Tolent Share Discussion Threads

[santangello] 15/8/2006 21:13

....thanks Jeff.

And still they come to pay over the offer prices for TLT!

[jeff h] 15/8/2006 19:23

Some news on Amco:-

"A proposed management buy-out pitched at less than the current market price has been made for Amco Corporation. It values the £130m-a-year turnover construction group at £36m.

The two directors making the move are Ian Swire, finance director, and David Jackson, commercial director.

The move would have been kept under wraps had it not been for the unusualness of the offer price. "The price means there is the risk of a false market," said a spokesman for Amco.

"If it had been pitched at say 10% over the current share price, it would have remained highly confidential."

Amco's share price doubled in less than 12 months, from 180p in late summer last year, to 370p in May of this year.

Amco's shares are 'illiquid' - a financial expression to indicate that only a limited proportion of them trade freely on the Stock Exchange.

In Amco's case, this is because 49.9% of all the 13m shares are held by Amco Investments, a trust for the founder's family. The trust is thought to be fundamentally supportive of the move."

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.... why Amco Investments Ltd and Stuart Gordon are happy with the price presumably the Offer (if there is one forthcoming) document will explain.

It could be problems with one of the units, pension deficit etc...if there are no apparent problems and an offer is made it will be interesting to see if there are any competing offers.

[jeff h] 13/8/2006 10:37

Yes, we shall have to wait and see....meanwhile here's Brewin's view of
the Tolent Interims:-

Tolent’s impressive track record continues with operating profits from construction
activities increasing by 15% and PBT increasing by 10% to £2.2m, leaving the Group on
course to meet our full year expectations. The focus on securing repeat business combined
with the excellent delivery record means that Group is now able to secure larger projects
and this should contribute to continuing profit growth. Net cash balances exceeded £10m
throughout H1 and in reflection of this the Interim dividend more than doubled to 11.7p.
Our 06 and 07 PBT forecasts are unchanged but we have increased our dividend forecasts in
line with the 1x cover adopted at the Interims. This translates into a sustainable yield
of almost 12% at the current share price! In reflection of this we have increased our 12m
price target to by 11% to 300p (06 PER 11x/ yield 9%).

------------------------------

So Forecast EPS = Forecast Div 27.3p for 2006 and 28.6p for 2007....no rational shareholder would give this up for below the 300p Brewins target
...let's see the Amco plc story unfold before jumping to conclusions.

[desthecat] 11/8/2006 21:30

Agreed there, there are far far more questions than answers.
Amco Investments dont seem to need the money.
I've just done a quick free check on graydon.co.uk and they "only" made £23M last year on a turnover approaching £750M!

When Amco Investments bought out AMALGAMATED METAL CORPORATION PLC, from what i can see they made a good offer.

Maybe they do want to sell, but with a great long list of pies in which they have fingers, i cant see why they'd want rid of this particular one, and why at a discount.

As i said some months ago, Billington Structures part of AMCO plc could nearly be worth hiving off on its own to go head to head with Severfield as the only quoted fabricators, Billingtons really do have a drive for growth, and deliver a good product.

Will just have to wait and see i expect.
At the current offer, and a good lottery win tomorrow............. !!

[jeff h] 11/8/2006 21:19

Another thought...maybe Amco Investments Ltd wants to sell up and has invited
offers...275p is the Managements opening bid.

I note Amco plc shares closed at 300 - 325 which suggests the City doesn't believe it's going to fall to a bid of 275p.

Far more questions than answers...have to see what develops before making conclusions

[desthecat] 11/8/2006 21:05

Amco Investments Ltd's stake when consider does make you wonder.
Maybe press speculation will give start to give some idea of whats going on, but it does seem rather intriguing.

[jeff h] 11/8/2006 20:34

Yes intriguing stuff desthecat.

I would have thought the controlling shareholder (Amco Investments Ltd with
a whisker under 50% the same as Tolent if I recall) would have wanted the best price possible.

