Nth.Mid.Cons Share Discussion Threads

[qs99] 09/8/2018 09:10

Yup, I genuinely think this will be through a fiver today. Stonking results and all those director purchases of stock earlier in the year seemed IMO to be a good indicator of confidence!! DYOR and as I said, if they continue along these lines, the yield will be attractive, market cap will start attracting small funds IMO and £100m market cap is not IMO unreasonable if they start approaching £20m EBITDA...DYOR

[cc2014] 09/8/2018 09:06

Quoted me 430p to sell 15k shares. The offer is 430p !!!!!

[cc2014] 09/8/2018 09:03

With regard to the dividend there are 10m shares in issue so a 12p dividend would cost £1.2m

£2.5m profit at half time, gives you £5.0m for the full year with no allowance for increased turnover or increased margin.

Paying out £1.2m out of a profit of £5.0m would seem entirely appropriate. Cautious even. It would allow them to retain 56% of their profits for expansion allowing for corporation tax. It's not like they need the cash with £18.9m available to them

[qs99] 09/8/2018 09:02

And there we go, up again

[qs99] 09/8/2018 09:02

Exactly thanks JAF....try doing quote and bid with your broker platform and zilch....you have to put a limit well above the quoted range....bit more demand and this should IMO sail through a fiver...dYOR. Well done all those that have been patient with this one....

[jaf111] 09/8/2018 08:59

well at a price.....2,500 @ 448p and 5000 @ 468p just quoted......well above the 400-430 bid offer price

[amrishbhim] 09/8/2018 08:55

There plenty of shares you can BUY. Pls don't say there not many shares available that not true

[qs99] 09/8/2018 08:50

Not sure if that will directly correlate to this year, but if so put that on a decent rating and as I say, the re-rating should IMO have only just begun. Difficulty is there is no stock to buy....DYOR

[jaf111] 09/8/2018 08:49

Re Divis....I think 6p final is the very least we can expect....

Going back to 2016 the final was double the interim so on that basis 12p final.....ok so that is probably too optimistic so will settle for 9p!

[cockerhoop] 09/8/2018 08:47

Interestingly 2017 restated under IFRS15 produces 71.2p EPS

[cc2014] 09/8/2018 08:42

JAF1119 Aug '18 - 08:16 - 730 of 736
0 0 0
All a bit odd (but in a very good way)....AGM statement (17 May)....1st Q revenue up 20%, profits up 11%

Now (interims).....revenue up 19%, profitability up 104%.....that's some improvement in margin!!!!!!!!!

What have I missed......

Hi, I would have to thoroughly read through the numbers from last year but from memory there were a number of one off disappointments (volume and margin in telecoms I think) which had been/were being addressed.

so, it's about an expected return to normal (albiet still unacceptably low) margins. Getting there though

[qs99] 09/8/2018 08:35

CC2014 yes I would make the same assumption, but final divis are usually bigger than interim ones IMO so the yield could be very tasty.....

Agreed re working capital.....but as CH says "embrace the float" haha, they seem to be managing it pretty well and confidence in doubling the divi so that IMO shows confidence....

£300m++ order book is pretty decent.....

DYOR

[cockerhoop] 09/8/2018 08:32

WJCCGHCC,

Aren't we supposed to 'embrace the float' :-)

[wjccghcc] 09/8/2018 08:24

Cash is flattered by a big working capital deficit of 18mm so netting that out gives you a slightly negative balance. Interims still read well though.

[qs99] 09/8/2018 08:22

Would have to look at cash to see whether any releases, otherwise a good Q2! Which then bodes very well for H2 no?

Put this on an EV/EBITDA ratio of say 5-6, get EBITDA towards £15-20m from last years c.£12m and at the top end..well you get the drift...my Tenner target can't be total ramping ImO!

DYOR

[cockerhoop] 09/8/2018 08:21

CC2014,

You're correct regards IFRS15, looks like they've been conservative regards Rev Recognition in the past.

Generally IFRS15 will create some opportunities as companies temporarily have profits boosted or reduced by the change in Rev Recognition & investors too lazy to look below the surface.

[jaf111] 09/8/2018 08:16

All a bit odd (but in a very good way)....AGM statement (17 May)....1st Q revenue up 20%, profits up 11%

Now (interims).....revenue up 19%, profitability up 104%.....that's some improvement in margin!!!!!!!!!

What have I missed......

[qs99] 09/8/2018 08:07

Boom....can't buy £500 online, been trying to add some more! Overweight anyway, so will just have to sit back and see it sail by my tenner target!! DYOR and GLA...

[jaf111] 09/8/2018 08:06

Mr Market happy.......well he certainly should be!!!

[qs99] 09/8/2018 07:51

Haven't begun to look at that mate sorry! need to start work! I'm focusing on this year, decent level of profit vs h1 last year, despite Telecoms losses. No legacy issues, massive order book vs H1 last year, cash pile growing by the day, EV/EBITDA ratio (depending on your view of cash required in business) of under 2....increasing divi....decent outlook IMO....DYOR but what is not to like?!!

[cc2014] 09/8/2018 07:48

Great results. IFRS15 is interesting. It appears it has forced them to declare at extra £8.1m of profits for last financial year, although it makes no difference to the balance sheet as it reclassifies work in progress as profit. Have I got that right?

[qs99] 09/8/2018 07:40

This is so under the radar for many though....wonder where the FY divi may come out at though if it continues to chuck off this sort of cash? Get Telecoms to break even and it would have smashed through £3m OP at half year stage. No wonder directors were piling in IMO....DYOR but no reason IMO with this continued delivery why this should not be over £10 and will continue to hold for that and more. That is not a ramp, it is on an EV/EBITDA ratio of "far too low" IMO!! DYOR

[qs99] 09/8/2018 07:33

Yes disappointing re "cream" but zero impact cash/profits IMO/DYOR.

Cash now £19m.....market cap £34m....EPS 20p, difficult to make meaningful comparisons as restatement of PY.

But outlook and divi are very positive IMO. They did near £10m OP and £12m EBITDA in restated PY so anything remotely close to that would put the business on a 1 X rating no?

Yes the cash is needed to continue to fund the business, but the doubling of dividend IMO shows confidence in the future.

DYOR, but if it stays near this level an MBO or Private Equity buyout IMO will be more likely than not....DYOR

[jaf111] 09/8/2018 07:19

Much to like at interim stage
Disappointing High Court news but at least zero financial impact
Outlook sounds very positive....nice to see divi doubled!