Premier Technical Services Share Discussion Threads

[melton john] 21/3/2018 10:27

I guess some of the price fall recently is option holders cashing in some shares to pay income tax liability from the share issue which they have to pay whether long term holders or not. The higher the price the less shares they have to sell to settle their liability.

[eagle eye] 21/3/2018 10:25

Account receivables grew from £19.1m to £30.4m, up 59%.
With revenue of £52.9m, that is over 50% of last year's turnover. This is disappointing and needs to improve IMHO.
Management does say 'We are a well financed group and expect to make improvements to operating cash flow and net debt throughout the year'.
Hopefully this will be evidenced in the next set of results.

[rivaldo] 21/3/2018 09:44

Numis today reiterate their Buy and 220p target:



OT : there is no material debt provision or indeed mention of bad debts anywhere AFAICS, apart from the teeny-tiny Carillion fully provisioned debt, whose work will be taken on by existing PTSG clients anyway per the previous RNS.

If there are any negatives, they're to be found in the exceptionals which include very high share option costs. These are a function of the share price rise in the last year, and frankly given the terrific job that the PTSG team are doing I can't begrudge them their rewards.

[masurenguy] 21/3/2018 07:45

Solid financial performance given the synergistic acquisitions made over the past year. This is one of the few buy-and-build strategies that I have confidence will both work and provide a very effective platform (excuse the pun) for future growth in both sales and profits.

Profit before tax was £1.8m (2016: £2.6m) and is stated after £8.4m (2016: £4.8m) of adjusting items. Adjusting items are either non-recurring or non-trading in nature and comprised £3.0m (2016: £1.9m) in relation to share option costs granted to Directors and employees, contingent payments of £3.6m (2016: £1.9m) associated with acquisitions in accordance with IFRS 3, of which £2.0m related to the acquisition of BEST, amortisation of acquired intangible assets of £0.4m (2016: £0.5m) and restructuring costs of £1.4m (2016: £0.5m). The interest charge and other financing costs were £0.6m (2016: £0.5m). This increase was due to planned increased borrowing levels principally as a result of the cash payments for acquisitions and an increase in finance lease charges in relation to the Group's larger vehicle fleet.

Adjusted earnings per share increased by 28% to 9.73p (2016: 7.63p). £1.5m of dividends were paid during the year and the Board is proposing a final dividend of 0.8p per share. This represents a 14% increase on the 2016 dividends and is in line with our progressive dividend policy. Statutory earnings per share was 1.37p (2016: 2.61p).

Net debt

Net debt at 31 December 2017 was £18.3m (2016: £13.6m). The increase in the reported number followed £4.4m of acquisition related costs, £0.7m property mortgage inherited as part of the BEST acquisition and an increase in working capital due to the substantial increase in the size of the Group. As anticipated the year end figure was negatively impacted by very high installations in the fourth quarter. We have already seen a substantial correction in 2018 and expect to continue making further improvements to net debt and free cash flow throughout the year. Our banking facilities provide the flexibility to manage this volatility.

Trade and other receivables increased by £11.3m to £30.4m with the three acquisitions adding £4.8m. Year end receivables were elevated due to the strong Q4 trading performance. The Carillion liquidation and their outstanding net debt of £0.3m has been fully provided for in the 2017 balance sheet.

We have a long term relationship with our bankers, HSBC, having been a customer for over ten years which enables us to develop our facilities in line with our increasing profitability. The Revolving Credit Facility, taken out in 2015, was increased to £12m during the year to give us additional flexibility for the future, the terms and interest rates remaining unchanged. We continue to trade well within our banking covenants with head room remaining for future growth.

Acquisitions

We acquired two lightning protection businesses in 2017, Nimbus and BEST, for a total consideration of £21m, £6m of which was deferred and is contingent on the continued employment of the vendors for a minimum 18 month period. We also acquired UK Sprinklers Ltd in September for a total consideration of £2.5m, £1.2m of which was deferred and is contingent on the continued employment of the vendors and the achievement of stretching milestone targets. These acquisitions were funded in accordance with our financial strategy with the Nimbus and Sprinklers acquisitions being funded from our own resources, where as the sizeable acquisition, BEST, was funded by a placing of 12.5m shares at a purchase price of £1.20. These acquisitions had a significant impact on the closing balance sheet adding £13.8m to goodwill, £1.1m to fixed assets, £1.0m to net current assets and £0.7m to debt.

