Rtc Share Discussion Threads

[value hound] 21/10/2016 10:42

Well I've joined the RTC throng this morning FWIW. I was mulling them last week at 55p and the bigger picture hasn't changed at all IMO. These could be remarkably cheap o a c.3 year-view I think - but if not, the yield should keep me happy enough.

[shanklin] 21/10/2016 09:05

rivaldo,

Thank you for the revised broker forecasts which, together with the information posted by davidosh, start to fill in some of the lack of information in the RNS. I think we all doubted 8.6p was achievable after the DCC having a weak H1 due to the extensive maintenance taking place.

Have to say that I much prefer to see detailed information being put in the RNS, as per MBH's profit warning this morning, rather than having to scrabble around for broker notes to obtain information which we as private investors should be getting as a matter of course.

Cheers, Martin

[davidosh] 21/10/2016 08:40

In the Network Rail contract they have a very secure revenue stream for the next fours years at least which is why Gannymede is unaffected. They can easily weather a temporary slowdown elsewhere and now on a p/e of 6 and yield of 7.5% for this year and p/e of 5 if meeting those forecasts which is a crazy valuation

[sailing john] 21/10/2016 08:29

Managed to grab a few on the opening dipette

Davidosh - thanks for posting above - exactly how I read it. Most recruiters reporting slow down in Perm recruitment pre/post Brexit vote. Already priced in imo given recent downward trend.

[rivaldo] 21/10/2016 08:29

Agreed Martin.

Worth noting that the new forecasts are:

this year : 6.2p EPS, 3p dividend
next year : 7.7p EPS, 3p dividend

[shanklin] 21/10/2016 08:19

davidosh

Thank you for posting the broker note.

It sounds like the RNS was intended to be downgrade rather than a suicide note.

It would have been helpful if the RNS had made that clearer.

Cheers, Martin

[davidosh] 21/10/2016 08:04

From the broker this morning...

RTC Group*# (RTC) - BUY

Market Cap: £7.4m; Current Price: 53.5p; Target Price: 75p

Temp positive but overall downgrades around perm / projects
After a good set of H1 results announced in August, RTC has seen some further erosion of its perm business and, notably, delays in certain infrastructure projects. While its blue collar business, Ganymede, which largely focusses on maintenance projects and supplies temporary/contingent labour, remains unaffected, its white collar business ATA has been impacted, and we are downgrading our forecasts in consequence. This morning’s update from RTC highlights delays in infrastructure projects where its white collar staff would be engaged in managerial and technical roles. We have reduced forecast revenues and margins to take account of these delays and have adopted an overall conservative view. Following the Brexit vote, the company was at pains when reporting its results to highlight risks to parts of the recruitment sector and specifically the slowdown in permanent recruitment which has been felt across the market. We note that (1) as highlighted above, the largest division, Ganymede, continues to perform well, and (2) indications are that the delayed projects will commence “in the near future”. We retain our Buy recommendation, with a reduced target price of 75p.

[blueliner] 17/10/2016 11:23

Good find Rivaldo .

[rivaldo] 17/10/2016 09:03

News that the Derby Conference Centre is doing well post-revamp:



"Derby Conference Centre staff numbers set to top 300 after £1m revamp
By Derby Telegraph | Posted: October 15, 2016

The number of people working at Derby Conference Centre is doubling after a £1 million revamp prompted a string of businesses to move in.

Mike Ebbitt, managing director of the conference centre, part of the RTC Group, said a recent refurbishment meant staff numbers would soon hit 300 – up from 150 during 2015.

Businesses that have moved to the centre in recent months include logistics firm Wincanton, railway training company ARC Academy, broker portal SortRefer and children's coaching company Premier Sport.

Mr Ebbitt also revealed RTC Group considered moving from the centre, on the corner of London Road and Ascot Drive, when its lease expired last year. However, he said the unique nature of the site and the growth of Derby's business scene had prompted it to sign a new 15-year lease, thus safeguarding jobs in the city.

Mr Ebbitt said: "We've saved jobs in Derby and we've brought jobs to Derby – and it's cost us £1 million.

"SortRefer are based towards Stoke but recently moved into our Burdsall Building and are going to have around 100 employees here.

"Wincanton wanted a central UK base and are renting our Chapman building. That's about 30 additional staff here.

"ARC Academy have six trainers here and have got around 40 trainees coming here already.

"And Premier Sport, who provide PE coaches for schools, have six to 10 people here."

Derby Conference Centre, which is housed in the former London Midlands and Scottish College of Rail, first opened in the 1930s grade-two listed art deco building in 2007. It was refurbished to allow it to host conferences, meetings, social functions and weddings.

Earlier this year, the venue launched its new business lounge, which provides a quiet space for business people to work. Its facilities include private meeting pods, complimentary parking, superfast broadband and refreshments.

The centre also revamped its Wyvern Bar, Stephenson Restaurant, reception and toilets, which were upgraded in keeping with the art deco style.

