Carillion Share Discussion Threads

[jaf1948] 23/4/2017 14:23

Garycook,

We all approach share dealing with different viewpoints and although I understand yours ('would it not be in our interest if the Board..introduce a Share buy back to improve the dismal performance of the share price'), it would be the exact opposite to what I would want. Having bought at an average of 250p (giving me a 7% yield) and having no intention of selling whilst the yield is so high, I am very happy with the status quo. Whatever games the shorters are playing, they have no effect on me.

[garycook] 23/4/2017 09:32

Construction business Carillion (LSE: CLLN) looks an even more tempting income play with its current yield of a mighty 8.66%. But as we know, you have to approach such a heady yield with caution. This reflects a tough decade for the company, whose share price topped out at around 435p just before the financial crisis to just 214p today, a drop of almost exactly half. Its struggles continue, with the share price down 25% over the last 12 months.

Carillion has been hit by falling profits from its overseas construction work and continuing low margins on the outsourcing side of its operation. Its 2016 results show that despite 14% mostly organic growth in revenues, profit before taxation fell 5% to £146.7m and basic earnings per share slumped 6% to 28.9p. The dividend was increased by just 1%.
Income pipeline

Its high-quality order book plus probable orders dipped from £17.4bn to £16bn over the year to 31 December 2016. However, that remains pretty healthy, as is dividend cover of 1.9. A forecast drop in EPS of 4% this year disappoints, even if it is due to climb a modest 3% in 2018. This company clearly has problems, but just look at that income !

[rcturner2] 23/4/2017 06:00

Still quite a weak share price here, shorters still in charge.

[garycook] 23/4/2017 04:54

Dear Mr Denning, In the best interest of disgruntled shareholder,s would it not be in our interest,if the Board of Director,s of CLLN introduce a Share buy back to improve the dismal performance of the share price due to CLLN being Shorted by around 20% of CLLN stock held on the London stock exchange.This can be done by reducing the dividend to shareholder,s,and purchasing your own shares similar to Berkeley Holdings (BKG) has introduced to success recently.Kind Regards Gary James Cook ( Carillion Shareholder ) This is a copy of the email that I have sent to John Denning head of Investor relations at CLLN.

[mirandaj] 22/4/2017 18:30

In part:

"For the first time in our history, amid tough competition, Carillion has received the prestigious Queen’s Award for Enterprise to recognise our contribution to sustainable development. One of just eleven recipients in that category, announced on the Queen’s 91st birthday, the Award acknowledges sector leadership in sustainability and a responsible business commitment balanced across environmental, economic and social impacts.

As we finalise our 17th Annual Sustainability Report, and after 5 years of our Sustainability 2020 ambition, it’s a great honour to have won the Queen’s Award. However, it’s exceptional to have won it for sustainability."

[lab305] 20/4/2017 09:52

CARILLION KEY NUMBERS
Latest Share Price (p) 214.05 Net Gearing (%) 72.94
Market Capitalisation (m) 931.93 Gross Gearing (%) 83.54
Share in issue (m) 430.25 Debt Ratio 67.06
P/E Ratio 7.50 Debt-to-Equity Ratio 0.40
Total dividends per share (p) 18.45 Assets / Equity Ratio 6.07
Dividend Yield (%) 8.52 Cash / Equity Ratio 64.37
Dividend cover (x) 2.16 Price to book value 1.28
NAV per share (p) 0.00 ROCE (%) 6.62
Earning per share (p) 28.90 EPS Growth (%) -6.47
52 week high / low 307.95 / 195.90 DPS Growth (%) 1.10
CARILLION RESULTS AT A GLANCE
Date Type Turnover £(M) Profit £(M) Basic EPS Currency
31 Dec 2016 Full Year 4,395 130 28.90 GBP
31 Dec 2015 Full Year 3,951 139 30.90 GBP
31 Dec 2014 Full Year 3,494 128 28.00 GBP
31 Dec 2013 Full Year 3,333 106 23.30 GBP
31 Dec 2012 Full Year 3,666 166 37.20 GBP

[m4rtinu] 20/4/2017 08:56

Another election wont help UK construction. Will delay government spending.

[w1ndjammer] 20/4/2017 08:51

add BON to the divi list 8.6% bought a few last week.

WJ.

[m4rtinu] 19/4/2017 16:02

Zc - that is (or indeed would be in my case) very satisfying and a good argument for long term, divi holds. Good luck to you.

My current holding is well below water, but previous 2 holds were very productive and taken together with this 1, show an overall profit even at this woeful share price

[zcaprd7] 19/4/2017 13:30

It does, however, provide enormous satisfaction, that after holding for 10 years, the dividends have paid for the initial share purchase...

[grahamburn] 18/4/2017 15:07

chris cat.

Dave isn't strictly correct as you should really look at the CURRENT YIELD rather than the HISTORIC YIELD (based on your purchase cost). After all, if a share has risen by, say, 10%, then your capital has risen by 10%. If you sold your shares and put the increased capital into another share, then you would be considering the prospective yield on the replacement share based on an enhanced capital amount.

In short, an investor should always consider the CURRENT yield if he wishes to compare yields in different shares. It isn't realistic to base the your decision on the yield you theoretically secured when you bought a share because it isn't relevant to the current market decision making process. For instance, if a share yields 10% when you bought it at 10p and then became worth 100p, your existing yield (if the dividend isn't increased) then becomes a paltry 1% on the value of your capital.

Hope that makes sense.

[chris cat] 18/4/2017 13:35

Thanks Dave, I understand that bit, but what share price is the disclosed yield of 8.3% based on - The current share price?, the one at the time the divi was paid. Just looking for clarity really. TIA

[daveofdevon] 18/4/2017 11:43

The yield is what you get the day you buy. If the share price rises then future buyers get a lower yield but you get your original yield and in addition you have a capital gain. If of course the company reduces the dividend then your dividend will go down, you are not buying a fixed div.

[chris cat] 18/4/2017 10:31

Hi All,

Stumbled across this the day when reading something else and they mentioned the divi yield at 8.3%. Can someone please help me understand the figures for a divi yield. I understand the calculation but what share price is used. i.e. if I buy at 2.20 and they pay a 20p divi then the yield for me is 9.09% but if the share price rises to £3.00 then the yield will be lower 6.66%. Hope that makes sense.

[ny boy] 13/4/2017 09:32

Patience, more contracts on the way, eventually the share price will rise to reflect this. Great hold for the 8.3% divi

[garycook] 13/4/2017 02:15

And another contract,and still no rise in the share price !

[s2lowner] 12/4/2017 15:50

Just business as usual preferred bidder for Manchester University Student residences
£75m

[ny boy] 12/4/2017 08:42

Adding another 2008 shares this morning

[ny boy] 12/4/2017 08:07

8.3% divi..gimme!

[ny boy] 12/4/2017 07:35

One of the buys of 2017 imho

Another small contract win just announced

[kcsham] 10/4/2017 17:37

Could be couple of percentage points.

[kcsham] 10/4/2017 17:34

Although the share price of Carillion may not increase a lot in the next week or 2, I expect to see the shorters' bet will be decreased continually in the same period of time.

[m4rtinu] 10/4/2017 08:53

Squabbling over HS2!





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