Rps Share Discussion Threads

[barnesian] 03/2/2016 09:44

Yes. Hopefully the bad news is out of the way with the recent announcement on write down of intangibles and bad debt in the resources division.

The announcement of the full year results is expected in four weeks time on 3 March. Unlikely that there will be more bad news as it would have already been announced. More likely that there will be a positive forward looking update on future prospects.

As the underlying business is generating a "strong cash flow" there should be no danger to the dividend. It will be interesting to see whether they continue with their progressive dividend policy of increasing it by 15% pa.

More upside than downside on the 3 March announcement I would think.

[eastbourne1982] 03/2/2016 01:31

Bought these yesterday at £1.75, good financially solid company offering good value after the recent sell off, nice dividend as well. Decent place to park some cash for a year or two imho as I'm sure these will be north of £2.50 again in the next 12 - 18 months.

[gotnorolex] 27/1/2016 18:37

RPS Group plc 23.1% Potential Upside Indicated by Liberum Capital

[barnesian] 27/1/2016 15:40

It has bounced back a bit but still about 30p down on yesterday close.

About 5.4% prospective dividend yield, well covered by free cash flow.
Progressive dividend policy, growing at 15% pa for at past six years.
19% net gearing.

Stockrank of 90 on Stockopedia. Market cap of over £400m. Fairly liquid trading.

Neglected on the boards and in the media. A hidden jewel.

Having said all that, I am nursing a hefty loss having had bought in at £2.30!

[barnesian] 27/1/2016 15:38

About 5.4% prospective dividend yield, well covered by free cash flow.
Progressive dividend policy, growing at 15% pa for at past six years.
19% net gearing.

Stockrank of 90 on Stockopedia. Market cap of over £400m. Fairly liquid trading.

Neglected on the boards and in the media. A hidden jewel.

Having said all that, I am nursing a hefty loss having had bought in at £2.30!

[sphere25] 27/1/2016 14:23

Covered my day trade for 3.5%

Glad I have come across RPS. This looks well worthy of further research - appears to generate enough cash to pay the dividends and buy non-oil related companies at the moment.

Will have to see how sustainable things are here. It's going on the watchlist for sure.

[sphere25] 27/1/2016 10:09

Been buying this morning for a quick trade - bid has been getting stronger throughout the morning.

Looks like an overreaction, particularly considering the stock has already fallen from 240 since the start of the year. Still plenty of woes in anything oil related, but stocks like this which aren't saddled with excessive debt will come out the other end fine.

[barnesian] 27/1/2016 09:31

This looks like an over reaction.

The underlying business is generating a "strong cash flow". The non-resource businesses are doing well and replacing the troubled resource businesses. But there is a £29m charge to profit which will wipe out reported profit this year.

However this charge is non-cash, non-recurring. £20m write down of intangibles and a £7m bad debt provision.

As a one-off this will not be reflected in normalised eps. Nor should it impact dividends or growth prospects.

It reduces the assets of the company by about 7% and is equivalent to about 12p a share.

NB In future I'm going to post in the thread "with news" as this thread doesn't capture RNS announcements.

[barnesian] 27/1/2016 09:29

This looks like an over reaction.

The underlying business is generating a "strong cash flow". The non-resource businesses are doing well and replacing the troubled resource businesses. But there is a £29m charge to profit which will wipe out reported profit this year.

However this charge is non-cash, non-recurring. £20m write down of intangibles and a £7m bad debt provision.

As a one-off this will not be reflected in normalised eps. Nor should it impact dividends or growth prospects.

It reduces the assets of the company by about 7% and is equivalent to about 12p a share.

I would expect the share price to drop by 12p not 40p!

[dr_smith] 10/10/2015 09:08

I see what you mean, looking at US, dow jones was increasing, s& p was a climbing a little, but less than esrlier (2.30 our time), so seems co specific.
Maybe we'll see an rns in next day or so for a large purchase, or co buying for employee share scheme (if they have one), in short, haven't a clue :-)

[barnesian] 09/10/2015 17:40

What happened this afternoon?

[barnesian] 03/8/2015 10:26

I'm glad to be in good company Dr Smith!

[dr_smith] 03/8/2015 09:56

Hello neglected holder. ;-)
If it is any comfort I hold too, with like view of good management over the medium to long term, it should bounce back, so like-wise think it is undervalued.
You read posts where share price has climbed a large amount in a short time and folks say, wish I'd bought in a few weeks ago when it was only x.
Well... that is now! IMV.
So Barnesian, lets see if we can say 'told you so' to others in a few weeks time :-)
..but keep it quiet if we are wrong.

[barnesian] 03/8/2015 09:22

RNS

"Interim Results for the six months ended 30 June 2015

Diverse range of activities and geographies protected the Group from the worst effects of the downturn in the oil and gas sector. Acquisition strategy continued to develop growth markets. Bank facilities refinanced until 2020 and increased to GBP150 million. Strong operating cash flow. Dividend increased 15%."



