Rtc Share Discussion Threads

[tiswas] 10/8/2016 09:48

During the second half of the year we expect Ganymede to perform in a consistent manner to the first half

I think this statement is key but what does it mean, what metrics are we talking about? Is it saying the same profit as the first half in which case we will not see consensus eps targets hit.

[davidosh] 10/8/2016 09:46

WH Ireland have not changed their forecasts or BUY recommendation with a target price of £1.00. The dividend for the year is expected to be 3.2p and eps at 8.6p also unchanged so no loss of confidence from the brokers but it seems that investors are fearing the worst and there has been selling today as opposed to over recent months when other recruiters have suffered.

The reason others were hit was mainly Brexit linked but RTC have a better mix than most with the dominance of the Network Rail contract and it is only the investment made in future potential work and contracts plus the Derby CC that has weakened these results otherwise they would have been very strong overall.

We have yet to see if it pays off in a big way but the earnings should still be sufficient to meet expectations in the full year and second half is always stronger. I am still happy and the dividend is now significant at 6% expected based on the current share price which income seekers will like even after investment into the future for the business.


For the record the broker says...


A good set of results RTC has generated £0.513m of PBTA in 2016 (H1-2015A;
£0.464m PBTA), an 11% increase, and 2.7p FD EPS (+15%). Net debt of £3.9m has
reduced significantly YoY from >£4.5m in a half year in which the company has
invested significantly. The 1.1p dividend is in line with our expectations (+10% YoY).

• Strong performance from Ganymede RTC’s Ganymede business, which supplies
contingent / temporary staff mainly to the rail and energy sectors, had a very
encouraging H1, with sales and operating profits up 41% and 68% respectively, with margins up from 5.8% to 6.9%. This is largely on the back of last year’s Network Rail win, now successfully brought on stream, and ongoing for a further five years.

• Mix changes elsewhere Beyond Ganymede, temp is rising as a proportion of ATA’s
business, focusing on grey/white collar recruitment in specific sectors. This is a long term strategic objective which has been quickened by the softening perm market. GSS, the overseas business, has held steady, a good result, and significant investment has been made into the Conference Centre and largely completed in H1.

• Post-Brexit vote, forecasts retained We retain our forecasts, bearing in mind the steady, long-term characteristics of the Ganymede business in particular and the likely upside in the Conference Centre as the investment starts to take effect; and will revisit the detail at a later point in the year. The company highlights the “unsettledR21; conditions which are clear to all following 23rd June, but appears to be making a good fist of driving the business forward. Buy.

[melton john] 10/8/2016 09:37

I compared RTC with PRP after their recent results and thought PRP better value plus foreign earnings. Thankfully I sold out of RTC. Wasn't impressed with director sale although PRP FD recently made a small sale as well another director had bought and results were impressive.

[mr hangman] 10/8/2016 08:53

Always best to follow the lead of directors when they sell, not sure this lot
can be trusted now, bet Oryx are happy

[glennborthwick] 10/8/2016 08:47

Question is are we second half weighted again. If we hit brokers targets 8.6p for full year and a divi of 3.3p Yield is 6 percent. Looks. A tough ask.

[tiswas] 10/8/2016 08:26

I sold half at the open and now wish I had sold the whole lot!

Interested in daviddosh's take on results as I know he was very bullish earlier in the year but 88p now seems a million miles away. It was only the Oryx buy that persuaded me to keep what I did.

[shanklin] 10/8/2016 08:03

Ganymede is obviously the big positive in the results.

The surprise for me is the result for the Derby Conference Centre, where the profit (actually a loss) is £183k worse than H1 '15. It would be interesting to know the likely situation in H2.

[mr hangman] 10/8/2016 07:57

But not to worry our directors have pocketed quite a bit from their share sales

[glennborthwick] 10/8/2016 07:42

Yep steady as she goes dividend increased.

[tiswas] 10/8/2016 07:23

www.investegate.co.uk/rtc-group-plc--rtc-/rns/half-year-report/201608100700077182G/

Underwhelming.

[mr hangman] 27/7/2016 14:40

Looks like a few people have seen STAF results this morning..

[rivaldo] 22/7/2016 11:24

FYI the interims will be out on the 10th August per the company web site:

[rivaldo] 11/7/2016 14:46

Thx davidosh, good for RTC at least.

H1 results are due in the next couple of weeks (24th July the last two years, so this year Monday 25th is more likely!).

Broker forecasts remain at:

this year : 8.6p EPS, 3.3p divi
next year : 9.5p EPS, 3.7p divi

[davidosh] 09/7/2016 11:15

Good news for RTC as the Afghan support contract will be extended for at least another year to end of 2017. They are having to send additional troops rather than reducing numbers which is not good for their country though

[rivaldo] 05/7/2016 15:02

RNS - good to see Oryx increasing their stake quite fast. They had 905,000 on 3rd June and now have 1,208,500, so have bought another 303,500 shares and are above 8%:

[shanklin] 13/6/2016 11:28

tiswas

I would agree the 105k sale was rather messy. Better to get all the selling out of the way in one RNS.

[tiswas] 13/6/2016 11:17

Maybe nothing to worry about but I still think that the directors sales were handled badly. Getting Oryx on board should have been a plus point but somehow they have managed to knock the share price by far more than already nervous markets.

[davidosh] 08/6/2016 13:53

I have been in lots of companies where partial director share sales have not at all been indicative of future performance and the Network Rail contract here should provide another four years of steady returns with potential bonus of more related work.

Christopher Mills does not buy poorly performing companies and tends to build his stake if he thinks there is good value. The directors would not be able to sell if they knew something detrimental and the roadshow would have seen many questions having to be answered so I am not worried by this.

[mr hangman] 08/6/2016 13:41

I hope your right Shanks, i noticed most the shareS sold, was a day before XD..

[shanklin] 08/6/2016 13:15

I'm reasonably certain the results will be perfectly fine. If the share price continue to fall, I will probably feel obliged to buy some more.

[critch16] 08/6/2016 13:02

That's probably the mentality of those selling.

My whole issue is why would directors be selling now ahead of good results? Even if the first batch of sells are indeed to Oryx it still doesn't make sense to me. If it was me I would release a good set of results then offer my shares to Oryx at a 10%+ premium.

That said Chairman hasn't offloaded any.

Perhaps someone smarter than me can make sense of what is going on here.

[mr hangman] 08/6/2016 12:55

If the results are bad next month, this will stink, the Directors will not be
trusted again

[shanklin] 08/6/2016 11:54

SP not reacting well to the messy second director sale of shares?

[davidosh] 07/6/2016 10:57

The company did two days of roadshows a few weeks ago and now have demand which has to be met. Personally I would have preferred the chairman to have sold some of his shareholding as he has more than anyone else and it helps liquidity whilst not seen as a key executive. Totally his choice though ..

[shanklin] 07/6/2016 09:37

Certainly there is little point in doing institutional presentations unless one is prepared to make stock available to them.