Northern Recruitment Share Discussion Threads

[slaine777] 17/7/2008 00:49

If there is any sudden upturn in the markets I reckon these will be left behind due to lack of liquidity. No doubt they are a bargain but so are many large caps. Probably no major upside for a while.

[freddie ferret] 01/7/2008 14:44

You recon they are going up do you. The market must think that unemployment is going to rise and companies will no longer need to recruit the right people. Northern works mostly for the public sector, I think this fall has been overdone, it's really just mm's marking down on nil volume. If things keep on like this I might just buy the company.

[momentos] 01/7/2008 14:10

Sideways is the new down?

[freddie ferret] 01/7/2008 10:44

Ho hum still going down and nobody has sold any?

[freddie ferret] 26/6/2008 12:02

Ho hum it's going down, when's the next divi cheque?

[slainegardener] 17/6/2008 21:53

Ummm...its got cheaper. In tandem with a number of small companies so not stock specific.

[momentos] 31/5/2008 13:51

Try Plus Markets.



It is not unknown for this share to fall asleep for weeks on end though.

[freddie ferret] 31/5/2008 11:54

According to advfn there have been no trades since the 20th. Don't believe that.

[freddie ferret] 31/5/2008 11:52

Lots of small buyers and one big seller perhaps. I'll have a look and see.

[momentos] 29/5/2008 12:50

Erm, could it be because there are more buyers than sellers?

Just a thought...

[freddie ferret] 29/5/2008 12:18

Going down boys. Why?

[harrogate] 27/5/2008 16:12

There is no direct cost of sale for perm fees - the costs associated with these billings will be in admin costs - Margin on Temps is I seem to remember about 16.5% - not great but not too bad in the industry. If 4p is now a normal earnings figure they may reduce the divi soon - I think an MBO is the best hope in the next 12 months

[momentos] 27/5/2008 16:05

ITs worth having a look at the last Annual report regarding income / profit from Temp work vs Permanent vs NRG Connect.

Although I couldnt square all the statements, temp work is tight margin stuff whereas perm stuff is high margin. The shares of profit figures didn't make sense as it appeared that no costs of sale where being ascribed to the permanent recruitment side. Even so, they have indicated the perm work is OK if not growing.

Buy is currently at 46.5p. Cash at interims was 4.7m. Operating cashflow was still strongly positive H1, cash is only reducing due to the very aggressive dividend policy. SO there is no reason to believe there is a substantial deterioration in the cash position.

1.4m shares bought back @ 630k. Divis of 430k paid. so yes about 3.6m cash left. So I don't disagree with your figures much.

Historic EPS have been higher, (7.6p last year) and although I agree there is a substantial downside risk, a P/E of 7 is not exactly overvaluing them!!

[harrogate] 27/5/2008 15:58

Thanks for your thoughts - I work with a temp agency in Yorkshire and we are doing well - Although margins are under pressure.
The managment look very experienced but recruitment is a bit relentless and they may have had enough - they are a small company with no need for the quote - It could be if the management have the desire thery would be better of private - I think that is the attraction as well as the yield which I never somehow find much of a consolation wehn a share falls 50% !!

[deswalker] 27/5/2008 15:51

You are quite right, on a cash-adjusted earnings basis they are not that cheap cf HVN for example. This is a play on the cash, the yield and the ability and desire of management to get things back on track. I'm a holder for yield at a price miles above where we are now :-(

[harrogate] 27/5/2008 15:36

I have been having a good look at these and I am not sure I am going to buy yet

As far as I can see the market expectations that they are going to miss were for 4.7p EPS - so lets say they do 4p - If we exclude cash of say £3.5 million it equates to 22p a share so at a buy price of 50p they are on a P/E of 7 - Not that cheap really - especially as the business seems to have gone backwards in last 18 months - None of the other quoted temp aganecies have reported a drop in sales - Staffline & Spring to name 2

Against that Moran & Jupiter ( who have sold none) now own close to 75% of the company and I suspect they will keep the dividend at 5p

The question is will the business recover or is there something structural going on within its customer base/ have they lost the plot ????

Thoughts welcome

[momentos] 27/5/2008 15:24

BTW that latest buyback 20 May:

368,925 were on LSE:



The other 100k on Plus:

[slaine777] 23/5/2008 19:28

It aint fun. Anyway I bought a few after a brief perusal of the fundies. Looks good value. Looks a good contrarian play too. I take it you have an interest in this company. Given it is a small cap, assisting the odd lazy investor might improve the share price. You just dont know who could be looking in!! If you have the info give it. I would always check anyway!!!(when I get time).

[momentos] 23/5/2008 07:14

I'm sure I could but doing your own research is so much more fun! Look up (Fundamental Data) and up again (News, if you can find the correct RNSs among all the US ones).

[slaine777] 22/5/2008 18:42

Can anyone tell me what the PE, Yield, eps growth and ntav is for this share? TIA.

[momentos] 22/5/2008 18:07

Freddie it will burn through 4m cash within 2 months and go bust.

It must be the overwhelming market interest in this share that is maintaining an artificially high price.

Whaddya think?!

[freddie ferret] 22/5/2008 18:02

Yup it's cheap but will it go up down or go bust. If it's not going bust why is it so cheap?

[momentos] 22/5/2008 14:53

Actually this one probably explains better:



Notify at 3% if a material interest (which excludes Unit trusts at 2A (b) (1).
Notify at 10% in all circs - even if not material interest.

Confirms my understading above, a Unit Trust may have been holding up to 10% and sold out without any notice to shareholders or the company.

[momentos] 22/5/2008 14:48

Companies Act 1985 Section 209 (1) (h) excludes them from reporting.