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This is good news, and stock is tanking today.. strange

Any input on how reducing the construction business will affect cash flow? Are big awarded contracts paid in advance which allows them to get liquidity for Linden and the regeneration businesses?

If so it might make sense for them to do the work at 0% margins to get the cash inflows in and strengthen the balance sheet, again I have no idea on how construction payments are handled so maybe someone with experience in the sector in the UK can comment.

Most probably because of Altria earnings and huge volume declines (-14%). Probably spooked tobacco shareholders overall, IMB also down.

Will recover once the short term traders dry their tears.

For anyone wondering, here are GFRD's construction margins per year:

2013: 1.6%
2014: 1.0%
2015: 1.2%
2016: 1.1%
2017: 0.0%
2018: 0.9%

And those are PRE exceptional margins, great line of business guys! But what about the integrity of the fine board of directors you ask? Their financial reports are so sugar coated with BS it makes my head spin:

- Profit Warning? Let's call it an 'strategic review' or 'operational update'
- Dividend cut? Too negative, let's declare that we 'increased the dividend cover', sounds nicer
- Dividend already in line with our 2x cover policy? Let's cut it again and say that it is also 'in line'
- Fourth year of 'cautious bidding' in construction, fifth one's the charm!

I'm not sure I understand, Queensferry Bridge has been open since September 2017, how can they get hit with additional costs in 2019?

Contructionaegins have been 1.2% or lower for the past 5 years, and that is PRE exceptional. I'm curious to calculate how much money has been losses by the construction division in the last 5 years. But the result would be too depressing so I won't.

I've been visiting this thread for the past few days and was also surprised by the lack of discussion. Recent drop was caused by the Publicis earning results, which was a massive overreaction IMO.

D/E ratio is at a reasonable 0.7, current ratio at 1 and interest cover at a comfortable 11. I don't see debt as an issue. Dividend is also well covered by both earnings and FCF. I see the company as heavily undervalued and oversold.

WPP and the industry as a whole has been under a barrage of negative news and fear which has dropped the SP way more than the fundamentals would suggest. In the meantime we're getting a massive 7.5% yield to wait for a reversion to the mean.

If you're looking to make a quick buck look elsewhere. In the meantime I believe the current price offers a nice entry point for a 5-10 year outlook.

Domino’s in good health, says Peel Hunt
Domino’s (DOM) has shrugged off the negative sentiment of the past year to show it is in good health, says Peel Hunt.

Analyst Douglas Jack retained his ‘buy’ recommendation and trimmed his target price from 350p to 325p on news UK like-for-like sales rose by 4.5% in the fourth quarter, and by 4.6% over the full year. The shares fell 8.7% to 250.1p yesterday.

He said there was ‘negative sentiment’ over the past year related to the UK franchise model but its latest trading update ‘has shown it to be in good health’, although the business still needed to prove itself overseas.

‘The 15.7x price/earnings rating is not strenuous… it represents a low entry point for investors that believe in the long-term merits of a franchise model with a dominant position in a fast-growing traditional pizza delivery market,’ said Jack.

Mostly heard like trend following and short-termism.

Too late, already back up 5% :(

Absolutely ridiculous reaction but excellent opportunity to buy more at a discount. Once international operations are streamlined we will see profits go up and shares climb. Might as well grab some while they're on sale!

Dividends paid in cash were actually 4.0 B due to the reduced number of shares, so with the spectrum the FCF just about covers the divi. VOD does have 4B in cash and 13B in short term investments but they would rather not have to dig into their reserves for the payout.

I think the strategy of freezing the dividend for a year or 2 and firing on all cylinders + cost cutting is essential to maintain it post 2021.

To repeat my last post, FCF is 5.4 B and dividend is 4.2 B, how is that not covered?

@fusion FCF is 5.4 B and dividend is 4.2 B, how is that not covered?

Can someone please explain to me WHY they would think the dividend is at risk? Please try to give me your own answer based on fundamental analysis, not something like "the yield is too high" or "the market thinks it will be cut".

Please remember that the dividend is a cash distribution paid out of cash flow from operations.

Remember, remember, the 12th of November.. All was doom and gloom, the world was ending, the dividend was finished. Next day after the announcement shares soar by 9%, then by 17% a few weeks later.

Now the cycle repeats, panic is in the air, the emotional roller coaster is in full swing.. who will have the stomach for it? Who will run for the hills?

https://www.businessinsider.in/vodafone-idea-plan-to-take-on-mukesh-ambanis-jio-data-excites-stock-market/articleshow/67666494.cms

Vodafone will pitch in 2.5B via rights issue.

I find these fortune-teller brokers barking out 'ratings' on a regular basis to be nothing more than noise, it should not distract those focused on long term results that understand the fundamentals of the company.

"The only value of stock forecasters is to make fortune tellers look good. Short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children."

- Warren Buffett

I am downgrading RBC to 'Ignore'.

I still do not understand why GFRD is still in the construction business. It doesn't make sense even as a diversification strategy as 2% fragile margins are too slim to provide a hedge against falling house prices.

Their 2021 plans barely show any growth in revenue and margins of 2%, profits can be easily wiped out by weather conditions, unexpected events like we have seen in Aberdeen.

Can anyone familiar with the construction sector shed some light?

Your guess is as good as mine..

D/E ratio of 0.25
Current Ratio of 1.4
Dividend cover of 2
Growing earnings, revenues
No real RNS news other than Aberdeen claim uncertainties

Galliford has already taken the 45M hit and right issue of 150M, now that the bypass is set to open I'd expect the migraine to be over, is there something glaringly obvious that we're missing?