Northern Recruitment Share Discussion Threads

[ydderf] 15/12/2007 10:07

most quoted cos could show a yield of 10% if they paid everything out - if you want yield there will be increasing numbers of alternatives available as this bear market progresses.......the trick is to stand back for a couple of months and let the faling market do your worrying for you........then, choose shares which have the potential to 5 bag if they survive - not NRG I suspect....I looked at, but can't see that it is the place to be in 2008....

[erwarsim] 14/12/2007 15:37

Crazy - 74p offer,had to add.
Yield now over 10% and looks safe as houses.(or safer)

[cwa1] 04/12/2007 09:45

From Daniel Stewart this am:

Global M&A to the rescue?
We highlight a major international recruitment M&A deal this morning which could be an important trigger for recruitment valuations and stock prices in the UK
Randstad, global #3 and Vedior, global #4, announce that they have reached conditional agreement for Randstad to buy Vedior for a mix of cash and shares in total worth €20.2 per Vedior share - a 52% premium to the average share price during November. This represents 13.5x 2008E PE on a standalone basis, and 12.2x 2009 - substantially above current valuations for the UK peer group which trade in the range of 5-11x 2008E PE
The deal, which will create the global recruitment #2, highlights how attractive recruitment valuations have become.
This deal has renewed speculation which has frequently recurred over a number of years of a purchase by Adecco of Hays. Any merger in the recruitment space needs to be agreed - we still see such a deal as improbable, although Adecco may feel increased pressure to respond to the Vedior/Randstad deal to maintain a clear global leadership. Hays would be one of a number of possible larger global professional recruitment targets for Adecco.
Aside from hays, among the larger quality UK recruitment plays, Michael Page and Robert Walters have regularly been cited as possible takeout targets, although we sense a strong preference at Michael Page in particular to retain its independence.

[stemis] 01/12/2007 10:14

As you say, not the cheapest and not the most expensive, although few have the same sort of cash asset (v mkt cap) as NRG.

[deswalker] 30/11/2007 16:39

Yes I remember you writing about MSB on TMF. I looked at it and despite it trading comfortably below NCA (iirc ?) I couldn't make myself pull the trigger due to dodgy looking characters on the board. Then it all came good for holders.

NRG aren't the cheapest on a PE basis or even an EBITDA/EV basis but they don't need to be if they can keep paying nearly 10% pa in dividends. Eventually I might get back what I paid for them.

[stemis] 30/11/2007 16:07

Over the years I've held PUG (broke even I think), a bit of IMP (probably will breakeven overall), NRG (time will tell) and MSB.

MSB is an interesting case history. Bought and price went down. Bought more and price went down even more. Spent a fair bit of time whingeing about them. Bought even more and then company was subject to a bid and ended up making a decent whack. Sometimes you just have to have faith in the fundamental case.

Recruiters are out of favour at the moment. Its not hard to find one on a forecast P/E of under 8. I don't think (hope) NRG's low rating is a sign of anything other than sector malaise. Under those circumstances I'm happy to sit and take the dividend.

[deswalker] 30/11/2007 13:27

Just as soon as I get two quid for my IMP shares I'm adding here :-)

My two forays into recruitment (here a couple of years back and holding and IMP at £1.60 and holding) have been disasters.

Nonetheless I like NRG's management and continue to enjoy the yield so my small loss here isn't too painful. The farce going on elsewhere is proving to be a bit more painful but also an important lesson.

Come on Lorna, get the share price up. Either that or offer two quid for IMP :-)

No more recruiters for me. Ever.

[stemis] 30/11/2007 13:16

Now a prospective yield of 10.0% with around 30p a share in cash.

[cwa1] 22/11/2007 11:20

Doesn't look expensive does it? Always assuming that all the wheels haven't fallen off the wagon...

[stemis] 22/11/2007 09:42

Now on a prospective yield of 9.3% with over a third of market cap comprising cash.

[cwa1] 12/10/2007 16:25

Decent sized move on the bid today which is nice to see. Hope it is the sign of better things to come.

[cwa1] 03/10/2007 09:58

Yes Stemis, I can confirm that a very juicy dividend has been bagged today :-)

[stemis] 03/10/2007 08:41

Ex div today I think (5p final dividend). Yield is now 8.1%.

[cwa1] 05/9/2007 10:39

Good to see you here as well CR. Good luck with 'em.

[cockneyrebel] 05/9/2007 10:12

Back in today - fab yield - oversold imo.

Been a very happy hunting ground for me here on the lows, 2 bagged these last time :-)

CR

[planetgong] 05/9/2007 08:48

Yep, pretty happy :-)

I will look forward to the divi and hopefully, at some point, they will be able to announce a contract win for nrg connect which seems to be the only fly in the ointment. NRG connect is, nonetheless, still operating at a profit.

[cwa1] 05/9/2007 08:47

Just in case anyone hasn't seen them. Results are here...



'The results for the year are better than we anticipated at the time of our
trading statement in May, with operating profit up by 6% on 2006. Strong growth
in our core permanent recruitment businesses, and in the delivery of temporary
staff, was partially offset by continuing low activity levels at our NRG Connect
national response handling unit.'

• Revenue up 22% to £22.3m (2006: £18.3m)
• Gross profit up by £0.5m (7.5%) to £7.6m (2006: £7.1m)
o Temporary recruitment up £0.4m (16%)
o Core permanent recruitment up £0.7m (21%)
o NRG Connect down £0.6m (40%)
• Profit before tax up 4% to £2.03m (2006: £1.95m)
• Diluted earnings per share up 6% to 8.1p (2006: 7.6p)
• Ordinary dividends maintained at 7.5p per share (2006: 7.5p)
• Net cash up 8% to £5.3m (2006: £4.9m)
• Outstanding growth by NRG Scientific and NRG Technical
• Very strong progress by NRG Call Centre Solutions
• Good results from NRG Works re-branding and business focus
• NRG-led consortium has secured a preferred supplier position on a major
Government framework contract


'We have made a positive start to the current year. The market remains buoyant
in all our core business areas, and our pipeline of bids and tenders is
exceptionally strong. NRG Connect has continued to operate at very low levels
of activity in the current year to date, compared with a reasonably active
period in the first half last year. In the absence of major new project wins,
this will constrain the Company's progress in the first half, though the strong
demand we are experiencing across our other major business streams gives me
confidence in our prospects over the year as a whole.'

- Leo Finn, Chairman

I liked the look of them personally. So far, so good. Back to sleep now, or more action as the market digests them further?

[spectoacc] 05/9/2007 08:41

Can't believe the MMs opened them down on those results; £17m co, £5m cash, made £2m pre-tax, 7.5p divi. Took the opportunity to buy more..

[stemis] 05/9/2007 08:30

You must be pretty happy then.

[planetgong] 31/8/2007 14:14

Thanks Stemis,
I bought 8000 online at the mid of 94.5 - surprisingly easy considering how illiquid the share is. Hope it does not portend bad news to come.

[planetgong] 30/8/2007 23:59

From the website:

Please note that our preliminary results for the year ended 30 June 2007 will be announced on the 5th September 2007.

Can anyone suggest what the expectations are?

[stemis] 30/8/2007 16:33

Last few years the finals have been out mid August. Its now end of August.

[artfullfox] 15/8/2007 10:01

Typical, very little movement in share price for months

Soon as I buy it starts to drop.

[artfullfox] 10/8/2007 21:00

I purchased a few today, for my income fund.
Looks to be a good safe dividend.