Member Info for rivaldo

Very nice figures confirmed this morning for Pennsylvania in July, doubling month-on-month:

Https://www.investegate.co.uk/gan-plc--gan-/rns/july-2019-internet-gambling-growth-for-pa/201908190700054079J/

"GAN Reports July 2019 Internet Gambling Growth For Pennsylvania

Internet Gambling Win Increased 100.7% from June

London & Dublin - August 19, 2019: GAN plc ("GAN" or the "Company"), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today updated the market following the publication on August 16, 2019, by the Pennsylvania Gaming Control Board ("PGCB") of Internet gaming and Internet sports betting financial information for the calendar month of July 2019 in Pennsylvania.

Highlights from the PGCB include:

· Internet Gaming Win was $2.9 million in July compared to $1.4 million in the prior sequential month, reflecting an increase of 100.7%.

· Total Internet Sports Wagering Handle(1) was approximately $39.0 million for the month of July, compared to:

- $19.3 million for the month of June;
- $0.6 million for the month of May; and
- nil for the month of April.

· Internet Sports Wagering Gross Revenues(2) (after payouts) for the month of July were $2.9 million, compared to:

o $1.4 million for the month of June;
o nil for the month of May; and
o nil for the month of April."

Here's the tip in full - it reads well:

"It is time that we took another look at Renew Holdings, the engineering services company that last year embarked on a significant takeover. We said then that we tended to take a sceptical view of the claimed benefits of large acquisitions and would keep a close eye on progress. Happily, we can report that the takeover, of a firm called QTS, shows every sign of success.

In its interim report for the six months to the end of March, published in June, the company said it had seen “record trading in the period, in part reflecting the contribution of QTS, which was acquired in May 2018 and is now fully integrated”. It said the “excellent revenue performance” of its engineering services division, which is the “key driver of growth for the group” and accounts for more than 90pc of its revenue and more than 95pc of operating profits, was a reflection of the impact of QTS.

Numis, the stockbroker, said: “With the full weight of QTS in the first-half numbers, we always expected a strong performance.” The interim figures were highly encouraging all round. Sales grew by 14.9pc from the same time last year to £301m.....Operating profits on an adjusted basis, meanwhile, increased by 39pc to £18.4m.

Adjusted operating profit margins increased by more than a fifth to 6.1pc from 5pc, while adjusted earnings per share were 19.2p, compared with 16.7p last time. And readers of this column, focused on the income from their shares above all else, will be pleased to hear that the interim dividend was raised by 15pc to 3.83p. In light of this, Numis raised its prediction for the full-year dividend from 10.5p to 11.5p. As last year’s payment was 10p, that would represent an increase of 15pc.

Although it was highly reassuring that all the signs pointed to a successful integration of QTS, “organic” growth from the existing businesses was also strong – organic growth in the key engineering services division was 8pc. Overall the division’s sales growth was 25pc, while its earnings before interest and tax grew by 48pc and its margins (on the same measure of profits) grew by more than a percentage point to 6.8pc.

Key to future growth will be Renew’s rail operations and here too the signs are promising. Network Rail, the body that owns and maintains Britain’s tracks and stations, is entering a new budgetary period and Renew should benefit significantly.

“Management has previously indicated, and reiterates here [in the interim results], that having been appointed across all tendered-for renewals in [the new period] Renew is in a very strong position for an increase of about 25pc in Network Rail operational spending from 2019-20 onwards,” Numis said.

One of the company’s key strengths is that much of the work it carries out for Network Rail and similar infrastructure owners simply has to be carried out,irrespective of factors that can blow other spending plans off course, such as a recession or Brexit."

RNWH are tipped in today's Questor column in the Telegraph - anyone got access to the full article?

Https://www.telegraph.co.uk/investing/shares/questor-sales-profits-dividend-renews-shares-no-higher-2016/

"Questor: sales up, profits up, dividend up. Why are Renew’s shares no higher than in 2016?

Questor Income Portfolio: the engineering firm has made a success of a large acquisition and is growing nicely, but the market seems not to have noticed

It is time that we took another look at Renew Holdings, the engineering services company that last year embarked on a significant takeover. We said then that we tended to take a sceptical view of the claimed benefits of large acquisitions and would keep a close eye on progress.

Happily, we can report that the takeover, of a firm called QTS, shows every sign of success......

Tipped as a Buy tonight on Master Investor - hopefully new highs tomorrow? IMO his 550p target in a year may be quite light if DSCV make the acquisitions they've been promising, as the current rating in itself isn't very demanding.

