Rtc Share Discussion Threads

[11023154] 05/3/2019 18:01

Imagine being the director for a second...you get appointed and it's in your nature to push the absolute limits of what's possible, so you push for more, and more, and then you turn up at an AGM and small bunch of shareholders throw toys out of the pram about how much you're making. Just imagine if they bowed down to you?

"oh yes, maybe we're in the wrong, maybe we're making too much money here.." - said no director worth his salt ever.

What would you think of them? You'd realise that the BOD are susceptible to pressure, just what you want from the man who is managing your retirement pot. Then imagine that person who bowed down to you going into a meeting for a contract win, then imagine the man who doesn't give you an inch going into a meeting for a contract win...think I know who comes away with the contract.

[11023154] 05/3/2019 17:52

Oh no! Okay then, let's get new directors who aren't greedy so we can improve the mood of the disgruntled shareholders (forever disgruntled regardless of situation....). This sounds like a really good idea so let's push forward with this. Half the shareholders here wouldn't know a good opportunity if it smashed them square in the face. Maybe I can concede they fall on the slightly greedier side of directors in the market, think I'd rather be on that side of the sliding scale. What's that saying...? Greed is good...? Even the most narcissistic psycho directors still want to share the pot of treasure with someone!

P.S. not saying BOD are psychos, just making a point...

[arthur_lame_stocks] 05/3/2019 17:25

Probably because the BOD are so damn greedy which is a view held by a substantial minority of shareholders. THEY DON'T DESERVE TO GET GIVEN 13% OF THE COMPANY FOR NOTHING FOR DOING WHAT THEY ARE ALREADY WELL PAID TO DO ANYWAY.

[11023154] 05/3/2019 17:20

You seem to be ignoring the change of strategy and management, care to comment on it? Are you invested in the new outlook of the company or are you just here to talk it down? Over the last 8 years, there has been considerable change. This change has been well received by the business, highlighted in the latest results, three years of hard work put in but maybe not by the market yet, as most of the market is comprised of negative mindsets types. The investment market is made up of types like you who have been taught to be ultra sceptical but don't have the capability to see opportunity. I'm surprised if you've held for so long that you are no longer holding at what you would argubly say is the pivotal point for the company given the restructuring and change of management (give them 3-5 years to see what they can do) and then once it starts to produce the results you sell out because you're not happy with the share price growth and director remuneration...hmmmm...your loss, and the fact you're still here shows me there's part of you which truly buys into the business. This is one of those companies as well whereby any news could trigger 20/30/50p hike such as T/O or contract win which counters your economic argument which I think is weak. So to summarise, why would you not be in now, of all the times to be in over the last 4/5 years to test whether or not it is going to produce, why would you sell when they begin to produce....baffling...*scratching my head*

[wanbissaka] 05/3/2019 16:16

In previous posts you point to capital gains. I would agrue the share has gone nowhere in the last 4 years. If you bought at near lows and sold at near highs during that period you would have done well. but in essence the price now is about the median price over the last 4 years. I accept there has been a decent dividend yield, which should not be ignored.
There are many investors who would invest heavily in this company if the BOD were not rewarding themselves akin to a ftse 250 company. I had been invested in this company for a number of years, and voted against the remuneration package at last years AGM (along with many others). I have used the recent spike to bank a reasonable profit (and with the dividends I have earned it, has been a very good investment).
However I stand by my comments that the only reason this is rated so lowly by the market is due to Director greed.

[11023154] 05/3/2019 15:04

I think the economic argument is weak, the economy in the UK is strong, and regardless of the Brexit situation will have little to no effect on RTC. The remuneration argument is weak again, if the board weren’t exploiting their position I would be more sceptical and the share price would be double what it is but there isn’t the growth there for the quality of director we currently have so again what works do you live in? An air of realism? The company has positioned itself very well imo for the medium to long term and if you’re a shareholder of any quality then you’ll appreciate knowing this company when it appears to be going somewhat in my opinion and other a fair few others under the radar...again, we are a small company so to find the quality of RTC and it’s prospects I can foresee a positive future including in the short term as the market gets up to speed. 2019 may be quite an exciting year for RTC....

[wanbissaka] 05/3/2019 14:03

I like the company very much. What I don’t like is the ridiculously high level of remuneration for the directors for a company of this size. Surely you would agree the dividend yield could be higher, as would the share price, if the BOD were not so greedy. At present the company are mid contracts and are making hay. If the share price does not respond now, then it may struggle considering headwinds the economy may face in the near term. An air of realism. The company has posted excellent figures now for a number of periods. The slightest whiff of negativity and the price will hammered in a blink of an eye.

