Rtc Share Discussion Threads

[21trader] 25/2/2015 15:16

bozzy

You cannot stop a couple of usual suspects turning up for a day trade can you.

The crazy thing about this is COMS crashed on a dire update and is still valued at more than this the market takes time to get the best ones right at times.

[tomboyb] 25/2/2015 15:13

hxxp://www.insidermedia.com/insider/midlands/134299-rtc-group-track-100m-network-rail-contract/

RTC GROUP ON TRACK FOR £100M NETWORK RAIL CONTRACT

Derby-headquartered recruitment, training and conferencing company RTC Group has won a major contract with Network Rail which could be worth up to £100m over a five-year period.

The group's subsidiary, Ganymede Solutions, has been selected to provide contingent labour services, including the supply of safety critical, track and electrification and plant resources in the West, South West and North East, the Midlands and Wales.

The contract will run for a period of five years from April 2015 and has an estimated order book value of between £80m to £100m.

"This is a significant achievement for Ganymede and the group as a whole. Ganymede has steadily established itself as one of the UK's most respected contingent labour suppliers and our long term partnership with Network Rail both underpins this and provides a fundamental pillar for the strategic growth plans of RTC's business," said RTC chief executive Andy Pendlebury.

"The board believes that the award of this contract, coupled with the impressive organic growth with other prime suppliers in the rail sector and the diversification opportunity created through the acquisition of RIG Energy at the end of 2014, places Ganymede in an enviable position relative to its peers. The board is extremely proud of the Ganymede team."

[bozzy_s] 25/2/2015 15:07

446 it's a buy and hold, definitely NOT a buy and sell tomorrow/next week!

[sailing john] 25/2/2015 14:11

And started paying divis at last half year!

Stating "progressive dividend policy" going forwards

[cfro] 25/2/2015 14:02

I bought back in today too. Managed to pick some stock up on the dip late morning.

Last trading statement was rather lacklustre and uninspiring imo. But my, how things change!

[someuwin] 25/2/2015 13:29

Blimey! this one looks tasty.

[henley2] 25/2/2015 13:19

Thanks Davidosh.
Any thoughts on where RTC is heading on a 1-3 year view?

[opaldouglas] 25/2/2015 13:15

Thanks davidosh, well even better in that case ;)

Not long until results are out and which will hopefully provide further guidance.

OD

[opaldouglas] 25/2/2015 13:12

Looking ahead to 2015 year end Allenby are forecasting £1.2m OP (taking into account earning enhancing RIG acquisition), add in 3rd of £474k from todays rns and OP should be in the region of £1,555,500.

Add in net assets of circa £3,250 and given long term earnings visibility a conservative PE of 10 and by end of the year RTC should be valued at a nudge under £19m which equates to a 140p share price.

Still looks like a lonely valuation in my book.

OD

[davidosh] 25/2/2015 13:07

opaldouglas.....When I asked at the Mello presentation what percentage of revenues Ganymede had dependent on Network Rail and the pending CP5 awards they did not go into precise detail but said it was certainly nowhere near 100%.

Personally I am calculating that this has tripled the NR dependent work for Ganymede and given security for five years.

Henley.....LOQ changed its ticker three years ago to ACSO

[henley2] 25/2/2015 13:03

What stock has the ticker LOQ?

[opaldouglas] 25/2/2015 12:49

As i see it, going off Allenby's forecasts which are conservative, FY2014 revs for Ganymede should stand at £12m, this results in a GP of £2,250m and a OP of £930k for the year.

If you avg todays rns to a mean figure of £18m revs per year, this is an additional £6m revs per year for Ganymede. All things being equal this will result in a GP of £3,384m annually and a OP of £1,404,000. (18.8% & 7.8%)

Thats an increase in annualised Operating profits of £474,000 after todays rns.

OD

[battlebus2] 25/2/2015 12:43

Couldn't help myself and have bought some on that small short lived dip :))

[davidosh] 25/2/2015 12:35

bozzy...many thanks for your kind words and spot on that this is a gamechanger and five year one at that !

I have to give a talk on a Masterclass tonight at Killik in the City and LOQ, RTC, and a few others will feature heavily. It is just the start for RTC mind you. D

[bozzy_s] 25/2/2015 12:20

Just discovered this stock due to being on top % gainers list.

Today's news looks like a game changer. Couldn't reconcile the market cap with the Network Rail contract size.

First thought was a mistake on ADVFN quote page (it is slightly out). But looking at results, 13.5 million shares means £7.5m current market cap.