Mark Watson-Mitchell seems to share my taste - he's also tipped CAPD and HMLH recently, both of which I hold:

Https://masterinvestor.co.uk/equities/discoverie-group-aims-to-double-earnings-within-five-years/?utm_source=Daily+Bulletin&utm_campaign=dc419bdff7-Daily_Bulletin_20190808&utm_medium=email&utm_term=0_25eff0bb7f-dc419bdff7-34898813

Extract:

"discoverIE Group aims to double earnings within five years
By Mark Watson-Mitchell 08 August 2019"

"The group, which has a solid balance sheet, has some good growth company strategic aims – including providing its investors with returns of 15-20% per annum, to continue building revenues, to acquire high quality businesses, to carry on internationalising the business, together with providing a progressive dividend, and best of all is its target to double its earnings per share within the next five years.

Its shares at just 438p are trading below that of the average of its peers, which would put them out at 510p. However, I rate them higher, especially if it can achieve its aim of doubling its earnings per share within five years.

I suggest a target price of 550p taking just a one-year view.£

Excellent new 10 minute interview with the CEO re the new Ignite Energy acquisition and INSE in general:

Https ://www.proactiveinvestors.co.uk/companies/news/314310/inspired-energy-s-dickinson-discusses-strategic-acquisition-of-ignite-energy-14310.html

Highlights:

- INSE have known Ignite "for a long time", so acquisition risk is minimal
- Ignite have delivered over £12m of revenues from up to 15 large customers like Halford's, SSP, Network Rail and WH Smith. INSE have 500 such customers who could benefit from Ignite's offering
- Ignite were acquired on an attractive multiple for the industry
- UTW's and Yu's problematic business model was the SME market, whereas INSE serves the corporate market for 90% of its business and the SME market for only 10%
- INSE have 12 months' visibility of revenues
- re INSE's current valuation - businesses in this sector have always been sold at a minimum of 10 times EBITDA (this is me - so the current £100m m/cap plays a £183m valuation for INSE based on the minimum 10 times this year's £18.3m forecast EBITDA)
- following the integration of the large Inprova acquisition, INSE should continue to make around 4-5 acquisitions each year
- INSE are the largest player in the optimisation market, yet they only have a 2% share, plus a 13% share of the procurement market. Both are populated by ageing or smaller operators who would welcome an exit

Latest forecasts:
this year : 1.85p EPS, 0.71p dividend
next year : 2.01p EPS, 0.8p dividend
That's a P/E of 7.5 and a 5% dividend yield at 14p.

Two delayed prints just hit the book (so not adding to the volume today) of 12.1m and 10m. They're from yesterday:
06-Aug-19 15:41:43 13.00 12,121,021
06-Aug-19 15:41:08 13.00 10,000,000
The price now seems to be moving up on every buy, and I can sell my entire holding online so there's evidently demand out there.

Whitman Howard have revised their forecasts slightly to 9.9p EPS, with a 4.16p dividend.

Next year's forecasts are 11.4p EPS with a 4.57p dividend.

The illiquidity here tends to magnify the share price reactions.

Two out of three divisions are doing well, and the company has reiterated confidence going forward, not least by increasing the already weighty dividend.

Revenues have increased very nicely at Ganymede and GSS, but profits haven't increased at the same rate so not quite enough to offset the profit reduction at ATA. I wonder if there's been some heavy investment to fund this growth in Ganymede and GSS, with those costs reducing or paying off further from H2 (plus amortisation and depreciation have increased by £91k year on year).

This looks very promising - a "world first" new product being launched next month:

Https://armadainternational.com/2019/08/worlds-first-military-360-degree-camera-technology-set-to-transform-armoured-vehicle-vision/

"World’s first military 360 degree camera technology set to transform armoured vehicle vision

August 2, 2019

Petards have announced that they will be launching ‘eyeCraft360’ at DSEI London in September 2019. EyeCraft360 is world’s first military grade 360 spherical view camera system which dramatically improves local situational awareness for armoured vehicles without risking the safety of the crew.

Defence experts from around the world will be among the first to try out this brand new product, which instantly gives complete coverage around any vehicle including directly above it and below.

Developed in response to the growing need for improved close-range awareness, especially in the urban environment, eyeCraft360 provides a simple, rapid and cost effective capability boost for in-service armoured vehicles. It also helps to reduce accidents and damage when manoeuvring.

The system comprises a hull-mountable omnidirectional camera, a single rugged screen and an armoured cable to join them together. Thanks to the simplicity of the design, it is ready for use straight out of the box. Expensive and time-consuming integration is not required.

It avoids the need for any mechanical moving parts by digitally stitching and stabilising its inputs to give a seamless full 360 view at all times. Scott Patterson, Defence Director at Petards says ‘we are very excited to be able to bring together our defence expertise and our camera know-how to create an innovative product which will make a real difference in keeping vehicle crews safe. The reaction from serving and veteran soldiers who have seen it so far has been incredibly positive.’

