Ra Share Discussion Threads

[flc] 18/12/2019 12:27

Thanks rivaldo, a very positive outlook.

[rivaldo] 18/12/2019 12:05

Just the summary from today's Cenkos note - they say RAI look "significantly undervalued"

"RA International Group Plc
Contract win and confident trading update

RA International has announced a new contract win and FY19 trading update. RA has been awarded the second phase of a contract with Cherokee Nation Mechanical LLC, working on behalf of the US Department of State and the Bureau of Overseas Buildings Operations. This second phase of the contract, worth US$9.1m, will see RA providing construction services at a US Embassy in East Africa and should complete by end 2020. We estimate revenue of US$37m plus will be delivered during H2/19 with RA confirming FY19 revenue is expected to be slightly ahead of expectations with profitability broadly in line. This represents a very strong H2/19 performance (over 60% FY19 revenue) with contracts delivered over all service channels.

 New second phase contract with Cherokee Nation Mechanical LLC. The US$9.1m second phase of the contract with Cherokee Nation Mechanical will involve RA providing a variety of upgrade and refurbishment works at an East African US Embassy. This continues and increases the amount of support work RA provides for the US Government. The first phase of this contract, already underway, is anticipated to be substantially complete by 31 December 2019. Phase 2, announced today, is expected to complete by end December 2020.

 Robust trading update with confident outlook. Since admission to AIM in June 2018, RA has increased its focus on customer diversification and broadening its geographic spread, as well as bidding on larger, longer duration contracts. Success from this has been clearly demonstrated with the number of contract awards throughout 2019. With successful delivery of contracts across all service channels throughout H2/19 RA expects FY19 revenue to be slightly ahead of expectation with profitability broadly in line. We have therefore left current forecasts unchanged with our FY19E revenue forecast of US$60.2m.

The current order book is US$148m, with US$55m contracted to be delivered in 2020, representing over 83% of our current 2020 revenue forecast and giving confidence in the outlook for 2020.

The shares trade at a FY19E PER of just 6.1x and EV/EBITDA of 3.3x, falling to 5.8x and 2.6x 2020E respectively, and look significantly undervalued. The 2019E prospective yield is 3.4%, covered 4.7x."

[scooper72] 18/12/2019 09:05

Happy to see my 11000 shares just back in the blue now.

[cheshire man] 18/12/2019 08:57

Very reassuring to see a CFO buying such a large amount in a company, don't feel anything underhand happened here :-)

[flc] 18/12/2019 08:45

Just good to see them on the leader board and getting some attention for a change.

[hiraniha] 18/12/2019 08:42

I went back in at 41 pence this morning.Insiders buying is a relief and reassuring for me.Selling on the other hand, is usually a sign to get out.Happy to hold.

[rivaldo] 18/12/2019 08:23

I topped up with a few more first thing.

Liberum have reiterated their prior forecasts, i.e 8c EPS - or 6p EPS. The dividend is also reiterated at 1.7c.

The coming year's forecast is 8.5c, or 6.4p EPS, with a 2.1c dividend.

[cockerhoop] 18/12/2019 08:10

I certainly don't think it stinks - the update isn't wildly positive. Orderbook is actually down from the Interims, FY19 guidance hasn't really changed and the announced contract for FY2020 is within current forecasts.

[yump] 18/12/2019 07:55

Glad I didnt buy any now its a good contract but the director buys stink.

[cwa1] 18/12/2019 07:52

Less than 2 weeks before an RNS'able contract win and a trading update, that he must surely have been party to, certainly would raise my eyebrow a couple of mil!

[cockerhoop] 18/12/2019 07:50

CWA1,
Did raise an eyebrow......maybe it's not considered material (ie doesn't change 2020 forecasts) so ok.

[norbert colon] 18/12/2019 07:47

If they are just business as usual type contracts and in the f/c as I believe they are then its not a problem for Directors to buy stock.

[cwa1] 18/12/2019 07:46

Anyone else think those director share purchases by the CFO on 4th and 5th December look, ahem, reasonably well timed all things considered?

[rivaldo] 18/12/2019 07:30

Indeed. The slight miss in profit expectations (the clue is in the "broadly"!) is outweighed by (1) the $9.1m contract win, (2) the high contract backlog which is well up on last year (though down on the interims), and (3) the general tone of confidence and optimism.

I imagine 2019's results will now produce around 5.5p EPS (7.4c). Hopefully the 1.7c dividend forecast will remain. Which makes RAI look pretty decent value.

[cheshire man] 18/12/2019 07:15

Very positive update this morning :-)

[cockerhoop] 09/12/2019 08:15

Reasonable takes from the CFO's purchase this close to YE

He thinks the shares are cheap right now.

Results should be inline with previous guidance.

A transformational deal is not about to be announced.

[rivaldo] 09/12/2019 07:25

Not if nothing's been signed yet but discussions are going well.

Or maybe the CFO just thinks the shares are cheap right now.

[shanklin] 09/12/2019 07:24

LOL Rivaldo

Surely that would be insider trading

[rivaldo] 09/12/2019 07:22

Great to see the CFO buying around £64,000 of stock - most unusual to see a CFO buying that much on his own.

Perhaps RAI are finally on the way to achieving one of those "transformational" contracts.

[scooper72] 06/12/2019 17:08

Wish I had averaged down a bit more now. Oh well. At least it's going in the right direction and for such a small company my holding is probably big enough.

[shanklin] 06/12/2019 16:35

This is going to look dreadful if RAI announce trading ahead of previous indications.

[flc] 06/12/2019 16:32

Yes, always good to see a tick up on a Friday afternoon. Hopefully some updates coming through over the next week or so.

[cheshire man] 06/12/2019 16:28

Brought some interest here



RNS Number : 0900W
RA International Group PLC
06 December 2019
6 December 2019
RA INTERNATIONAL GROUP PLC
Director / PDMR Holdings
RA International Group PLC (AIM: RAI) ("RA" or "the Company") announces that it has been notified by Andrew Bolter, Chief Financial Officer, that on 4 December 2019 and 5 December 2019 he purchased Ordinary shares in the Company as follows:.

Number of Shares Purchase Price Date of Transaction
Acquired
50,000 0.3440 GBP 4 December 2019
--------------- --------------------
70,000 0.3440 GBP 4 December 2019
--------------- --------------------
15,715 0.3460 GBP 5 December 2019
--------------- --------------------
50,000 0.3400 GBP 5 December 2019

[shanklin] 28/11/2019 18:27

It maybe trading fine but, if it is, one wonders why the share price just goes on drifting downwards. I have exited at a notable loss over the week or so but will happily buy back if it’s less of a sh1t show than the share price is currently suggesting.

Great shame the news flow is so poor.

[scooper72] 28/11/2019 17:55

...took a few profits....