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RAI Ra International Group Plc

7.75
0.00 (0.00%)
18 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ra International Group Plc LSE:RAI London Ordinary Share GB00BDZV6W26 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 7.75 0.00 08:00:26
Bid Price Offer Price High Price Low Price Open Price
7.50 8.00 7.75 7.75 7.75
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gen Contr-indl Bldgs & Whse USD 62.92M USD -13.17M USD -0.0759 -1.02 13.45M
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 7.75 GBX

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Date Time Title Posts
14/3/202414:33RA International514
22/3/201821:33Reynolds American Inc2

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Posted at 18/4/2024 09:20 by Ra Daily Update
Ra International Group Plc is listed in the Gen Contr-indl Bldgs & Whse sector of the London Stock Exchange with ticker RAI. The last closing price for Ra was 7.75p.
Ra currently has 173,575,741 shares in issue. The market capitalisation of Ra is £13,452,120.
Ra has a price to earnings ratio (PE ratio) of -1.02.
This morning RAI shares opened at 7.75p
Posted at 18/9/2023 13:41 by tomboyb
The services which RA will most likely provide will be funded from a sub-lot allocated to the CSSF valued, in aggregate, at a maximum of GBP 375m (over 2 years). They relate to "providing and delivering operational and technical equipment to organisations in hostile environments in a Human Rights compliant manner", and include the following sub-themes:

Trying to get the wording right -

375mill is from a sublot to CSSF -

What value to RAI? -
Posted at 18/9/2023 11:13 by norbert colon
Valuation has started to look interesting again for a while now and with ongoing sale of Moz land parcels their cash position is encouraging. Still have medium term notes overhanging. This framework does look like good news for RAI and you have to congratulate them for the quality of their bid. I've taken an opening position again.
Posted at 20/2/2023 16:24 by rmillaree
I really dont see any appeal here at present.

When i was previously invested they had good cash reserves and were making a profit - now they are loss making and have "net debt".

Heyho i guess the low price could return multiples of current shareprice here if they right the ship and peeps have the faith now. So i will sit and admire those braver than me.

I would have liked to have thought that by now thney would be reaping the reward of covid being the the past and the many years of being a listed company should be bearing good fruite by now - no doubting they have top tier customer list.
Posted at 20/2/2023 09:54 by flc
October last year....(Sharecast News) - Analysts at Canaccord Genuity reiterated their 'buy' rating on RA International shares on Friday, citing both growth and de-risking efforts.
Canaccord Genuity said RAI's first-half results were in-line with its estimates, with revenue of $29.0m, up 11% year-on-year, and a breakeven EBITDA performance, down from $5.0m a year earlier. Net debt at the half was $4.3m, excluding lease liabilities, reflecting some ongoing Mozambique outflows but otherwise in line.

The group's order book at the end of August of $95.0m was broadly flat since the beginning of the year and Canaccord highlighted that this does not reflect a £35.0m five-year UK Ministry of Defence award separately announced on Friday.

The Canadian bank also noted that government sector revenues represented 47% of last year's revenue for RAI, and said it expects this to continue to grow thanks to the "strong relationships" it has developed with the US and UK governments.

"RAI remains in a robust financial position with more than $9.0m in gross cash and the group is confident in its ability to mobilise for multiple large contracts as and when those restarts," said Canaccord.

"We base our valuation on peer-group multiples and use the range of earnings we calculate for the short and medium-term. Our price target is based on the geometric mean of the top (60.0p) and bottom (25.0p) of this range, which results in our price target of 41.0p. At our price target and using our mid-point earnings, the stock would trade at 15x/10x 23/24E EV/EBITDA, which we believe is realistic for a growing, high-visibility business"
Posted at 16/2/2023 16:10 by value hound
This is looking very interesting to me in light of the recent contract wins. The slightest improvement and rel' small operating profit by historical standards make it worth more like c.$50m / £42m / >24p per share IMO. Obviously - anything close to a gradual return to pre-pandemic levels puts it more like twice that (bearing in mind it started 2022 at 50pps).

Any thoughts?
Posted at 06/6/2022 13:59 by tomps2
RA International FY21 presentation by CEO, COO, CFO on 30.5.22. Very comprehensive and they answered all questions

Video: [...]

or podcast
Posted at 30/4/2022 13:07 by jimbo123elf
I'm no longer holding this stock but i'm not sure i'd want back in at any price now. Too many red flags for me.
Posted at 16/2/2022 14:49 by value hound
Being a sucker for a falling knife, I bought a small qty at 28.37p. It looks worthy of a gradual return to 40p IMO, given time.