More information including (the soon to be published) first video of eyeCraft360 in action is now available at www.eyecraft360.com. For exclusive pre-launch information, demonstrations and pre-orders please email defence@petards.com.

Due to the early interest in the product, Petards are recommending that those wishing to try it at DSEI this year contact them as early as possible to reserve a slot. Expressions of interest are also welcome from trusted worldwide companies who have regional market expertise and wish to help develop the technology further.

Petards are a global leader in data driven security, surveillance and communication technology. They are experts in developing defence, rail and traffic solutions that help deliver smart technologies. Their reputation, which is based on exceptional customer service, cutting edge technical capability and high quality products, has allowed them to build relationships with leading companies and organisations across the world, including Bombardier, Siemens, Stadler, Hitachi, BAE Systems, Leonardo and the UK’s Ministry of Defence."

The news today is headlining with the possible collapse of the Whaley Bridge dam in Derbyshire. The reporter suggested that there may be a need for a major review of dams in the UK, bearing in mind the age of many of them (100 of them were built in the Victorian era).

So it's encouraging then that in their last Annual Report, RNWH stated:

Https://www.investegate.co.uk/renew-holdings-plc--rnwh-/rns/final-results/201811270700055350I/

"We have developed an expertise in dam safety, a new market where we see growth opportunities and during the year the Group delivered major schemes at the Llanishen and Talybont reservoirs."

Peel Hunt retain their Buy and 25p target:

Https://investing.thisismoney.co.uk/broker-views/

Here are Cenkos' new forecasts from their 1st August Buy note:

Y/E 31/3/20: 3.6p EPS (no dividend)
Y/E 31/3/21: 3.7p EPS (0.2p dividend)

They conclude:

"Investment case

OPG has high quality power producing assets which consistently perform better than local competitors (eg higher PLFs), ensuring the company is well placed to benefit from strong growth in per capita electricity consumption in India. Tariffs are expected to remain robust, whilst OPG should benefit from lower projected coal prices. Trading on a FY20E EV/Adj EBITDA of 4.5x and a P/B of c0.5x, we see excellent value for this highly cash generative business, which is expected to be completely free of term debt by CY23E. Buy."

OT : hi Schomosport. Since you ask (!), some other stocks I'm in which seem particularly undervalued/unloved/Brexit-proof/whatever include INSE, RNWH, KAPE and PTRO. Then there are some REALLY boring stocks which are really cheap and may or may not ever get re-rated, like HMLH and RTC. And then there are others which are already multi-baggers for me which just continue to perform, like SDI, KWS. Then there are others which are at an inflection point in turning from blue sky stocks to real money-earners, like SCE and GAN. Take your pick!

I note that CEY's interims the other day were very encouraging.

And Compass Gold had encouraging drilling results this week using CAPD's rigs in Mali - more drilling planned for later this year:

Https://www.globenewswire.com/news-release/2019/07/29/1892765/0/en/RC-Drilling-Intercepts-7-m-15-58-g-t-Gold-at-Farabakoura.html

"The point being that investors’ misperception over TClarke’s trading prospects has created an investment opportunity for investors to exploit. That’s because there is actually a high probability that TClarke will generate cumulative EPS of 36p over the 2019 and 2020 financial years, in-line with analyst estimates. That sum equates to a third of the share price. Also, as seasonal working capital build eases in the second half then TClarke’s half year cash pile of £4.7m should double to about £10m by the year-end, a sum worth 23p a share. In other words, the shares are effectively being priced on a cash-adjusted current year price/earnings (PE) ratio of 4.7. There is a progressive dividend, t00. The board lifted the interim payout per share by 14 per cent to 0.75p, and N+1 Singer predicts a 10 per cent hike to 4.4p for the full-year, implying the shares offer a prospective dividend yield of 4.3 per cent.

True, the shares have pulled back since I last advised buying, at 128p, in mid-May (‘TClarke reports a robust start to 2019 financial year’, 16 May 2019), albeit they are still well ahead of my 90p entry point last December and the company has since paid out its 2018 final dividend of 3.34p (‘Profit from a buoyant earnings cycle’, 7 December 2018). However, I strongly feel this is a buying opportunity given that the current miserly rating is completely at odds with the trading prospects of the company and the strong likelihood that the directors will hit their 2019 and 2020 internal budgets. Indeed, during our results call, Mr Mitchell told me that the business “is trading ahead of internal budgets for turnover”. That’s well worth noting as is the ability of TClarke to convert what is undoubtedly a bumper pipeline of work into firm orders.

Offering 43 per cent upside to my maintained 150p target price, I feel that the shares are well worth buying."

Great article by Simon Thompson. If CTO had been able to include these snippets in the results narrative then sentiment may have been entirely different:

"TClarke already has tenders out on two major European projects (contract values of £30m to £40m) which if successful will start in March 2020. The company also has an impressive bid pipeline across the whole of the UK.

