Morgan Sindall Share Discussion Threads

[master rsi] 01/3/2020 19:09

Do not click the link above, there are viruses and trying to get into your computer or information about you ( like Amazon )
they are trying it every day with different nicknames

alicejones2
Member since: 29 Feb 2020

[piedro] 28/2/2020 09:56

galeforce1, correct
The RNS stated clearly that John Morgan sold 220k of shares.
He has plenty of options to exercise

[piedro] 28/2/2020 09:56

galeforce1, correct
The RNS stated clearly that John Morgan sold 220k of shares.
He has plenty of options to exercise

[galeforce1] 28/2/2020 09:15

Master RSI - I'm seriously puzzled by that. Where is it from? I think it must be wrong.

I read the 'change in director's holdings' notice as a SALE of 220k shares by John Morgan. It says 'Disposal of Shares' and notes that his current holdings are now slightly lower than before the transaction.

Blackrock increased, Standard Life increased, but John Morgan made a disposal. I decided to make a top-slice partly on that basis.

If I've got that wrong I'm happy to be corrected. These forms are never very clearly laid out.

[master rsi] 27/2/2020 22:36

Morgan Sindall chief executive ups stake

Morgan Sindall revealed on Thursday that chief executive John Morgan had purchased 220,000 ordinary shares in the London-listed construction firm.

Morgan, who has been the group's chief executive since Morgan Lovell and William Sindall merged back in 1994, acquired the shares on Wednesday at an average price of 1,884.38p each, for a total value of £4.14m.

Morgan Sindall Group reported "strong profit growth" in its final results published during the previous week, which it said was driven by a strategic focus on construction and regeneration.

The firm said revenue was ahead 3% for the year ended 31 December at £3.1bn, with its adjusted operating margin improving to 3.0% from 2.9%. Its adjusted profit before tax was 11% higher year-on-year at £90.4m.

As of 1635 Morgan Sindall shares were down 4.79% at 1,790p.

[piedro] 25/2/2020 12:54

FWIW,
Margins growth less in H2

[piedro] 25/2/2020 10:44

RNS Number : 9640D
FTSE Russell
24 February 2020

Further to the FTSE Russell notice released on 20 February 2020 in relation to Sophos (UK): Constituent Deletion, please note the FTSE 250 Replacement.

All other details remain unchanged. Please see updated notice below:

Sophos Group (UK): Constituent Deletion - Update
Changes in FTSE UK Index Series
24 February 2020
Subject to court sanctioning the scheme of arrangement in relation to the cash offer for Sophos Group (UK, constituent) by Surf Buyer Ltd (non constituent), please see details of affected indexes and effective dates below:

- Sophos Group (UK, BYZFZ91) will be deleted from the FTSE 250 index.

- Morgan Sindall Group (UK, 0808561) will be added to the FTSE 250 Index and removed from the FTSE SmallCap Index.

All changes effective from 27 February 2020.

Full details of index changes are available on the FTSE Russell website.

[woodyjmw] 20/2/2020 12:48

With political parties committed to significant increases in infrastructure spending the future appears rosy for construction companies, the rerating could have further to run, still a modest PE ratio for a growing and well run business.

[fadilz] 20/2/2020 12:22

Some ups and downs, but the share price has seen compound growth of 10% pa over 25 years. with yield 3-4%. Remarkable!

[fadilz] 20/2/2020 12:22

Some ups and downs, but the share price has seen compound growth of 10% pa over 25 years. with yield 3-4%. Remarkable!

[galeforce1] 20/2/2020 11:28

Bogdan - that's a chunky holding. Congratualtions. It must have taken some nerve to continue with a very concentrated holding in MGNS over the last 3 or 4 years. But it's been the right thing to do. AM very pleased you think there is still quite a long way to go here.
AS you say, this is a very high quality company and it's very nicely positioned to benefit from the 'Levelling Up' policy transition.
The other thing thing I like about MGNS is the big stake held by the founder/CEO. He has done a great job in the last few years, and that big stake definitely makes a sale of MGNS at some point to a bigger player a real possibility.

[bogdan branislov] 20/2/2020 10:42

Very happy with these results. Given that the sector is coming out of a tough few years the following points are impressive: Around 6% gain in EPS, but more importantly, tangible balance sheet equity, i.e. shareholder funds, are up over 12%, a remarkable achievement when you consider the sector backdrop. The net cash position is strong and if you cash adjust the PE ratio, the PE ratio is slightly under 10. The average cash or debt adjusted PE for the mid cap or large end small cap is approaching the mid 20s now. MGNS has a cash adjusted PE of less than half the average and yet MGNS is one of the very highest quality companies within the mid cap and larger small cap space. The order book being up 14% bodes well, this figure will likely move upwards as the sector recovery builds this year. All good, I wood place 'fair value' for MGNS at this point in time at about 60% to 70% above the current share price. But given the direction of travel, the 'fair value' price will probably be comfortably more than double the current share price in just 12 to 18 months time. Bogdan

