Dividend has soared +100%...
Cash-in-hand surged +45% to £8m...
Net debt was slashed sharply by -36%...
EPS leapt +44% to 8p...
Sector-average EPS is currently around 15-20 times...
EMR is currently valued on 6 times EPS...
With EPS for EMR likely to come in around 7-8p this week, and the average UK recruitment firm trading around 15-20 times EPS right now, EMR should is due a rerate to 100p+.
EPS ratings currently today for companies in the same "recruitment" sector as EMR:
* RWA = 40 x earnings...
* ITQ = 28 x earnings...
* RTC = 13 x earnings...
* EMR = 9 X earnings...
Huge upside potential for EMR from this level.
Up +5% now. Reaching a new shareprice-high almost every day at the moment. Marching relentlessly upward for months. Very strong momentum. Full-year financial results arriving on Monday. Company sounding confident (see recent RNSs).
What is especially interesting is that Ganyemede has the highest profit of all major RTC divisions today... Ganyemede this week won the big Network Rail contract for £80-100m... Which indicates the extra scale will lift RTC's overall group profit margin "tomorrow" (i.e. In the future)...
Big new order to crow about (Network Rail), profit margins up, cashflow up, dividend up, etc. Companies usually announce financials early when they've got something good to say.
A strong intraday turnaround. Confident early posting of results. Dividend on the way. £2m net assets. £1-2m free cashflow. Debt shrinking fast. Profits up 7-fold. Huge Network Rail contract. Multiple bullish signs fot RTC.
Full-year financial results for RTC coming in March 2015.
Expect RTC to announce a dividend of 1p or more. The first dividend since 2008
Also, higher revenues, higher cashflow, and higher profits.
Everyone should read today's RNS. It is a corker. Basically, RTC has won just about the biggest possible contract with Network Rail. A big client with deep pockets who will always pay up. Good for cashflow. Good for the share price.