to a figure approaching £9m. This nevertheless represents a profit improvement of close to 25% year-on-year. mr calm - ive noticed a lot of the big RNSs recently have had delayed reactions - we will probably be up next week or post election
Of this stock?
:/
you don't need to tell the company anything - go read the previous RNSS!
read the trading update
Let us know how u get on Mozax
I suspect that there maybe a GLARING typo in the RNS, which is a humdinger of a mistake. 'We estimate that our expanded Delivery Partner role under the new model could double our existing £12m per annum revenue in each of the next three years.' As I note from various websites that their revenue is circa £120M the problem with today's news lies here. However, It does indeed look good, and I suspect that once I've alerted the Company they will re-issue the RNS and off we go. I've plopped for 10K out of my slush fund.
there are some buys the main thing is in the morning we had both support at 105 and resistance at 115 but that's all gone now - so on lots of buys this would easily fly up. mms trying to make a market here
not always easy to get these things right and we know the markets are quiet this week. we read the RNSs and we all made what we thought was a best decision ill hold cuz I think this can get to 120 hopefully in my opinion - I'm surprised we are not already 40% up on that news it is probably the hendo shares that need to be absorbed by the market that we need taken care of