Premier Technical Services Share Discussion Threads

[onjohn] 05/4/2019 22:01

FUNNYZ SMELLS

[cockerhoop] 05/4/2019 21:30

The RNS of 15th Oct 18 stated they were in advance negotiations to buy a Fire Solutions company (presumably Trinity) for £4m (they ended up buying it for £10.8m) but gained £1.6m in consultancy work from Trinity in late 2018.

[cockerhoop] 05/4/2019 12:44

I notice none of the bulls here commenting on the £1.6m of consultancy 'work' for Trinity. This allowed the £14m adjusted profit hurdle to be hit in 2018 gifting him a further 2.5% of the company. When Trinity was then purchased in Jan 2019 the price was substantially higher than outlined in the placing documentation. Coincidence?????Glad to be a 'misguided soul' (though not short) :-)

[buffetteer] 05/4/2019 12:28

There’s a 0.6% short which can’t be helping - misguided souls

[eezymunny] 05/4/2019 12:24

Hmm falling on heavy volume after instis have had a chance to digest accounts and see how little cash is being generated? Very healthy!

[rivaldo] 05/4/2019 12:17

Think that's already happened :o))

Now up to almost 2.5m shares traded today. Very healthy. Let's see what happens from here.

[eezymunny] 05/4/2019 11:50

Or perhaps the start of a sustained period of institutional selling after results?

[rivaldo] 05/4/2019 10:49

Interesting to see 1.02m shares just notified at 104p - perhaps the clearance of an overhang.

[swiss paul] 04/4/2019 20:03

Bilby? can you expand pls river

[riverman77] 04/4/2019 17:32

This is now back at recent lows, very strange given decent results. I feel there is just huge negative sentiment over the outsourcing sector rather than anything company specific. The disaster at Bilby probably doesn't help, but this seems to be doing ok. Still not brave enough to get back in but keeping a close eye.

[rivaldo] 02/4/2019 07:24

Very nice contract win with the rather huge Sodexo, with "a great many more to come":



"Testing times with new Sodexo contract

Premier Technical Services Group PLC (PTSG) has signed a new contract with Sodexo, the French food services and facilities management company, for supplying testing services across multiple disciplines.

Sodexo is one of the world’s largest multi-national corporations, with 420,000 employees representing 130 nationalities. They have a presence on 34,000 sites in 80 countries. PTSG has been contracted by Sodexo on numerous occasions over the past few years, with a notable project taking place at Diageo’s London headquarters. In the new contract, PTSG has secured work at eight sites so far, with a great many more to come.

Engineers from across the Group’s Electrical Services and Access & Safety divisions will carry out the testing of lightning protection systems, fixed wire and portable appliance testing and the testing of fall arrest equipment.

PTSG’s contract with Sodexo is typical of the Group’s multi-disciplinary capabilities. In supplying a number of different services, clients can save a considerable amount of time, effort and expense in finding different service providers."

[twirl] 26/3/2019 20:42

Focus on real bottom line rather than topline adjusted revenue.

Another GMAA in the offing eh rivaldo

[cockerhoop] 26/3/2019 14:43

Partridge1948,

No problem - your post prompted me to do a little digging. The 2018 Annual Report is on the PTSG website (they should be commended for being so quick to load). Far too many Red Flags for me here.

Another example - £500k of interest free loans for key personnel. They're behaving like a private company - having a listing does involve some responsibilities.

Fear this will end badly.

[cockerhoop] 26/3/2019 13:49

Gotta love their accounting, so Trinity pay PTSG £1.6m in 'consultancy fees' in 2018 which takes adjusted operating profit above £14m (which gifts Roger T 2.5% of the company) and then in 2019 the auditors suggest the company pays an additional £1.6m for Trinity.

Move along, nothing to see here!!

[cockerhoop] 26/3/2019 13:39

The auditors say the following about the £1.6m of 'consultancy income' from Trinity.

Recognition of other operating income During the year ended 31 December 2018, PTSG
provided consultancy services to Trinity Fire and Security Systems Limited (Trinity) which was subsequently acquired post year end and is now a subsidiary of the Group.

We consider there to be a specific risk associated with the consultancy services given Trinity was subsequently acquired post year end. We have focused on the judgements taken by management in recognising the consultancy services income of £1.6m as other operating income in the current year rather than accounting for the two transactions as linked transactions (by reducing the purchase price by the amount of the consultancy income).

[cockerhoop] 26/3/2019 13:31

Good news for Roger, by adjusting up operating profit to over £14m he gets issued another 2.5% of the company making 10% under the current scheme. Easy to see why they're so aggressive with their adjustments to statutory profits isn't it?

[cockerhoop] 26/3/2019 13:15

Note 6

Other operating income related to the profit on disposal of fixed assets and during the year ended 31 December 2018, PTSG provided consultancy services to Trinity
Fire and Security Systems Limited which was subsequently acquired in a separate transaction and is now a subsidiary of the Group, see note 3 and note 27.

[rivaldo] 26/3/2019 12:43

Good point partridge - I can see that £621,144 of it is "Profit on disposal of property, plant and equipment" as per the cash flow statement, since the comparative is £319,299. The balance is a nice round £1.6m so must be something specific, but I can't identify it immediately.

[partridge1948] 26/3/2019 11:35

A new income line seems to have appeared this year. "Other operating income" was £2221K in 2018 against £319K in 2017 (not disclosed separately as far as I can see last time) and from quick read I cannot fathom what this refers to. Anyone any ideas? Thanks.

[eezymunny] 26/3/2019 09:00

It's very very hard to make a lot of the numbers add up but I only get about £6m as a reasonable number for pre tax cash flow, and that excludes the working capital movements, which are ghastly. That's a very long way from the adjusted profit numbers...