Gattaca Share Discussion Threads

[kmann] 31/8/2018 14:12

Seem to have stabilized, they are working hard at it too. Every bit of vizsability on brexit sees this move nearer where you expect it VH.

My target similar to yous at 300p

[value hound] 28/8/2018 17:54

If I had to pick one single share from my top holdings that should be double where it is, it would be definitely Gattaca ... possibly followed by PHSC.

Ramps over!

[kmann] 28/8/2018 17:14

Starting to make that move back up

[kmann] 23/8/2018 11:53

Civil engineering starting to move, great read across for GATC imo. Staffline getting tipped too, so that unloved sector starting to get attention again.

Get ahead of the curve, BUY

[kmann] 20/8/2018 09:19

FTSE sell off over imo, talk of new highs before end of year. Time to buy these bombed out stocks now imo

[kmann] 17/8/2018 12:46

Starting to break technical resistance levels now as it consolidates.

[kmann] 16/8/2018 12:59

That gap needs filling at 160 imo

[kmann] 15/8/2018 11:17

Staffline up almost 50% from its lows.

Making Gatc look way undervalued. I agree gatc should at least double this valuation right now.

Do what buffet does, buy when others ...

[arthur_lame_stocks] 07/8/2018 15:44

Should be over 300p.

[davebowler] 07/8/2018 14:49

EMR looks good too.

[stemis] 07/8/2018 13:59

Yes, the bid for HVN has illustrated just how under valued is GATC. Should be over 200p really

[edmonda] 07/8/2018 13:33

Equity Development's research note on Gattaca by Paul Hill

Read the full note here ...

Like its namesake movie - where the central character overcomes testing conditions – we think Gattaca will also emerge much fitter after its recent lean spell. Encouragingly the company has made a good start, albeit there is still plenty of climbing ahead.
With regards to trading, the Board reported this morning that FY18 NFI grew 1% LFL to £78.8m (H1 +2%: H2 flat) with adjusted PBT “broadly in line with expectations”. We interpret this as c.£12.6m (vs ED £13.0m, £16.2m FY17) – implying H2 PBT of £5.7m (vs H1 £6.9m), 18% FY18 NFI conversion (vs 23% FY17) and £1.4m of annualised cost savings.
Elsewhere, net debt closed July slightly lower than anticipated at £46m (ED £48m; FY19 £40.3m), despite a £3.5m final payment related to the Feb’17 RSL acquisition – leaving gearing at 3x EBITDA. The appointment of a new CEO is at an “advanced stage”, whilst the Strategic Review is “nearing completion”.
Here, we envisage further restructuring at UK Telco (FY18 NFI fell -24% LFL; -19% H1 and est. -29% H2), alongside self-help measures within Contract (-5% LFL to £56.7m), central resources and a few overseas territories.
Let’s not forget though, that Gattaca is a fundamentally sound business. It is enjoying profitable and expanding positions in UK Engineering (+1% LFL NFI to £47.4m eg Converged Technologies, Infrastructure), International (+7% £14.9m eg North America) and UK IT (+4% eg Cloud, cyber). It is also well balanced across permanent (+19% LFL to £22.1m) and contract (-5% £56.7m) placements to take advantage of the economic cycle. The improvement in ‘Perm’ is partly attributable to signing a number of ‘high quality, multi-year’ Recruitment Process Outsourcing (RPO) clients.

[stemis] 03/8/2018 15:05

I'm not hugely bothered, although a 9p dividend is only £2.9m cost and they are forecast to make £8.5m PAT (implied by ED's 26.4p EPS). They have £100m of trade debtors so I don't see how their current debt constrains their activities. I wouldn't like a suspended dividend to take the pressure off them.

Of course what I'd really like is a bit of consistency from them and regard for shareholders...

[arthur_lame_stocks] 03/8/2018 13:03

Personally I'd be happy enough for the dividend to be suspended for a couple of years in order to get the balance sheet on a sounder footing.

[stemis] 03/8/2018 12:10

Ok. Cheers. For some reason I immediately though of Edison but obviously couldn't find it. Equity Development never crossed my mind.

I see the comment is "Lastly, we suspect another objective will be to reduce the level of gearing to provide greater balance sheet flexibility. As such, we have prudently modelled that the dividend could be temporarily suspended - albeit any decision will be made by the Board in November, with the official pay-out policy unchanged at the moment. Namely “to distribute 50% of throughcycle statutory earnings”, assuming net debt declines by >£3m pa from FY19 onwards"

I suppose we have to take this seriously as it's paid for research, which I've always taken as providing the views of management, without it falling under the regulation of a company forecast. However they only set the current dividend policy 6 months ago so to be abandon it so early just gives the impression of them not knowing what they are doing and playing fast and loose with shareholders, although nothing would surprise me with these guys...

[wilmdav] 02/8/2018 23:52

SteMiS

I think ED is Equity Development, which you have referred to in the past. Here is a link. Hope it works.

[edmonda] 02/8/2018 15:51

Equity Development's research note on Gattaca by Paul Hill

Read the full note here ...