In fact, Mr Mitchell says the business has £1bn of tenders out with clients"

Here's the full tip:

"I had an incredibly informative results call with the directors of nationwide building services contractor T Clarke (CTO:105p). The company ended the half year with a bumper £370m order book, having won around £130m worth of tenders since the end of 2018 and delivered 12 per cent higher revenues of £171m in the six month trading period. It’s increasingly profitable work, as highlighted by the uptick in operating margin from 2.6 per cent to 2.9 per cent, which helped drive the 24 per cent increase in first half underlying pre-tax profit and earnings per share (EPS) to £4.6m and 8.67p, respectively.

Finance director Trevor Mitchell confirmed to me that 96 per cent of house broker N+1 Singer’s full-year revenue estimate of £340m is covered by the contracted order book, and half of the broker’s 2020 revenue forecast of £360m, too. Both Mr Mitchell and chief executive Mark Lawrence reiterated their confidence in hitting the broker’s numbers which point to full-year adjusted pre-tax profit and EPS rising by 16 per cent to £9.3m and 17.5p in 2019, respectively. They are also confident of achieving N+1 Singer’s 2020 pre-tax profit and EPS estimates of £9.9m and 18.6p.

But TClarke’s share price fell by 12 per cent post the results as investors focused on news that some of the company’s London clients were holding back starting their new developments given UK political uncertainty. Also, some less well funded rivals in the London market are desperate for work which has created pricing pressure. TClarke clearly isn’t and the board were well ahead of the game to mitigate any impact in London as they have already expanded into Europe to take advantage of high margin data centre work. This has led to some significant opportunities: TClarke already has tenders out on two major European projects (contract values of £30m to £40m) which if successful will start in March 2020. The company also has an impressive bid pipeline across the whole of the UK.

In fact, Mr Mitchell says the business has £1bn of tenders out with clients including work at Manchester Airport, and the new Channel4 studios in Leeds (TClarke won the tender on the London studio, so looks well placed). Moreover, the corporate presentation accompanying the interims results is absolutely jammed pack full of tenders which, based on an historic win rate of between one-in-three to one-in-four, indicates a sizeable opportunity for the company to exploit.

Tipped in the IC this morning:

Https://www.investorschronicle.co.uk/tips-ideas/2019/08/01/afh-financial-offers-undervalued-growth/

"Tips of the Week
AFH Financial offers undervalued growth"

Perhaps someone could post the full narrative later this morning for the record.

Looks like quite an exciting transaction of a highly complementary business - 40% now with an option to buy the rest of a business in the next couple of years, with consideration dependent on performance.

Ignite makes historic £3.1m PBT, and looks to be in an area (energy optimisation) which will grow nicely, considering for example environmental concerns are only increasing, as well as the focus on minimising costs.

Nice customer base too:

"large, multi-site estate intensive, commercial energy customers, including Halford's, SSP, Network Rail and WH Smith"

Great to see "approaches from a number of parties" whilst I was on hols.

I'd be very surprised if a takeover price is less than 2000p per share. There must be a large number of potential acquirors, as some have already suggested here, and most of those are large enough to have very substantial pockets indeed.

And almost all of them will be based abroad, so will be particularly incentivised to buy at current exchange rates.

A company like ACSO with such high recurring income and earnings, and blue sky potential in a number of areas, must be a very attractive target. The short-term earnings blip due to increased investment shouldn't be of concern to them since (1) by the time the acquisition completes much of it will already have taken place, and (2) it only increases the medium/long-term attractiveness of the company.

With a bidding situation the price could well get back to 3000p.

N+1 Singer retain their 150p target and forecasts of 17.5p EPS this year, rising to 18.6p EPS next year.

They see dividends of 4.4p rising to 4.8p.

They summarise:

"H1 was another positive trading period for TClarke, with PBT increasing by 24% to
£4.6m. The Group continues to make solid progress against its 3.0% operating margin
target, achieving a margin of 2.9% in H1 (H1’18: 2.6%). The order book has been
maintained at £370m and provides strong support for our full year forecast, which is now 96% covered. Our FY20 forecast is also 50% covered by the order book. This is a strong position against a backdrop of political uncertainty and we maintain our forecasts.

The strategy is delivering and TClarke is well on its way to achieving its full year targets. With sustained earnings momentum, we believe the shares will continue to outperform the wider peer group and we reiterate our 150p intrinsic value."

Very good numbers, with 8.7p EPS in H1 alone and confirmation of expectations of 17.5p EPS for the year.

Plus £3.6m net cash at the seasonal low point, a continued £370m order book - and £182m of revenues already secured for next year.

The Brexit caveat is to be expected, and surely already more than baked into the share price on a paltry current year P/E of 6.5!