Share Name Share Symbol Market Type Share ISIN Share Description
Tclarke Plc LSE:CTO London Ordinary Share GB0002015021 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 87.40 3,087 15:29:45
Bid Price Offer Price High Price Low Price Open Price
84.00 90.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 334.60 9.00 18.37 4.8 38
Last Trade Time Trade Type Trade Size Trade Price Currency
14:20:08 O 276 89.52 GBX

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Tclarke Daily Update: Tclarke Plc is listed in the Construction & Materials sector of the London Stock Exchange with ticker CTO. The last closing price for Tclarke was 87.40p.
Tclarke Plc has a 4 week average price of 80.40p and a 12 week average price of 76.60p.
The 1 year high share price is 140p while the 1 year low share price is currently 71p.
There are currently 42,953,211 shares in issue and the average daily traded volume is 27,590 shares. The market capitalisation of Tclarke Plc is £37,541,106.41.
cc2014: I'm not getting this folks mostly on the basis of comparative value. My observation here is what is the opportunity cost of owning CTO? Which is more likely out of the following choice? BP. rising to 420p in 3 years time or CTO doubling to 180p? Or perhaps a large number of REITS if you don't like BP or perhaps Llodys at 27p. Or Aviva. I could go on. Anyways here's my view on the update. 1. I'm kind of with Investors Champion on what is the profit, because what I care about is how much profit a company makes after everything. Construction companies have a habit of producing exceptional costs all for different valid reasons and a spin back through CTO's annual accounts will show they are no different. What strikes me most though is that if the company has made a significant number of people redundant then it has already positioned itself for lower turnover or at best it contrains it's capacity to grow. Also, why was it that in the May trading update CTO was able to tell us this years benefit and the full year benefit of the restructing but was not able to also tell us the cost of the restructing programme? Perhaps just a simple ommission... or perhaps not... Regardless we must appluad them for the speed of response to Covid and £4m of on-going cost savings per annum is a large number. 2. I'm definetly with Tuscan on the order book. CTO turnover last year was £334m so say £167m for a half year. This year first half £106m and around £134m for the second half. They are doing around £22m of work a month and replacing it with £22m of orders, which results in long term a fall in turnover to around the £250m level 3. They can't afford for turnover to fall to £250m because there are too many employees to pay. CTO's high level of employed staff is their strength when there is a shortage of labour but it's going to work the opposite way in difficult times. Other contractors will shed their subcontract labour first but CTO will is faced with a choice of either very low productivity or having to get sufficient work to keep the labour force busy. Inevitably placing pressure on margins 4. Cash. Hmm. No update on that so I assume that cash is no longer net positive 5. Nothing to do with the update but credit risk is a concern. CTO are ruthless at trying to avoid credit risk but margins are so thin... In the end it always comes down to the order book and margins. That's 95% of what you need to know about CTO, the other 5% being the pension scheme and justification for the goodwill.
owenski: Doesn't matter if anyone bashes a share, either one knows what one is doing or one doesn't in which case they resent any opinion that makes them feel insecure. Negative posts, just like positive posts, make no difference to a company's prospects' nor to its share price. The market decides and the market aint just a very narrow selection of folks on a BB.
skinny: Trading Update and confirmation of Interim Dividend Payment. TClarke plc, the Building Services Group, today issues a Trading Update covering the period from 30th June 2020 to date and announces that the Board is proposing an interim dividend. 2020 Trading Update TClarke has continued to deliver an encouraging trading performance; all of our sites are now open and we are pleased with improving levels of productivity being achieved. The Group has demonstrated its resilience despite the inevitable impact on the business; b y taking action so quickly TClarke remains financially strong and profitable. TClarke achieved its target 3% underlying operating profit (EBIT) margin in Q1, broke even on much reduced volumes in Q2 and is pleased to report that it expects to return to 3% EBIT margin in H2. As previously announced, TClarke undertook a swift restructuring programme that has resulted in savings in excess of £4m per annum, with 2020 benefitting from £2.5m of these savings. The cost of the restructuring programme is £3.6m which will be included in non underlying items in the year end accounts. Dividend As a result of the Board's growing confidence, an interim dividend of 0.75p per share (2019 0.75p) is being proposed. This will be paid on 13 November 2020 to shareholders on the register on 16 October 2020 (the shares will be marked ex dividend on 15 October). Outlook As a result of the current market conditions and activity levels, the Board is now in a position to reinstate guidance for the 2020 financial year. Accordingly, we currently anticipate turnover for 2020 to be circa £240m and underlying EBIT to be approximately £6m. The strength of the business is underpinned by our forward order book which remains at a near record of £410m. Throughout the year there continues to be high levels of bidding opportunities. Assuming there are no further significant business interruptions arising from any widespread secondary lockdown the Board is cautiously optimistic for the medium term outlook and continuing to meet our 3% EBIT margin. Looking beyond 2020 our proven strategy remains to focus on projects and markets that meet our margin and growth criteria. The business is resilient and is agile, being able to shift its resources and focus accordingly. The strategy we have followed has resulted in TClarke being particularly strong in the healthcare, education and data centre market sectors, whilst continuing to serve the commercial office market. Once again, the Board would like to thank all the dedicated TClarke employees who have supported the business throughout this period.
