Rps Share Discussion Threads

[plentymorefish] 26/5/2020 15:53

Great insight rumobejo….thanks for posting....

[rumobejo] 26/5/2020 15:40

55p breakout for 78p re-test

[neilyb675] 26/5/2020 12:23

breaking out...?

[sphere25] 20/5/2020 15:46

Looking more interesting now as the chart flattens back out. Oil has been on a more stable footing too with short term bullish moves.

RPS has currently broken the short term downtrend since 30th April from a price of 56p so could now shortly be setting up for a move higher.

[tole] 14/5/2020 16:42

Also picked up more at the lows today. Doubling my small holding.

[farrugia] 14/5/2020 16:23

i bought back into this one - they are looking at capitalising on the covid crisis and i'm sure there will be plenty of companies needing guidance on how to re-open with the virus threat!
check and

[tole] 13/5/2020 12:48

Yeah was a bit keen to buy a few back here trying to catch the bottom of the retrace. Added a few at 39 today but still looks like it might drift a bit further.

[sphere25] 13/5/2020 11:49

Could be another trade here soon - didn't expect it to fall back this much. Just waiting for it to flatten out. Went bonkers last time.

[tole] 11/5/2020 21:02

I've got it as a gap to close to 40.3

[nash81] 11/5/2020 18:24

is the gap 40 or lower?

[tole] 11/5/2020 14:59

Added a few more. Looks like it will fill the gap on the chart back to 40p now

[nash81] 11/5/2020 12:09

who is selling here? i thought 2 fund managers added recently

[dr biotech] 11/5/2020 12:02

Should have kept my mouth shut. Still hopefully with some building work resuming there will be some demand for their services. Really see this as a 2-3 year investment as I do with most of my holdings. Always feels better to be in the black though.

[tole] 11/5/2020 11:44

Back in with a few from here also

[battlebus2] 06/5/2020 14:40

Yep, bought a few more at what I hope is the lows....

[matlad] 06/5/2020 14:12

Giving it a good shake..

[dr biotech] 29/4/2020 14:20

50% up in three weeks. One of my better investments.

[neilyb675] 29/4/2020 11:33

54.00 - 54.90 (GBX) at 11:33:34
on Market (LSE)

[sphere25] 29/4/2020 11:32

Bang! Up 12%

This continues to be fun!

[sphere25] 28/4/2020 10:53

Might be headed through 50p now.

Peel Hunt has reinstated a recommendation on professional services firm RPS Group (RPS) as it confirmed increased banking facilities amid the Covid-19 crisis, sending the shares 20% higher yesterday.

Analyst Christopher Bamberry gave the shares a ‘hold’ recommendation but kept the target price ‘under review’ as the group delivered a first quarter update. Profit before tax forecasts for 2020 have been reduced by 51%.

‘RPS has increased its banking facilities from £100m to £160m to provide additional flexibility,’ he said.

‘The Covid-19 impact is being partially mitigated through strong public sector exposure. In addition, a proportion of employees have agreed to either temporary reduced pay, temporary reduced hours, or to be placed on furlough.’

The shares rose 19.6% to 47p yesterday.

[norbert colon] 27/4/2020 11:51

For anyone who works in this sector and follows it closely like myself (including M&A history) it’s worth reflecting on the WYG/Tetra Tech deal last year.

Prior to announcement of the deal in May 2019 the shares were trading at circa 15p (mcap of GBP11m). With net debt of GBP10m the EV was circa GBP 20m (2 x mcap).

Terra Tech paid 55p share, valuing the WYG Group at GBP 43.4m (78.9m shares) or ~0.3 x FY19 sales (low by peer Group comparison)

Taking a look at RPS, it’s currently valued at GBP106m with an EV of GBP 206m when taking Group debt into account (2 x mcap as per WYG).

With sales for FY20 now f/c at GBP 465m, a 0.3 x sales multiple would value RPS at GBP 140m (62p), a 32% premium to the current share price of 47p.

This supports the current Liberum TP of 60p.

With John Douglas (CEO) and other senior managers having bought a considerable amount of stock in the market over the last 9-12 months at prices from 100-140p, I anticipate any M&A (when it happens) to be at a much higher valuation than 60p but it will need sales to stabilise (or preferably return to growth) and net debt to be reduced.

This will happen but it will take time.

In the interim I can’t see the share price retesting the recent all-time lows unless there is a serious deterioration in trading or some other factor. The increased banking facilities (whilst at a fairly chunky cost) provide much-needed breathing space for mgt to focus their efforts on operations and clients.

A positive update for shareholders and well done to those who took advantage of the recent share price weakness. I certainly did.

Some of you may also be aware that John Douglas used to be MD of Coffey (Aus) who themselves were acquired by Tetra Tech in 2015. History doesn't repeat itself but it often rhymes....

[norbert colon] 27/4/2020 10:01

Liberum reiterate 60p price target today although on reduced earnings.

[sphere25] 27/4/2020 08:57

Price 45p +14.5%

Yes, that's a reassuring update with the finances in much better shape now:

"The Group has available GBP160.0 million of committed RCF that significantly adds to the available headroom.

This new facility and financial covenants will provide increased financial liquidity to enable RPS to navigate the challenges of the COVID-19 pandemic and take advantage of the economic recovery as it comes through."

Stock did look like it had been beaten down too much. Breaking out really well atm so hopefully we can push on significantly higher from these beaten down levels.

[dr biotech] 27/4/2020 08:53

Financing in place and using the furlough scheme - pretty much as predicted. Hopefully strong enough to get through the downturn and come out in a decent position.