Share Name Share Symbol Market Type Share ISIN Share Description
North Midland Construction LSE:NMD London Ordinary Share GB0006452857 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 312.00p 302.00p 322.00p 312.00p 312.00p 312.00p 0 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 291.8 1.0 7.3 42.7 31.67

Nth.Mid.Cons Share Discussion Threads

Showing 926 to 950 of 950 messages
Chat Pages: 38  37  36  35  34  33  32  31  30  29  28  27  Older
DateSubjectAuthorDiscuss
04/4/2018
14:44
Nice to see the FD buy some more....all adds up and reduces free float IMO....Once a bit of other portfolio money frees up, I'll be adding...DYOR etc
qs99
04/4/2018
09:17
FD buys again. Another £25k worth to take his holding to 35k shares. I'm not surprised to see that comment moneygenxyz. Their creditor days fell from 53 days to 42 days between 2016 and 2017 and presumably is John Homer's influence as their cash position has improved. 53 as an average would have been too long for many of their smaller subcontractors to be comfortable with. This from the 2017 accounts "We are also targeting reducing creditor payment terms further to allow our supply chain to grow with us." - recognition there is more to do on this.
cc2014
03/4/2018
18:02
Insightful follow up comment to that: “North Midland do not have bad payment terms, but they have systems that mean that retentions and other payments are often (not always) woefully slow, ie months late. They are one of our most problematic payers out of around 200 customers.”
moneygenxyz
03/4/2018
15:19
https://www.constructionnews.co.uk/best-practice/north-midland-boss-slams-payment-practices/10029609.article?blocktitle=More-news&contentID=7121 North Midland boss slams payment practices. There's quite a lot of discussion on this topic and some in the industry want to do something about it. Of course with NMD's year end net cash of £12m and a bank balance of £17m, he's got more to gain and less to lose than the competition.
cc2014
29/3/2018
08:07
Nice blue open. Think this has more legs to it imo and also reckon more directors may buy like last time DYOR. Would also like to think a positive write up from likes of Shares and IC? Gla
qs99
28/3/2018
14:14
MBO, now there is a thought, especially with all the director buying going on recently. Prime target IMO, but would need a decent premium from here and us PIs would have to rely on the NEDs playing properly to extract appropriate value from the bidding vehicle....but hey, let's see....DYOR...
qs99
28/3/2018
13:53
I'm from the midlands so I may join you. Think it's a good little company. I'm surprised there hasn't been an MBO on this.
moneygenxyz
28/3/2018
13:46
I understand your frustration moneygenxyz. There's more than meets this eye to this legacy contract. I am currently planning on going to the AGM if I'm available to see if I can find out any more.
cc2014
28/3/2018
13:36
I had the same opinion last year CC2014 but the so called legacy issue which was apparently sorted came back with a vengeance. I predicted 5-7m margin and they trounced that but annoying that I now have to sit and risk it for another year due to the legacy. Either way, will be continuing to build my stake throughout the current year to enjoy the reward next year. IF the legacy doesn't return that is.
moneygenxyz
28/3/2018
13:17
They did buy in droves last time did they not? Hopefully the HR Director may be followed by others....all helps IMO / DYOR
qs99
28/3/2018
13:00
Another smallish buy of £12k from the HR Director at 307.8. Lovely. Wonder whether we will see any more.
cc2014
28/3/2018
12:54
director buying...DYOR
qs99
28/3/2018
12:26
And CC2014, I have also bought in more this morning as I believe if these numbers are delivered this year, another larger group will look to buy c.£300m of turnover, good billings, take out big old board and increase their own underlying earnings materially....obviously all IMO....lots still to deliver, but so far so good...IMO! DYOR
qs99
28/3/2018
12:08
Needs a clean year in order to provide the dividend cover hinted at by board IMO, so if can deliver that clean year then yield will follow IMO/DYOR.....
qs99
28/3/2018
11:55
I look at it this way. If the underlying profit is £8.3m (and the legacy contract is cash neutral on which you can form your own opinion) it doesn't matter that the balance sheet isn't perfect, because at that level of profit and cash generation it will be in a year or so. £8.3m underlying profit compared with a market cap of £30m is fairly unusual. Further assets less liabilities is a positive £12.8m which reflects their ownership of premises and plant and machinery. When I've feeling overenthusiastic I look at it this way. Next year we could make £10m underlying with some ease since the order book is secure and margins are rising. That give EPS of 100p and a P/E of 3 with no pension fund deficit, net cash and the finance debt of £5m supported by fixed assets of £17m and cash at the bank of £17m as well. Dividend yield is poor though at 2% and reflects managements desire to further improve the balance sheet which is no bad thing given their rate of growth.