igoe104: Costain negative announcement today, I think has pulled CTO price down.
theoldcodger: But with the share price firmly on a downward trend, there's currently no need to be in a rush to buy. I top sliced (actually more like top chunked) my holding in early June and will build it up again to a full weighting in due course, but it wouldn't surprise me if we see something below 84p before then. I've been buying and selling shares in CTO for well over 30 years and have learnt that it pays to be patient. Obviously I like the Company, it's solid and well managed, the pension deficit is a bit of negative, but that will sort itself out over time. I just don't see a catalyst for a company specific rerating in the immediate future (of course I could be wrong) and in the event of a general market rally, then CTO is unlikely to lead the way, so there should be an opportunity to climb on board before the train has left the station. All purely my thoughts and not meant as advice in any way. I hold. Regards, TOC
cc2014: One the plus side I'm sure Simon Thompson will be along in a day or two to tip to give the share price a boost. He seems to be tipping the same shares over and over. I do wonder if that has anyting to do with a personal interest in the share. On the downside between the jigs and the reels the actual loss for the half year if you include the exceptionals and the increase in pension deficit is £7.2m. Pension deficit now stands at £30m which is getting to a level that it's going to need attention at the expense of shareholder dividends. Given the level of 30 year bond yields it doesn't look like a rise in interest rates any time soon is going to save the day. The order book is about flat compared with the last update. So, they've done £106m revenue and got enough orders to replace the £106m. The question is if they return to a normal turnover in the second half of around £170m whether they can replace it with £170m or more likely somewhere between £106m and £170m. After all if they were confident they were going to be able to replace £170m they wouldn't be making staff redundant and would have committed to the small interim dividend. The net cash of £7.5m important but don't let's forget the government are allowing delays in payment of VAT. So, how much is that? Or have they not taken advantage of it? Further if the cash position is so strong why draw down the £15m RCF? Tbh I think there's nothing odd happenning there other than a desire to say they've got £22.5m cash which I'm sure opens more doors when negotiating orders. But, there could be other reasons. In summary management doing the best they can in a difficult set of circumstances. Nothing in there that could not have been forseen a few months ago except perhaps the dividend. The interim dividend would cost cash of around £325k. One wonders why a company with £7.5m in net cash does not have the confidence to declare it. The Board says it will wait to see once the results of the year can be forecast with clarity. I would sugget if the Board does not have the confidence to declare 0.75p at half time then both the first 0.75p and the final 3.65p appear at risk. I'm sure Regent will be along to pick up some shares at the right price which will provide some support. GLA
grahamburn: Gelp. Beg to differ, though that does depend on your definition of "small" and "big", I guess, as well as whether the dividend is "postponed" or "cancelled". Clarke's dividend has been a mainstay for many retail shareholders, including myself, especially as the share price growth has over the recent past been somewhat patchy. IMHO cash assets per se do not necessarily lead to an increase in the share price. Having said that, given the uncertain times we live in, I agree with the decision to retain cash within the business by postponing the dividend - and maybe even cancelling this particular dividend should the business require cash in the next few months. However, having been a shareholder (quite a "large" one in retail terms) for an extended period and knowing the company's activities well, unless spare cashflow can be put to a better use within the business, I believe the company should reinstate the dividend as soon as practicable. PS I don't recall you being a contributor to this board so would recommend you scroll back through this board as there has been a regular debate over the years on here about whether Clarke should actually increase its dividend!
igoe104: Several of my companies I own, the directors have purchased a decent amount of shares. and the share price improved significantly with those companies. Same old story with these directors. That's why the share price has underperformed for many years. God only knows what the share price would be without Regent Gas share purchasers, I'm in hope they take the company over, ill take £1.25 at the moment.
