Premier Technical Services Share Discussion Threads

[larva] 20/9/2016 15:43

they looked rosy at Mitie too and then wallop

[martinthebrave] 20/9/2016 08:13

A warning would be a bit of a surprise next week imo.

Things looked pretty decent on 11th August - "The Group has previously announced that it was performing well in H1, delivering record results, substantial organic growth and securing a number of new notable contract wins. This strong performance has continued and the political events of recent weeks do not appear to have had any adverse effect on the Group's ability to secure contract wins. Two recent substantial contract wins, signed in the last two weeks by the Group's Access Installation division for a combined order value of £2.5m, have further strengthened an already healthy order book in this construction related area for 2017 and 2018 and the Group's testing and maintenance activities continue to see strong work and order levels".

[fizzypop] 14/9/2016 11:34

Hi riv. A 40% forecast increase in the divi is certainly OK in my book.

[rivaldo] 14/9/2016 10:47

Indeed - though the forecast for this year's divi is now up to 1.4p, which is "reasonable" in my book at an 1.8% yield, at least compared to most savings rates elsewhere!

[fizzypop] 14/9/2016 10:23

rivaldo

The divi is only Int 0.46p + Fin 0.54p = 1p for full year or 1.28% at current share price
The 0.46p was their maiden divi.

[rivaldo] 14/9/2016 08:51

Cheers GHF. Bought a few of these myself and added some this morning (not showing yet) - I picked today's lot up at less than mid-price, so some may still be available at a bargain rate.

Results are due in less than 2 weeks, and we already know that they'll be good, trading in line with recently upgraded expectations.

PTSG are barely on a double-digit P/E, and pay a reasonable dividend. Nice recurring income too.

[fizzypop] 14/9/2016 08:19

Thx GHF - good to see some forecasts of a 60% upside from here to 125p.
One to add to at every opportunity.

[apad] 14/9/2016 08:19

Also, a bit like GDWN, relatively little day to day trading and movement perhaps.
apad

[masurenguy] 14/9/2016 08:10

APAD - 67: Any concerns over how tightly held the shares are (60% in 3 places I think)?

Three shareholders, the Chairman and CEO plus a private CI based investment fund, collectively hold 76% of the issued shares.

John Robert Foley 26.8%
Paul William Teasdale 26.8%
Hawk Investment Holdings Limited 22.4%

This of course could have significant impact upon their liquidity in both directions!

[glasshalfull] 13/9/2016 21:47

As Lanzarote mentioned, Numis initiated coverage yesterday with a 125p price target.
Interesting to note that PTSG service more than 100,000 buildings on behalf of over 12,000 customers.

Numis forecast that interims in a fortnight should highlight strong revenue growth, with double digit organic growth augmented by the acquisitions from H2 2015.

They also pencil in adj PBT of £3.5m (+49%) with EPS of 3.2p at the interim stage. This equates to 44% earning growth.

Hopefully PTSG will provide further clarity on cash generation. They operate with EBITDA margins of 20% & relatively low capex requirements. However, the 5 acquisitions in the last quarter of 2015 contained considerable net current liabilities, with the company apparently requiring to settle £1.9m of creditors prior to year end.

We should therefore begin to witness stronger free cash generation this year.

A few other snippets,

"... offers an attractive combination of rapid revenue growth, high margins and ROCE. It is the market leader in the provision of specialist services in Access and Safety, Electrical Services and High Level Cleaning, yet has less than 10% share. We forecast an EPS CAGR of 19% (2015-18), but expect PTSG to continue its track-record of EPS upgrades. Trading on a 2016 PE of 11.5x and EV/EBIT of 9.9x, we think the shares are significantly undervalued."

&

"...delivered a 24% revenue CAGR 2009-15... Its addressable markets are worth around £600m, implying a PTSG share of c.6%. Its activities are highly regulated, creating both barriers to entry, and high levels of repeat business. Renewal rates on maintenance contracts are high (88% in 2015)....We expect PTSG to continue taking market share both organically and through further acquisitions."

finally

"...consistently delivered gross margins >50% and adjusted EBITA margins >20%."

---

I'll comment further following the interim statement.

Kind regards,
GHF

[fizzypop] 13/9/2016 12:20

PTSG secures lightning protection contract at Darlington Memorial Hospital - 8 month contract.

[lanzarote666] 13/9/2016 08:06

Maybe so diku, but Numis started coverage yesterday with a Buy recommendation and a 125p target.

GLA

[fizzypop] 12/9/2016 11:52

TV Extra ... whatever next.

hxxp://www.ptsg.co.uk/news/ptsg-takes-starring-role-in-goodnight-sweetheart/

[fizzypop] 08/9/2016 12:55

Not much news last week or so, multiple contract completions clears the deck for new work and ensures revenue flow. Due for a rerating on 27th and hoping for a double digit % increase upto 85p or above. Acorns into oaks etc.

[lanzarote666] 06/9/2016 12:54

Easy to buy within a wide spread, but have taken an initial position in anticipation of the 27 September 2016 results announcement. Hopefully this will be a trigger for others to see the value and potential of the growth story and hopefully a re-rate.

They appear busy, hungry for further growth and there is little free float. The owners have a large interest and reason to make this growth happen.

[apad] 26/8/2016 08:53

Large buy on Wed. hasn't moved the market.
apad

[cheshire man] 26/8/2016 08:27

Good to have on onboard :-

[interceptor2] 25/8/2016 15:22

Have built an initial position here since the positive trading update this month, nice thread here with well respected posters posting valuable information.

With all the contract activity I wondered if PTSG are recruiting to support this increase and as can be see from the link below, they certainly are.



Looking forward to interims 27th September, should be plenty of additional information.

[apad] 23/8/2016 12:46

Pats are hard to avoid, I think it's a doggy thing:

"Morgan now produces thousands of pats per year for Renishaw, who are continuing to improve their presence in the engineering sector as the company looks to grow further."

apad

[fizzypop] 23/8/2016 12:33

PTSG frequently refer to PAT work in their contracts. This is portable appliance testing.