cc2014
28/3/2018
10:47
OK sneaking another look: They talk of increase in payables by £7.6m and yes net cash is £12m (my posts above talked excl Finance leases for instance) and I wonder how much of the reduction in receivables is due to the big provision against the legacy contract distorting things (plus possibly the legal costs if unpaid as yet)? DYOR etc. Not rose tinted glasses here, but looks like they run a very tight working capital cycle and provide lots of detail on this which is great. With legacy provisions et al behind the company, then (ok still needs to be delivered) 2018 could see a "clean" set of numbers and headline EBITDA progressing things again? in which case, the point still holds, yes risky, but NET cash (and gross cash) should be motoring and the EV of the company therefore still and IMO will increasingly look very attractive and won't be long until that EV/EBITDA number is 1....DYOR and GLa....they need to show at AGM in May that the progress is continuing. Any appeal victory and settlement on legacy is then icing on the cake, but if they don't win they've provided already...DYOR
qs99
28/3/2018
10:27
Yep - net current assets being below 1 is the biggest risk here. I was hoping they'd solve it this year. That's one of the main reasons it's at a discount - skating on ice at the moment but I just look around at all the infrastructure being built around me and hold tight. In John Homer we trust. There is plenty of risk for the potential reward here.
moneygenxyz
28/3/2018
09:26
Actually I was asking for an opinion after a quick read through chap while at work! if Net Cash is £12m then that is still pretty good no? Also underlying OP is as stated as is underlying EBITDA no? Market cap is as it is,......i'll take a long read through the results when home from work (and your net liability position comment)....DYOR! and have a good day!
qs99
28/3/2018
09:19
Still utter tripe being posted here about the cash position I see. Hand your head in shame... Company says "It is also pleasing to report that the net cash has increased to £12.04 million" BB rampathon says "£30m market cap, £17m of cash (net?)" Net current assets is a negative number, not great if some of the current contracts become "legacy contracts" when they overrun!
eezymunny
28/3/2018
09:14
Thanks, as suspected now turned blue. IMO with a decent city road show, this should start heading back towards £4 and beyond. Bonkers rating despite the obvious risks....DYOR and all IMO
qs99
28/3/2018
09:11
http://www.constructionenquirer.com/2018/03/28/north-midland-finally-shrugging-off-legacy-contracts/ https://www.theconstructionindex.co.uk/news/view/one-legacy-contract-remains-a-thorn-for-nmc
cc2014
28/3/2018
09:09
thanks for posts all, I think all they have done this year is provided for all the revenue / costs so any "win" is all upside no? DYOR etc..... Either way, on an underlying EBTIDA basis as per my calcs above, I can't see how competitors are not taking a long hard look at NMD if it doesn't re-rate....DYOR etc and appreciate all the posts. I've added first thing..... cheers
qs99
28/3/2018
08:52
It was completed in 2016. They signed a "parting of the ways" agreement with the Client. Works are complete and warranty/liability period should have expired. The settlement of the contract is in dispute and subject to legals. NMD state they are pursuing more money they have accrued income for but there is considerable uncertainty they will get this. It is my reading if they win the case this will be considerably above the accrued income value and if they lose it I would imagine below it (although they may have been more prudent than that). I really don't think it matters. Even if they lose and it costs them say another £5m (which would be a ridiculous number on a £25m contract given what they have provided for already) it still leaves them with a decent enough profit of £3.5m if they settle in 2018 and then say a profit of £10m in 2019. It's a distraction and the future profit streams significantly outweigh the risk. (As it did when I bought my shares in 2015 & 2016 when the shares were around 100-130 - there was more risk then but even so it's always been a distraction). I wish they would just settle it, even if it costs them a few quid. I suspect though the Client is being stubborn which is not surprising considering the grief both parties have been through. Edit: I would buy more but having bought at 115 my position size at 300p is so high it would break my rules to do so. Frustrating
cc2014
28/3/2018
08:51
Regards the legacy contract whilst they have completed all the works they are still expecting a unspecified payment (which is currently included within receivables). So conceivably both a possible upside(successful appeal) or downside (customer doesn't pay up) is still possible imo.
cockerhoop
28/3/2018
08:46
And IMO I'm sure this will be blue shortly. The underlying profit is meaningful but why don't they also quote underlying EBITDA? The underlying OP was £8.3m and DA was c.£3m, so underlying EBITDA was over £11m vs market cap of £30m before taking into account the net cash? DYOR Impvesta, any views? DYOR
qs99
Chat Pages: 38  37  36  35  34  33  32  31  30  29  28  27  Older
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:40 V: D:20180422 06:59:29