Made Tech Share Discussion Threads

[masurenguy] 22/9/2016 11:47

New thread to cover change of name, chart tracking and EPIC

[masurenguy] 16/9/2016 17:32

The new EPIC for the company is GATC.L

[mrchriss] 14/9/2016 13:29

So the resolution passed. Anyone know the percentage breakdown of votes?

[spectoacc] 09/9/2016 15:05

Illiquid, AIM.

[death by donut] 08/9/2016 16:21

Why is the spread so big on this stock?

DbD

[spectoacc] 02/9/2016 09:35

Curiously, both name and ticker appear to have changed back now. Odd.

[mrchriss] 02/9/2016 09:22

What is the point in an EGM on the 7th for shareholder approval of the name change if they've gone ahead and changed the name anyway?

[spectoacc] 01/9/2016 08:04

Welcome, Gattaca. You chump.

[quepassa] 22/8/2016 12:02

But the question you have to ask yourself is whether it is all just science fiction.

ALL IMO. DYOR.
QP

[davebowler] 22/8/2016 11:45

Equity Development;
Matchtech Group

Solid H2 outperforming UK staffing market

Aug 4, 2016

Matchtech is the UK's number 1 specialist engineering (60% group NFI) and number 3 technology (split 23% IT & 17% Telecoms) recruitment agency, providing contract, temporary and permanent staff. 74% of NFI comes from placing contractors (9,000 on assignment), with the remaining 26% from permanents.

Several economists think there will be a recession post BREXIT, albeit we suspect there will be only a temporary dip in GDP, with normal activity levels returning once the initial shock has passed. Regarding Matchtech we would argue that the business is far less cyclical than the broader staffing sector, since most of its infrastructure, automotive, telecoms, IT/software and aerospace customers are enjoying secular growth drivers, with exporters receiving a further boost from Sterling's 10% devaluation.

Even if we are wrong and there is a prolonged decline in output, then this is still likely to affect permanent placements far more than MTEC's approx. 9,000 strong contractor base - many of whom are working on long term government-funded capital projects (eg Crossrail) and/or infrastructure programmes within regulated industries (eg water, rail, etc).

This downside resilience was again demonstrated this morning, following news that adjusted PBTA for the year ending July 2016 would be in line with management expectations, with LFL FY16 NFI up 1% to £72.6m - thanks to a solid second half (+3% vs -1% in H1'16) on the back of continued strong demand for skilled engineers (H1: 7%, H2: 5%) even after the EU Referendum.

Overall this was a very creditable performance, especially given the headwinds experienced elsewhere in the industry. Nonetheless, we have shaved our FY16 adjusted PBTA and diluted EPS numbers (excluding discontinued activities) by 4% to £20.4m (vs £21.3m) and 43.7p (vs 45.6p) respectively. 0ur adjusted FY17 PBTA forecast has been trimmed too - this time by 14% to £19.7m (vs £22.9m) reflecting relatively flat underlying NFI growth of 0.6% to £73.0m vs 1% LFL in FY16. Accordingly, our share price target falls from 621p to 460p per share.

On valuation the stock at 345p appears cheap, trading on forward EV/EBITA and PE multiples of 6.8x and 8.2x respectively vs 8.4x and 12.0x for the peer group average, as well as offering a 6.7% dividend yield (1.8x cover), supported by healthy cash generation, attractive NFI conversion rates and a robust balance sheet.

[spectoacc] 19/8/2016 15:43

Persisting with spending some of our money on the rebranding I see, EGM notice out today.

[gazman1] 05/8/2016 07:00

The only way this business will grow significantly in the short term is through acquisition - re branding look at what Wilkinson did with the Vedior family of brands with Randstad UK - disaster. DYOR IMHO

[spectoacc] 04/8/2016 10:29

Blimey, that's a big share price target drop - 621p to 460p. Though glad they've pointed out how cheap it still is, on a p/e and yield basis.

[davebowler] 04/8/2016 10:23

Equity Development;
Matchtech is the UK's number 1 specialist engineering (60% group NFI) and number 3 technology (split 23% IT & 17% Telecoms) recruitment agency, providing contract, temporary and permanent staff. 74% of NFI comes from placing contractors (9,000 on assignment), with the remaining 26% from permanents.

Several economists think there will be a recession post BREXIT, albeit we suspect there will be only a temporary dip in GDP, with normal activity levels returning once the initial shock has passed. Regarding Matchtech we would argue that the business is far less cyclical than the broader staffing sector, since most of its infrastructure, automotive, telecoms, IT/software and aerospace customers are enjoying secular growth drivers, with exporters receiving a further boost from Sterling's 10% devaluation.

