Premier Technical Services Share Discussion Threads

[fizzypop] 05/8/2016 10:43

Glasshalfull ‏@Glasshalfull1

PTSG @PTSGPLC Impressive 17 new contract wins & 3 renewals since 15th March 2016 with NHS, B&Q, RBS, etc. #TMFPP

This is still under the radar but it won't be long before it gets noticed.

[fizzypop] 03/8/2016 14:22

Thx Rogers8.

[rogers8] 03/8/2016 14:11

Website states September with no date. Last year the results were published on the 29th September.

[fizzypop] 03/8/2016 12:44

Joined the fan club at 77p. Do we have a date for results?

[mfhmfh] 22/7/2016 16:05

I'm very hopeful about this company too. Really looking forward to results.

[rogers8] 22/7/2016 15:21

According to PTSG's website they have won 9 contracts since 30th June including work in Iraq and Barbados.

hxxp://www.ptsg.co.uk/news/

Looking forward to a record set of results.

[buffythebuffoon] 07/7/2016 23:15

Thanks for the reply GHF,

That's more or less my view. I'm prepared to accept slightly high option packages for a CEO as long as the company is doing well, and he/she is clearly shareholder focussed.


Regards,

Buffy

[glasshalfull] 07/7/2016 16:28

I'm content with the options package.
Paul Teasdale's package is most definately high IMHO, other senior management less so.

Whether one considers it excessive or not, I'm more concerned by the performance of the company, the growth profile & momentum they are building. Having met with PT I came away v impressed with his no-nonsense approach. My type of CEO.

Kind regards,
GHF

[buffythebuffoon] 07/7/2016 15:40

Hi Glasshafull,

Are you happy with the directors' options?

Buffy

[glasshalfull] 07/7/2016 09:52

Only now getting round to commenting.

I'm with ramridge...excellent deals on the face of it. Especially with PTSG inheriting £1.3m cash balances in respect of the acquisitions following an initial consideration amounting to only £3m!!! I also required to re-read the terms a couple of times.
Both businesses acquired certainly appear high margin, with UKDRM on 36% PBT margins & UKDR on 23%.

Singers 5% & 10% upgrades appear modest for the remainder of 2016 & 2017 respectively. That's +£400k PBT contribution from the combined acquisitions this year and +£800k next.

2016 (Singer forecast)

New

Turnover £36.7m (upgraded from £34.9m)
PBT £7.5m (£7.1m)
EPS fully diluted 6.8p (6.5p)
PER 11.4

Earnings growth 39%

2017

Turnover £41.2m (upgraded from £37.6m)
PBT £8.5m (£7.7m)
EPS fully diluted 7.8p (7.0p)
PER 9.9

Earnings growth 15%

Again, this looks like sensible bolt-on acquisitions which compliment existing businesses & at a v decent 3x post tax profits.

In addition PTSG has also announced a few more contract wins in recent days which includes: -

* Additional PAT, lighting protection plus access & safety equipment with IKEA

* Electrical Services contract with National Grid


They're building a fantastic niche business & PTSG's website indicates that they are the UK’s largest niche specialist building services provider: -

"PTSG Electrical Services Ltd. now comprises the UK’s largest lightning protection installation, testing and maintenance business; a high-growth electrical testing business, which has seen great success and development over the last two years; and a market-leading steeplejack business, acquired just over a year ago, which is achieving further growth and progression. The addition of the two dry riser businesses will enable PTSG to offer a fire safety provision to its existing and new customers."

In these uncertain times I like the "moat" they are developing in these niche areas; high level of contract renewals (85%); continuing momentum of contract wins ... not to mention that the valuation is inexpensive (IMHO) at c. PER 10 - 11 given the high level of earnings growth forecast over the next couple of years.

Kind regards,
GHF

[ramridge] 05/7/2016 13:52

So let me see if I got this right. They paid a total initial consideration of £3m with cash balances of £1.3m in the companies accounts.
Effectively they paid £1.7m immediately for a company throwing up £1.1m in PBT. Better and better.

[buffythebuffoon] 05/7/2016 11:30

'Singers say they expect the acquisitions to be immediately earnings enhancing'

Of course they do, that's what the CEO said in the RNS!

[ramridge] 05/7/2016 09:19

Looks like a good deal. Both companies are profitable and have been acquired at less than 5x EBITDA, by my calculations. Immediately earnings enhancing.
Please DYOR

[rogers8] 05/7/2016 09:06

Acquisition of UK Dry Risers Limited and UK Dry Risers Maintenance Limited

PTSG, the niche specialist services provider, is pleased to announce that it has extended its service offering to encompass the installation and maintenance of dry and wet riser systems through the acquisitions described below. Dry or wet risers are generally mandatory components of the fire-suppression systems designed into most high-rise commercial and residential buildings in the UK and are used to distribute water throughout all levels of the building in the event of fire.

UK Dry Risers Limited ("UKDR")

UKDR, a specialist in the installation of dry and wet riser systems, based in Bury, has been acquired for a maximum cash consideration of £2.1m comprising an initial payment of £1.2m, a fixed deferred payment of £50,000 payable on the first anniversary of completion and a contingent payment of a maximum of £0.86m also deferred for 12 months and subject to the business achieving a stretching milestone profitability target during the reference period.

