Premier Technical Services Share Discussion Threads

[jaf111] 26/3/2019 08:10

Results certainly look strong with confident outlook.

One minor comment....unless I am going blind I can see no reference to when the 0.9p final divi is being paid / xd date??? Can anyone help.....

[eezymunny] 26/3/2019 08:03

Usual miserable cash flow, share based payments for profits not backed by cash flow, huge increase in receivables, and bottom line profit simply miles below all the headline fluff.

Horrific IMO.

[rivaldo] 26/3/2019 07:31

Terrific results, with 11.86p EPS slightly ahead of Edison's expectations and up 22% from last year.

Nicely confident outlook, with 2019 starting well.

Fire Solutions is roaring ahead post-Grenfell, but it's great also to see Access & Safety and Building Access also expected to continue to thrive.

Debtor days have reduced nicely to 88 days (from 97) and cash conversion continues to improve.

With 13.86p EPS forecast this year, a 124p share price looks extremely cheap imho.

[cockerhoop] 25/3/2019 14:38

HSBC certainly knew Patisserie Valerie inside out :-)

[rivaldo] 25/3/2019 14:31

PTSG are already forecast to make £124.4m revenues this year (2019) and £138m next year, so any decent-sized acquisitions would probably lift those revenues well above your £150m.

One has to assume that HSBC know PTSG inside out by now as long-term clients, and like what they see in terms of blue-chip clients and secure ongoing income streams - even with the poor debtor payment ratios.

[cc2014] 25/3/2019 12:47

Sorry guys I just don't get this.

First half revenue £30m, so double it and add some for acquisitions. It's hard for me to work out the revenue due to acquistions but let's call the on-going revenue £150m.

What are HSBC doing lending them £50m, one third of it's revenue? Have I got the rolling revenue figure completely wrong?

[masurenguy] 25/3/2019 09:53

Yep - John Foley Chairman of PTSG, said:"These enlarged facilities, at better margins, provide us with further headroom to allow PTSG to continue to create ongoing shareholder value through organic growth and carefully selected acquisitions. The new facilities reflect the bank's ongoing confidence in the Group's strategic prospects and credit quality."

And - results tomorrow !

[rivaldo] 25/3/2019 09:00

A vote of confidence from HSBC this morning - extending banking facilities by a further £10m, and at reduced margins too.

So PTSG save money and have further security to allow further growth both organically and via acquisition:

[rivaldo] 13/3/2019 14:05

Hi Mas. Similar to you, maybe more like 60% or so up from memory - plus dividends.

Results are on 26th March, so not long to wait.

[masurenguy] 11/3/2019 23:32

How are you doing here Riv? I'm currently up 51% plus the handy yield of circa 2.2% to oil the wheels. You must have first invested here around about the same time as me - September 2016 - so I would assume that you're ahead by a similar percentage too. Numis raised their target price from 220p to 250p a few months ago so we should see some further gains going forward.

[rivaldo] 11/3/2019 16:14

Absolutely correct EM, you are spot on.

Whilst I've been away the last few weeks PTSG have issued probably another 15-20 news items covering contract wins for individual buildings/awards/appointments etc.

I have merely posted here the one contract win which PTSG have identified as "major".

All the rest of course are interesting to shareholders, and good to see from the point of view of the continuing business, but there's no point in posting everything, just the items which are more significant. I'll continue to pick and choose as I see fit.

[eezymunny] 11/3/2019 15:56

Are you saying then Rivaldo, that most of PTSG's contracts are NOT major???? That, my good fellow, what what I was trying to point out half a lifetime ago....

[rivaldo] 11/3/2019 11:30

Lots of new contract news, but PTSG describe this in particular as a "major" new contract win:



"PTSG to go to school in Swansea

Premier Technical Services Group PLC (PTSG) is to undertake lightning protection remedial and upgrade works for the City and County of Swansea.

In a major new contract, PTSG Electrical Services Ltd. will bring the lightning protection systems at a number of educational establishments, of which there are around 100 in the County of Swansea, up to a first-class operational standard."

[rp19] 10/3/2019 18:14

I am happy for EezyMunny to highlight the bear case. It is not done in a confrontational way and I think it adds to the debate. I hold some as I generally like the prospects but the free cash flow/debtor days is something I am aware of (not unique to PTSG). Debate is good, I don't see why it has to be a slanging match.

[apad] 09/3/2019 10:43

Hi riv,
It's a great privilege having a personal troll.
Never respond in any way, and measure how long it lasts without food.
apad

[masurenguy] 08/3/2019 11:46

Welcome back Riv. His instant reply to your prior post just shows what a sad life he must lead.

[rivaldo] 08/3/2019 09:20

:o)) Been away for weeks and only took 12 minutes for EM to reply! Brilliant.

[eezymunny] 08/3/2019 09:17

You only have to look at a few others in this sector to realise that "a P/E of 9.1" ain't necessarily cheap! Rubbish cash flow, rubbish receivables. Just needs a couple of projects to go wrong and it'll crash like Bilby and many others before it, esp with all that debt...

[rivaldo] 08/3/2019 09:05

Excellent trading update issued whilst I was on hols.

Great to see the improvements in net debt, cash conversion and debtor days. And:

"Trading during the first six weeks of the current year has been strong, and recent acquisitions are performing in line with management expectations."

The results in just over two weeks should provide further pep to the share price.

After the recent Triton Fire And Security acquisition acquisition forecasts for this year are now 13.6p EPS, with a 1.9p dividend.

That's a P/E of 9.1.

[rickstar1] 21/2/2019 10:48

They are on the rise back up slowly.... Fingers crossed, long may it continue!

[eezymunny] 21/2/2019 08:58

They also say "The period benefitted from strong cash collection and improved debtor days on invoiced sales that equated to 88 days at the year end (2017: 97 days)"

I wonder why "on invoiced sales" appears there. Are there a lot more "sales" that are NOT invoiced" ie another big leap in the "accrued income" balance?

Here's what the auditor says about that accrued income balance "Trade receivable and accrued income recoverability"

The Group’s trade receivable balance at the year end
of £21.2m includes £5.4m of balances over 120 days
old that are not impaired. In addition there is a year
end accrued income balance of £9.8m.
We consider there to be a specific risk associated
with the value of these balances given their size and
nature. We have focused on the judgements taken
by management when estimating the year end
provision for impairment of trade receivables and
the timing of recognition and recoverability
of accrued income.
This is a particular area of focus of our audit given
the challenges in the industry, the significant
judgements involved in determining provisions,
and the length of the group’s working capital cycle
on many projects from when work is performed
to when cash is ultimately collected. "

[cockerhoop] 21/2/2019 08:27

That £9m placing inflow obviously disappeared in January with the purchase of Trinity so current net debt more like £20m (and that's if you accept they have £13m cash - the financing of Trinity fails to mention it at all and it produces no interest)

Look forward to the finals.