Networkers International Share Discussion Threads

[hastings] 25/10/2013 08:52

Certainly appears to be largely overlooked.

[battlebus2] 25/10/2013 08:48

Certainly is compared to it's peers. I reckon this is the most unknown company in the recruitment sector.

[hastings] 25/10/2013 08:39

Interesting write up on the sector in last weeks IC battlebus. Networkers not mentioned specifically, but looks to be trading at a hefty discount despite recent move upwards.

[battlebus2] 25/10/2013 08:21

New highs everyone :))

[norbert colon] 22/10/2013 16:24

Just realised the change in holding by Nigel Wray is just due to slight change in total number of issued shares since 11th Oct.

[shauney2] 21/10/2013 12:14

Not sure what to make of the 2 large trades shown this morning.
Good to see someone paying above the offer for 25k though.

[battlebus2] 17/10/2013 15:47

Ticking up, wouldn't take much to push these through 50p.

[stegrego] 16/10/2013 23:59

Recruitment firm looks just the job
Significant director share purchases can never be taken as a complete green light for others to follow their lead; nevertheless, such buys are at the very least worthy of some closer scrutiny.
In the case of Networkers International, a specialist recruitment and consultancy agency, last week's hefty share buy from a non-executive director may certainly be worth following up.
It came from serial investor Nigel Wray, who bought 450k shares at 44.5p, which comes just a few weeks after the company delivered its interim results. The large buy from Wray sees his holding standing at around 17% of the company, while venture capitalist and former Alchemy man Jon Moulton also sits on 10%. But, what of the company, which listed after the business reversed into AIM-quoted shell, Steetnames.com, back in 2006.
Based in Bromley, Networkers is involved in the recruitment and hiring of staff, along with consultancy to clients across a broad spectrum of business in countries across the globe.
With a strong focus on telecoms, along with financial markets, the semiconductor industry, IT and more latterly energy, Networkers provides specialist operators to meet specific skill requirements to major clients. It is also quite adept at providing back-up assistance on regulatory requirements.
And the company has, by all accounts, been doing rather well, with revenues now coming in at more than £170m, while pre-tax profits for last year came in at £5.6m.
Although it is perhaps difficult to become too enthralled about the recruitment business, from an investment perspective there is a fair bit to like about the company. The fact that it has been dealing with a challenging environment yet generating cash, suggests that the future, fuelled by ongoing recovery and demand for various levels of skills, may present some decent upside.
In the recent interim results the company expressed confidence in meeting its expectations for the full year after delivering half way pre-tax profits of £3.1m. There was also a slight improvement in gross profit margins, up to 18%, while the interim dividend was also raised by 16%.
This suggests a reasonable level of confidence going forward, despite its telecom arm being hit by slightly weaker markets.
But, that may only be temporary as the company, which typically has supplied telecom contractors to major companies for roll out business, is now migrating to niche sub-sectors which, along with possible upside from business relating to 4G networks, could present opportunities.
There has also been progress on more permanent placements to clients in specialist sectors which is a higher margin business, and encouragingly now accounts for 25% of the company's business against 20% a year earlier.
Telecoms aside, other areas appear to be performing well enough with particular encouragement from a more recent focus on the energy sector, which not only takes in oil and gas, but renewable fields too.
While the UK is understandably a key area of focus, the company is extremely active elsewhere, and as the wider economy recovers it could be well placed to capitalise.
The balance sheet isn't in bad shape either with net assets standing around £15m while debt related issues which stand at £5.9m are aligned to working capital requirements. And the dividend on offer, which has a progressive look about it having been increased a few times now, should, on a full year basis, yield around 3.5% at the current share price of 45p.
Encouragingly there is a decent level of cover on that too, with expectations of 3x earnings from anticipated pre-tax profits of £7m for the full year. Those numbers one would hope are achievable given the boards in line comment, accompanied by the statement adding that it was on track for a strong finish to the year.
One minor issue to note, is an ongoing litigation case with three former employees regarding recognition rights. This may or may not come to court in the US in 2015 relating to one of Networkers' subsidiaries and where the company believes it has a strong case to argue. Whatever the longer term outcome, the company has set aside a £1m provision should any judgement go against them.
All in all, Networkers looks to be fairing well and on a forward PER of 9 against the sector average of 16 accompanied by a reasonable and well covered dividend may be worth keeping an eye on.


Read more: hxxp://www.cambridge-news.co.uk/Business/Private-Punter/Recruitment-firm-looks-just-the-job-20131015134734.htm#ixzz2hvdiSrka

[speedsgh] 16/10/2013 11:46

The chart is beginning to look pretty positive too.

[battlebus2] 16/10/2013 09:47

If the 4g investment gets to fruition we could see a decent rerating.

[hastings] 16/10/2013 09:45

Certainly look decent value and I would have thought could do really well over the next few years.

[battlebus2] 16/10/2013 09:40

Yep volume has picked up measurably over the last few weeks. Nigel Wray buying that additional 450k only reinforces the potential here imv.

[pjhutchy] 16/10/2013 09:37

Noticed a lot more bigger buys lately. Maybee bigger players are realising the value and potential here. Also by looking at the chart we are on the verge of a breakout. Also take a look at Harvey Nash and other recruiters have risen strongly lately and networkers hasn't much so we could be following suite late as its more off the radar.

[battlebus2] 16/10/2013 09:26

Nice buy of 25k at 48p.

[battlebus2] 15/10/2013 17:00

In touch of recent highs again :)) Thanks again Hastings that was a good piece and reflects exactly what we have been saying. Much more to go here imv.

[battlebus2] 15/10/2013 09:15

Thanks hastings, i will take a look.

[hastings] 15/10/2013 09:02

May be of interest Battlebus and to other holders.

hxxp://www.privatepunter.co.uk/Companies/networkers-international

[battlebus2] 14/10/2013 12:58

Was just about to say this is the widest spread i've seen since buying but they have just raised the bid to 45p :))

[battlebus2] 14/10/2013 09:10

Trying to move up :))

[battlebus2] 10/10/2013 16:51

Yes i noticed that, very good news i wonder who the seller was. Hopefully these will continue to rise now on any buying.

[speedsgh] 10/10/2013 16:50

The Company was notified on 10 October 2013, that Nigel Wray (a Non Executive Director) acquired 450,000 Ordinary shares in the Company at a price of 44.5 pence per share.

That's quite a substantial purchase by a NED. He must be confident.

[battlebus2] 04/10/2013 13:09

I've noticed with this share that the mm's move the price to place some shares and then bring it back down again. Leaves it harder to judge if the rise is for real or not.

[battlebus2] 04/10/2013 12:50

Ah well good while it lasted :))

[daneswooddynamo] 04/10/2013 11:51

Feels like right place right time with 4g and general prospects for recruitment consultants improving anyway

[battlebus2] 04/10/2013 08:59

Looks like there's not many shares about when a 5k trade lifts the price .75p.
Maybe a push on to 50p is on the cards.