RPS has consistently grown its dividend by 15% a year for the last seven years. The dividend is about twice covered and currently yields 4.2%.

In theory, the share price should be growing at least at 15% pa giving a total return of 19.2%.

It obviously isn't, having come down from a 356p high to about 214p now on oil price worries. But it seems to be weathering the impact of the oil price decline by good management of its diversity and acquisition activity, and its financials seem sound.

I would expect this share in time to revert to its underlying value. It seems rather neglected including on this BB!

[ragewarrior] 06/5/2015 20:15

Mainly due to oil price drop... See statement from 30th April"Trading UpdateAs we anticipated the major issue facing the Group in the early months of the year has been the continuing volatility in the oil and gas sector and its impact on projects which are likely to be progressed by our clients. National oil companies, to which we provide extensive support, have been less affected than the international companies. The market stabilisation which seemed to be developing in February proved fragile. As a result our Energy business has had a slower than expected start to the year, although we have recently seen an encouraging increase in our asset valuation workload, related to transactions and financing."Expect price to drift between 200p - 280p , as long as oil price does not plummet again to $50.

[edlen] 06/5/2015 18:02

I'm new to investing and I was wondering if someone could explain to me why the price of this share has suddenly dropped?
Many thanks

[metier9] 27/3/2015 13:39

Ive noticed every now and again we get tons of AT trades that plays havoc with the price. I have no problems holding RPS considering the last report mentioned if we had a full year earnings on all the acquisitions next years targets are a breeze.

[dr_smith] 27/3/2015 13:35

Current PE of 9.5 and 4 to 5% growth over 1Y - 2Y makes it a long term hold for me, though won't be adding as I'm up to my quota for portfolio spread.
I'm no chartist but looking at 5Y chart, share price range cycling between 220 and 280 to be expected going forward in short term, so plenty of upside whichever way you cut it.

[royaloak] 27/3/2015 13:10

Just seems to be trading between 230 / 250 looks like it may be a buy around these levels (231) but could drop lower, but worth the risk for me...I could be very wrong!

[dr_smith] 25/3/2015 15:39

Down 4.7% today, the only RNS is for publishing a/c's - no doubt a printed copy of what has already been reported, not ex-div today, so...?
Any explanation for todays down trend?

[ragewarrior] 04/3/2015 19:19

RPS to stay in FTSE 250 then, good news..

[ragewarrior] 26/2/2015 08:50

Results out.. 15% increase in dividend..Should keep the big buyers happy..

[ragewarrior] 13/2/2015 13:24

Another profitable company to add...Let's hope results are excellent and we can get back to 300p

[mike740] 11/2/2015 08:07

Good start to the day.

[mike740] 10/2/2015 22:18

RPS

Thought Id bring this one up looks to have bottomed out nicely and could be a momentum play. Seems to have plenty of broker support......



Broker Views

Date Broker Rec. Price Old target price New target price Notes
03 Feb 15 N+1 Singer Buy 230.80 320.00 320.00 Reiterates
02 Feb 15 Numis Buy 230.80 315.00 285.00 Reiterates
02 Feb 15 Liberum Capital Buy 230.80 350.00 350.00 Reiterates
31 Oct 14 Jefferies International Buy 230.80 320.00 300.00 Reiterates

FUNDIES

RPS Group PLC

FORECASTS

2014 2015
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

N+1 Singer
09-02-15 BUY 65.25 21.20 8.50 70.00 22.40 9.60
Arden Partners
09-02-15 NEUT 65.50 21.34 8.30 73.00 23.57 9.50
Numis Securities Ltd
09-02-15 BUY 65.50 21.70 8.47 68.70 22.70 9.74
Peel Hunt LLP
05-02-15 HOLD 64.46 20.95 8.46 70.68 22.65 9.73

2014 2015
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 65.41 21.25 8.48 70.33 22.58 9.69
1 Month Change 0.81 0.20 0.00 -0.35 -0.37 0.00
3 Month Change 0.78 0.18 0.00 -1.43 -0.43 0.00

GROWTH
2013 (A) 2014 (E) 2015 (E)

Norm. EPS 8.90% 51.12% 6.25%
DPS 15.10% 23.57% 14.30%

INVESTMENT RATIOS
2013 (A) 2014 (E) 2015 (E)

EBITDA £70.24m £79.22m £84.15m
EBIT £48.60m £m £m
Dividend Yield 3.15% 3.89% 4.45%
Dividend Cover 2.05x 2.51x 2.33x
PER 15.49x 10.25x 9.65x
PEG 1.74f 0.20f 1.54f
Net Asset Value PS -1.47p 174.00p 179.50p