Premier Technical Services Share Discussion Threads

[alamaison5] 11/5/2019 12:59

After reading the last 10 RNS, ex the auction one lol, I came to the conclusion that this company is undervalued by a good 20%.
I bought at 76 on Friday and the rise should last at least anther 2 days.
A one day pullback, Wednesday, then 2 more days in the blue. I will buy every low (75/76p) if it happens, which I doubt very much.
The latest financials indicates that the market think so too. Re-rating actually has already started. Everything seems to coincide with the chart technicals which is great news. Should we hit 100p by the end of next week? Very plausible.

[riverman77] 11/5/2019 11:05

Why engage with the weirdo? Just filter as I do.

[threeputt] 10/5/2019 22:14

Eezy, then you should be short on ptsg given your belief ?

[riverman77] 10/5/2019 20:06

Good summary of the business model. Yes there are lots of small regional players providing these services, but if you're a big blue chip company operating lots of sites there are huge advantages with a one-stop provider like PSTG.

Moreover given the critical nature of the work, companies aren't going to risk using the very cheapest provider. PSTG has a strong reputation which counts for everything.

Poor cashflow has been continuously raised as an issue here. While this is something to be take into account, it doesn't automatically make something a bad investment. I think it is almost inevitable for an acquisitive business operating in this sector. Based on my analysis, I'm pretty confident cashflow will improve and very comfortable with the company's prospects.

[rogers8] 10/5/2019 19:48

EezyMunny,

There is no match to your lack of understanding of the UK Facilities Management compliance sector. PTSG is a buy and build model, consolidating regional businesses into a nationwide solution.

If you are a multi-site organisation, you can contract with one of the UK PLC FM organisations for compliance services (expensive and risky (Carillion/Interserve) or deal with lots of regional businesses to fulfil not sending the board of directors to jail. PTSG has become a one stop national shop for compliance which is a more cost effective route and simpler solution that the two alternatives.

This type of budget is driven by legislation and would be a the top of the spend list for most mature organisations.

£200m Government funding for cladding replacement will benefit PTSG. The larger multisite organisations will want to use PTSG. One company, one big invoice, one solution.

Debtor days is an issue but getting better. There is a simple solution. PTSG does not issue the compliance certificate until payment is made.

I am part owner of a UK national FM business. Having met the directors of PTSG and understand the strategy I am very comfortable with the plan. UK PLC FM share prices have been battered. This is a high margin business with 88% renewal rates and long term contracts and growing.

At some point PTSG will be purchased by one of the big FM companies. John Foley has a successful history building a nationwide FM business and selling the company to a large player:

hxxps://www.birminghampost.co.uk/business/maclellan-group-goes-to-interserve-3983203

Major top up today.

[opodio] 10/5/2019 16:27

"I commented in our 2018 results announcement on 26 March 2019 that 2019 had started well as we continued to deliver against our strategy to seek sector dominance in the markets we serve, which are underpinned by compliance demand. That position is unchanged, trading continues to be strong and the Board remains both confident and enthusiastic about the Group's prospects and performance. I look forward to updating shareholders on the Group's continued progress at the time of its AGM on 17 June 2019."



17 june will fly ahead

[longshanks] 10/5/2019 16:19

Eezy - I think you have a fair point to make on the sluggish cash flow but as to your adage, I think the saying is:Revenue - vanityIncome (profits) - sanityThe company is profitable and using P/E ratio is an acceptable investment metric, so you are wrong to criticise that.

[miahkaysor] 10/5/2019 15:31

Great recovery story!!!!!



nai.dyor etc

[rivaldo] 10/5/2019 15:11

Enjoy your weekend EM. You certainly work hard for your corn :o))

[eezymunny] 10/5/2019 14:58

If I said to you that my corner shop is a prime supplier of bread and that it's set to corner 70% of the UK bread market...etc etc

Effing laughable IMO.

[eezymunny] 10/5/2019 14:56

So no then. You don't have any idea what share of the cladding installation market PTSG have, and the idea that they might get a big chunk of these jobs is just RivaldoHopeAndDream?

