React Share Discussion Threads

[yump] 03/7/2020 13:06

I think its fairly, or perhaps even generously valued, considering it hasn't actually delivered £300K profit yet. That would be 0.06p earnings.

Earnings of 0.06p and a p/e of 20 would put it on 1.2p.

There isn't a history of solid high growth, so I don't see how the p/e would be up around 30. There's also an assumption that margins will improve, but I think there will be increased costs compared to the past, because they are recruiting new people and will probably have to upskill them. Also cleaning will be slower. They may of course charge more per hour to compensate, which would make sense.

Perhaps someone has some data on rates. In theory they should rise as demand has risen.

[zico01] 03/7/2020 12:51

REAT is significantly under valued .

[zico01] 03/7/2020 12:49

SICKINTHEHEAD,

go your TLY forum

[sikhthetech] 03/7/2020 12:49

Marvelman,

Agree, it is not easy to come up with a value as more information and clarity is needed.

Perhaps the brokers will provide some clarity soon, especially as we're already in Q4.

[sikhthetech] 03/7/2020 12:45

Zico

"full year profit of approx. £0.3 million"

Fy profit of only £300k when they gained a huge amount of work due to Covid!!!

They are Covid dependent.


Without proper forecasts, the potential is already factored in the price.

[zico01] 03/7/2020 12:33

My post again:


All waiting for the broker forecasts to put a reasonable valuation on the company :

In my opinion brokers will say revenue for year ending September 20 to be in the region of £4.4m ( which they will significantly exceed see my post 715 ).

Taking this low end revenue number £4.4m compared to mkt cap of £6.6m @ 1.325p is rated at 1.5 times.

Comparing this to BYOT ( nearest comparison ) revenue of £6.0m mkt cap of £24.0m is rated 4 times.

If we have the same rating as BYOT our price should be 2.67p.

[zico01] 03/7/2020 12:31

REAT @ 1.35p is siginificantly under valued let me re cap ( we were interrupted by SICKINTHEHEAD )


The recent H1 results show revenue of £2.091m but not much covid-19 related work may be about £100,000 ( £0.1m ) towards back end of March.

April May June they must have been getting at least £200,000 extra per month for covid-19 ( FirstResponsecleaning ).

They still have another quarter to go for year end ( September ).

Taking account of all the contracts in place for regular maintenance work i feel H2 revenue could be in the region of £3.0m and gross margins to improve further may be 35.0% giving gross profit of just over a £1.0m.

Full year revenue of approx. £5.0 million
Gross profit of approx. £1.7 million
full year profit of approx. £0.3 million

[marvelman] 03/7/2020 12:30

zico...my post was just a discussion, not a contradiction. With this company, in effect, still in its early stages of development from my perspective it is not easy to value by P/e. Clearly, with a gross margin of 33% then overheads become less of a heavy burden as additional revenue converts readily to the bottom line. So far to go here for the patient investor.

[zico01] 03/7/2020 12:01

stt

Are you sick in the head i'm not interested in TLY.

[zico01] 03/7/2020 11:59

stt

go back to TLY forum

[zico01] 03/7/2020 11:56

stt

You best stick to TLY the loss maker ( with it's £80m sales hahahahahaha )

[sikhthetech] 03/7/2020 11:56

Zico,

TLY is growing exponentially and is not dependent on Covid...
REAT or BYOT are not growing exponentially and are dependent on Covid.

Finncap, Byot's broker, expectation for Byot is an increase in adj ebitda from £250k to £1.1m and pre-tax profit of £700k... Given Covid is a huge opportunity for cleaning companies an increase in expectations of only £800k for adj Ebitda is pretty poor.



TLY's mcap is similar to Byot, yet their fundamentals are significantly better..


TLY as per their TU, results this month..

EBITDA £3.5m-£4m - AHEAD of expectations of £3.4m
Revenue £100m-£120m, below expectations of £120m
Cash: £8.9m

Mcap=£39m

[zico01] 03/7/2020 11:54

In the 6 months margins increased to 33.2% and are likely to increase further in the 2nd half.

We will be making profits.

[zico01] 03/7/2020 11:46

stt

TLY is still a loss maker with it's sales , cannot be compared with REAT or BYOT

[sikhthetech] 03/7/2020 11:41

Zico,

Why do you say Byot as nearest comparison? They are completely different.
REAT is a cleaning company, they provide the cleaning service.


Marvelman,

if you use Zico's calc and use revenue and apply 4 x revenue then TLY should be £500m company or 300p... against the current 20p!!!

[zico01] 03/7/2020 11:39

marvelman,

can you explain how you would value BYOT @ 24.0m with just £0.2m profit

[marvelman] 03/7/2020 11:34

Just added a further 300k at 1.38

[marvelman] 03/7/2020 11:31

zico...surely you should be using profit rather than revenue to fairly rate the company against peers. I believe Effortless Cool has had a good stab at that but with revenue increasing at a pace it is like a moving target to pin down with accuracy. However, from the last half year report I am pretty confident in seeing only upside ahead particularly now that covid or variants of it will be an ever present issue for companies to address.

[zico01] 03/7/2020 11:08

All waiting for the broker forecasts to put a reasonable valuation on the company :

In my opinion brokers will say revenue for year ending September 20 to be in the region of £4.4m ( which they will significantly exceed see my post 715 ).

Taking this low end revenue number £4.4m compared to mkt cap of £6.6m @ 1.325p is rated at 1.5 times.

Comparing this to BYOT ( nearest comparison ) revenue of £6.0m mkt cap of £24.0m is rated 4 times.

If we have the same rating as BYOT our price should be 2.67p.

[jeanesy] 02/7/2020 16:30

All very quiet here today.

[yump] 01/7/2020 18:02

Brokers forecasts are funny.
Very often they show faux accuracy, which gives them more face credibility.
So the forecast will be something like 2.15p, not 2p or 1.5p.
... and the numpties pay lots of attention to it every time.

[ged5] 01/7/2020 17:23

Looking at the trades I think the only reported buy that may be a sell is the 999333.

If that is the case then more buys than sells.

So end of July for full year forecasts.

25 companies they say have the potential to sign a big contract. If they're as good as they say they are then we should be hearing of lots of contracts soon. They've made a good start now they have to really prove themselves.

[jeanesy] 01/7/2020 16:39

Perhaps some of those buys are in fact sells otherwise the price movement today makes no sense as buys far outweigh sells . Another 2x500k at 1.35 just gone through after hours, Perhaps they were earlier sells ?

[ccr1958] 01/7/2020 16:00

Bless him..

[ccr1958] 01/7/2020 15:59

Well done on getting in at mates rates though cool head.. 9% drop ...why ? Bent.