The venue's lecture theatre is also to be refurbished to provide additional and more flexible facilities for conference organisers. A planning application to increase the number of parking spaces from 180 to 300 has been submitted.

Dale Kelly, resource and sales manager at ARC Academy, said moving to the conference centre made sense.

He said: "The site is a brilliant as we are able to do the majority of training on-site. Derby is a great location and has great transport links. The building and the grounds are picturesque and very presentable, which reflects the reputation of Arc Academy and it is a great environment for our clients."

As managing director of Derby Conference Centre, Mr Ebbitt sits on the board of its parent company RTC, which specialises in recruitment, providing temporary, permanent and contingent staff to a broad range of industries and clients in both domestic and international markets.

The Derby Conference Centre, which houses its headquarters, generates additional revenue from letting spare capacity to external businesses in the form of office incubation and conferencing space hire."

[melton john] 28/9/2016 15:32

A few that I checked matched up to earlier buys just minutes before, caused a quick drop and probably triggered a few stop losses.

[horndean eagle] 28/9/2016 13:03

Not quite sure how a twitter story about a bid for RTC causes a chunky sell off. Hell of a lot of trades in it today.

[shanklin] 28/9/2016 10:29

shows the original post

[shanklin] 28/9/2016 10:24

Apparently it falsely claimed RTC was to be acquired by Adecco at a large premium.

[ragehammer] 28/9/2016 10:22

The Tweet looks like it's been deleted. What did it say?

[glennborthwick] 25/9/2016 15:33

contemplating buying back in

[harrogate] 01/9/2016 12:47

That is the question of course that has caused part of the problem regarding the chunky director sells.

[glennborthwick] 01/9/2016 12:36

sorry partly my fault - having bought in at 20p and fancying a new car ive sold a third of my stake. will buy back in when ive built up some funds ;)

[shanklin] 01/9/2016 12:02

Unless they need the money for something urgent, it would be interesting to know the motivation of anybody who thinks its a good idea to sell shares in a company on a P/E of less than 7 paying a dividend of 5.8%.

If they've found something else cheaper, I'd like to be buying that :-)

[rivaldo] 24/8/2016 15:05

Back from hols - the results were steady as she goes as others have said.

Thanks for the analyst note davidosh. Given the amount to make up in H2 to reach 8.6p EPS forecasts it would seem pretty stupid if WHI hadn't downgraded at this point, so they've obviously been advised by RTC that the usual H2 weighting will be in full effect for this year as usual.

Is there a date for RTC's Mello presentation? I might try to attend.

Given the Ganymede Network Rail work, the continuing presence in Afghanistan and the likely improvement at Derby I'm happy to hold and perhaps pick up some more given the prospects.

The 3.3p dividend is another big incentive to hold.

[glennborthwick] 16/8/2016 10:22

can you post dates and times here if it goes ahead.

I've recycled profits into a recovery play. Ten alps (TAL) is the ticker.

thread here for anyone who wants to see if it can do an RTC. Would be nice to see some familiar names.





saem for pipehawk (pip) and distil(DIs) but one out of the three should multi bag if they deliver

[davidosh] 11/8/2016 12:28

RTC have agreed to do an update presentation at my Mello event in September or lunch presentation in London whichever comes first so there will be chance to ask questions directly to the management.

[glennborthwick] 11/8/2016 10:53

ive top sliced 25% to get my money back. rest in for free and will let it run.

Picking up some DIS if anyone is interested and maybe topping up on PIP. Both risky microcaps but heyho beats betting on the horses.

[shanklin] 10/8/2016 16:13

tiswas

I suspect "consistent" means that the Network Rail contract and other rail-related activity will continue in a manner consistent with H1. Given the better weather conditions typical in H2 compared with H1, I think consistent allows for Ganymede revenue & profits to be higher in H2 than in H1 and I expect that to be the case.

Looking beyond Ganymede:

DCC
---
Given that the:
- "the bulk of the project to revitalise the Derby Conference Centre (DCC) and our head office has been completed"
- "RTC Group has now occupied the main building that was vacated.
- "New tenants have been secured for other buildings on the Derby site and the Business Lounge at the DCC has been opened."
it seems highly likely that the DCC business line will perform far better going forward, including in H2 '16, than it did in H1 '16.

GSS
---
GSS seems to be basically maintaining its situation, unless RTC manage to win new contracts or the West vacates Afghanistan (the latter seems unlikely to me).

ATA
---
ATA is focused on infrastructure rather than construction, with no signs yet that this is tailing off post-Brexit and every possibility that the Government will seek to boost the economy through infrastructure projects funded by borrowing at the current very low interest rates available to them.


Overall
-------
In not advising WHI that they are uncomfortable with the FY forecasts, as per post 833, RTC are implicitly stating that they expect H2 overall to be a lot stronger than H1.

I am sure that this does not factor in ongoing efforts to win new business be it step-change or incremental in nature.


Hope this turns out to fairly represent the current situation.

Cheers, Martin