Premier Technical Services Share Discussion Threads

[rampmeister] 05/12/2017 23:40

theeeputt according to broker forecasts p/e for year ending 31/12/17 are 23.6 and year ending 31/12/18 20.7. Not unreasonable for a growth stock aiming for 20% margin imv.

RM

[rivaldo] 05/12/2017 23:27

Hi threeputt, apologies, it wasn't directed at you specifically, just in general. Certainly one can always find exceptions - I have indeed held PEG from 10p up to 35p or so and currently back to around 20p, so a doubler is pretty good, and I'm hopeful it's now extremely undervalued.

PTSG is the sort of stock I can see myself holding for some years given the potential which has now been accelerated by the need for sprinkler systems, safe cladding for apartment blocks etc.

So in the long-term scheme of things 10p-20p here or there isn't an issue for me when with acquisitions and organic growth it's possible that PTSG could rise two or three-fold from here over time.

OT: don't talk to me about VENN! Let's see if there's some life in the old dog yet.

[threeputt] 05/12/2017 16:24

Hey come on Rivaldo, bit unfair, I know you on lse and respect many of your finds on there, however I've held this for about a year and a quarter and made 200% + from 68 up, traded some of those succesfully on the way up too. I've msde it clear that I would intend buying back in too but as I follow the Naked Trader way he tends to sell if it keeps hitting resistance as it tends to fall away for a while. I also think it's a bit hot in terms of p/e currently, and expectations are priced in imo, so I protected some profit
I've also got my eye on peg having played it similarly, and I believe you are in there too, I hope you havent held your profits all the way down from 50 to 20 ?
Similarly with Pennant, I sold at 90 from 34 and glad I did
I'm not so sure good companies are so hard to find, yes needs heavy research but isn't that the key ?
I just wish we could say the same about Venn, any thoughts ?

[rivaldo] 05/12/2017 12:51

I am constantly surprised at many investors' short-term timeframes. IMO once you find a good company with terrific management - just stick with it.

If I hadn't I would never have had ten-baggers or more with ACSO, IQE, KWS or other multibaggers like RNWH, VLE, IDEA, XLM etc etc. If you take fright at the slightest pullback then you'll never get anywhere and will just keep having to find equally good companies at cheaper prices. Which are hard to find.

The exception to this rule is if you're in a low revenue-earning or highly loss-making company which goes ballistic (WAND, NANO, RM2, VRS and many others), when profit-taking is the order of the day.

[threeputt] 05/12/2017 12:08

sold the remainder of mine just under 200, it can't break through and i can see it taking a bit of a breather, great company so likely to be back in sometime.
Been a great ride from 68 :)
GL all

[twirl] 05/12/2017 09:12

ig 192.8/199.5 25k/10k

[puku] 03/12/2017 14:14

I banked an 80 % profit a while ago at 189p - felt it was ahead of itself. But went to seminar and impressed with the CEO's Yorkshire down-to-earth enthusiasm. Fully agree with the report above. Spoke to CEO during the nibbles. I was concerned that a lot of their business was low-end e.g. an electrical test is £90 but he says he gets a 40 % margin - not quite sure how he manages that, what does he pay his engineers ?. I asked him about new build - he said 40 % of the revenue is "installations" - half new build and half renovations - that has lower margins because of the material content, but obviously much bigger contracts.
Overall happy, watching on the sidelines for now.

[redartbmud] 01/12/2017 14:46

Glaws
Thanks; to the point.

[douglas fir] 01/12/2017 14:29

PTSG at the Equity Development Investor Forum November 2017

[rivaldo] 01/12/2017 12:24

New contract win at DFS:



"Sofa, so good as PTSG seals DFS Doncaster contract

Premier Technical Services Group PLC (PTSG) has received an order to replace fall arrest systems at DFS’s headquarters in Doncaster.

etc"

[twirl] 01/12/2017 09:49

IG 201.5/209.99 5k/2k

[simso] 01/12/2017 02:43

RP19 so funny to read that, as i was staying in the same hotel as Boycs in Brisbane over the past week, and literally the very first thing he said was "corridor of uncertainty"

[rp19] 30/11/2017 19:19

Thanks for the write up. With Boycs at the helm let's hope we avoid sticky wickets, the corridor of uncertainty and don't start cleaning gutters with sticks of rhubarb.

[rivaldo] 30/11/2017 13:28

Glaws2, I'll put it on LSE (and perhaps i.i.i too).