Also Stuart Gordon owns about 8% 1 million shares there I think....as he
doesn't appear to be part of the bid (per the RNS) why should he be willing to sell on the cheap?

If a bid below fair value was agreed whats to stop another company or individual putting in a higher offer?...the Directors would presumably have a fiduciary duty to accept the higher offer.

As for Tolent, raising the dividend over 100% and way beyond Brokers Forecasts when profits increased by 10% doesn't look like the actions of a board who intend to take it private with a low bid... in fact the thought crossed my mind they'd hiked the dividend perhaps to raise the share price in order to issue fewer shares for a potential acquisition.

It does seem odd...maybe the press or further announcement will give some answers...if Amco does get bought best of luck to you getting a fair price whatever that price maybe.

[desthecat] 11/8/2006 19:31

Chap's watch out here.
Members of Tolent's main board who also sit on AMCO PLC's board have just "given permission" to the board there to persue an offer for the company which is seriously below the market value of the company and the recent trading price of the shares.

" The Board of AMCO has received a preliminary approach from management which may or may not lead to an offer being made for the Company. The approach, which is subject to a number of pre-conditions including funding for the proposal, is at a price of 275 pence per share, which is below current market price and values the share capital at approximately #35.6 million. The Independent Directors of AMCO, Stuart Gordon and Michael Speakman, have given management permission to pursue the possible offer "

If the can do it to AMCO, they can do it to TOLENT to.

[santangello] 11/8/2006 10:41

Cheers Jeff...

Probably putting it on more investors radar screens accounts for the buying momentum of the last couple of days?

[jeff h] 10/8/2006 17:41

Oh forgot to mention TLT featured in Equity Growth Research's 'Smaller Company Review' yesterday.

Didn't reveal any new information but it brings the company to investors attention.

[jeff h] 10/8/2006 17:36

Will find out tomorrow what the IC makes of TLT.

As well as potential commentary on the results, a few weeks ago the IC's Mr Bearbull was contemplating having Tolent in his Income Portfolio...wonder what he'll make of the div hike.

Looking a few months ahead the £38m Echo24 development will be finished and
Tolents 50% share will be added to the company's coffers...nothing from Leeds in the latest results either so plenty of potential still to be realised.

[santangello] 10/8/2006 16:34

...so I wonder what IC make of TLT?

Getting ready to test its highest level, with this momentum should be sooner rather than later.

[robcoo] 10/8/2006 11:08

I'm surprised that there has not been nore comment on Tolent since its shares seem incredibly cheap to me. The dividend has been incresaed to 11.50p and the Chairman's statement talks of there being no present reason not to pay a further dividend for the full year.If this is maintained at the previous level the yield based on the current share price is 7.6% There is a concern that the interim dividend is equal to the eps, and I have always had doubts about the Company's cash generation, but the Board must be satisfied about this to be paying such a dividend. For those interested in a high and growing income stream, the attractions are manifest

[santangello] 02/8/2006 19:47

Did the MMs jump the gun around 8.15 am when they marked it up 13p?
All buys apart from one lunatic selling, yet the bid was marked immediately down 7p right throughout the buying.........not the usual trait of MMs and this stock?

What a solid set of results, and more of the good news should flow through into the finals.

Place your bets on the final div ladies and gentlemen.

[jeff h] 02/8/2006 08:38

Xmas as well as the results come early this year...an Interim div of 11.7p
....what will they pay as a Final...15p?....20p??

[santangello] 19/7/2006 20:28

Strange to see the sells today......looking like it may have been quite a few by the same trader?

OK, so if investors do not know the history of this volatile stock, it may well drift towards 200 - 210 pre-results, then start to pick up closer to the day they are announced. If, as expected, they are as good as usual, the price will push on quickly.

MMs can make easy money on this quality stock, but they ain't nabbing any of mine.

[santangello] 04/7/2006 00:34

Quality post Jeff...

[jeff h] 03/7/2006 19:23

Holders received a juicy 6.25p Final dividend today....looks as though some
chose to re-invest it in more shares.

