Northern Recruitment Share Discussion Threads

[jgscott] 18/2/2006 01:04

westcountryboy,

I believe the dividend yield is greater than you stated. The final dividend is 6.5p and the interim dividend was rephased today from 1p to 2.5p. Therefore total dividends for the year are 9p giving a yield of 6.6% based on today's closing price of 137p.

I would be surprised if the share price doesn't begin to move northwards over the next fortnight. I am taking confidence from the fact the dividend is being increased this year and going forwards but wouldn't it be great if the mgt back this up with some share purchases, even if they are small scale.

[westcountryboy] 17/2/2006 21:54

My sentiments entirely. The key phrase in the statement was clearly that the outcome of the tender bids would be 'critical' to the full year results, an unfortunate term that obviously caused panic. But I was surprised that it should knock quite so much off the price (I assumed it would hold the 150p line). This is a cash-generative business with masses of net cash and a commitment to pay a 7.5p divi for the year. It also has some very major shareholders on the board who - unless they are planning to take it private - will be even more alarmed by today's fall than we smaller holders. Even if it only makes 9p eps for the year, then stripping out the net cash it is on an undemanding PE ratio. Lorna Moran is very well-connected in the north-east. And at this level the divi is over 5.5%.

[jgscott] 17/2/2006 20:06

I've got to say, I think the 27%+ fall is way overdone so I have taken this opportunity to top up - only a small amount though. Putting things in perspective the economy is struggling, unemployment has risen slightly and firms are cutting back in staff in some parts of the country. Therefore sentiment is very, very low with regards to recruitment stocks. NRG generate decents levels of cash, has a healthy balance sheet, has a nice mix of public and private contracts, great dividend yield after todays announcement (9p total for the year) and is an established brand in its local markets. I'm happy to pick up my 5% (average) yield whilst they sort things out.

I have read the statement 2 or 3 times today and feel this may be a 6 to 12 month blip.

[david77] 17/2/2006 18:37

Citywire verdict: "The sharp fall in the share price suggests the market is taking the worst possible view of second half trading. That may be harsh. The company has a solid client base and is well embedded within the economy of the north east and has weathered storms before. The fall looks like a buying opportunity for the plucky."

[cornelious billy bee] 17/2/2006 14:52

every company has a lit of bids and tenders in the pipeline, unfortunately these are worth nothing.

[donut114] 17/2/2006 14:02

Hi friends,Do you know Minmet (MNT) is moving?,get in quick before it gone too far. Targer 1.5/1.9p

[wiganer] 17/2/2006 12:21

I'd be spitting blood if I were a shareholder, given what management said in October and the lack of a warning since then. I had considered a bounce play, but with management as shabby as that I'm not sure I'd touch with a bargepole now.



18 October 2005

NORTHERN RECRUITMENT GROUP plc

AGM STATEMENT


At the Annual General Meeting held in Newcastle upon Tyne today, the Chairman
Leo Finn said:


'I am pleased to report that Group profit for the first quarter was in line with
our targets. We have made good progress with our planned recruitment,
training, and development programmes, which have significantly strengthened our
management team and our business development and client service capabilities.
This enhances our capacity to deliver future growth.


The permanent recruitment market remains strong and we are encouraged by both
our performance to date and the prospects. We are continuing to develop our
good relationships with existing clients in both the public and private sectors.
In addition, we have a number of bids and tenders for new business in the
pipeline. NRG Connect, which delivers major recruitment projects, remains a
strong revenue growth opportunity.


Revenues from temporary recruitment to date have been at lower levels than last
year, although we anticipate an improvement in this trend as a result of new
business opportunities currently under development.


The Group continues to enjoy a strong financial position, and our balance sheet
will remain very robust even after payment of the previously announced special
dividend to shareholders later this month.


The planned increase in our cost base as a result of expanding our delivery and
management teams is budgeted to produce a reduction in profit before taxation in
the first half, compared with the first half last year, but will deliver
benefits in the second half and beyond. I remain confident that NRG will
deliver another year of growth and regard our future prospects with enthusiasm.'

[bigfarmer] 17/2/2006 11:08

Yep, its a complete punt now.

Win the tenders, breath a sign of relief.

Don't win them, Oh dear.

[bigfarmer] 17/2/2006 09:57

On the bright side

They are still generating cash.

The divi hike is nice

If they win the tenders, - significantly increased activity.

[bigfarmer] 17/2/2006 09:18

or "sinks" maybe

[david77] 17/2/2006 09:16

david77 - 20 Dec'05 - 16:51 - 57 of 72

Perhaps the thread title should be changed to "Northern Recruitment - The Boat Goes Out (NRG)"

[saturn5] 17/2/2006 09:02

yes lets hope those tenders come good
sad news really but will probably rally a little
sells are often overcooked and if you enjoy risk it could be the time to get some more

[fozzie] 17/2/2006 08:18

I have to confess my finger hovered over the sell button last night and sentiment got the better of me, again. Very poor statement today and unexpected as the price has risen nicely over the past few weeks, more annoyd at myself though, i should have closed out at good profit last night and not waited for the results. Unfortunately this now looks as if it is a bottom drawer share.

[bigfarmer] 17/2/2006 08:02

Pretty scary reading if you ask me.

The highlight seems to be that they have good people on board.

Fingers crossed that those tenders come good or the share price will be stuffed for a while.

[mooreatupton] 06/2/2006 11:14

We'll find out soon;

NOTIFICATION OF INTERIM RESULTS

NRG will announce its interim results on Friday 17 February, 2006.

At the same time NRG will present financial information prepared in accordance
with International Financial Reporting Standards as its accounting base for the
year ended 30 June 2005 and at the transition date of 1st July 2004.

[wilbur] 01/2/2006 11:11

results due, expecting a reduction in profit for this half as per last results

"The planned increase in our cost base as a result of expanding our delivery and
management teams is budgeted to produce a reduction in profit before taxation in
the first half, compared with the first half last year, but will deliver
benefits in the second half and beyond. I remain confident that NRG will
deliver another year of growth and regard our future prospects with enthusiasm"

been in and out a few times, on the sidelines currently, risk reward poor i feel.

[jgscott] 01/2/2006 09:48

anyone aware of any reason for this morning's drop or is it just the usual noise? Probably a good opportunity to top up?

[lizafl] 26/1/2006 11:02

Looking good! Got back into these a couple of weeks ago. It could do well in the run up to the results.

[fozzie] 25/1/2006 16:16

Results will be out mid Feb according to the company sec. who eventually replied to my emails re the share price slump. Nice to see the share price recovering slightly of late, long may it continue.

[spiritbear] 25/1/2006 16:07

That sounds quite good but worrying that someone took this position in the 1st place!

[sweep stock] 25/1/2006 07:40

Among the small caps, Northern Recruitment rose 6.5p to 170.5p as rumours circled the market about a large short position being squeezed out. Results are due on 31 January.
From the Independent.

[gorse] 20/1/2006 12:22

After a small rise yesterday to 160p, a sudden jump to 174.5 this lunchtime. Interim results were 31 January last year.

[mr.oz] 23/12/2005 11:18

fozzie - likewise - please post any response - am thinking this is GOT to tbe the bottom !
Sorely tempted to pile in