[11023154] 05/3/2019 12:32

It’s one of those markets where you’re going to have stocks like this, key is to be involved and reap the rewards. Since the lows and change of management weve had 200 per cent growth in share price so not sure what you’re on about

[11023154] 05/3/2019 12:26

You’re missing the point though, the company has changed direction and strategy and is now proving itself. Quite glad you’re disinterested as you’ll miss out on the opportunity, look over the last 3/4 years, there has been serious share price growth. You seem only able to focus on the negatives and there is serious reason to be interested now. V good yield, positive outlook in the company and market, and share price recovery and growth.

[11023154] 25/2/2019 17:41

very pleased for shareholders. I was going hard in January about this and this reaffirms my belief that the company has positioned itself exceptionally in a challenging market and has the expertise to capitalise on it. I expect the share price to climb further once news spreads out as often is slow here given the complexity of the group. I can foresee t/o and further share price growth.

[davidosh] 25/2/2019 16:19

Anyone who wants to understand more and also ask management about the potential for the company can always come along to the Agm and we usually have a good turnout...

The Company's Annual General meeting will be held at 12 noon on 24 April 2019 at the offices of Gowling WLG (UK) LLP, 4 More London Riverside, London, SE1 2AU.

It is a reasonable time of day so no excuses

[davidosh] 25/2/2019 15:53

WanBissaka....I think you have a very good point and one which I always hold in reserve. Naturally I prefer my companies to have sensible salaries and good bonuses and long term incentive plans that are paid in shares to fully align with shareholders.

There is little doubt that RTC could become a takeover target and the BoD and listing costs are very significant savings that could be achieved but only if management are not required in a newco or can be incentivised differently.

At this point the management are delivering for shareholders so it is just the balance that needs to be agreed. Shareholders are getting good growth and an excellent dividend so one has to be pragmatic.

[wanbissaka] 25/2/2019 15:45

It will be interesting to see if this holds on to its gains this time round. Clearly the sun is shining for the business at the moment so the share price should be making hay. I agree if it wasn't for the Director remunerisation these would be much higher.

[shanklin] 25/2/2019 15:31

WB

That is very true.

But there is no sign of a sale and if you whip out £1m or so every couple of years via new option plans, the shareholders are just left with the dividends.

I suspect I am being overly pessimistic but having been stitched up in the past by "well timed" director sales just before a profits downgrade, I don't see justification for being exposed here.

If all that mattered was the company's operations, I would expect to be a very happy holder.

[wanbissaka] 25/2/2019 15:21

Another way of looking at it though is a potential acquirer could easily strip out a huge amount of overheads to make this an attractive bolt on :)

[wanbissaka] 25/2/2019 15:19

Shanklin - indeed the level of remuneration is incredibly high for a small cap with a mkt cap under £10 m. From memory board pay was over £800k last year with the CEO trousering over £400k and that was before the revised long term incentive plan that was approved (only just) last year.
There is no doubt the company is delivering and there results demonstrate that, but these guys should be running a ftse 250 company on that kind of money.

[someuwin] 25/2/2019 10:32

Whitman Howard...

RTC Group

2018 prelims | ‘Highly optimistic about its future’

"The 2018 prelims not only addresses the two concerns raised at the interims of meeting full year expectations and reducing the net debt, they also highlight the success of the strategy of gaining exposure to engineering, manufacturing and infrastructure markets on long term contracts with blue-chip clients in the UK and overseas. Following confirmation of organic PBT growth of 58%, the best in the sub-sector, we have increased our price target from 95p to 100p. With RTC trading on a 2019 PE rating of 5x and offering a dividend yield of 7% (2.4x covered), we maintain our buy recommendation."

[shanklin] 25/2/2019 10:09

Yes, very well run. The only thing that now stops me from re-investing here are management's schemes to regularly accrue huge swathes of the company through overly generous option schemes. If they had run the company more for the benefit of all stakeholders over past years I am sure the share price would be much higher.

Obviously if they are a bit more measured going forward in terms of rewarding themselves that will greatly benefit management and shareholders through the share price

Obviously all IMHO.

[edmundshaw] 25/2/2019 10:02

Generally I don't like to own stocks this small. Happy to make an exception for once, as this seems to be run very effectively by management - better than some much larger companies I have owned! Pleasing results.

[nfs] 25/2/2019 09:21

Thanks David

[battlebus2] 25/2/2019 08:42

Indeed 👏👏. Lovely rise in the dividend, have them as an income stock 👍

[davidosh] 25/2/2019 08:36

Very pleased indeed. They are actually ahead of the forecasts if comparing to the Whitman Howard broker note from last year, especially sales of £87.2m vs WH £81.6m. and PBT £1.9m vs WH £1.8m. Additionally.....The profit expectation for 2018 was set at £1.8m back in July 17 when they won a large smart metering contract. Impressive that the company still delivered slightly above this expectation despite implementation of the smart metering contract being delayed but now expected to benefit from it in 2019.

All divisions are doing well and the second half of 2018 was exceptionally good so if that smart metering does deliver we are in for a bumper year in 2019.

Very well done to all at RTC.