"That said, I would prefer more exposure to blue collar work"
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RTC? Comes with risk, and management have awarded themselves too many shares, but still potentially very lowly rated indeed. |
I have been looking for a reason to buy the listed recruitment agencies for a while as I think they’re decent inflation hedges because they ought to correlate nicely with wage price growth. That said, I would prefer more exposure to blue collar work rather than white collar / professional services. Whether the cash pile is £15m or £20m, this is still pretty lowly rated and I think the new CEO will be extremely motivated to turn the ship around and stamp his mark on the business. He’s been there for over twenty years so will know the business well and its failings. Recruitment is very much a people / services business so if he can revamp the culture, I think shareholders will do very well - especially at this sort of entry valuation. Lets see what happens but at a paltry EBIT to EV multiple, I fancy my chances and am happy to roll the dice. Good luck to everyone here! |
I wouldn't attach too much to the sudden increase in cash. Their sales are c10x their NFI so the timing of collections around period end can hugely inflate the cash and finance departments everywehere push for collection around reporting dates. You've got to look at the average cash over the year. 25p per share of extra value hasn't just appeared out of nowhere, especially since the company said at the end of July that DSO's had returned to their long-term level. They still have a lot of cash mind. |
it was profit warning this morning, hence the big drop. glad i didnt buy based on the IC tip and NT comment on stocko |
The improvement in working capital is going to be a one off. You'd expect the net cash figure to go down at next report.
Are they discounting for early payment of receivables?
Looks to me like overall result will be disappointing.
No position myself, but tempting. |
It's not Curry's, on it's own net cash is about 65p per share, minimal debt which isn't really required, |
No improvement, going down |
lol commission on 'contract' should pay more than 'permanent' |
Pm - very unlikely NT will have gotten in around a tip or this close to a news release. And after todays news I'd highly doubt he'd want to hold it, even if he did pick it up |
Appalling management here I'm afraid.When most other Recruitment Firms have been 'coining' it in the last 2 years this Co has failed to make any money.If you can't make money when the 'market' is strong then boy are you going to be in trouble when the market softens.I was an investor here 15 months ago. |
Just for comparison
2019 H1 - 36.5m
2020 H1 - 31.8m
2021 H1 - 20.5m
2022 H1 - 21.6m
2023 H1 - 22.7m
Drop in 2021 was put down to covid. Since then the recovery has been pretty anaemic to say the least.
Increase in cash is down to reduced receivables which is, at least in part, driven by level of invoicing. Can't say that fills me with a desire to get back in... |
Back to 40p , |
They should be beating such low estimates rather than seeing downgrades. They really ought to have been able to make more than £2m of PBT this year. It's pretty pathetic relative to pre-pandemic earnings. |
A solid trading update from GATC with H1’23 LFL NFI growth of 5.1% to £22.7m and encouragingly cashflow was strong too.
Equity Development trims PBT forecasts but see a Fair Value of 130p/share vs 90p last close.
New research note is freely available here: |
Why? Cash up to 21m from 12m. Revenue up 5%. Mcap is mostly covered by cash... |
Well the trading statement has not encouraged me to join ST’s followers. |
He puts himself out there and has made money from 20 years of it. That said to be fair he does warn others against following him in. I've been caught badly doing that previously. He has disciplined money management rules in place but could also be privvy to a lot of info given his strong network.
On GATC we were led to believe a recovery was underway. Previous results pushed that back 12 moths or so. Therefore we could hopefully move further up from here. |
To be fair ST does get far more tips right than he does wrong. All that's needed now is a good update from the company and this could be a flying machine again. Similar situation happening with LUCE |
ok for a short term trade. but only up because of his tip. fundamentals are not good |
Time to get out & buy CURY |
Yes, Simon Thompson is also pointing out the significant rerating potential if the new management team can execute their plans and end markets hold steady
As per last Equity Dev research note with a 160p Fair Value, free access here: |
Tipped by ST in the IC |
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