The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Back on 27/04/2020 the share price gapped up on the news that a big order had been placed by a company in China. This was not long after the increase of hand sanitiser sells shot through the roof. The sales of hand sanitiser have returned to normal levels and the Chinese order turned out to be a flop. The sp has now returned to the level it was before this news and has filled the gap.
There is strong support at this current price but the confidence and trust in the bod has been lost. At this price it would be a good place to buy in with a small amount and add if it drops further. But it is still a risk and with confidence in the bod gone, it would be prudent to wait on a change of direction in the sp. It could take a long time for the sp to turn around and several results to be published.
The bod hold about 4-5% still. Allergy they had to sell to keep certain II’s in the mix. It was one of the conditions. They also was a condition that they could not sell more within a 2 year period but that doesn’t mean they can’t buy more unless I’m a closed period. I still think this will go a little lower still.
Yep, good results and back to profit making. Sfe are still 50% down on all time highs of installations but Zeus Capital see no reason for order books to eventually get back to the levels.
Possible reinstate of a dividend or a share buy back shows the bod are confident the business will continue to grow.
Second half is not expected to be as good as cost keep rising but they do expect to hit the forecast as a minimum.
All in all, recovery in getting back to profit has been achieved and next target of growing business to get back to 2014 levels of installation makes sfe look attractive and cheap.
Yesterday’s the sp dropped but showed a good bounce back from the strong support at 50p. Need the sp to break 60p and start the reversal again.
Interesting that the mining sector is down on Chinese news but spot gold is up today.
Well the gas price fiasco has knocked this down further. I'm betting this will turn out ok in the near future and took advantage of the low price here where it is hitting strong support. May see a slight drop but as long as the support holds 200p should not be broken. Plenty of positives here still, including a possible takeover while the price is subdued.
I'm expecting the sp to reverse now in the run up to the ex divi date and beyond. Even a rerate to 30p would still be cheap.
With a P/E of 4 it's either amazing value or you run to the hills. With these results, beating forecasts in production, profits and reducing debt the company is certainly not in a decline and no running to the hills is necessary.
Very happy to of been able to double up the other day at 16p.
That’s an incredibly low carrying value for a 15,281-plot land bank. To put it into some perspective, the sale of 200 plots of land to two national housebuilders at the end of the financial year accounted for majority of the £15m increase in other income Springfield booked in its accounts. Moreover, with interest rates at record lows, and private housing demand outstripping supply, then both house prices and land prices should continue to trend upwards.
ensibly, Springfield continues to invest in its strategic land bank, acquiring 150 hectares of land at a site at Newton Grange in Edinburgh’s commuter belt for the development of 1,000 new homes. The strategic land was purchased for a bargain basement £2.6m, and that includes a farm house, too. A train station takes commuters to the city withing 15 to 20 minutes, so the location is ideal. The directors can continue to to do so as net debt was slashed last year from £70.9m to £20.8m, so balance sheet gearing is only 19 per cent.
Importantly, shareholders are being rewarded as the dividend has been raised from 2p to 5.75p a share including a final dividend of 4.45p, the pay-out covered 2.5 times by underlying earnings per share (EPS) of 14.4p. Analysts at Progressive Equity Research expect a dividend of 6p a share in the 2021/22 financial year, so the prospective dividend yield is just shy of 4 per cent. The estimate is based on EPS of 14.8p which factors in 1,057 completions with a higher weighting to affordable housing in the mix. Adjusting for the aforementioned land sale, Springfield’s underlying pre-tax profit is forecast to rise by 12 per cent in the current year. There’s certainly scope to make further land deals, but analysts have not factored them into their estimates.
Springfield’s robust trading prospects, solid asset backing and potential for both earnings and dividend growth were key reasons why I included the shares, at 135.6p, in my 2021 Bargain Shares Portfolio. The investment case is even stronger now given the high level of the group’s forward order book, and scope to release substantial hidden balance sheet value from land holdings. Analysts NAV estimates of 117p (May 2022), 128p (May 2023) and 144p (May 2024) only factor in the net profits retained after dividend payments (6p in 2022, 6.8p in 2023, and 7.5p in 2024), further highlighting the progressive value accretion for shareholders.
Importantly, Springfield also ticks the right boxes with its ESG credentials. Around 90 per cent of homes are timber built and utilise in house manufacturing, and half use environmentally friendly air sourced heat pumps. This gives the group a competitive advantage over rivals looking to adopt such build practices.
Priced on around 10 times earnings, offering a near 4 per cent prospective dividend yield, and rated on 1.3 times forward book value, the shares are modestly rated for a company that is forecast to deliver 29 per cent EPS growth over the 2022-24 forecast period. Target 220p
Annual pre-tax profit rises 81 per cent to £18.5m on 51 per cent higher revenue of £216m.
973 properties completed, 33 per cent higher than in 2019/20 financial year.
Record affordable housing order book of £91.5m.
Scottish house price inflation 11 per cent in 12 months to 31 May 2021.
