Kentz Share Discussion Threads

[rivaldo] 09/12/2013 07:38

Wow - terrific news.

This will add around £32m of EBITDA (minus some loan interest) on a historic basis - and much more now given progress since 2012 - to a business that made £74m of EBITDA last year. So this is a pretty transformational acquisition. Excellent.

Also worth noting the encouraging statement on current trading hidden at the end of the RNS:

"Since 18 November 2013, the Group has continued to trade in line with management's expectations and, as previously stated, Kentz anticipates results to be weighted towards the second half of the year. The Group has in excess of 60 per cent. of orders for 2014 under contract as at the date of this announcement, providing a great deal of confidence for further growing the business in 2014."

And the outlook for Valerus is just as good:

"Valerus FS has experienced strong year-on-year revenue growth historically and the Board is confident this trend will continue in 2014. Valerus FS' business is a combination of backlog driven and book and burn work and as a result of contracts won in 2013, 60 per cent. of projected revenues for the 2014 financial year are under contract. A significant portion of this is from the Processing & Treating business unit and Integrated Services business unit, both of which are primarily backlog driven and key drivers of growth for Valerus FS. At the end of 2013, backlog is expected to be approximately US$398 million. Valerus FS' backlog is considered low risk by the Board due to its high degree of standardised solutions and control of procurement risk through management of manufacturing and front end engineering."

[painter] 09/12/2013 07:17

Proposed acquisition of Valerus Field Solutions. The RNS reads well, I think this should be a positive for the share price today but we'll see!

[11023154] 08/12/2013 22:05

My technical analysis dictates purely my entry and exit points, not selection. I am not addicted to a mechanism that foretells the future. Please refrain from overly pretentious posts and keep the threats for debate.

[roddiemac2] 08/12/2013 20:05

hatter2,

Santa seems to get everywhere but down chimneys these days, frustrated as he must be by smoke free zones and the concomitant trend to build hovels without either fireplaces or chimneys. 11023154`s addiction to his own belief that he has found a mechanism to foretell the future, has blinded him to the old adage -- past experience may not be a guide to future experience.

[11023154] 06/12/2013 19:07

Hatter I appreciate your article, the xmas bull run I agree is towards the later stages of December, I shall not disagree with the facts. But the reason why I believe it will start earlier this year is due to the FTSE100 bouncing almost perfectly on the trendline (see chart below).

KENZ has fallen approx 7-8% off the highs; that is because the stock has been flying (profit taking), and because the stock has been flying it is IMO more exposed to "the markets".

So, has fallen with the markets and has today bounced perfectly with them. All IMO.

GL all, off to the pub.

Roddiemac2 - hilarious.

[roddiemac2] 06/12/2013 17:11

11023154

There are fairies at the bottom of my garden.

[hatter2] 06/12/2013 17:06

11023154, whilst I agree with the back end of December do take a look at the following link for the wall street journals view, they deal in plain facts and numbers:

[11023154] 06/12/2013 15:55

A classic long term investor approach who takes no account of TA into his trading strategy.

[11023154] 06/12/2013 15:52

I'm not talking about the long term, we've been presented with an opportunity to add (at 565!!!!), a Santa rally is widely recognised amongst many highly valued investors. The long term outlook is fantastic, and I'm sitting here for years probably. Early December is notoriously a bad trading period and what a surprise the FTSE has fallen to below 6500.....the whole month is generally a flat month but the back end of it generally a positive bull run, hey if you don't believe me go do your own research about it. You missed the opportunity, your loss. Back to 600 we go and I've added another 1000 shares at 566.

[hatter2] 06/12/2013 15:41

Yes looking good; AMEC certainly did try to get these on the cheap. If there were to be a serious bid again I am sure it would have to be above the 750p mark before the board of Kentz would take it seriously. However, I am happy to hold for the long term: just with I had bought more at sub 400p.

[gargoyle2] 06/12/2013 15:28

Looking very strong today.

