Member Info for rivaldo

New acquisition for £669,000 from cash (including £202,000 deferred consideration dependent on performance).

Per Companies House, apparently Dauntons Soar show net tangible assets of £192k at 31.3.18. There is corporation tax payable at 31st March of £21,149. If that all relates to the year then it suggests profits of £115,000 or so, so PAT of £95,000 give or take.

Given I'd assume at least some savings on say accounting and other day to day stuff, as well as consolidating the client processing operations/putting systems on the central database platform, this should a nice £100,ooo plus to profits:

https://www.investegate.co.uk/hml-holdings-plc--hmlh-/rns/hml-acquires-property-management-business/201811301039030652J/

Peel Hunt reiterate Buy with a 520p target price:

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

Another day, another (RNSNON) contract win....this one seems more meaty though, being governmental, covering a range of sectors, a welcome SaaS long-term win - and taking business from the competition:

Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/contract-win/201811300800039790I/

"Contract Win

EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that the Company's position in Denmark has been further strengthened following a new contract signed with the Danish Government, covering multiple sectors, including a new contract for the licensing and support of CTMTM with the Danish Ministry of Taxation, including its 10 agency procurement departments, of which 3 were previous licensees of competitors' solutions. The new contract is for the delivery of CTMTM as SaaS and related services and runs for a period of 2 years with the option to extend by up to a further 2 years."

Extracts from N+1 Singer's note this week FYI:

"Strong FY18 performance with EPS upgraded 12%

Specialist building services group TClarke has reported strong trading in FY18.

Operating profit is expected to be 11% ahead of our previous forecast, driven by
better than expected revenue and margin progression (approaching management’s
3% target). The outlook statement strikes a confident tone, supported by a record
order book, which stood at £403m in November.

We have increased our EPS forecasts by 12% and 15% in FY18 and FY19. Our FY19 revenue forecast is 70% covered by the order book, giving us confidence that earnings momentum will continue.

We believe the shares are attractively valued, trading on an FY19 P/E rating of 5.3x, and believe a peer group rating is justified. We also note the attractions of a >4% dividend yield."

"Record order book supports outlook

TClarke’s focus on higher quality work is paying off, with progression in the margin profile across FY18. Despite this focus, the order book continues to grow, standing at a record £403m in November (up from £370m at June 2018). The order pipeline also remains strong, with an encouraging level of opportunities which meet TClarke’s tendering criteria. Looking to FY19, revenue of £230m is already secured (2017: £190m), representing 70% of our forecast."

Here's their Buy recommendation:

"Renew (RNWH) : Buy

Operating margin surprises on the upside

Renew has reported a good set of FY 2018 results to September slightly ahead of our expectations at the profit and earnings level. While sales were a bit behind our forecasts (partly affected by a reduction in rail revenue in the final year of the control current period) this was more than made up for at the operating margin level. Operating margin of 5.7% is up from 5.2% last year (our forecast 5.3%). DPS was raised by 11% as expected. Net debt of £25.8m (incl. finance leases) is better than our forecast £28.7m, albeit operating cash flow looks lower than we forecast. We now forecast net debt to reduce significantly as the acquisition of QTS benefits and trading remains good.

The outlook is positive, evidenced by the Engineering Services order book rising +16%. We reiterate our view that the main excitement on Renew is the forthcoming 25% increase to £32bn in rail operations, maintenance, support and renewals spend by Network Rail in the 2019-2024 control period, and the increased exposure to this area Renew has post the acquisition of QTS. In this context, the FY 2019E P/E of 9.7x and free cash flow yield of 8.8% alongside net debt falling remains attractive."

Parx and SugarHouse get green light to launch sports betting soon:

"Pennsylvania gaming regulators on Wednesday cleared a path for Parx Casino in Bensalem and SugarHouse Casino in Philadelphia to launch sports wagering soon.

The Pennsylvania Gaming Control Board approved licenses for the bookmakers that will take sports wagers at the two casinos, which had hoped to launch their sportsbooks around Dec. 1.

etc"

Http://www2.philly.com/philly/business/tourism_casinos/pgcb-approve-parx-sugarhouse-sports-betting-operators-20181128.html

Another useful-looking partnership:

Https://inspiredenergy.co.uk/inspired-energy-plc-announced-as-st-helens-chamber-utility-partner/

"26th November 2018

St Helens Chamber members can now access a range of services to help them lower their utilities bills and reduce energy usage.

Inspired Energy plc is one of the UK’s leading energy consultancies, working with corporate and SME businesses to optimise the value of every pound spent on utilities. This is achieved through a range of specialist solutions aimed at lowering bills and protecting businesses against rising energy costs and changes in legislation.