OTOH, if the Narfeldts did decide to take it private (and who could blame them?), it could happen a lot quicker - but at what price?
Posted at 07/9/2021 12:02 by total return
A stock market contact has sent on today's research report from the analyst at the house stockbroker, Canacord Genuity:

"Strong outlook for second half

RA International has shown a robust performance in 1H21 given the pandemic and the challenging security situation in Mozambique, with revenue of $26mn (1H20: $35mn) and EBITDA of $5.0mn (1H20: $8.1mn), modestly ahead of our expectations and allowing the company to reaffirm existing guidance. Contract awards in the period amounted to $29mn (1H20: $26mn), but the company has decided to remove the $61mn Mozambique contract from the backlog following recent events and hence period-end backlog is $129mn (31 December: $187mn). Separately, the company has announced a significant new contract with the US Navy, which we expect to amount to at least $20mn in RAI revenue over the next five years. We see an improving outlook into the second half, with multiple further contracts awaiting signature and subject to the finalisation of commercial terms; the outlook states that management believes it likely further awards in the second half will be above $40mn in value. In particular, we see Danakali's major Colluli project (DNK-LSE: 23p | SPEC BUY, PT 45p) as likely to add significant backlog once finalised. We reiterate our existing BUY rating and 75p price target.

New US Navy award

This morning the company announced its entry into an indefinite-duration indefinite-quantity (IDIQ) contract with the US Navy, for design and construction on Diego Garcia, its Indian Ocean base. RA is in joint venture with ECC, a US contractor, and there are five other awardees; total work under the contract is $249mn over five years, so we expect at least $20mn in work to RAI over the period. This award underscores RAI's role as a contractor to the US government, generally in remote locations.

Margin maintained

A feature of RAI's business model is its robust risk control, and the first half underscores this; despite revenue down 26% y/y, gross margin was flat at 29% and EBITDA margin down just 2.5%. It is also striking that RAI has suffered no significant effect from construction and logistics cost inflation, reflecting both its strong risk controls and the nature of its contracts in those areas. We see this as one of the key investment attractions for RAI.

Cash flow and earnings: WC outflow expected to reverse

1H results include a substantial working capital outflow of $8mn, half of which is down to late payment from one large multilateral, and half of which is due to assets earmarked for Mozambique capex, being shifted to inventory for other projects. We expect this slow payment to largely reverse in the second half and for the inventory to be reused on other projects in progress. We also highlight the improving security situation in Mozambique and believe that this could lead to a restart on this currently suspended project.





Reiterate BUY and 75p target, no earnings changes

We continue to expect revenue of $50-55mn for this year and EBITDA of $9-11mn, with a strong recovery into next year from currently active bidding. At our target price, and mid-point of the earnings range, RAI would trade at 28x/12x 21E/22E P/E, which we believe is appropriate for a business with the strong growth outlook of RA. In particular, we see the pick-up in run-rate of awards over the next few months (from current high bidding activity) being reflected in the share price ahead of revenue, as is normal for contract-based businesses like RA."

Their number are:

FYE Dec 2020A 2021E 2022E 2023E

Sales (US$M) 64.4 52.2 82.2 106.9
EBITDA (US$M)
14.2 10.2 19.9 27.5
EPS Adj&Dil (¢)
5.5 2.1 7.4 11.4
DPS (p) 1.4 1.5 1.6 1.7
EPS (¢) 5.5 2.1 7.4 11.4
DPS (p) 1.4 1.5 1.6 1.7
Net Debt (Cash) (US$M)
(11) (4) (10) (19)
P/E (x) 14.9 39.6 11.1 7.2
EV/EBITDA (x)
9.3 12.9 6.6 4.8
Posted at 15/12/2020 10:31 by shanklin
Fair comments rmillaree

I have held RAI for a lot of the period since they floated and it has been one of my larger holdings albeit I have zero currently. In many respects the share price looks far far too low.

I just feel they need to up their game on:
- giving us a more detailed picture of the business
- corporate governance and keeping the market appropriately updated albeit there is no lack of quantity on that front

We all know they largely operate in out of the way places and that there is more project risk than would be the case in other locations... ...and that they have had some genuine misfortunes hit them since floating... ...albeit they are now large enough that the odd negative surprise should not rock the boat unduly.

I think all investors accept this; I certainly did. So, to make all this risk more acceptable, I would suggest they focus on doing all the things where they do have absolute control to the highest possible standard. So:
- don't used money raise in the float to buy shares and give huge numbers to directors... ...if you need to give directors shares make them options with stretching targets and a sensible strike price, so they are rewarded along with shareholders
- do give what guidance you can on PBT... ...or at least tell us why you aren't. IIRC, when RAI have done this sort of thing in the past it has been a pre-cursor to less than delightful numbers... ...so please stop doing this and just give us the facts, especially if there is a good explanation.
- give us as much detail as you can about the situation over the next two to three years

I really don't see any of this as difficult to resolve. Most of us can see the own goals, so some decent Investor Relations advice from the new NOMAD should really sort this out.

I hope to be back invested here soon, even if I end up paying a higher share price for a bit more certainty.
Ra share price data is direct from the London Stock Exchange

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