Unaudited revenue of UKDR for the year ended 31 March 2016 was £3.0m, delivering a profit before tax of £0.7m. Unaudited net assets at the same date were £1.4m.

PTSG has inherited positive working capital balances of UKDR totalling £1.6m at completion, including cash balances of £0.8m. In addition to usual warranty protections, the acquisition agreement allows for the offset of uncollected debtor balances against the deferred consideration payments which might otherwise fall due and payable.

UK Dry Risers Maintenance Limited ("UKDRM")

PTSG has also acquired UKDRM, a tester, repairer and maintainer of dry and wet riser systems, based in Oldham, for a maximum consideration of £3.5m, comprising an initial cash payment of £1.8m, five fixed deferred payments of £60,000 payable on the anniversary of completion and the balance of up to £1.4m in contingent deferred payments over five years, subject to the business achieving stretching and escalating milestone profitability targets in each of those periods. The deferred consideration can be paid in cash or shares at the sole option of PTSG.

Unaudited revenue of UKDRM for the year ended 30 November 2015 was £1.1m, producing a profit before tax of £0.4m. Unaudited net assets at the same date were £0.5m.

PTSG has inherited positive working capital balances of UKDRM totalling £0.8m at completion, including cash balances of £0.5m.

The initial consideration for the acquisitions has been funded by draw-down against the newly increased debt facilities of £14.0m in aggregate, recently arranged with HSBC. Following the acquisitions and after netting off cash balances inherited with the acquired businesses, core borrowings of PTSG stand at £9.4m.

Both businesses will be integrated into PTSG's Electrical Services Division. Mike Charlton of UKDR and Daniel Hardman and Claire Spencer-Hardman of UKDRM will remain with the Group and work with PTSG's management team to grow and expand the acquired businesses. A large percentage of both businesses' activity is installation and recurring compliance testing and maintenance work, which complements the existing market leading PTSG model.

Paul Teasdale, CEO of PTSG, said:

"We warmly welcome UKDR and UKDRM to the PTSG Group. Both businesses are well established and respected in the UK and their addition to the Group expands our service offering into new niche markets. We look forward to working with Mike, Daniel and Claire and their colleagues on growing the business and expanding the Group's activities in these key areas.

The acquisitions are expected to be immediately earnings enhancing for the Group. We were pleased to confirm at last month's AGM that current trading within the existing Group is in line with the Board's expectations and the Directors are confident that PTSG's combination of a broad and loyal customer base with a high level of regulatory and compliance-driven recurring revenues provides a solid basis for continuing strong organic growth."

[rogers8] 30/6/2016 17:18

HSBC increases banking facility from £7m to £10m

PTSG, the niche specialist services provider, is pleased to announce that it has extended its banking facilities with HSBC.

The RCF has been increased from £7.0m to £10.0m with the expiry date remaining unchanged at September 2020. The overdraft facility has also been increased, from £2.5m to £4.0m.

Both new facilities are provided at the same interest rate and covenant tests as under the previous facility. Drawn amounts under the RCF attract a variable margin over LIBOR, based on the Group's Net Debt/EBITDA ratio. Undrawn amounts attract a commitment fee.

John Foley, Chairman of PTSG, said:

"The increase in our banking facilities reflects the increased scale and profitability of the Group. PTSG's core borrowings are its net cash or overdraft position plus drawings under the RCF, which at 31 December 2015 amounted in total to £6.3m. Deferred consideration and loan notes issued in relation to acquisitions are in the main a function of profitability within the acquired businesses and can usually be settled in cash or in shares at PTSG's option.

At this stage in the Group's development, the Board is comfortable with core borrowings of up to 1.75 times adjusted EBITDA and our increased facilities provide substantial headroom to continue to grow both organically and through carefully selected acquisitions. We are delighted to continue working with HSBC who have been the Group's bankers since its formation in 2007."

[mfhmfh] 20/6/2016 18:56

great company. added a little bit again today

[glasshalfull] 20/6/2016 17:08

I've provided a link to a screenshot of PTSG's impressive list of contract wins/renewals in the last 3 months.



Kind regards,
GHF

[modform] 20/6/2016 16:20

We seem to have lift off finally. This looks cheap on all metrics

[glasshalfull] 20/6/2016 08:47

Positive trading update this morning.
17 new contract wins since prelim announcement in mid-March 2016, alongside 2 contract renewals. The 85% contract renewal rate is excellent.

Singers concur,

"...contract momentum continues. PTSG’s AGM statement this morning highlights a positive first half performance with record sales year to date, particularly in the installation businesses.

Trading and cash flows are in line with expectations. In its first year as a public company, PTSG exceeded expectations. We continue to see scope for outperformance, through organic contract momentum and a return to the acquisition trail after a period of consolidation in H1.

In our view, the growth trajectory (PBT +42% in FY16E) is not reflected in the current rating (<13x FY16 P/E). We therefore consider this an attractive entry point for this well managed, high margin specialist service provider."

Per my tweet,

@glasshalfull1 - PTSG @PTSGPLC Positive AGM statement indicating record year. 29% EPS growth 2015 & 32% forecast 2016. PER 13 #TMFPP

Regards,
GHF

[mfhmfh] 02/6/2016 13:39

topped up here today

[modform] 15/3/2016 10:12

Nice to see some new comers on board here. Saucepan, thanks for the heads up sometime ago