Jumped on this BB to discover 2 of my favourite all-time posters are holders. Glennborthwick and davidosh were in LOQ in the early days. Some peeps were lucky enough to make a life-changing profit there (120 bagger in 8 years if I remember right, 5p to 600p. I did 40p - 80p roughly).

I think today is the first step of a RTC revaluation. Hope I can find funds to buy some shares. Buy and hold for 5 years would be the plan.

[shanklin] 25/2/2015 11:43

David

That might just be in alphabetical order :-)

9p EPS would be pleasant.

It would be helpful to know how much of the £16-20m p.a. of revenue is additional to Ganymede's existing turnover.

Cheers, Martin

[davidosh] 25/2/2015 11:37

Most small recruiters are seen as worth only 7-8 times earnings because of cyclical nature of revenues and contracts being uncertain and low visibility dependent on economy.

RTC now has five years of certainty and in a very good sector that the government is clearly investing into via NR. Ganymede is positioned at the very top of this selection process and now has certainty and visibility so I would say a p/e of 10-12 is warranted and if you (like me !) see 9p plus of earnings either this year or next then you can see why I now have a target of £1.00 before I will be selling any.

This news release has just gone out from the NR media centre and as you can see Ganymede are top of the pile and one of only four companies taking the core supply work..

Four core suppliers will provide 70% of the workforce supported by a number of smaller specialist suppliers.

•These contracts represent the provision of around 500 people per day
•The four core suppliers are:
•Ganymede Solutions Ltd
•McGinley Support Services (Infrastructure) Ltd
•Morson Human Resources Ltd
•Shorterm Ltd


Network Rail will be awarding a series of contracts with contingent labour suppliers to provide workers across the network with a total minimum spend of £450m over five years.
The awards will see a strategic change in the number of suppliers from 57 to 20. Four core suppliers will provide 70% of the workforce supported by a number of smaller specialist suppliers.

hxxp://www.networkrailmediacentre.co.uk/News-Releases/Network-Rail-announces-significant-investment-in-its-contingent-labour-workforce-22a3.aspx


No matter how you look at this and from whatever viewpoint into the future I think RTC have delivered an incredible long term reward for shareholders and everyone involved in this bid and contract awards should be immensely proud of what they have achieved considering the size of the company itself.

It will of course be much much bigger over the coming years though.

Congrats to all holders and future investors in RTC as I think it will be a rewarding few years ahead.

David

[glennborthwick] 25/2/2015 11:02

on a pe of 10 should add 50p to share price

[glennborthwick] 25/2/2015 11:02

thanks good work

[phar lap] 25/2/2015 10:58

Glenn,

In the half year results Ganymede had an operating profit of £510,0000 on sales of £6,291,000.
A return of 8.1%.
An extra £9M would at the same margin give you an op. profit of £0.729m, worth 5.4p per share.

[shanklin] 25/2/2015 10:02

Glenn

The brokers seem to be pretty on the ball, so I would hope we will get a broker update within a day or two at most.

Cheers, Martin

[glennborthwick] 25/2/2015 10:00

so Ganymede at full year turned over 9.9 million and made gross profit of 1.2 million. Id imagine that the new money will be partly be instead of , not as well of so my guess is we are looking at 18 million average and 2 million profit.

[glennborthwick] 25/2/2015 09:56

The segmental information for the current reporting period is as follows:

Recruitment Conferencing
ATA Recruitment ATA Global Ganymede Derby Conference Total Group
Staffing Solutions Centre
Solutions
2013 2013 2013 2013 2013
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External sales
revenue 22,500 14,840 9,938 1,539 48,817
Cost of sales (20,545) (13,340) (8,687) (723) (43,295)
---------------------- ---------------- ----------- ----------- ----------------- ------------
Segment gross
profit 1,955 1,500 1,251 816 5,522
Administrative
expenses (954) (575) (461) (678) (2,668)
Depreciation (27) - (8) (78) (113)
Segment contribution 974 925 782 60 2,741
Group costs (1,870)
------------
Operating profit per statement of comprehensive
income 871
------------

[glennborthwick] 25/2/2015 09:55

This was the sectional analysis for just Ganymede for the first half so 17% margin

Ganymede Solutions

Profit from operations has improved by in excess of 80% at GBP510k (2013:GBP274k), reflecting a continuation of the increased levels of activity with existing customers that we saw in the second half of 2013. Gross margin is also showing improvement at 17% (2013: 16%).

[aishah] 25/2/2015 09:26

Excellent news indeed!