Rtc Share Discussion Threads

[someuwin] 25/2/2019 08:03

Amazing numbers for such a lowly valued stock.

[eentweedrie] 25/2/2019 07:34

excellent resilts

[cheshire man] 25/2/2019 07:19

Excellent results justifying my topping up at the lows :-)

[mr hangman] 25/2/2019 07:15

Totally agree Arthur, a decent dividend hike to..

[arthur_lame_stocks] 25/2/2019 07:12

Fantastic results today, much better than I was expecting. Surely this business has to be worth a good deal more than the price.

[cheshire man] 06/2/2019 10:49

Not without buyers it won't rivaldo but more then happy to take the yield of I think 6% while we wait for the market to wake up to RTC :-)

[rivaldo] 05/2/2019 09:08

Interesting chart! About to finally break upwards perhaps.

[cheshire man] 28/1/2019 08:43

Agree rivaldo,,,,,very encouraging therefor will continue to hold and enjoy the yield :-)

[rivaldo] 28/1/2019 08:40

From Allenby Capital this morning - very encouraging that RTC are on track to have achieved 10p EPS (with a 3.85p dividend) even despite the various headwinds faced last year as listed below.

Which makes the forecast 11.6p EPS (and 4.24p dividend) for this year look pretty achievable:

"RTC Group plc (RTC.L, 56.5p/£8.3m)
Full year trading update to 31.12.18 (25.01.19)

 RTC released a brief year-end trading update stating that trading is in line with market expectations.

 The Chairman stated that continued growth of revenue and profit and an improvement in the net debt position is extremely pleasing.

 Results will be announced on or around 25 February.

Allenby Capital comment

It is encouraging to see a continuation of the improvement in headline numbers posted at the half year which showed revenues up 17% and PBT ahead by 31% especially given its (minor) exposure to Carillion, lower than expected volumes from Network Rail and government approval delays impacting Ganymede Energy"

[speedsgh] 26/1/2019 08:26

More delays for smart meter rollout - https://www.thetimes.co.uk/edition/business/more-delays-for-smart-meter-rollout-vlnmqnhddA no-deal Brexit threatens to tip the troubled £11 billion smart meter rollout into chaos as energy suppliers fear that imports of the devices may be disrupted.Several companies are understood to be increasing stockpiles of the meters to have them ready to install even if there are delays at the border.One senior industry source said that this was proving difficult, however, because Britain's exit from the European Union coincides with a government deadline forcing suppliers to change the kind of meter they install...

[nfs] 25/1/2019 16:01

Yes I am David

[rivaldo] 25/1/2019 12:06

Cheers davidosh. I would be, but hopefully it will be on the 26th onwards (I'm away for half-term hols)?

[davidosh] 25/1/2019 11:09

Results are next month.....Any of you interested in a results presentation ?

[rivaldo] 25/1/2019 10:16

CWA1, see my post 1317 above.

A current year P/E of 4.7 is just silly :o))

[11023154] 25/1/2019 09:50

very strong. The expectations are pathetic by the wider market, so in my opinion any performance by the board which resembles a decent functioning business will continue to push the share price higher. This is our year I'd say.

[battlebus2] 25/1/2019 09:43

2019 revs 87 adj pbt 2.1 2020 92 adj pbt 2.4 Extremely cheap adj profit almost half current m cap for 2020.... crazy

[cwa1] 25/1/2019 09:28

Many thanks for that penpont. Hope it's not too rude to ask but are there any forecast EPS and div beyond the 2019 estimates? Cheers.

[stemis] 25/1/2019 09:26

Thanks Penpont. However the point is (and it doesn't just apply to RTC) that these sorts of announcements are meaningless. What is 'market expectation'? Is it the Whitman Howard forecast or is it a consensus of a number of forecasts? Maybe the market is expecting RTC to undershoot the broker's forecast so missing it would be meeting 'market expectation'. Or maybe the market is expecting RTC to beat it's broker's forecast. Often we see shares fall when a company just meets forecast because the market is expecting better. Why don't they just tell us what expectation they are 'expecting to meet'?

[rivaldo] 25/1/2019 09:26

Great to see confirmation that trading is nicely in line with expectations, particularly given the slow pace of the smart meter roll-out.

Market expectations have been posted here every so often, so to clarify they are:

last year: 10p EPS, 3.85p dividend
this year: 11.6p EPS, 4.24p dividend
next year: 13.1p EPS, 4.66p dividend

Whitman Howard's 95p target sounds about right at present for a current year P/E of 8.2.

If some of their anticipated news flow comes in then there could be upgrades all round as these are presumably quite large-scale contracts.

[penpont] 25/1/2019 08:41

From broker Whitman Howard via Research Tree:



'We expect a number of announcements in 2019 which could positively impact our estimates. We expect RTC to announce a 1yr extension to its current Network Rail contract to include the period up to 2021, confirmation that it is bidding for the next five year Network Rail programme i.e. CP6, clarification that it is bidding for new work from Network Rail which is outside the remit of its traditional 5yr rolling contracts, new contract wins in GSS and an acceleration in the smart metering contracts as SSE is currently operating at levels below the guaranteed minimum. These events, plus the ongoing favourable trading will support our current 2019 PBT estimate of £2.1m representing growth of 16%.


Since the 2018 interims, sentiment has weighed against RTC due to the weaker first half trading and higher than expected net debt position. Given today’s update successfully addresses both these issues, the valuation/growth metrics are attractive. Even at our price target of 95p the 2019E PE rating and dividend yield would still only be 8x and 4%. Given the recent PE exit multiple for Harvey Nash was 11.5x we do not believe our price target is unreasonable for a company with a proven and experienced management team.'

[cwa1] 25/1/2019 08:38

Indeed SteMiS, I find it somewhat galling that they refer to "market expectations" but there are no(readily available anyway) market expectations, nor do they spell out what they are in the announcement. Ought to be a law against it......

[stemis] 25/1/2019 08:15

Hilarious. RTC announces it is trading in line with market expectations. WebFG shows no forecasts.