Made Tech Share Discussion Threads

[quepassa] 12/12/2014 10:31

A fascinating article which appeared last month in The Weekend FT on 29th. November.

The article is called High-yield small-caps - Stock Screen by Algy Hall.

The article screens for high-yield stocks from the FT All Small and Aim All-share according to seven chosen stringent criteria:-

1. Must be amongst top third yielding of all stocks screened
2. Dividend Cover minimum 1.5x
3. Compound average growth in dividends over 3 years of at least 5%
4. Average forecast growth for next 2 years of at least 5%
5. Interest cover of minimum 5x
6. Positive cash-flow.
7. Compound average growth in eps over 3 years of at least 5%

Some 22 shares passed six of the criteria.

But only three passed all seven criteria. They were Pan African Resources ( gold-mining), Low and Bonar ( specialist materials) and Matchtech.

Well done Matchtech.

Matchtech seem to be running a very tight ship in a specialist niche which looks set to remain in high demand. Highly encouraging.

ALL IMO. DYOR.
QP

[quepassa] 13/11/2014 11:31

“In reality we are seeing record demand for engineers and engineering skills and more than half of engineers are still confident in their own prospects"

says Keith Lewis , MD of Matchtech who speaks about surging confidence within the sector where Matchtech is the UK's No1 engineering recruitment specialist.

Bodes very well indeed for Matchtech services as a specialist recruiter.

The following article on SourceWire News refers



ALL IMO> DYOR
QP

[valhamos] 15/10/2014 14:00

Very positive webinar. Expecting growth to continue, particularly strong in infrastructure where it has increased the number of consultants by 10%

MTEC is increasingly moving up the value chain seeking higher margin business, so the expectaion is that the profit margin (taking painter's point in 266) will increase over time.

[quepassa] 15/10/2014 12:29

HOLD Matchtech says the Telegraph's Questor following yesterday's good results.



ALL IMO> DYOR.
QP

[brummy_git] 14/10/2014 14:45

hxxp://www.equitydevelopment.co.uk/doc/1266.pdf

Matchtech is the UK's leading specialist engineering and professional services recruitment agency, providing contract, temporary and permanent staff.

It is the UK's number 1 recruiter of 'hard-to-find' engineers, and today posted FY14 adjusted PBT of £12.6m, up +24.8% YoY and +3.8% above our estimates. Net Fee Income (NFI) rose +17.2% (+12.5% LFL) to £45m thanks to improved contract margins (7.5% vs 6.8%) and "very strong demand for skilled engineers".

Going forward, we expect more of the same as FY15 has "started well" and Matchtech is investing "heavily" in fee earners to take advantage of buoyant conditions. We have lifted our adjusted EBITA forecasts to £14.3m (+3.6%) and £15.4m (3.4%) respectively for this year and next.

Our 710p price target is retained, reflecting a slightly higher diluted sharecount. At 570p the stock trades on a forward PER of 13.9x, representing a 25% discount to the peer group average of 18.5x.

[painter] 14/10/2014 13:44

hannahh

Thank you. I will try to watch it.

I sold some today. For my money they are spending too much.

These are the good times and they are only returning around 3% profit! MPI had a profit warning today and they have been doubling MTEC profits.

[hannahh] 14/10/2014 09:33

Hi, if you're interested in listening to the management present their preliminary results and asking them questions feel free to join them tomorrow for a webinar at 1.15pm (15th October).

[quepassa] 18/9/2014 12:06

Sanlam Securities REISSUED their BUY rating on MTEC on Monday morning. Target Price of 662p versus todays c580p. Indicating some 15% upside in Sanlam's view.

This is very much in-line with the note from Numis on 7th August who REITERATED their BUY RECOMMENDATION with a Target Price of 660p.

ALL IMO. DYOR.
QP

[quepassa] 13/8/2014 14:20

A new broker initiates coverage on Matchtech.

Sanlam Securities ( UK subsidiary of a well regarded South African financial services Group)issues a:-

BUY recommendation with a Target Price of 662p.


Let's hope that their institutional client base take note of their recommendation.

ALL IMO. DYOR.
QP

[davebowler] 07/8/2014 09:33

Equity Development;


Matchtech Group is the UK's leading specialist engineering and professional services recruitment agency, providing contract, temporary and permanent staff.

There is a chronic shortage of skilled engineers: Britain needs to urgently find another 87,000 such graduates each year until 2023 to satisfy demand - 70% higher than current levels This is creating ideal conditions for Matchtech and, after another bullish trading statement this morning, we are upgrading our forecasts again for the 5th time in the past year.

For the year ending July 2014, Matchtech delivered an 18% increase in Net Fee Income (NFI) to £45.2m (+13% LFL), 2.5% above our expectations of £44.1m. This follows encouraging performances from many of its customers, such as Atkins, UK Power Networks, Jaguar Land Rover and GKN.

We have now raised our FY14 and FY15 adjusted PBT figures by +2.5% to £12.15m (from £11.85m) and £13.2m (from £12.86m) respectively.

With regards to valuation, the stock trades on a FY14 PER of 15.1x, a PEG ratio of 1.0x and offers a 3.4% dividend yield. The former representing an unwarranted 23% discount to the sector of 19.7x. As a result of the favourable outlook and 6 month roll-forward of our projections, our target price jumps 9.2% from 650p to 710p / share.
Download full report here

[valhamos] 07/8/2014 08:19

So eps about 36.5p to 37 for a historic P/E of 15.5 to 16

"The requirement for skilled engineering and technology contract staff remains strong, fuelled by the global demand for the products and services that our clients offer"

One or two engineering companies seem to be struggling with a high pound (part of the answer - improve efficiencies with better engineering), good to see continuing strong demand for engineering staff.

