Member Info for CC2015

Any chance you could be more specific about which subsidiaries? Thanks

Well I'm not sure about a P/E of 30 but what I do know is that if you've got the right management doing the right things, given they are such a tiny player in such a large pond, you don't need to worry too much about where your growth comes from.

Just sit back, wait and don't try to be clever and trade in and out, just ride out the swings up and down. The hardest thing with trading is doing nothing.

My average is 24.6p so I'm already on well on my way to the first bagger.

I assume once we get to a market cap of £100m we will start to see more institutional interest competing for the shares in issue.

It was tipped by Midas over the weekend.

I'm pleased to see that the share price has risen with the tip and not that many sellers have come out at the psychological 40p. All suggesting most holders of this stock have a good level of conviction about the future and aren't flipping for a few pence.

Oops - fair comment Meta. You got me there. Something is up though and I think it's more than just fears of constrained capital from banks as a result of contagion from Turkey and Argentina.

Someone has been trying to prop the price up all week. The rise in the closing auction last night was classic. Push the price up so you can start the next day at a higher price. The large trade 50k trade at 12:58:17-21 was someone loading up the order book to make it look like the buyers were piling in, but they failed and got filled almost instantly.
They tried again later but the sellers came after them again and they pulled their order so fast before they got hit again.

From where I'm sitting it really doesn't look very good based on the price action. The share price is falling and you can see the seller is an institutional holder with influence over the order book. Against this you can see the small PI's coming in every time the price drops a bit. The PI's have been exhausted now at 62ish and the seller had to move down to 60. Even 60 didn't bring the buyers out and only when it went down to 59.5 were PI's enticed to buy.
It's been classically shoved up in the closing auction again to 60 so the process can repeat again on Monday. 60 may hold for a day or two and then we go down to 58 where it bounced the other week.

Something it up as the news as in the public domain has actually been decent in the last couple of weeks. A few project and framework wins. Nothing amazing but certainly alot better than it has been of late.

More worrying is that the share price is down 6% on a day when Kier is up 5%, that's telling me it's a IRV specific thing and not a sector thing as CPI managed a 1% rise as well.

I suggest the fall has more to do with this article:

https://www.derbytelegraph.co.uk/news/local-news/councillors-meet-over-delayed-sinfin-1933984

All mumbo-jumbo from a website more interested in traffic figures and advertising revenue than anything else.

Lost of opinions but very little facts or real analysis.

"The company’s recent update showed that sales growth may prove to be difficult to achieve". Well how long did it take to research that. Not researched at all apparently since IRV have given guidance sales will fall by about £0.2b this year and is part of their strategy to dump unprofitable work and only deploy their resources on new orders on decent margin work.

I could go on. If you are looking for a website to give insight and aid stock picking it's a complete waste of time. I know there are half a dozen posters on here who could write a more informed article.

I think cj62 is referring to a post I made about 2-3 months ago when I offered suggested there were far easier ways to make money than IRV in the construction sector.. I suggested NMD and CTO. NMD is up around 25-33% since then and I've had a dividend as well. I'm holding as it has plenty to go yet. CTO hasn't moved very much but it will in due course.
I mostly post on ADVFN.

As for the 8% margin. That's not credible. Unless when they talk about margin internally they don't include the project team paid salaries on the job, back office costs, share of insurance etc. etc.

Morgan Sindall 2.8%

Some facts on construction margins taken from year end accounts

Balfour Beatty 2.6%
Costain 3.1%
Galliford 6.8% (pulled up by housing)
Interserve 2.8%
Kier 3.6% (pulled up by housing)
Morgan Sindall (pulled up by housing)

Interserve's operating margin at year end was pretty pointless though as it had hundreds of millions of exceptionals so the margin looks fine but after that construction makes a loss. At half year I think the margin dropped to 1.8% but there were exceptionals again so it's all fiction

And don't think it's just IRV, Balfour Beatty and Galliford had tens of millions of exceptionals related to the Aberdeen bypass as well and these still continue, so their headline figures are too high.