Outlook

We believe that 2018 will be another year of earnings and revenue growth. We are a well financed group and expect to make improvements to operating cash flow and net debt throughout the year.
We believe that the Group remains well placed to deliver on our strategic priorities.

[jaf111] 21/3/2018 07:34

Agreed Rivaldo....another cracking set of figures and clearly much more to come in 2018 and beyond.

[rivaldo] 21/3/2018 07:16

Outstanding results - 9.73p EPS is well ahead of Numis' forecast 8.7p EPS. Big increase in the dividend too:



The outlook is incredibly confident, and there are some lovely extracts....

- "in the area of fire solutions, we are experiencing astonishing demand for our services"

- "Trading in 2018 has started well. We continue to review a number of acquisition opportunities and the Board is confident that the Group's positive organic revenue and profit momentum will continue throughout the year"

- "We continue to see exciting opportunities for both organic and acquisitive growth for all four divisions"

There are lots of other choice phrases. Very happy holder!

[cottoner] 20/3/2018 11:42

Nice award to win just before the results are announced.


Premier Technical Services Group PLC (PTSG) is celebrating after being crowned the winner of the Tomorrow’s FM Awards 2018!

The seventh Tomorrow’s FM Awards winners were announced on Monday 19th March. The awards are held annually to recognise the most innovative products and services introduced in the facilities management industry in the last 12 months, looking for initiatives that improve customer experiences and driving the industry forward.

PTSG was awarded first place for its bespoke all-in-one software system, PTSGClarity. The system has been developed to automate PTSG’s working processes and has helped drive improvements across PTSG’s four divisions, making the company’s operations unbeatably accurate and efficient. PTSGClarity has been developed by an in-house team and has provided visibility across the business, seamlessly integrating service delivery with back office systems.

On announcement of the award, PTSG’s Chief Executive, Paul Teasdale said: “Winning this award is a fantastic achievement for the business and is a testament to the hard work of our dedicated team of developers, who have strived to make the programme as effective and responsive as possible.

Paul added: “At PTSG we pride ourselves on leading the industry in innovative working practices and this award is further evidence of our dedication to this. This approach has helped us enjoy fantastic growth in recent years and we look forward to an even more prosperous future servicing our customers to the very highest standards.”

[twirl] 20/3/2018 09:55

Yes looking fwd to results

Share price since director sales has suffered from the increased supply caused by offloading by the short term buyers of those shares. IMHO

[threeputt] 20/3/2018 09:53

careful about raising expectations, in-line for 2017, it was the 2018 expectations that were above:

"results for the year ended 31 December 2017 are anticipated to be in line with the Board's expectations.

In addition, the Board expects that the results for the year ended 31 December 2018 will be materially ahead of current market forecasts"

[jaf111] 20/3/2018 08:22

Looking forward to results tomorrow....

Share price has drifted back to around where it was pre trading update mid Jan when it announced results "will be materially ahead of current market forecasts"

With so many new contracts it will be interesting to see some indication of how current year has started.....

Fingers crossed... esp since I have recently doubled up my position LOL

[rivaldo] 16/3/2018 12:13

Good to see PTSG not only doing prestigious work at the Control Tower at Heathrow, but also being used on behalf of the "mighty" (ho ho) Mitie, who no doubt have plenty of other work for PTSG to do:

[rogers8] 15/3/2018 15:14

413,415 shares purchased so far today.

[rogers8] 12/3/2018 08:26

fizzypop

Many thanks

[fizzypop] 11/3/2018 16:46

Rogers8

Premier Technical Services Group PLC ("PTSG" or the "Group"), the niche specialist services provider, is pleased to announce that its results for the year ended 31 December 2017 will be announced on Wednesday 21st March 2018 not Tuesday 20th March as previously announced.