Like its namesake movie - where the central character overcomes testing conditions – we think Gattaca will also emerge much fitter after its recent lean spell. Encouragingly the company has made a good start, albeit there is still plenty of climbing ahead.
With regards to trading, the Board reported this morning that FY18 NFI grew 1% LFL to £78.8m (H1 +2%: H2 flat) with adjusted PBT “broadly in line with expectations”. We interpret this as c.£12.6m (vs ED £13.0m, £16.2m FY17) – implying H2 PBT of £5.7m (vs H1 £6.9m), 18% FY18 NFI conversion (vs 23% FY17) and £1.4m of annualised cost savings.
Elsewhere, net debt closed July slightly lower than anticipated at £46m (ED £48m; FY19 £40.3m), despite a £3.5m final payment related to the Feb’17 RSL acquisition – leaving gearing at 3x EBITDA. The appointment of a new CEO is at an “advanced stage”, whilst the Strategic Review is “nearing completion”.
Here, we envisage further restructuring at UK Telco (FY18 NFI fell -24% LFL; -19% H1 and est. -29% H2), alongside self-help measures within Contract (-5% LFL to £56.7m), central resources and a few overseas territories.
Let’s not forget though, that Gattaca is a fundamentally sound business. It is enjoying profitable and expanding positions in UK Engineering (+1% LFL NFI to £47.4m eg Converged Technologies, Infrastructure), International (+7% £14.9m eg North America) and UK IT (+4% eg Cloud, cyber). It is also well balanced across permanent (+19% LFL to £22.1m) and contract (-5% £56.7m) placements to take advantage of the economic cycle. The improvement in ‘Perm’ is partly attributable to signing a number of ‘high quality, multi-year’ Recruitment Process Outsourcing (RPO) clients.

[stemis] 02/8/2018 13:01

According to hxxps://uk.webfg.com/equity/Gattaca forecast PBT is £13m and EPS 22.4 so a P/E of 5.9

What is the ED note? They've already cut the dividend (current forecast 9p for year)

[kmann] 02/8/2018 08:41

Stabilizing here, costcuting helps add to profit. So how much is PBT expected to be?

[imranawan] 02/8/2018 07:46

Check out the ED note. Looks like they are either going to cut the divi, or suspend it to pay down debt.

[pugugly] 02/8/2018 07:23

How will Mr Market react - Lots of honeyed words - On the Surface not as bad as expected -

[stemis] 22/6/2018 10:28

Certainly on the basis of the H1 results and current forecasts, GATC looks very cheap.

Excluding intangible amortisation, H1 profit was £6.055m (I've not added back 'non underlying costs' because they seem to be a regular feature). Forecast for the full year seems to be £13m. Current market cap (at 125p) is £40.2m; so about 3.1 x pre tax profits. Even stripping out debt, the rating only increases to just under 5. Yield on current forecasts is 7.2% and nTAV is 99p. All of which would scream bargain....

Of course the market wants some reassurance that trading has stabilised and there will be no further deterioration. For that we are going to have to wait for the results, probably in early November.

I'd buy more but frankly, after the COO (and now acting and probably to be permanent CEO)'s sale of shares just 3 weeks before a profit warning (and 5 1/2 months into the half year), I'm loathe to rely on anything other than published results. That's not helped by the Chairman ignoring my emails asking for some sort of explanation of whether that sale was authorised and if so, why...

[1lilac] 22/6/2018 09:44

SW

455m funding mcap 5m

just 30 mins ago


Edenville Energy PLC Powerline Financing
22/06/2018 8:45am
UK Regulatory (RNS & others)

Edenville (LSE:EDL)
Intraday Stock Chart
Today : Friday 22 June 2018

Click Here for more Edenville Charts.
TIDMEDL

RNS Number : 2285S

Edenville Energy PLC

22 June 2018

22 June 2018

EDENVILLE ENERGY PLC

("Edenville" or the "Company")

Powerline Financing

Edenville Energy plc (AIM: EDL), the company developing a coal project in southwest Tanzania, is pleased to note that it has been announced that US$455 million of World Bank funding has been approved for the Zambia-Tanzania-Kenya (ZTK) power transmission line.

This funding will allow the construction of high voltage power infrastructure, which specifically includes the transmission line from Sumbawanga to Tunduma and the associated Sumbawanga substation near to the Company's Rukwa project area in southwest Tanzania.

Edenville believes that this news, in conjunction with the Company's operational mining activities, has the potential to be transformational for the Company's planned Rukwa Coal to Power project. It should now allow the Company to progress its integrated Rukwa Coal to Power Project with the intention to develop the facility alongside the role out of the new power line. The Rukwa Coal Project contains 170 million tonnes of Measured and Indicated JORC compliant coal resources and the mine has recently entered commercial production in early 2018.

The Company looks forward to providing further updates as appropriate.

For further information please contact:

[arthur_lame_stocks] 20/6/2018 19:05

I think this has fallen a bit too far if trading is not about to deteriorate much further and may buy some more once i've sorted out getting some more money into my SIPP.