Springfield Properties (SPR: 153p), a housebuilder focused on developing a mix of private and affordable housing in Scotland, flagged up its buoyant trading performance in a pre-close trading in early summer when analysts upgraded their full-year pre-tax profit estimates by 20 per cent on record levels of revenue (‘Exploiting margins of safety’, 1 June 2021). Importantly, the strong momentum has continued into the new financial year.
Springfield’s affordable homes division delivered 380 completions in the 12 months to 31 May 2021 and lifted its revenue contribution by almost 30 per cent to £55m, accounting for 25 per cent of the group total. The unit has a record order book of £91.5m for delivery over the next two years, significantly de-risking sales visibility. Ongoing projects include the construction of 104 affordable flats at The Wisp, Edinburgh with PfP Capital, and 144 homes at Dalmarnock, Glasgow for West of Scotland Housing Association. The two contracts have a combined value of £36.7m excluding follow-on work on a further 132 homes. The Scottish Government has earmarked almost £3.5bn for affordable funding through to March 2026, supporting demand for Springfield’s 4,200 plot strong land bank which has a gross development value (GDV) of £542m.
On the private construction side, completions surged 41 per cent to 593 homes at an average price of £244,000. Springfield’s 11,078 plot land bank has a GDV of £2.6bn of which more than half has planning consent and a further 24 per cent is in the planning process. The group acquired 603 plots in the year to replenish the sold plots. It makes sense to do so at this stage of the cycle given that house prices remain buoyant, rising by 11 per cent in Scotland in the year to 31 May 2021. Springfield’s private homes are proving highly desirable to house hunters, being more spacious and offering gardens and greenspaces. Such is their popularity, that 99 per cent of all homes at Springfield’s Villages have been sold, reserved or are under contract. These are standalone developments close to major cities such as Perth, Dundee, and Elgin. Around 25 per cent of all private completions were from Villages in the 2020/21 financial year, and they could account for around half in the new financial year.
The investment case is de-risked even further when you consider that Springfield’s private land holdings are significantly undervalued in its balance sheet. The group’s latest net asset value (NAV) of £111m (109p a share) includes inventories (land holdings and work in progress) of £157m.
Sorry, but I've got to ask, why the hell is this priced so high?
Forecast to make a loss of nearly £30m this year before returning to a profit of £7.6m in 2022.
Gross debt of a staggering £372m giving GYM has an enterprise value of £860m vs the market cap of £488m.
And now yesterday a bod selling £1.4m worth of shares.
I added too.
There is the obvious issues of supply and work force issues effecting ASC. Covid probably an issue with the uncertainty also.
Regarding buying US stocks, I'd be very wary as they are so very over bought where as the UK market is still under valued.
My biggest concern would be a market correction for the US which would effect all markets. I'm expecting a market crash to happen this year, but who knows when it will happen for sure.
The sp is very close to the bottom upward trend channel on the daily chart. About 252p. On a weekly it has a bit more room to drop, to about 215p, though I don't personally see it going that low. Buying between current price and 252p looks to be a bit of a bargain. Just keep some change to buy more if in the event of a drop to the £2 level.
Have some people still have Kallumama not on ignore. I really don't mind negative posts, but for someone to spend his whole day writing up negative posts day after day for a share he doesn't own......... well he needs to get a life or get a proper job.
The planning permission of Modern Warf (MW) has the potential to give UAI share price an uplift over the next 2 years of approx. 50p to £1 based on £20m £40m return from the project.
Out of the 4 main projects of MW, CFNE, Landmark and Mayfield, MW is only the third largest. Only CFNE left for planning permission now and that is not due until 2024.
There has not been a better time for home builders with the shortage of homes across the UK. The population in London is forecast to grow 14% (1.2m people) in the next 20 years.
Expect an updated report from Liberum today.
This is on my watchlist and currently it is hitting very strong support where there is a good chance to bounce.
The problem I see though, is the company has said the issues could continue and affect the 2022 revenues. So often the market waits for good news or hitting and exceeding targets before it will start to buy. So buying in now could possible tie up funds for 12 months.
Like you MaryBr190, I look for quality companies that look cheap, then buy a small amount and add on drops. While this is certainly a quality company, I am undecided whether it is cheap even at the current price. Certainly one to watch though and see if the current support holds.
Maybe he has. Over the years there has always been opportunity to profit on WSG, buying low and selling high but not as a long term investment.
Lets face it, PF has done a fantastic job keeping his roll as ceo for 25 years in a company that has always been on the brink of profit but always turns a loss. He has kept many in jobs only at the expense of investors.
10p on the books could well be possible this time, enabling a few with a low average to make money. Just make sure if you see a profit, to bank it.
WSG started back in 1988 and run by Peter Fowler since 1996.
When listed there was initially 13.5 million shares. Today there are 219 million shares in issue having been diluted down over 30 times.
Since 2007, the company has made a grand loss of over £25m and has raised in excess of £40m.
There has allegedly been well over 50 contracts won in this time.
As with every other year, the company is now on the brink of becoming profitable. (you never know, maybe P Fower has actually done it this time).