[rivaldo] 10/5/2019 14:49

Maybe there are indeed lots of installers of sufficient size who have all the requisite skills to cope with a nationwide surge in demand for cladding replacement on high-rise buildings at short notice.

Or perhaps not. We shall see:





Extracts:

"PTSG’s rope access and fire solutions teams have worked on a number of private and public sector building removing and replacing cladding over the last 12 months. The team consists of some of the industry’s leading building access specialists."

"All PTSG’s sprinkler systems for commercial and residential buildings are installed in accordance with the BS9251 standard and wet risers are installed to the current BS9990 2015 standard. PTSG’s specialist Building Access and Fire Solutions teams offer a wide range of services to ensure the safety of building users in the event of a fire, including safe cladding installation, wet and dry-risers installation and maintenance, sprinklers and other extinguisher systems, fire alarms and emergency lighting installation and testing."

"Maintenance and installation work on high-rise buildings can be extremely difficult, with most access methods inadequate for the job, either because of cost or practicality. Our skilled rope access teams can remove and replace cladding on buildings of all heights, with no disruption to tenants or unsightly scaffolding.

We can also remove samples of cladding quickly and without any disturbance to building occupants when required for testing or inspection."

[eezymunny] 10/5/2019 14:38

"Prime role in the sector"??? What exactly do you mean by that? Do you have some info about market share?

There are lots of cladding installers. The idea that PTSG will pick up some huge slice of these contracts is pure fantasy IMVHO.

[rivaldo] 10/5/2019 14:11

£200m is to cover 150 high-rise blocks, so at say £1.3m per block, and given PTSG's prime role in the sector, they should be in a position to pick up a material amount of work.

And on top of that there's the work flow to come from all the buildings which are likely to install sprinkler systems over the next few years as a further consequence of Grenfell.

[eezymunny] 10/5/2019 13:33

Am I missing something. Is PTSG the only company in the world that does cladding? Sounds like there might be 150 very small contracts, and maybe PTSG will do a few. #

Huff puff puff. Show me the cash flow.

[rivaldo] 10/5/2019 12:45

It's also interesting to note, regarding yesterday's story re the Government's proving £200m for cladding works, that owners of buildings will have just three months to claim the funds.

Which suggests that there will be an imperative to get the works completed relatively quickly.

Apparently "166 private buildings out of 176 identified with the cladding after the fire in June 2017 have yet to start removing the material":



"The £200m bill to replace Grenfell Tower-type cladding on about 150 private high-rise blocks in England is to be met by the government."

"Owners of private buildings will have three months to claim the funds, with one condition being that they take "reasonable steps" to recover the costs from those responsible for the cladding"

[eezymunny] 10/5/2019 12:03

Oh dear, still harping about the P/E ratio. That only means something if the cash flow supports it. So far it has not IMVHO. Still harping about adjusted numbers when the adjusted numbers have been miles different from the bottom line.

Same old same old.

[cockerhoop] 10/5/2019 12:02

Trinity's performance should be amazing this year seeing as they paid PTSG £1.6m to improve it ;-)

[rivaldo] 10/5/2019 11:50

As SCSW pointed out, PTSG’s free cash flow in 2018 increased by 152% year on year to £7.3m before restructuring costs, with underlying trading cash conversion increasing by 7 percentage points to 72%.

With 13.5p core EPS forecast by analysts this year the P/E remains crazily low.

And "This year will also see the first contribution from Trinity, which will help take compliance and testing to 70% of the business, reducing installation to 30%".

So PTSG will benefit for years to come from high recurring income necessary to meet regulatory standards and compliance.

[eezymunny] 10/5/2019 11:22

Ah good, so you agree that cash flow is awful. And you're ramping it at 30 x PAT!


LFMO lolol :) ;) ;) :)

[hatfullofsky] 10/5/2019 10:48

Profit after tax = £3.05M
Net Cash from Operations = £2.964

Read a few books.

As with all idiots you join the filter list

[hatfullofsky] 10/5/2019 10:32

So you compare adjusted profits to cash flow - idiot