[roddiemac2] 06/12/2013 14:39

Whether or not 11023154`s crystal ball serves him well is irrelevant to anyone understanding the medium to long term potential.

[hatter2] 06/12/2013 12:22

Sorry, but no such thing as a Santa Rally or at least no historical evidence that December is a kinder months to investors than any other month of the year. What we have is a sales pitch to get us to invest and the houses to earn commission.
Historically we do have evidence, on average, of a rally in the last week or so of December.

I would say that after doing your own research that if you feel that Kentz is a quality company then you pay a fair price for the quality and hold for a long time.

[11023154] 06/12/2013 11:43

Just loaded up

[11023154] 04/12/2013 13:04

This is great, a fantastic opportunity to get in before Xmas bull run, 600 will be destroyed when we get around Xmas.

[gargoyle2] 04/12/2013 02:06

Thanks for posting that, rivaldo.

[revoman] 03/12/2013 14:39

Ah hah, ok, it's a fair cop!

[rivaldo] 03/12/2013 14:39

Here's WHI's new Buy note:

"Kentz
Strong order book and cash in the bank

Kentz Corporation Ltd has three divisions: Specialist Engineering, Procurement and Construction (EPC) and Technical Support Services. The company has a long track record in the construction industry and has delivered projects within a diverse range of markets and geographies.

Interim results highlighted some increased activity with higher number of projects to bid for and the order book rising to £2.8bn up 12%. Revenue increased by 2% to $775m whilst profits before tax was £52.9m up 3.5%. Gross margins improved to 14.1% up 64 basis points, compared to H1 2012. Margins were improved from an increased contribution from technical support, that conducts refinery shutdowns and miantance service contracts. This business has grown 29% per annum over the last three years gaining synergies with Kentz's traditional
construction businesses.

During the summer the business was approached by several parties looking to acquire it; interestingly management believed the offers did not meet their valuation, but no counter bid was made. Since then, the market re-rated Kentz inline with the initial offers made. Kentz continues to grow, but also offers a well covered 14.5c dividend which has grown 2.5 times since it was instated in 2008.

The business has many strengths, one of which is its ability to extend contracts and bid for new projects from existing customers. The firm's relationship building with existing and new clients has meant the order book is growing and that the business has 60% of revenues covered for next year.

Earnings are also safeguarded somewhat in its construction division with 80% of new projects contract awards reimbursable, reducing operational risk. A strong delivery and a good safety track record has also helped improve the profile of the company as it continues to win high profile contracts. Kentz has also gained from an introduction to the main listing; benefiting from greater exposure and a broader shareholder base.

The sector is at an attractive valuation with long term exposure to resource scarcity, evident in Kentz's recent growth profile. Maintaining this growth will be a challenge, especially operationally in terms of recruiting sufficient skilled labour. Some of these risks will be reduced by the company's success in leveraging new business from existing clients and the firm's capacity to make further acquisitions. Exposure to Africa, a long term growth region, has
attractions given the company's track record in extreme environments. Margin improvement could continue as the company broadens its exposure to technical services and reimbursable contracts mitigate some of the pressures seen in high cost regions. However, we are cautious on further extensions to the firms Canadian oil sands projects if the oil price falls below $90.

The balance sheet is robust and the current valuation is supported by cash holdings amounting to a fifth of the market capitalisation. The long term growth story remains compelling and we maintain our long term Buy rating."

[rivaldo] 03/12/2013 11:01

WHI are saying Buy at the current 592p price when they published today's note revoman, you misunderstood - they don't give a target price. I'll post more later.

[11023154] 03/12/2013 10:55

Yer markets are down this lul before Xmas bull run, buy opp

[felix99] 03/12/2013 10:54

may I be so bold as to suggest profit taking as markets top out apparently at present ? Human psychology , sell the profitable stuff and keep the loss making ones

[sheyac] 03/12/2013 10:15

Anyone know why the share price is taking a hit?

[revoman] 03/12/2013 09:38

Blimey, that's a full 6p increase on the current price...