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Real-Time news about Networkers (London Stock Exchange): 0 recent articles
|funkmasterp12: I'm holding but nursing a 17% loss, so not exactly overjoyed. Another point we all seem to have missed (unless i'm being blind) - where was the July trading statement? The currency headwinds and the margin issue should have been flagged in this rather than being a nasty surprise today.
Nice to see Paul Scott has bought in and his commentary over on stock-o-ped-ia seems spot on.
Happy to continue to hold for the Divi and for the recovery of the currency which should bring the EPS / share price back but it's all on the next update for me, which could now be 2015.|
|battlebus2: I agree wjccghcc bought a few more for the yield and the share price will recover if trading continues at the current levels.. Seems a couple of trades were also being worked..
Missed this..Energy, engineering, IT and telecommunications recruiter Networkers International has acquired oil & gas recruitment firm CAPPO Group.
The move will enable Networkers International to continue to grow its share within the energy and engineering market, specifically in the oil, gas and petrochemical sectors.
As a result of the deal Networkers International has acquired an additional office in Qatar. There also plans to integrate CAPPO’s five remaining offices into the acquirer’s existing sites. - See more at: hxxp://www.recruiter.co.uk/news/2014/09/networkers-international-acquires-cappo/#sthash.IITNnQzS.dpuf|
|battlebus2: Taken from another thread but NWKI gets a mention if you read to the bottom--
At - we rank every company out of 100 for its Quality, Value and Momentum using a blend of highly predictive quantitative factors. A composite of these three scores produces an overall ranking we call the 'QVM' StockRank which is designed to be predictive of future long term stock market outperformance. In the case of the Value Rank for instance, where Greenblatt looked only at earnings yield, the ValueRank also takes into account several other factors including price-to-book, price-to-earnings, price-to-free cashflow and dividend yield. In other words, it isn't relying on one individual ratio to define a company's likely valuation. Likewise in the case of the Quality Rank, rather than just looking at return on capital, the ranking tool looks at a host of other indicators spanning the quality of franchise, fundamental direction and financial safety.
If you apply the StockRank to those companies currently in the top 15% of the market in terms of their Magic Formula scores, you immediately lose a handful of potentially rogue stocks that crop up near the top of the standard Greenblatt list, among them a couple of small natural resources companies and a Chinese logistics business. Instead, you get a basket of predominantly small to mid-cap shares that are super charged Magic Formula qualifying companies with the added bonus of having positive share price and earnings momentum behind them. The additional momentum filter in the StockRank could act as an aid in further screening out the 'value traps' inherent in a value strategy such as this.
You can see the full list to this screening process here, which is topped by RM (LON:RM.), a company that has previously done extremely well in supplying IT kit as part of the PFI-funded Building Schools for the Future programme. With that programme now winding down, it's looking to improve the performance of its other divisions and the share price has responded with a gain of 50p to 115p since July. You can read Paul Scott's view on RM's balance sheet here.
Elsewhere, bolstering the Magic Formula with this filter makes no difference to companies such as defence contractor Cohort (LON:CHRT), oil and gas group SOCO International (LON:SIA) and equipment hire business Andrews Sykes (LON:ASY), which all rank highly on both sets of measures. Meanwhile, the introduction of high ranking StockRanks companies, sees retailers JD Sports Fashion (LON:JD.) and Halfords (LON:HFD) pushed up the list, as are recruitment firms Networkers International (LON:NWKI) and Harvey Nash (LON:HVN).|
|stegrego: Recruitment firm looks just the job
Significant director share purchases can never be taken as a complete green light for others to follow their lead; nevertheless, such buys are at the very least worthy of some closer scrutiny.
In the case of Networkers International, a specialist recruitment and consultancy agency, last week's hefty share buy from a non-executive director may certainly be worth following up.
It came from serial investor Nigel Wray, who bought 450k shares at 44.5p, which comes just a few weeks after the company delivered its interim results. The large buy from Wray sees his holding standing at around 17% of the company, while venture capitalist and former Alchemy man Jon Moulton also sits on 10%. But, what of the company, which listed after the business reversed into AIM-quoted shell, Steetnames.com, back in 2006.
Based in Bromley, Networkers is involved in the recruitment and hiring of staff, along with consultancy to clients across a broad spectrum of business in countries across the globe.
With a strong focus on telecoms, along with financial markets, the semiconductor industry, IT and more latterly energy, Networkers provides specialist operators to meet specific skill requirements to major clients. It is also quite adept at providing back-up assistance on regulatory requirements.
And the company has, by all accounts, been doing rather well, with revenues now coming in at more than £170m, while pre-tax profits for last year came in at £5.6m.