[m.t.glass] 07/8/2014 07:24

from today's trading update:


"..results now expected to be slightly ahead of current market expectations."

[quepassa] 23/6/2014 08:15

Very nice dividend just received. Many thanks, MTEC.

QP

[protean] 10/4/2014 12:11

Breaking out to a new high by the looks of it.

[quepassa] 10/4/2014 11:20

Very positive write-up and BUY recommendation in the Telegraph yesterday. Questor column.
Worth reading.

ALL IMO. DYOR.
QP

[davebowler] 10/4/2014 09:50

Equity Development;
Matchtech Group has 30 years' experience providing niche recruitment services to the engineering, technology, professional staffing and the employability & skills markets.

This morning they have posted another set of better than expected results for the 6 months to January 2014. Net Fee Income (NFI) jumped 19% (or 15.4% LFL) to £22.1m, delivering adjusted EBITA of £6.6m (+53%) - exceeding our estimates of £22.0m and £6.2m respectively. Net debt also improved to close January, 2014 at £8.6m from £10.5m in July, thanks to tight debt collection. The dividend ticked up 5% to 5.41p.

We highlight sector leading NFI growth from both the Engineering (+15.5% LFL to £13.3m) and Professional Services (+15.2% LFL to £8.8m) divisions. NFI conversion climbed 3.9% to 29.7%, assisted by favourable customer mix and operational gearing.Cash conversion was strong at 115%, generating operational cash inflow of £7.1m, with net borrowing falling to a comfortable 0.65x EBITDA.

Our FY14 PBTA figures have been increased by £0.2m to £11.85m. Moreover, we believe the Board's strategy of accelerating growth will further bear fruit in FY15 and beyond, and have lifted our price target from 580p to 650p/share.

[hannahh] 08/4/2014 15:12

Hi, if you're interested in listening to the management present their results and asking them questions feel free to join them tomorrow for a webinar at 1pm (9th April).

[iamb4ne1] 08/4/2014 14:33

Yep great results, shame its on such a bad market day

[quepassa] 08/4/2014 09:34

Excellent results this morning.

Good increase by 5% in interim dividend to 5.45p. - Quote "This reflects the strength and resilience of the business and the Board's confidence in the future."

An astonishing 43% increase in EPS.

Highly positive Outlook with statement that full-year results expected to be slightly AHEAD OF EXPECTATIONS.

Further commentary about the Group's " ambitious growth plans".


This morning 8th April:-

NUMIS SECURITIES REITERATE their BUY RECOMMENDATION with a TARGET PRICE OF 660p.

EQUITY DEVELOPMENT lift their PRICE TARGET from 580p to 650p (with scope to increase).


ALL IMO. DYOR.
QP

[davebowler] 08/4/2014 09:25

Equity Development;
Matchtech Group has 30 years' experience providing niche recruitment services to the engineering, technology, professional staffing and the employability & skills markets.

This morning they have posted another set of better than expected results for the 6 months to January 2014. Net Fee Income (NFI) jumped 19% (or 15.4% LFL) to £22.1m, delivering adjusted EBITA of £6.6m (+53%) - exceeding our estimates of £22.0m and £6.2m respectively. Net debt also improved to close January, 2014 at £8.6m from £10.5m in July, thanks to tight debt collection. The dividend ticked up 5% to 5.41p.

We highlight sector leading NFI growth from both the Engineering (+15.5% LFL to £13.3m) and Professional Services (+15.2% LFL to £8.8m) divisions. NFI conversion climbed 3.9% to 29.7%, assisted by favourable customer mix and operational gearing.Cash conversion was strong at 115%, generating operational cash inflow of £7.1m, with net borrowing falling to a comfortable 0.65x EBITDA.

Our FY14 PBTA figures have been increased by £0.2m to £11.85m. Moreover, we believe the Board's strategy of accelerating growth will further bear fruit in FY15 and beyond, and have lifted our price target from 580p to 650p/share.

[prop_joe] 14/3/2014 08:50

QuePassa,
Agreed, I am also encouraged that whenever I read an article about engineering it mentions shortages of available engineers and increasing demand so I believe that Matchtech is sitting in the sweet spot.
Regards

[quepassa] 14/3/2014 08:22

Temporary recruitment behemoth Adecco, world's largest specialist temp agency, reported some excellent results the other day.

Citing a strong pick-up and more favourable economic conditions, Adecco quintupled net profit to E174m.

Good sector feed-back which further supports prospects for Matchtech in the current improving environment.

ALL IMO. DYOR.
QP

[quepassa] 11/2/2014 13:59

On Friday 7th. January, Numis Securities issued a broker update for MTEC.

Numis REITERATED their BUY recommendation for MTEC with a PRICE TARGET of 660p.

ALL IMO. DYOR.

QP

[old tyke] 07/2/2014 15:02

One of the punting mags will latch on to it in due course, then you will see it leap on a Friday morning!

[painter] 07/2/2014 14:28

Being ignored by Mr Market again today strange! Still I'll take up 0.5% a day if it keeps coming for a few months.