Ben Beetham, Head of Partnerships at Inspired Energy plc, said: “We are incredibly excited to announce our strategic partnership with St Helens Chamber. The partnership is set to deliver a range of energy services which will help St Helens Chamber members solve a range of utility cost and carbon challenges. By working with us, you gain access to our specialist teams that are highly experienced in dealing with the energy spend demands of your business.”

Regardless of how much energy you use, our team of energy experts can provide a bespoke energy service which meets your specific needs. Working across all utilities, including electricity, gas, water and renewables, we will relieve you of the burden of managing the many utility cost pressures confronting your business. This will leave you free to focus on running your organisation as profitably and effectively as possible.

St Helens Chamber is one of the largest Chambers in the UK, having more members for their size than any other Chamber in the country. St Helens Chamber mission is “To support our Members and enhance the economic success of St Helens businesses and people”."

PTSG with its inbuilt qualities of necessity under compliance and regulation - and the astounding growth of the fire services division post-Grenfell - should come largely unscathed from any sector dips.

Current forecasts of 11.8p EPS this year and 12.5p EPS next year take no account of any further acquisitions with PTSG's available cash.

So the current year P/E at 140p could almost be in single figures soon.

To reiterate, the current m/cap is £32.7m.

This compares to the effective current cash pile of £37.4m, comprising £20.4m at 30/6, plus £23.1m for Impetus (incl. £2.87m deferred) less £6.06m buybacks.

Plus the 80% of Shire Foods is worth say £5m (incl. the £2.6m freehold property).

Add on say £600k for Sira Defence and you get £43m.

With cash receipts up to Impetus' sale in October, VLE's NAV should now equate to around 1400p per share, compared to the current 1050p share price.

Without any premium for the Landers' track record or for the likely value arising out of any further acquisitions.

JL presented at Mello London this week and was as engaging as ever. The main thrust was general in tone about investing pitfalls/golden rules, but there was a brief section about VLE and running through the success of the Impetus investment.

In particular JL noted that the current cash pile was excessive and there would likely be more buybacks (presumably dependent on achievable prices and available stock).

Looking good now - hopefully on the way back to the all-time highs of 38p or so.

Excellent presentation yesterday afternoon at Mello London. Management are nicely understated and seem competent and confident.

Nice summary of the results from Techmarketview:

Http://www.techmarketview.com/ukhotviews/archive/2018/11/26/reassuring-full-year-results-from-sanderson

"Monday 26 November 2018
Reassuring full year results from Sanderson

It didn’t make a point of it in the FY18 commentary but Sanderson achieved the £30m revenue target it set itself three years ago, delivering £32.05m in the year to 30 September 2018 – and profitably too with operating profit up 33% to £5.18m. Overall performance was ahead of the previous year and market expectations, and that along with continued cash generation and an increased dividend, sent shares up by as much as 9% at one point in early trading.

Although the November 2017 Anisa acquisition (integrated ERP and supply chain software) was a significant contributor, like for like revenue growth was up a modest but definitely there 6.5%, to £22.97m. As a group, enterprise software suppliers focussing on the SME sector are performing well.

The Digital Retail division continued to be a sustained growth driver, with 21% revenue growth to £8.82m while also increasing operating profit by a third to £1.56m, against a mixed retail market background due to the shift to online and mobile shopping channels. Sanderson’s omni channel solutions are well positioned, as evidenced by new customers such as womenswear retailer, ME+EM plus orders from existing customers including Richer Sounds plc and Beaverbrooks The Jewellers Limited. It also converted a broader pilot project with Hugo Boss into a phase one project and has another pilot with a formalwear retailer. While aware of market risks, the company remains upbeat about prospects for the division.

The larger Enterprise division (serving manufacturing, wholesale and supply chain logistics),which has struggled over recent years saw 62% acquisition-led growth to £23.23m with operating profit coming in at £3.62m vs. £2.71m. All the growth was down to Anisa as like for like revenue dipped almost 1% to £14.14m. Anisa added 8 news customers, including Port of Dover Cargo. Across the Enterprise division, Sanderson added 18 new customers. The division, that saw a welcome uptick in business in H2, has benefitted from investment in software product development particularly around wholesale. This resulted in new orders for the recently launched digital suite of products and early interest in the new business intelligence product.

After the bruises of FY17, management is cautiously confident and plans to continue with its strategy of investing in its products, particularly mobile and ecommerce to capture the digital transformation opportunity in retail, wholesale distribution and logistics, alongside judicious acquisitions."