[fizzypop] 30/11/2017 12:22

• Majority of work is low value - £40m revenue – 17,000 customers; 90,000 invoices raised per year.

So averages are £2353 revenue per customer and £444 per invoice.

• 88% renewal rate.

was 85% so +3.5%.

One of my larger LTH.

[glaws2] 30/11/2017 12:08

Copy away Rivaldo - which one out of interest ?

[rivaldo] 30/11/2017 11:35

Terrific summary Glaws2, many thanks. I'm particularly liking the fact that only 5% of customers only take one service - so much room for cross-selling and organic growth.

With 12 acquisitions being looked at it shouldn't be long before we get news.

Above all PTSG sounds like it's an extremely well run company with an ambitious but realistic management. Which is more than half the battle.

Do you mind if I copy your report to another bb?

[martinthebrave] 30/11/2017 11:07

Glaws2 Thanks for posting. Sounds very positive.

[glaws2] 30/11/2017 10:55

Thoughts from yesterday's ED seminar :

The CEO (Paul Teasdale) comes across as a "Geoffrey Boycott on steroids" ! I wavered between being frightened and impressed. More so the latter on reflection. I certainly wouldn’t want to work for him but I can't find anything negative on glassdoor and their Annual Report has a lot of human interest stories from staff so perhaps he is less formidable in the working environment. He has been running the company for 10 years and in that time it has clearly grown impressively rather than self destructed.
He is clearly extremely passionate about the company and the service it delivers. A few key points :
• Expects organic double digit growth to continue
• Only 5% of customers take more that one service – so clear opportunities for cross selling
• Every maintenance contract delivers the same value again in repairs
• 88% renewal rate
• Focussed on delivering high GM – key to how the business is run. Not interested in low margin work.
• Claims 100% utilization of engineers; uses repairs (not time critical) to flex availability
• Their in house ERP system ‘Clarity’; absolutely key in delivering efficiency
• Claims this allows them to provide keenest prices with good service and retaining high GM%.
• Ruthless in finding efficiencies – eg vans go for service at 5pm and ready for use at 8am next day – this is their culture
• Majority of work is low value - £40m revenue – 17,000 customers; 90,000 invoices raised per year
• There will more acquisitions – 50 odd in the pipeline – 12 being looked at in detail. Will track a company for 12-24 months before buying. Won’t pay > 5 EBITDA. Expect 50% of growth from acquisition.
• Reckons there are 3 years ahead of competition

[redartbmud] 30/11/2017 08:39

Glaws

Thanks, that would be very helpful.

[glaws2] 30/11/2017 08:13

Rivaldo - yes it was definitely over the 5 years; most of their contracts are (surprisingly) small. He did state, though, that every £1 on a maintenance contract also generates (over and above the contract value) £1 of repairs - so expect another £190k revenue from this.

I'll try and put a few notes together later on today.

[rivaldo] 30/11/2017 08:08

Cheers Glaws2 - are you sure it wasn't £190k per annum over the 5 years? Over 430 large public and prestigious buildings that seems much more realistic.....

Anyway, any other impressions from the meeting gratefully received :o))

[glaws2] 30/11/2017 07:33

Contract worth £190k to PTSG over the 5 years (according to the CEO last night)

[rivaldo] 30/11/2017 07:24

Terrific news yesterday - new 5 year contract with Skanska to clean a massive 430 buildings in London, including Mansion House, the Old Bailey, the Guildhall, London Wall and the Barbican......



"Skanska and PTSG awarded five-year gutter cleaning contract with City of London Corporation

"Following a successful existing collaboration, the City of London Corporation has awarded an extensive high-level cleaning contract to project development and construction group Skanska.

The contract, which will be delivered by specialist services provider Premier Technical Services Group PLC (PTSG), consists of a large scale high-level cleaning contract, involving some of the capital’s most iconic buildings.

PTSG will undertake gutter cleaning at 430 sites across the City of London district. The works will incorporate a range of high-level access methods, including abseiling, MEWP and rope access to reach the most challenging areas of the buildings. Much of the cleaning will be performed by operatives using skyvacs to carefully clean gutters and downpipes, removing any debris that has built-up over time.

etc"

[alphabeta4] 28/11/2017 18:59

Thanks Rivaldo, for all my efforts I'm now on a reserve list! I'm not holding my breath so hopefully others will be able to shed some light.