2.5% with no exceptional costs (on construction with no housing to help) is a target/aspiration for IRV at the moment.

Construction margins are so tight that simply putting your prices up, results in noncompetitive bids. Margin improvement will have to come from managing the business better.

No-one interested?

In this case it appears there is a large buyer in the background happy to absorb lots of stock within the spread...

I often wonder why MM's keep the quoted spread so wide when the spread they will actually deal at is much smaller. It discourages business. Of course sometimes that is their intent as they are working a large order and are deliberately holding the spread wide as they only a one way order flow to balance their books.

Today it's 85ish to sell, well within the spread but if you want to buy they want very close to the full offer. It suggests to me the MM would prefer you sell rather than buy. Of course if they raised the offer to 85, they might get more sells to balance their book but it might also appear that the price is rising and encourage more buying = the opposite of what they want.

Too many times I've waited for the headline spread to close and watched the price move away from me. These days if I see a price I like I execute the trade. I don't always get the best price but I've found I have less regrets

Guys you need to be careful to seperate the payment profile of Interserve Construction (as used in the UK Build article) from Interserve as a group. They are reported seperately

Further the figures for Interserve plc look to me like the figures for Interserve plc (the company) not Interserve plc (the consolidated entity) as for example the latest payment terms are 75 days for Interserve plc and 90 days for Insterserve Construction so they can't be consolidated.

The comment over the phrasing 30 days is important too. Does it mean 30 days, or 30 days net monthly account (30 days EOM) or something else.. Accountants tend to be over flexible sometimes when using the phrase 30 days.

Crazy price. Dividend now at 6.8% as well

Interesting. Based on the time delay I thought Construction News had decided not to pursue this because if they are really paying on 42, Debbie White wasn't clear with the committee even if by omission.

their accounts show they can't possibly be paying on 30 days.

However, I suspect we are going to get into something like.

We pay our rent quarterly in advance, we pay some of our subbies weekly, some of our contracts the Client demands we pay in 17 days, a few are cash up front and some of our suppliers have agreed to 60 day terms and others have agreed to 42.

The only companies on more than 30 have agreed to it...

Lovely £100k director purchase...

Bill, You asked about the reason for the reset in nominal value. A share will have a nominal or par value: 1p, 10p, £1 or any other sum in any currency. And it is an absolute rule that a share cannot be issued fully paid for anything less than its nominal value – that is, it cannot be issued at a discount. source : https://www.out-law.com/page-8204 Thus, the company prior to the resolution could not issue new shares either by way or rights issue or open offer, or convertible warrants for less than 10p. Given that they have already issued warrants once at 10p it would seem sensible for the company to change the nominal value in case things deteriorate from here such that they can issue more below 10p. Once could discuss the likelihood of this but that's not really the point. This is about good governance and any Board would want all their options open. Aendjo has previously put forward that it reduces the net debt calculation and makes the figures look better. I am struggling with this. I'm happy to accept it could do something to improve the debt calculation for covenants and make things look better to the casual reader of the accounts but it wont' reduce the debt. What I think it does is reduce the share capital which currently stands at £15m and shifts it to retained earnings. It does make the retained earnings figure of £272m negative look a little less painful by £15m but I think that's not the objective here.

Aendjo. As set out below new shares cannot be issued at a price below 10p a share as this is the nominal value of the share. So, if new warrants come along in a couple of years time at 5p because things are going to plan the warrants can be issued. Likewise if they want to do a 10 for 1 rights issue at 5p they can now do that. Whether you think any of these scenarios is likely is up to you. However unlikely they are it avoids the need to call an EGM if it were to take place

Shares cannot be issued below face value. So, if more warrants at a future point below 10p this resolution required. Alternatively a rights issue below 10p the same principle.

Really quiet on here for a share which is going so well