Edison's latest note out today forecasts 7.3c EPS next year, i.e around 5.7p EPS.

If you strip out the $46.2m (£36m) cash pile out of the £146m m/cap, that's a P/E of only 13.5 for the year about to start.

Pretty decent value for a cybersecurity company:

Https://www.edisoninvestmentresearch.com/research/company/Kape-Technologies

I saw CTO's presentation at Mello London - it was extremely encouraging and impressive.

Great to see the share price finally responding to the terrific trading update. Still lots to go for imho.

Apparently Miton needed cash for another investment, and took the opportunity to top-slice given that Regent Gas were in the market for shares. Incidentally, CTO had no prior connection or contact with Regent Gas, who apparently are friendly stakeholders looking for a home for the excess cash they're throwing off (they've also taken a large stake in INSE).

The cash pile is large - which is great - but is necessary. For example, CTO are going to make a large downpayment at some point soon (can't remember what for, but I seem to remember this would be £9m). So the cash pile can be volatile.

With 14.7p EPS now forecast for the year about to end, and 16.3p EPS for 2019, a minimum share price of say 110p-120p should be quickly achievable in decent markets.

If the perception of CTO continues to improve - and/or there's finally a lack of sellers - then perhaps a P/E of 8 or 9 and a share price of 130p-150p is achievable.

Https://www.gamesindustry.biz/articles/2018-11-22-keywords-studios-we-are-going-to-keep-acquiring-new-companies

A small extract:

"Keywords Studios: “We are going to keep acquiring new companies”

The video games outsourcing giant on expanding its services, fixing crunch and how it will avoid competing with its clients"

"Keywords believes that outsourcing will become a more prominent side of the industry. Speaking to Gamesindustry.biz earlier in the year, CEO Andrew Day said that, in time, he expects more of game development will be outsourced, much like it is in the movie industry.

As the biggest video game outsource specialist, it's not surprising to hear them say that. If the industry transitioned to more outsourcing, you can expect Keywords will be the biggest beneficiary."

"There's clearly more to the outsourcing life than meets the eye. It may not be the sexiest part of the video games business, but beneath the surface there are exciting things happening. And if the games industry follows in the path of movies - which outsources almost all of its functions - we'll be likely talking a lot more about the likes of Keywords in the years to come."

CAR usually issue a trading update in January (last year 15th January), so there's only just over 6 weeks until then.

With 11.3p EPS forecast this year, rising to 12.5p EPS next year, there's lots of upside assuming the H1 outlook is delivered:

"The Board anticipates that the Group will trade in line with its expectations for the full year, and that it remains on track to grow substantially over the medium term."

If the January update delivers as anticipated, then we may get quite a decent re-rating back to 100p and perhaps 120p.

Having seen PTRO at Sharesoc I missed them at Mello as there were so many other good companies around. So it's good to see they were impressive once again per an attendee who posted elsewhere. Their stand in the exhibition room always seemed pretty busy.

I note that PTRO were also tipped in this month's Master Investor magazine as follows:

Https://masterinvestor.co.uk/equities/fast-growing-small-caps-to-beat-the-autumn-blues/?utm_source=Daily+Bulletin&utm_campaign=38904a7d2c-Daily_Bulletin_20181121&utm_medium=email&utm_term=0_25eff0bb7f-38904a7d2c-34898813

"PELATRO

One company which has been ticking along nicely over the past year or so, but seems to be off the radar of investors, is marketing software specialist Pelatro (LON:PTRO). The business was founded in 2013 with the objective of offering specialised software to telecoms companies (telcos) to help them develop “precision” marketing campaigns. Pelatro does this through its flagship platform mViva, which uses big data analytics and artificial intelligence to process and analyse data from phone subscribers and reveal patterns, trends and key behavioural traits....

....Things have got more exciting following the year end, with April seeing the company win its largest ever contract. The deal, worth $1.7 million, is with a Central Asian subsidiary of an un-named Western European telco, which has more than 6 million customers. Pelatro will implement mViva for the client and will also guide the telco in setting up a customer value management department, with the majority of fees expected to be recognised this year. This is a crucial win for the company as it has found that once it makes an initial sale into a new telco group, it finds it easier to sell mViva products to other group subsidiaries.....

.....Trading in Pelatro shares has been somewhat subdued since IPO, with them hitting a high of 89.5p in early January before falling to the current 69p. At that price the company is capitalised at £22.4 million. House broker FinnCap is currently looking for 15.4 cents of earnings in 2019, which at current exchange rates equates to c.12p per share. That puts the shares on a forward earnings multiple of just 5.75 times.