[bogdan branislov] 19/2/2020 18:41

I have almost £300k in MGNS. The market reaction is always unpredictable on results day. The sector recovery should unfold this year and beyond, I will be looking closely about what MGNS says about the next year or so. They won't hype it, they never do, but then again there won't be nasty surprises either. The thing to bear in mind is that the sector has had a rough 3 years, bear in mind that Carillion has been destroyed and Kier all but destroyed, while MGNS has shown some profit growth and most importantly, strong growth in tangible balance sheet equity, year after year. MGNS's current PE in the current market is very modest for such a resilient high quality business. Although my SIPP has averaged c28% growth pr annum compounding for over a decade, which equates to 14x growth of the fund in just under 11 years, my most consistent mistake has been either selling or top slicing too soon because the price has gone up and I developed gains vertigo! Not this time, when MGNS reaches a fair price I will progressively begin to top slice, I see a fair price right now as about 50% up from here. If the sector shows a strong recovery this year, which I see as very probable, the fair price for MGNS in about a years time will likely be be nearer 100% up from the price today. You can't make real money in investing by just being right, you must have the capacity both to be right and to sit tight, both skills are not often found in the same person, not without a lot of self discipline and a lot of working on it.

[galeforce1] 19/2/2020 16:24

Results here tomorrow. Am really tempted to add, but it's been such a strong run I'm just a little nervous there will be some profit taking on the slightest disappointment.

[bogdan branislov] 05/2/2020 11:08

Good gains, but we are still in the foothills. The construction sector has had a difficult few years, MGNS has coped admirably, now the sector can look forward to many good years ahead. MGNS should see its growth accelerate and yet its earnings ratio is still only 2/3 that of the average mid cap (yes MGNS is still at the top end of the small cap index for now). Even a 50% gain from here would only put MGNS on the same earnings ratio as the average mid cap, while MGNS is a far higher quality business than the average mid cap. MGNS is also highly likely to outgrow the average mid cap company over the coming years, giving even more share price head room.

[bogdan branislov] 28/1/2020 10:39

MGNS is a high quality business demonstrated by the fact that MGNS has coped so well with the sluggish past 2 to 3 years. Still selling very cheaply as shown by its high rating on IC's 'shares that have it all' screen, one of IC's best performing value growth screens over the long term. Interesting to see that MGNS came out in the top six stocks on this screen even thought the screen does not make any allowance for the construction sector having such a challenging time in recent years. The screen itself does not allow for soft risk factors but the accompanying IC commentary does as well as links to their separate company analaysis. They say that of the 5 stocks with a higher screen rating than MGNS only CSP, along with MGNS are really solid, the other 4 are probably cheap for good reasons not picked up by the screen. The key here is not to sell to early. MGNS's PE can go 50% up from here before a fair price is reached, but by then the sector recovery showing be showing giving more head room again for MGNS's stock price, should be able to double our money on MGNS from this point over the next year or two. To make money on stocks it is not enough just to be right, you need to be able both to be right and to sit tight.

[jampot7us] 24/1/2020 11:07

Gaining momentum?

[jadeticl3] 16/1/2020 15:59

Yes, having a very good run recently!

[jampot7us] 16/1/2020 15:32

Still marching on...

[jampot7us] 02/1/2020 14:09

hxxps://www.constructionenquirer.com/2020/01/02/14-winners-named-for-government-projects-over-80m/

Morgan all over that...

[galeforce1] 30/12/2019 16:15

jampot - that all sounds very positive. I'm sure that MGNS is going to pick up a lot of work over the next 2 or 3 years.

[jampot7us] 30/12/2019 15:11

hxxps://www.constructionenquirer.com/2019/12/25/morgan-sindall-wins-17m-bradford-forster-station-rebuild/



hxxp://www.constructionenquirer.com/2019/12/25/winners-named-for-4bn-rail-regions-upkeep/

[galeforce1] 16/12/2019 13:44

Morgan Sindall might be one of the big winners from the change of government.

Regeneration is a already bit part of the business - in Warrington, Stockport etc. There are plenty of these distressed, depressed northern towns, and amazingly enough most of them now have Conservative MPs. It's a bit like Ohio and Pennsylvania voting for Trump. The voters take the view that things can't get a whole lot worse than they are already.

As a UK company, and with proven skills in putting together these urban Regeneration packages, MGNS should pick up a lot of work over the next few years. The packages usually involve the local council providing the land, central government providing some commercial tenants and MGNS raising the finance. They are complicated. MGNS seem to be good at them.

[piedro] 14/12/2019 07:55

FWIW,
Chart of Net Asset Value per Share {NAVPS} vs. Earnings per Share {EPS}
[ forecast EPS - white]


© Piedro - 2019