Premier Technical Services Share Discussion Threads

[rivaldo] 29/11/2018 12:05

Agreed. I assume it's just the general market malaise, but PTSG with its inbuilt qualities of necessity under compliance and regulation - and the astounding growth of the fire services division post-Grenfell - should come largely unscathed from any sector dips.

Current forecasts of 11.8p EPS this year and 12.5p EPS next year take no account of any further acquisitions with PTSG's available cash.

So the current year P/E at 140p could almost be in single figures soon.

[mfhmfh] 28/11/2018 15:52

top-up opportunity IMHO.

GLA.

[chasbas] 28/11/2018 14:35

At 140p I just can't believe how cheap this stock now is: PER 12x for 2018. Stockopedia gives it a Stock Rank of only 33 and has always been sceptical as to its quality. Maybe its just the Brexit effect? IMHO I can't see how Brexit or even a possible recession would impact PTSG's earnings. Trading update mid Jan.

[rivaldo] 13/11/2018 15:43

Amati VCTs have just sent out their October newsletters - in it they note that "We took part in a placing for Premier Technical Services Group as they announced
another earnings-enhancing acquisition".

Good to see the well-regarded Amati funds investing here.

[rivaldo] 09/11/2018 14:48

Nice - a contract win for electrical maintenance work at 154 properties for Staffordshire Council, through to 2020 and likely 2021:



"Premier Technical Services Group PLC’s (PTSG) Electrical Services division has secured a contract to carry out the electrical inspection, testing and maintenance of a number of sites within the Staffordshire area.

Founded in 1900, Staffordshire County Council is the top-tier local authority for the non-metropolitan county of Staffordshire. The Group has secured a contract to carry out electrical maintenance work on 154 of Staffordshire County Council’s properties.

The contract with the council is due to run from the 1st December 2018 to 30th November 2020; the client has proposed the option of an additional one-year extension on the project, running through until 30th November 2021.

PTSG Electrical Services will test electrical services and systems that conduct electricity around buildings to meet the BS 7671:2008 standard – a five-year mandatory requirement. The Group’s Electrical Services division has previously worked on similar projects, such as carrying out electrical testing and installations work for both Bath and North East Somerset Council, and Sandwell Borough Council."

[rivaldo] 06/11/2018 08:22

More contract wins on the web site - this is a decent-looking one, maintaining 350 Royal Mail properties for 3 years, so good recurring income:



"PTSG secures three-year contract with Royal Mail Property & Facilities Solutions

Premier Technical Services Group PLC (PTSG) has secured a three-year lightning protection contract with Royal Mail Property & Facilities Solutions.

Responsible for maintaining and upgrading one of the largest corporate real estates in Europe, Royal Mail Property & Facilities Solutions owns over 2,600 sites.....

....The Group’s skilled engineers are due to visit approximately 350 properties over the next three years to service and maintain lightning protection systems....."

[rivaldo] 05/11/2018 23:32

Are you being sarky about going on too few or too many holidays?!!! I generally go on around 5 or 6 holidays every year, a number of which I mention on the threads if something's happened whilst I'm away :o))

[swiss paul] 05/11/2018 20:05

Riv - you had a holiday - am stunned!

[rivaldo] 05/11/2018 11:46

Edison produced an update note on the new acquisition whilst I was on hols which hasn't been posted here:



They've increased EPS forecasts to 11.8p EPS this year and 12.5p EPS next year (with 1.8p and 1.9p dividends).

Of course, they also have the firepower to make the already flagged fire services acquisition, which should further improve next year's forecasts.

Here's an extract re the new acquisition and the conclusion:

"There is an obvious opportunity to capture post-inspection repair and maintenance revenues, which Guardian does not currently carry out and also to cross-sell services to Guardian’s client base with which there is limited overlap."

"Valuation: Adding to growth momentum

Share price weakness and an earnings-enhancing deal have increased our threeyear
EPS CAGR from 9% to 11% now and reduced the current year 13.2x P/E and
11.8x EV/EBITDA multiples down to 12.0x and 8.4x, respectively, by FY21.

[rivaldo] 31/10/2018 09:52

Loads of news flow over the last couple of weeks on the web site, but these in particular are worth mentioning.

Firstly, PTSG have secured a multi-services contract at VISA's centre in London - this is the type of cross-selling win which PTSG's strategy is all about:



"Highly trained engineers from across PTSG’s four divisions will attend the site to provide lightning protection, fall arrest works, high-level cleaning, fixed wire testing and portable appliance testing (PAT).

The Group was awarded this contract as the client was specifically looking to source multiple niche services from just one provider."

Secondly, there's been a plethora of wins in sprinkler systems, fire services etc:

New residential development in Wembley:


New development in Tottenham:


DLR railway station:


New hotel in London's Trocadero:

[rivaldo] 18/10/2018 14:41

RNS - Danske Bank have increased to 4.64% from 3.3%, and now have a total of 6.18m shares:

[garfield31] 16/10/2018 07:23

Impressively small discount

[rivaldo] 16/10/2018 07:10

...and there we have it - 157.5p, which is a tiny 2.2% discount to the prior share price:



It's a shame this wasn't finalised before the market wobble as they may have achieved say 165p, but overall this doesn't make much difference given the excellent nature of the acquisitions lined up.

[apad] 15/10/2018 20:57

I prefer the smaller acquisitions, riv. A nice bunch of £4/5million - easier on the digestion
Having said that the Guardian website and their directors look impressive, and their software is very interesting. They've about 5 jobs on offer.

apad😎

[eezymunny] 15/10/2018 20:31

Would you care to withdraw the "stalking" comment and apologise Rivaldo? This is, after all, a public discussion board.

