Premier Technical Services Share Discussion Threads

[harrogate] 02/5/2019 16:47

Sorry phone must have been in my pocket. Even for me that is gibberish!

[harrogate] 02/5/2019 16:46

Thanks LThanks Hi p??Plplp has to q????????????????????????????????????????????????????????????????????4???

[gleach23] 02/5/2019 09:32

Tried unsuccessfully to trade this a couple of times in recent weeks. In the meantime, as an ex subscriber to Small Company Sharewatch, I was sent a copy of the April issue last week in which it advocates PTSG as a strong hold @ 127.5p.

Seems to be masses of stock available to buy even at this low price so presumably an institution still bailing.

Should get an AGM statement on 17 June so will continue to monitor.

[castleford tiger] 02/5/2019 09:08

certainly no sign of the bottom and looking like 60 something on level 2

hybrasil.........not sure what you mean?

[hybrasil] 02/5/2019 08:59

Did I get this wrong!!

[hatfullofsky] 02/5/2019 08:35

Wrong board Maddox ?

[maddox] 30/4/2019 21:57

Oops wrong board - sorry

[apad] 30/4/2019 21:11

Some financial ratios from Morningstar

Financial Health 2017-12 2018-12
Current Ratio 1.65 2.01
Quick Ratio 1.52 1.81
Financial Leverage 2.25 1.74
Debt/Equity 0.49 0.26
Long-Term Debt 21.04 13.44

Don't look too worrying.
apad

[apad] 30/4/2019 20:07

Be very interested in your view from the agm, CT.

This is from the current FY:
"Embracing innovation to maintain our competitive advantage• Clarity is the largest investment in technology ever made by the Group• Documentation is generated automatically and instantly• Clarity keeps customers closer to the work undertaken on their behalf"

I seem to remember them making much more of a song and dance about Clarity in the past.

apad

[apad] 30/4/2019 18:02

Cashflow is king in steady state companies, but I'm not enough of an accountant to make sense of the cash flow when there are 5 acquisitions in two financial years.

When I was showing good gains (now 33% down) I used to say that the company had to be run by jack-the-lads because an MBA graduate would not last five minutes.
I'm not so sanguine about related party transaction shenanigans now, even though management owns 40+% and clearly treats the company as their own playground - which it is.

When push comes to shove it's a white van man, roll-up company. Gorra be a nail biting ride.

Thanks for the debate, folks.

apad

[skatersav] 30/4/2019 17:30

Yeah, I think the latter stuff is really interesting.

[cockerhoop] 30/4/2019 16:47

Rivaldo, asked the company about the Interest Free Loans to key staff further up the thread. he suggested it was an upfront payment for a EMI option scheme that will be repaid when the options are exercised.

Another interesting related party transaction involves Foley & Teasdale buying the freehold properties of acquisitions (via Ensco 835) and then renting them back to the company.

[eezymunny] 30/4/2019 15:28

The cash flow statement is all you need to look at IMVHO, to decide if you want to hold this. It's horrible IMO and I wouldn't own it if you got free jam roly poly for life.

Cash is king. Always IMO.

[apad] 30/4/2019 12:25

FY Reporting Period Ends: 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18
Shares Issued (m) 85.9 88.1 96.8 123.2
Employees 457 850
Revenue (£m) 25.8 39.2 52.9 69.1
Revenue Growth 51.9% 34.9% 30.6%
Dividend (p) 1.50 1.60 1.80
Net Cash (£m) (0.32) (13.60) (18.30) (11.90)
EBIT(operating profit) (£m) 5.3 7.9 10.6 14.9
Operating Profit Growth 48.9% 34.9% 40.6%
Cash Flow (EBIT - Investing) (£m) (6.20) 1.42
Cash outflow from investing (m) (3.45) (3.07) (16.80) (13.48)
Revenue/Employee (£1k) 115.8 81.3

apad

[hatfullofsky] 29/4/2019 21:49

+ve

Growing revenues
Good margins
Repeat and recurring revenues
Cash from Ops v close to reported PBT
Legislation supports business model
Acquisitive and consolidating industry

-ve

Short Target
Large receivables
Some receivables > 120days
Debtor risk

SCVR on Stockopedia have a good write up.

No doubt you will read the Final results recently published.

I don’t think you need to rush in here, the sector is out of favour the share price is depressed and the next news is a few months away.

I’ve opened a position and will be adding on positive momentum / news.

It looks solid on fundamentals but needs to get the receivables down and paid faster.

[cockerhoop] 29/4/2019 17:37

Ok i'll start with the bear case:

Red Flags

Large cash balance accompanying large debt - suggests accounts window dressed at period ends - no interest on cash balance.

Large disparity between adjusted and statutory profits

Increasing receivables including accrued income (no yet even billed)

Poor FCF

Directors taking loans from the company

Overbearing executive culture

Amber Flags

High director pay plus additionally gifted 10% of the company for hitting adjusted Ebitda numbers.

Whiffy consultancy fees prior to Trinity acquisition. Auditors considered it of special interest as they do with the level of receivables.

[castleford tiger] 29/4/2019 17:01

Ok this has come to my attention.
No guessing why but it has a HQ in my town.
Read a few posts but could someone summarise their take on this business.
Share price has been hammered since the rights issue but is it justified?
Fast growing and in the right sector.
Seen concerns about payment terms.however margins are big.
Do they rely on 1or two big customers.
Where is the AGM held?
Thanks in advance
Tiger

[maddox] 29/4/2019 16:32

If Lombard Odius wanted to close their short position without moving the price they might just buy the whole lot direct from a large institutional holder - say First Pacific.