Although it is perhaps difficult to become too enthralled about the recruitment business, from an investment perspective there is a fair bit to like about the company. The fact that it has been dealing with a challenging environment yet generating cash, suggests that the future, fuelled by ongoing recovery and demand for various levels of skills, may present some decent upside.
In the recent interim results the company expressed confidence in meeting its expectations for the full year after delivering half way pre-tax profits of £3.1m. There was also a slight improvement in gross profit margins, up to 18%, while the interim dividend was also raised by 16%.
This suggests a reasonable level of confidence going forward, despite its telecom arm being hit by slightly weaker markets.
But, that may only be temporary as the company, which typically has supplied telecom contractors to major companies for roll out business, is now migrating to niche sub-sectors which, along with possible upside from business relating to 4G networks, could present opportunities.
There has also been progress on more permanent placements to clients in specialist sectors which is a higher margin business, and encouragingly now accounts for 25% of the company's business against 20% a year earlier.
Telecoms aside, other areas appear to be performing well enough with particular encouragement from a more recent focus on the energy sector, which not only takes in oil and gas, but renewable fields too.
While the UK is understandably a key area of focus, the company is extremely active elsewhere, and as the wider economy recovers it could be well placed to capitalise.
The balance sheet isn't in bad shape either with net assets standing around £15m while debt related issues which stand at £5.9m are aligned to working capital requirements. And the dividend on offer, which has a progressive look about it having been increased a few times now, should, on a full year basis, yield around 3.5% at the current share price of 45p.
Encouragingly there is a decent level of cover on that too, with expectations of 3x earnings from anticipated pre-tax profits of £7m for the full year. Those numbers one would hope are achievable given the boards in line comment, accompanied by the statement adding that it was on track for a strong finish to the year.
One minor issue to note, is an ongoing litigation case with three former employees regarding recognition rights. This may or may not come to court in the US in 2015 relating to one of Networkers' subsidiaries and where the company believes it has a strong case to argue. Whatever the longer term outcome, the company has set aside a £1m provision should any judgement go against them.
All in all, Networkers looks to be fairing well and on a forward PER of 9 against the sector average of 16 accompanied by a reasonable and well covered dividend may be worth keeping an eye on.
Read more: hxxp://www.cambridge-news.co.uk/Business/Private-Punter/Recruitment-firm-looks-just-the-job-20131015134734.htm#ixzz2hvdiSrka|
|glasshalfull: Yes battlebus...well done with Matchtec.
Comment by ShareProphets indicates that NWKI is significantly undervalued with the larger recruiters valued on basis of PER 20. I certainly don't think NWKI deserve a rating of this magnitude, but it does suggest to me that the growth in their Energy & Engineering division is not reflected in the current shareprice.
Following my recent analyses in the staffing sector (see HERE), AIM-listed, UK specialist engineering and professional services recruitment company, Matchtech Group (MTEC) has today updated on its year ended 31st July 2013. The following reviews.
The company reports that, following "encouraging" trading in recent months, it now anticipates that underlying profit for the year "will be slightly ahead of its previous expectations". This is as it particularly noted that "demand for contract staff within Engineering and Connectus, our technology business within professional services, remains strong" helped by continued investment in UK infrastructure programmes. This fuelled a 12% increase in 'Contract' net fee income over the prior year (to £27.4 million), with 'Permanent' net fee income 4% higher (to £11.1 million) the company noting on the latter that "whilst demand for highly skilled candidates across all the group's brands is still very high, the time to hire period has been elongated as candidate confidence remains fragile".
The update has seen house broker, Numis, nudge its forecasts for the year and the now current year higher (earnings per share from 29.9p to 30.4p and 31.1p to 31.8p respectively), whilst noting "given the strong H2 trajectory, we believe this outlook into 2014E could prove conservative if the general UK macro recovery continues to gather momentum... Following the upgrade to forecasts we increase our target price to 510p, implying a July 2014E PE of 16x, which remains at a significant discount to c.20x for the larger UK staffers".
Unsurprisingly, given also the sector performance, these shares have been stronger performers currently trading at 425p having commenced the year at 238p. Although the company's operations are UK-focused it notes "global demand for the products and services that our clients offer" and Numis notes that the company is benefitting from a niche position in areas of high demand. Although the stated share price rise means the deep value here looks to have been eroded, there is certainly much worse value in the sector currently and indeed within the market as a whole. There also remains a pretty attractive prospective dividend yield on offer here approaching 4% for next year.
|topvest: Massive sell on Friday; nearly 20m shares at 20p or so in a couple of tranches; wonder if Nigel Wray has moved out. Seems a rather low price to get out. Worth seeing what this does to the share price.|
|snappy: Share price still sliding inline with peers in the staffing sector. Down to 18/20p now.|
Networkers International share price data is direct from the London Stock Exchange