Premier Technical Services Share Discussion Threads

[gripfit] 19/6/2019 09:27

That's their look out then ,,,,,,

[zipstuck] 19/6/2019 07:26

The Recent contract wins announced were in addition to London underground, BMW and Morrisons announce in the May statement.

[nobilis] 18/6/2019 16:02

Im expecting bad press this weekend. Sunday times could put the nail in

[gripfit] 18/6/2019 14:53

it hasn't spooked the guy who has just bought £88000 worth of them..

[gripfit] 18/6/2019 14:47

Think they know they need to polish up their act, and im sure will address any failings SHOULD there be any .

[zipstuck] 18/6/2019 14:45

ONJohn - of this is correct then then auditors are also responsible and should report to the FCA. If your concerned then perhaps that is what you should do.

If it freed up cash to buy over performing acquisitions for a quicks sale. It was probably cheaper than raising money from more placings and further dilution.

If the value was deemed fair in a buyers market. You cant have it both ways.

I am hoping the review will concentrate on streamlining and improving financials.

[castleford tiger] 18/6/2019 14:10

I think most have a downer on this right now.

Therefore whatever they say will be wrong.

They certainly seemed a committed bunch to me and I look forward to getting a better understanding of how the company is run
Tiger

[onjohn] 18/6/2019 14:08

0 0 1
directors stole the freeholds
Breach of Fiduciary Duty Law and Legal Definition. A fiduciary duty is an obligation to act in the best interest of another party. ... directors had an obligation to act in best interests of the company but instead they wrote down the property and then SOLD it to THEMSELVES




60p for these i says

[onjohn] 18/6/2019 14:06

Looks like a scam

[zipstuck] 18/6/2019 13:58

They did say are reviewing governance STRUCTURES.I Take this to mean reporting lines.

[hatfullofsky] 18/6/2019 13:40

Yes you could argue that they need a governance review .... and they probably do. But announcing it to the market in an RNS is going to spook a few (like me) and the market reaction since the announcement tells its own tale.

[kazoom] 18/6/2019 00:52

Apparently Buffetteer gets it wrong too ... and I wouldn't be so arrogant as to say whether he's right or wrong on this one.

[gripfit] 17/6/2019 22:19

All we need is Marlowe to make a bid , this should fit in very nicely for their plans ,,

[lomax99] 17/6/2019 20:45

Buffetteer - yes he does, and for holders I hope you are right. I held these from sub £1 and glad I sold most of mine at c £1.80. There are some red flags in their financials, amongst other things I was uncomfortable about how regular their BTL adjustments are, including the size of Director share option awards. Happy now to sit on the sidelines for now.

[nobilis] 17/6/2019 19:45

yes he is wrong. This is going to zero

[buffetteer] 17/6/2019 18:33

Lomax99 PS does get it wrong too ...and he’s wrong on this one .

[zipstuck] 17/6/2019 18:11

IOMAX

Thanks for posting this. I don't think Scotty had picked up the implication of taking on a full debtor book against partial year sales.

I expect a big improvement in Debtors and cash flow in the interims


I also note the new contracts . Large companies do pay - in the end. 90 days is not an uncommon way for corporations to pay.

The nature of this business is the ARR which gives support for growing sales.

[lomax99] 17/6/2019 17:45

Here is PS’s Stockopedia comment today:

AGM statement (trading update)

...the niche specialist services provider...
Updates us on its progress to date, for FY 12/2019.

"I am pleased to report that the Group has seen continued sales growth and strong levels of orders in the year to date. In addition, working capital utilisation, margin and profit levels are in line with the Board's expectations.

The recent acquisitions of Guardian and Trinity are performing ahead of management expectations. This underscores our confidence in achieving a successful full year result in 2019.


I wonder what "working capital utilisation" means? Nice and vague. Cash is king.

The big question mark over this group's accounts, is excessive receivables (debtors). This can often be a sign of underlying problems, and for me it's a major red flag here. Directors talk about the group being highly efficient, and managed very tightly, yet they take nearly 90 days to collect in receivables. I don't buy it. There are some adjusting factors, but even after the best possible light is shone on the numbers, the trade receivables number is still way too high.

There are several other red flags with this share, in my view - e.g. completely inappropriate benchmark (EBITDA), and excessive management rewards for hitting that target - i.e. providing a multi-million pound incentive to adopt aggressive accounting techniques.

Numerous acquisitions can also increase risk - as it's more difficult to understand, compare with prior years, or otherwise rely on, the accounts.

I don't accept the explanation given about booking a large, one-off profit for consultancy fees, for a company that was shortly afterwards acquired. The commercial substance of that accounting entry seems to me, to have one purpose only - to boost reported profits.

Bear raid - an interesting shorting dossier was published early this year. It contained some interesting points, but like all such dossiers, was intended to rattle investors, inducing them to sell, so that the short seller(s) could close their positions
at a profit. Therefore all such dossiers have to be viewed in such a light - i.e. as hatchet job, not fair & balanced commentary.

My opinion - if I don't trust the numbers (and therefore management), I don't invest.

This last paragraph today is interesting;

The Board is currently involved in a review of the Group's internal and corporate governance structures. This review follows the substantial growth in the size and scale of the Group's activities since IPO in 2015. The Board will update shareholders on progress in due course."
This begs the question that, if I don't trust management, why would I want them to conduct or even oversee a review?

This one's definitely not for me. I'm happy to be proven wrong on it, but experience has taught me that if the numbers just don't look right to me, then keeping clear is usually the right decision, in the long run.

[zipstuck] 17/6/2019 17:34

Trade and other receivables increased by GBP5.4m to GBP35.8m with the two acquisitions adding GBP2.4m. The acquisitions adversely affect a number of the debtors' ratios because we acquired the full debtor book but only took a proportion of the year's turnover. That said, trade receivables and accrued income, at the reported level, only increased by 13% despite turnover increasing by 31%. Accrued income reduced by 14% to GBP8.4m with virtually all the 2017 balance collected in the year. Trade receivables increased by GBP5.2m, due to a strong Q4 trading performance, with all the increase in the less than 120 days category. The level of debt in the 120+day category (from date of invoice and not due date) fell by 590bps to 20.6% due to improved cash collection.

[eezymunny] 17/6/2019 16:30

So if cash flow looks fine what did you calculate for free cash flow? Or did you just say it looks fine in the same way a glass of wine can look fine til you taste it???

[cockerhoop] 17/6/2019 16:28

CT,

Posts 1253 & 1340 cover some of my concerns.

What was your view of the relationship between executive directors? Were any difficult questions asked and how did they react?

[castleford tiger] 17/6/2019 16:27

I think you are wrong. Cash flow looks fine
Tiger

[nobilis] 17/6/2019 16:22

the cash prob flowing iinto the directors pockets

This could go the way of the dodo