Even if we are wrong and there is a prolonged decline in output, then this is still likely to affect permanent placements far more than MTEC's approx. 9,000 strong contractor base - many of whom are working on long term government-funded capital projects (eg Crossrail) and/or infrastructure programmes within regulated industries (eg water, rail, etc).

This downside resilience was again demonstrated this morning, following news that adjusted PBTA for the year ending July 2016 would be in line with management expectations, with LFL FY16 NFI up 1% to £72.6m - thanks to a solid second half (+3% vs -1% in H1'16) on the back of continued strong demand for skilled engineers (H1: 7%, H2: 5%) even after the EU Referendum.

Overall this was a very creditable performance, especially given the headwinds experienced elsewhere in the industry. Nonetheless, we have shaved our FY16 adjusted PBTA and diluted EPS numbers (excluding discontinued activities) by 4% to £20.4m (vs £21.3m) and 43.7p (vs 45.6p) respectively. 0ur adjusted FY17 PBTA forecast has been trimmed too - this time by 14% to £19.7m (vs £22.9m) reflecting relatively flat underlying NFI growth of 0.6% to £73.0m vs 1% LFL in FY16. Accordingly, our share price target falls from 621p to 460p per share.

On valuation the stock at 345p appears cheap, trading on forward EV/EBITA and PE multiples of 6.8x and 8.2x respectively vs 8.4x and 12.0x for the peer group average, as well as offering a 6.7% dividend yield (1.8x cover), supported by healthy cash generation, attractive NFI conversion rates and a robust balance sheet.

[brummy_git] 04/8/2016 08:22

New research out today from Equity development

www.equitydevelopment.co.uk/doc/1519.pdf

[spectoacc] 04/8/2016 07:33

In line, albeit hiding a mixed bag, but this caught my eye:

"The proposed change follows extensive research conducted by the Group of its employees, candidates and current and potential clients as to their view of the constituent brands that make up the enlarged Group. This research showed that the Group brand (Matchtech Group plc) and the operating engineering brand (Matchtech) sharing the same name could be a source of confusion. "

And it's not a "source of confusion" that they've nicked the word from a dodgy film, per posts above?

Also:
"Our proposed new name, Gattaca, is a sign of our ambition and I remain confident that we will convert the exciting opportunities available to the Group into growth."

A sign of ambition? Hmmm....

[quepassa] 19/7/2016 15:07

The recent fall from 400p to around 300p is most likely Brexit related as this occurred since 23rd. June.

The slow slump from 600p to 400p over the last 18 months coincides most certainly with the changing of the guard.

Post 291 of April 2015 refers.

Euroland will be a greater challenge going forward for cross-border employment. This will detract.

ALL IMO. DYOR.
QP

[jimmywilson612] 19/7/2016 14:52

Uncertainty may help match tech

Most of the income is from temporary employees. In time of uncertainty companies may employ more temps as they don't have to worry about the longer term situation but a temporary employee can offer the flexibility.

Wishful thinking maybe?

[grahamburn] 19/7/2016 14:26

Tend to agree with your final sentiment, QP, that sure-footed and sound management might be in short supply.

However, the recent decline in the share price has, IMO, much more to do with the uncertainty brought about by the referendum result. Too much uncertainty surrounds the main markets for the company's various brands and sectors. That's likely to prevail - and even worsen - over the next few months (and possibly years?). On the other hand, yesterday's Commons vote on Trident and the hoped-for acceleration in major infrastructure projects have the potential to soften the blow. The latter may even prove positive in the medium term.

[quepassa] 19/7/2016 09:34

1.
Thanks for the Telegraph link. Very interesting.



2.
Adrian Gunn stepped down as CEO ( much to my personal regret) in early 2015.

The share price was about 600p.

The new CEO, Brian Wilkinson took over.

The share price is now about 325p.



And now we see a proposed corporate name change to the same as a 1990's sci-fi movie.


Something, somewhere, somehow just is disconcerting, disenchanting, disconnected.


ALL IMO. DYOR.
QP

[valhamos] 19/7/2016 08:43

More comment on the unfortunate association of recruitment and eugenics here:

'Recruiter Matchtech changes name to Gattaca - same as the hit Hollywood movie about eugenics'



"My overall view is that it is a bit of a blunder" according to a director at brand analyst Brand Finance.

[quepassa] 18/7/2016 18:44

Well I hope they checked with Columbia Motion Pictures and Andrew Niccol - director/writer of Gattaca- that the use of this word is not infringing any copyrights.


ALL IMO. DYOR.
QP

[mrchriss] 18/7/2016 17:26

Subject to shareholder approval.