While Pelatro is a small business, it is growing fast and, in my opinion, the current valuation looks too low. With net cash of $1.6 million as at 30th June this year, the balance sheet looks reasonably strong, although trade receivables are a concern, with the $2.68 million at the period end representing more than six months worth of historic revenues. It’s also worth noting that the company capitalises large amounts of its development expenditure, a perfectly acceptable method of accounting but one which is not as conservative as it could be. Nevertheless, FinnCap has a target price of 115p, which implies 67% upside from the current price."

I saw PEG present at Mello London - imo they were excellent, and I know of others who were similarly impressed. The main presentation was done by Paul Negus, the Business Development director, and he was particularly good.

The prospects for rail in particular look huge.

PEG were one of the big hits of the entire conference AFAICS, with everyone coming away extremely positive. Apparently Judith from Downing Microcap IT gave PEG the thumbs-up too.

Another poster elsewhere has reported:

"I was at today’s Mello presentation and a lot of ticks went in my boxes, and I was not alone.

A very competent forward-looking presentation majoring on the Rail sector where they seem to hold a strong niche position - they addressed the margin issue head-on and were quite convincing that they are now intent on monetising their IP."

WH Ireland retain their 53p target price, with 4.3p EPS forecast for this year.

A P/E of 7 at 30.5p is just too cheap imho:

Extracts:

"Good interim results

The group has reported a good set of interim results reflecting record half-year earnings despite an uncertain UK property market. We retain our 2019 full-year forecast and our 53p target price."

"The revenue growth was primarily organic in the absence of any material acquisitions since April 2017 and reflected a particularly strong improvement in health and safety inspections fee income. Adjusted fully diluted EPS increased by 11% to 2.1p from 1.9p."

"Strong cash flow performance. The group generated £0.51m of net cash to reduce net debt from £1.47m to £0.96m. This was driven by £1.5m cash generated from operations and despite £0.45m capital expenditure, £0.12m software purchases and £0.48m payment of deferred consideration."

There's lots of upside here imo - especially if (a) defensive shares come back into fashion given Brexit worries and (b) there's bound to be increased Governmental infrastructure spending prior to the next election (as long as that's not too soon!).

Numis say Buy and have a 500p target - they now go for 39.7p EPS this year and 42p EPS next year. A P/E of 9 is just far too cheap imho:

"RENEW HOLDINGS (BUY 500P) FY Results.

Good FY results, and we retain current estimates. Key points:

1. Full year results were c2% ahead of NSe on PBT and EPS, and DPS was some 11% up on last year. Net debt at £21.4m was in line with NSe.

We look to maintain current year estimates (PBT £37.1m/EPS 39.7p) and outline a 2020 figure for the first time, pointing to a 5% growth rate (£38.8m/42.0p). We believe this prudent given that rail will be a key driver of growth but that this will only be the first full year of the next 5 year/CP6 programme.

2. Engineering Services EBIT ahead 19% in part reflects the QTS acquisition, which is performing strongly and in line with expectations. However, we would also point to the lower organic revenue in rail (c£20m) this year as CP5 ends, offset by growth in Energy and Environmental and also that ex-QTS margin increased by c60bps. With the ES order book +16%, the full weight of QTS in the current year and the commencement of the CP6 Network Rail programme (with an expected 25% increase in OMR spending) there is a very positive outlook, though as suggested above it is right to be prudent about this programme in the seminal years of transition.

3. Specialist Building is now less than 5% of group profits and saw a decline in profits on the back of a contract issue and increasingly competitive markets. Management alludes to this being a non-core operation given increased London competition. This will have no implications for profits, but will mean an initial working capital impact due to the negative working capital nature of the business. That said, we still expect Renew to be cash positive by 2020E with NSe net cash of c£6m.

4. Conclusion. Good performance provides the strong platform across all areas of ES, but notably in the Rail area (c60% of the division) with increased service capability and profitability resulting from QTS. We argue that Renew's increased rail exposure provides upside risks as workloads accelerate, while Energy and Environmental are also showing good and sustainable growth dynamics.

As such, the 12/19E P/E of 9.2x does not reflect Renew's premier rail positioning or the strength of the business model into key areas of investment which are funded on a non-discretionary basis so carry very little political or cyclical risk. We retain target price and BUY recommendation."

Encouraging trading statement:

- revenues above expectations
- EBITDA nicely in line even given additional investment
- new contract wins
- confident outlook with a "strong pipeline"

With a huge cash pile as well, this should reassure the market.