cc2014: I had an incredibly informative results call with the directors of nationwide building services contractor T Clarke (CTO:105p). The company ended the half year with a bumper £370m order book, having won around £130m worth of tenders since the end of 2018 and delivered 12 per cent higher revenues of £171m in the six month trading period. It’s increasingly profitable work, as highlighted by the uptick in operating margin from 2.6 per cent to 2.9 per cent, which helped drive the 24 per cent increase in first half underlying pre-tax profit and earnings per share (EPS) to £4.6m and 8.67p, respectively. Finance director Trevor Mitchell confirmed to me that 96 per cent of house broker N+1 Singer’s full-year revenue estimate of £340m is covered by the contracted order book, and half of the broker’s 2020 revenue forecast of £360m, too. Both Mr Mitchell and chief executive Mark Lawrence reiterated their confidence in hitting the broker’s numbers which point to full-year adjusted pre-tax profit and EPS rising by 16 per cent to £9.3m and 17.5p in 2019, respectively. They are also confident of achieving N+1 Singer’s 2020 pre-tax profit and EPS estimates of £9.9m and 18.6p. But TClarke’s share price fell by 12 per cent post the results as investors focused on news that some of the company’s London clients were holding back starting their new developments given UK political uncertainty. Also, some less well funded rivals in the London market are desperate for work which has created pricing pressure. TClarke clearly isn’t and the board were well ahead of the game to mitigate any impact in London as they have already expanded into Europe to take advantage of high margin data centre work. This has led to some significant opportunities: TClarke already has tenders out on two major European projects (contract values of £30m to £40m) which if successful will start in March 2020. The company also has an impressive bid pipeline across the whole of the UK. In fact, Mr Mitchell says the business has £1bn of tenders out with clients including work at Manchester Airport, and the new Channel4 studios in Leeds (TClarke won the tender on the London studio, so looks well placed). Moreover, the corporate presentation accompanying the interims results is absolutely jammed pack full of tenders which, based on an historic win rate of between one-in-three to one-in-four, indicates a sizeable opportunity for the company to exploit. The point being that investors’ misperception over TClarke’s trading prospects has created an investment opportunity for investors to exploit. That’s because there is actually a high probability that TClarke will generate cumulative EPS of 36p over the 2019 and 2020 financial years, in-line with analyst estimates. That sum equates to a third of the share price. Also, as seasonal working capital build eases in the second half then TClarke’s half year cash pile of £4.7m should double to about £10m by the year-end, a sum worth 23p a share. In other words, the shares are effectively being priced on a cash-adjusted current year price/earnings (PE) ratio of 4.7. There is a progressive dividend, t00. The board lifted the interim payout per share by 14 per cent to 0.75p, and N+1 Singer predicts a 10 per cent hike to 4.4p for the full-year, implying the shares offer a prospective dividend yield of 4.3 per cent. True, the shares have pulled back since I last advised buying, at 128p, in mid-May (‘TClarke reports a robust start to 2019 financial year’, 16 May 2019), albeit they are still well ahead of my 90p entry point last December and the company has since paid out its 2018 final dividend of 3.34p (‘Profit from a buoyant earnings cycle’, 7 December 2018). However, I strongly feel this is a buying opportunity given that the current miserly rating is completely at odds with the trading prospects of the company and the strong likelihood that the directors will hit their 2019 and 2020 internal budgets. Indeed, during our results call, Mr Mitchell told me that the business “is trading ahead of internal budgets for turnover”. That’s well worth noting as is the ability of TClarke to convert what is undoubtedly a bumper pipeline of work into firm orders. Offering 43 per cent upside to my maintained 150p target price, I feel that the shares are well worth buying. The flow of trades this morning suggests to me there is one large institution selling. Probably Miton selling out their final shares?
cc2014: I have been musing about this post for some time. Does anyone find the trade flow and price action a bit strange over the last couple of months? I've been investing and trading for very many years and the stock market has been very kind to me. After so many years I've got of got a sense for how share prices move and for when things look unusual. What I see here is that after a significant price correction, we continue to see a continuous flow of buys. Now the price correction was overdue (PER, net cash, assets etc. were all screaming this for some time) and as is usual price corrections do not go in straight lines and this one is not complete, but what I call the ebb and flow in the share price seems odd. I would have expected the pullbacks to be stronger, contain more volume and last longer, but that's not what's happening. It's like someone knows something and is not prepared to be patient as they know they are on a limited timeframe. Or there are multiple buyers all of whom know something and are having to compete for stock. In some ways I don't have to think about this much deeper as the P/E is still low compared with the sector average and in addition profits are rising at a sustainable impressive rate. Further the new stream of business within Eton provides a much better margin and opportunities for growth and the effects of that have yet to play out to any great extent. Maybe it's as simple as that and some fund managers see consistent long term growth with a low P/E and no debt. However, I keep looking at the trades and the buying pressure seems stronger than I would expect given the share price was 80p only 8 months ago. When the share price was 80p I was really worried someone would come along and make a bid at 120p which I felt would have been derisory but difficult for the Board to defend. Now any bid would have to be in the 200p area which I still wouldn't be happy with but at least is alot higher than 120p. I don't know, maybe I'm imagining things which aren't there in the trade flow and it is as simple as the shares remain "cheap" but it seems to be something more than that.
Tclarke share price data is direct from the London Stock Exchange
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