[rivaldo] 15/10/2018 18:09

Excellent news tonight - a £20m fundraising to allow what looks like a very good £11m (net of in-house cash) acquisition in Electrical Services, which will be earnings-enhancing in the first year.

And will facilitate further acquisitions which are already lined up, including one in the Fire division.

No doubt the bookrunners will complete matters pretty quickly and we'll get a pricing RNS tonight or tomorrow morning.

An initial £11m looks a bargain relative to the acquiree's historic £8.3m revenues and £1.8m operating profit - together with high cash generation, a better debtor profile and also their own complementary and proprietary software:



OT : EezyMunny's slipping - it took him a whole 8 minutes to stalk me today :o))

[eezymunny] 15/10/2018 14:44

B&Q sells hosepipe to retired gardener in Devon - BUY!!!!

[rivaldo] 15/10/2018 14:36

Lots of news flow on the web site, but here's just one which is more significant, being this prestige - and possibly quite large - job installing sprinkler systems in a redevelopment at Regents Crescent in London:



"PTSG installs sprinklers at new landmark development

Premier Technical Services Group PLC’s (PTSG) Fire Solutions division is currently working on installing sprinkler systems to a landmark development at Regents Crescent in London.

The Grade I-listed Regent’s Crescent links the West End and Regent’s Park and is set to be converted back to the residential use for which the original 19th Century building was intended.

etc"

And more good PR for sprinkler systems post-Grenfell here:

[garfield31] 12/10/2018 08:29

Recent market upset providing an attractive entry price. Purchased at 160.04. Thanks for your efforts Rivaldo.

[rivaldo] 02/10/2018 11:30

A sudden burst of buying, the most recent being £21,000 at 189p, has caused a nice rise.

Perhaps an overhang has been cleared.

EDIT - or perhaps not :o))

[eezymunny] 27/9/2018 13:47

Aldi sells prestigious and technically demanding screwdriver for £2.99. Payment due 2023. Buy!

[rivaldo] 27/9/2018 12:41

Lots more news flow, including this which looks sizeable given Biffa have almost 200 sites across the UK:



"Premier Technical Services Group PLC’s (PTSG) Electrical Services division has been contracted to provide fixed wire testing for Biffa, the UK’s second-largest waste management company....

...This contract will see electrical engineers visiting all Biffa centres across the UK, including waste management sites, head offices and distribution centres. Fixed wire testing is a vital service protects buildings and employees from the two main electrical risks: fire and electrical shock."

And this is a prestigious - and likely technically demanding - win:



"PTSG works in style at the Versace Tower

Premier Technical Services Group PLC’s (PTSG) Access & Safety division has secured a high-level design and installation contract with Britain’s first fashion-oriented homes.

The Versace Tower in London has been named ‘Britain’s first branded building’. Located in Knightsbridge, building work on the tower began in August of this year and is due to reach completion in late 2020. The tower is 50-stories high, with options ranging from one-bedroom apartments to entire-floor studios.

PTSG’s skilled team will work on a 3D building information modelling (BIM) compliant design for its supplier to manufacture. Once these steps have been completed, engineers will then be able to begin installation work on site.

Engineers are due to visit the site in the latter half of 2019 to begin the work. PTSG’s qualified engineers have a vast amount of experience working for prestigious, high-profile clients such as this, having recently completed several access and safety projects for Burberry."

[chasbas] 26/9/2018 10:55

Thank you Rivaldo for a valuable summary. Much appreciated as I am a strong holder.

Some previous posters are critical of the accounts. Their view is supported by Stockopedia which gives PTSG a StockRank of 28 (out of 100) with StockRank Style: Momentum Trap, and Risk Rating: Adventurous. Scores high for Growth and Momentum. Scores low for Quality and Value. Paul Scott is not a fan either.

I think this a growth v value argument.

[rivaldo] 26/9/2018 10:25

I saw PTSG present yesterday. IMO they were extremely impressive once again and I remain very confident about the future.

In no particular order:

- Electrical Services is twice the size of any UK competitor, but still has a relatively small slice of the market
- BEST testing margins are 15%, and the aim is to get to 30%
- Fire Solutions should achieve £15m-£20m turnover next year (it already has a £10m order book), against £6.2m turnover in the last H1
- PTSG are aiming for an Electrical Fire acquisition before next year's H1
- PTSG have 17,500 customers and 150,000 buildings. No customer has >3% of revenues. And PTSG has no exposure to retail/the High Street
- significant pipeline of acquisitions. 40 potential acquisitions in total, currently working on 12. After a consolidation phase, the next 6 months should be "very active"
- they've looked at 60 companies in the last year, so are very choosy. They want to achieve 10 times their money from acquisitions
- there's "no pressure on margins whatsoever"
- high barriers to entry. It's difficult for others to compete with PTSG's scale and efficiencies
- £3.5m of cross-selling in H1, and should double this year
- PTSG achieve £1 of additional service/maintenance revenues for every £1 of new business won, so high recurring income
- Fire Solutions have a £54m business pipeline, with a 6-9 months time lag. PTSG win 1 in 4 in that division, and 1 in 2 to 1 in 6 elsewhere
- re acquisitions, PTSG won't pay more than a multiple of 5 times PAT unless in special circumstances given the quality etc. Pipeline will cost from £1m to £15m each
- debt reduction in H1 was ahead of expectations. PTSG are aiming at a £4m reduction in the year, and achieved £2.2m in H1
- re debtors, DSO is around 130 days for the core business. This is standard for the industry. It's slow, and PTSG are improving - see the improved 81% cash conversion - but this is just a feature of the sector. On the flipside there is very little bad debt given the blue chip customer base

[mw8156] 26/9/2018 08:56

looks as though they're lining up further acquisitions, which are going to complicate the accounts interpretation, in electrical fire safety as they are already strong in mechanical fire testing.