[twirl] 08/3/2018 08:30

IG 185/192 10k/50k

flippers still at it?

[rogers8] 07/3/2018 16:16

Hi rivaldo,

Many thanks for the constant updates. Results on the 27th should be stellar. I have been topping up over the past couple of weeks. Good times are coming.

[rivaldo] 07/3/2018 13:48

Looks like a big contract win at Hinkley Point C:



"PTSG supports worker’s village at Hinkley Point C with lightning protection contract

Premier Technical Services Group PLC (PTSG)’s Electrical Services division has been awarded a contract to provide installation of lightning protection at a worker’s village at Hinkley Point C Power Station.

The vast workers village provides 1,496 en-suite bedrooms across 44 buildings at two key locations. It is considered to be the largest hotel-style development in Europe in over 25 years, equivalent to a three-star hotel.

Specialist engineers will attend the site at Hinkley Point to install lightning protection at the 44 accommodation blocks, ensuring all systems comply with relevant safety standards and protect the buildings in the event of a strike."

Along with three other new lightning protection and aerial service contracts:

[twirl] 05/3/2018 18:23

I agree with Felix ....Work for developers has drawbacks and no doubt reflects in the high debtors. They are late payers and try to knock down the contactor invoice knowing they need the money.

It would be informative to know how much of the debtors are with developers.

[simso] 05/3/2018 15:23

In the last Reported numbers at the Interims, a "timing difference" on Cradle installations had a large impact

" timing of the completion of some high value cradle installation turnover declined 5% to £9.1m in H1"

I am sure Paul Teasdale has said before that individual Cradle jobs can be as high as £1m...and PTSG are sensitive in guiding the Market because adverse weather can delay a job into a new half or year, and have a material affect on the numbers.

It all hopefully means this London Wall job is reasonably sizeable!

[felix99] 05/3/2018 14:31

they don't buy anything far from it. They price with a fixed mark up pretty well and its take it or leave it - they have more business than they can handle so the last thing they will do is cut margins!

If anything they can probably increase them if they wished.

[redartbmud] 05/3/2018 14:18

I hope that they aren't operating on wafer thin margins to 'buy' contracts from the competition aka Carillion.
If they are pricing sensibly then the next set of results should see some further improvement in profitability.

[twirl] 28/2/2018 14:28

thanks rivaldo

Also I understand that the demand for compliance work from PTSG by councils has been high.

[rivaldo] 28/2/2018 13:39

Looks like a big new job for this H1 - and particularly great to see the Haymarket Theatre coming back after 10 years of disuse:



"PTSG setting the stage with a roof over the Haymarket

Premier Technical Services Group PLC (PTSG) is undertaking a project that will enable the Haymarket Theatre in Leicester to reopen for use after over a decade.

PTSG’s Electrical Services division has been contracted by the Haymarket Consortium to deliver the work which is part of an extensive refurbishment.

The Group’s specialists have removed the existing roof system at the venue to provide a new roof covering and the installation of edge protection and lightning protection systems. The team will also issue a Pass certificate of compliance. The new system will maintain the building’s safety and structural integrity in the event of a lightning strike.

Originally opened in 1973, the Haymarket Theatre is undergoing an extensive refurbishment, with 800 new seats and new sound and lighting systems being installed. The updated site will house a café/bar as well as modernised foyer and entrance areas. Doors are set to re-open to audiences in Spring 2018.

PTSG Electrical Services provides lightning protection design, installation, inspection, test and maintenance, as well as PAT, fixed wire test and repair and emergency lighting testing. With more than two centuries of collective experience in designing, supplying and installing lightning protection and earthing systems, PTSG’s team brings a tremendous amount of knowledge and expertise to any project."

And another new contract:



"Protecting Newbury’s historic landmark

Premier Technical Services Group PLC (PTSG) has completed the upgrade of essential safety equipment to Newbury Town Council’s historic headquarters.

etc"