Kentz Share Discussion Threads

[bones] 24/3/2014 12:57

Sell up and do the garage for free Whizzy!

[whizzy1] 24/3/2014 11:44

Jeez, up £5473 here, that's more than I'm going to make than the garage conversion I started this morning.
Expecting profit taking now, but still very bullish from here onwards.

[rivaldo] 24/3/2014 11:15

Apologies, Investec have actually increased their target price today to 810p from 775p. I'll edit my post 4838.

[cheaky monkey] 24/3/2014 11:11

Jeffian, I think Amec's failed bid did us a favour. share price since has gone from strength to strength and has woken the market up to this brilliantly run company IMO.For me, the excitement of Velarus acquisition is huge and already exceeding managements expectations..GLA, DYOR

[sven2006] 24/3/2014 11:03

I've just bought a few after coming across this today. Always been with PFC but this looks another quality company.

Sven

[rivaldo] 24/3/2014 11:00

New highs now.

Investec have increased their forecasts by 5% and have increased their target price to 810p from 775p. Their new forecast is 101.2c, which is about 61.5p EPS:

"Kentz (Buy - TP: 810p)

Order book keeps on growing. EPS and TP increased by 5%. - Buy

Yet another textbook update from Kentz. Full-year results are in line with consensus but the standout figure is its order book. This was $3.5bn at end-2013 (incl Valerus) but has already increased by 17% to $4.1bn by end-Feb, with further potential awards in the pipeline. Kentz is trading ahead of management expectations and we upgrade our forecasts by c. 5% for both 2014E and 2015E. Our target 5% sector P/E discount implies a TP of 810p. Buy reiterated."

[jeffian] 24/3/2014 10:57

I bet AMEC are kicking themselves for being so stingy with their bid!

[bones] 24/3/2014 10:43

Larger competitor Petrofac busy in the middle east also:



Wonder if they have ever run the rule over KENZ? Would be a cracker of an earnings enhancer for them but they would have to pay through the nose!

[bones] 24/3/2014 10:38

APAD, yes I agree, historic accounts are only so useful but its rather like reading the adverts on the back of the bus after it has run you over.

The cash flow statement will have added back all non-cash write-offs like depreciation of asset values, so you should not have to.

Agree that dividend increase adds a bunch of new potential institutional investors to the future buying demand.

[apad] 24/3/2014 08:53

bones, Ta.
I think my point is that these figures are a dynamic that goes up and down by the month, if not by the week, so that the year-end snapshot is not much use as a clear measure of the company.
More of an accounting artefact.

Similarly, I feel that depreciation is also an accounting artefact, and add that back in to calculate my price to cash flow figures.

Forgot to say that I am pleased with the rate of divvy increase, both as an expression of confidence as well as a better return on my original investment.
apad

[cumnor] 24/3/2014 08:41

Thanks bones for clarifying that.

[bones] 24/3/2014 08:38

APAD, these are cash movements because they represent the movement between the 2012 and 2013 balance sheet figures for debtors, work in progress and creditors respectively.

First one says debtors have increased (as you would expect in a growing company) so this means cash flow has decreased by that amount being a higher amount of cash that has yet to come into the bank from customers.

Third one is the opposite where it appears that Kentz has paid up its suppliers a bit faster (generous of it but there may be reasons to do with change in business mix perhaps).

Work in progress is an estimate of money spent on projects in one year that will be carried forward for writing off against income from that project in a later year. It follows a rule that companies should match costs against revenues in the same year to get a truer idea of profits from a job. The cash flow follows that measurement.

Probably as clear as mud but that is my attempt to explain it!

[apad] 24/3/2014 08:29

Increase in trade and other receivables (32,666) (924)
Increase in work in progress (15,195) (13,077)
Decrease in trade and other payables (11,305) (57,443)

Can anyone, with more balance sheet understanding, explain this to me? I sort of think that these figures should be removed from cash flow (for PIs to get a picture of price to cash flow and price to owner's earnings), as they are transients - but I'm not really qualified/experienced enough to think this:-)

Valerus statements are all forward looking of course. This is probably the only one of import:
"Operational performance of Valerus continues to excel in 2014 with high level of business development activities undertaken and approx. US$600m of new bids submitted YTD"

Australasia dominance is interesting.

apad

[sheyac] 24/3/2014 08:24

Whizzy I had the same thought, though on a much much smaller paper profut!

[cumnor] 24/3/2014 08:20

Good for you Whizzy, Med to long term hold imo. City likes to get in on solid companies cheaply-there are not that many-so I expect it to be contained for a while but a big re-rating will occur imo if things go to plan. imo

[whizzy1] 24/3/2014 08:16

I'm up £4122 on paper on 14 minutes.
Really don't feel like going to work now lol.

[bones] 24/3/2014 08:07

added a few more at 760p.

[whizzy1] 24/3/2014 07:38

Exceeding expectations - word porn.

[cumnor] 24/3/2014 07:30

What a pleasure to wake up to an RNS like this this, without any ifs and buts and just emphasizing growth to 'exceed' expectations. this looks very solid, well run and with small mrkt cap, given future prospects. and a nice fat divi btw, up 20%+, I had forgotten about that but a good surprise. Not for trading or giving shares away cheaply, this can multibag. imo

[haywards26] 24/3/2014 07:23

Very good results. They have a very confident style. Great management. Am very happy to hold and await further value extraction from this investment :)

[rivaldo] 24/3/2014 07:18

Very nice results indeed....

- "FY2014 trading is expected to exceed managements previous expectations"
- 2013 PBT and EPS ahead of almost all expectations AFAICS
- 17.5c dividend ahead of expectations
- Valerus acquisitions "exceeding expectations"

[mirabeau] 24/3/2014 07:16

'FY2014 trading is expected to exceed managements previous expectations'

-

'exceed'........for investors, it is surely the only word we look for these days

[dahhad] 24/3/2014 07:15

Looks like another set of superb results from a great company!

[bones] 22/3/2014 15:30

Results on Monday.....

[whizzy1] 22/3/2014 07:55

Clarification: Re July 1st.

The £15,000 allowance will apply to the 2014/15 tax year, meaning that from April 2014 to April 2015, a saver can invest up to £15,000 in either cash, stocks and shares, or any mixture of the two. However, the new £15,000 limit only applies from 1 July, meaning that up to that date, only £11,880 of it can be invested.