I went past the re-opened £30m Roundhouse recently.....presumably now it's finished Tolent can take the profit in its half year results due in a month or so.

No let up in the contract awards:-

[piedro] 15/6/2006 20:44

IMO it seems to be the trend.

First the large companies fall, then the medium and lastly the small.
Now the large are rising, next the mediums.......
It may present a good opportunity for topping up...... - just my opinion.

[questar2000] 15/6/2006 16:58

Hold a few of these. FTSE up 112 pts. Marked down today on low volume. Anyone care to comment?

[jeff h] 08/6/2006 18:43

Have Tolent turned over a new leaf?...quite a bit of info on the website update today:-

08/06/06 - Developments within the Central (East) Region.

Tolent were justifiably proud of their achievements to date and were aiming to see turnover top the £25m mark by the end of 2005.
Their expansion has continued apace and this year's turnover is expected to reach £60m, thanks to their continued involvement in a series of prestigious projects across the north of England.

Tolent's current residential projects include a 68-apartment scheme in Sheffield city centre, which is a £5.4m development in Arundel Street.

The same sum is being spent on a scheme consisting of 69 apartments in a mixture of new-build and a hotel conversion in Ecclesfield.

Marshalls Yard in Gainsborough is Tolent's £17m retail development which is scheduled for completion in February 2007. The ambitious project has seen tenants including Marks and Spencer, Next and Halfords sign up to the scheme, which will also feature a JJB Sports fitness centre.

Due to open in December this year is one of the largest distribution centres in the north of England, a 750,000 sq ft development at Thorne, Doncaster. Tolent has 'fast-tracked' this project in 36 weeks, at a cost of £21m.

In the hotel and leisure sector, Tolent is currently working on a £3.5m project to build a 94-bed hotel for Holiday Inn Express in Doncaster, and a £1.7m 36-bed extension to a Paramount hotel near Darlington.

"It is since moving to Leeds that we have secured all this work," said Geoff Bilton (Regional Manager).

Tolent is a national company with five regional offices and an anticipated annual turnover this year of more than £180m, a third of which will come from the Leeds-based office.

--------------------------------

2005 Turnover was £140m up from £123m in 2004...so they are saying Turnover
in 2006 will be 30% ahead of 2005 and 50% of 2004.

Obviously margins are very important but it looks as though the company is
a rapidly growing one.

[jeff h] 20/5/2006 11:50

A recently completed job:-



Extracts:-

ANOTHER AWARD WIN FOR OLD POST OFFICE
02 May 2006
Sunderland Housing Group's stunning Old Post Office development has won a second prestigious award.

The Old Post Office, in Sunniside in Sunderland, has been named the Best Renovation / Conversion in the region's 21st Century Living Awards.

The flagship development, which has been created following a £7million restoration and regeneration project by Sunderland Housing Group, was also named Runner-up in the Best Luxury Apartment category.

The Old Post Office, which sits in the heart of the historic quarter of Sunniside, has been carefully transformed into 32 one and two bedroom apartments. It is regarded as the jewel in the crown of phase one of Sunderland Housing Group's £30million regeneration project in Sunniside.

The project is part of a wider £42million city-centre initiative to introduce city living into Sunderland while converting, renovating and conserving the history of some of Sunderland's stunning old buildings.

The architect on the Old Post Office development was idp of Newcastle. The Contractor was Tolent of Gateshead.

[jeff h] 19/5/2006 22:07

....and yet more work....this time a £40m+ scheme...no wonder why they are expanding in the N.East :-

[tole] 19/5/2006 09:51

Nice entry level again for dividend in a fortnights time

"The recommended final dividend for 2005 is 6.25 pence per share payable on 3rd
July 2006 to shareholders of record on 2nd June 2006."

[jeff h] 17/5/2006 19:23

Markets might be weak but Tolent still seems to be gaining new contracts,
and importantly able to pass on cost increases such as on this £18m scheme:-