Share Name Share Symbol Market Type Share ISIN Share Description
Rtc Grp. LSE:RTC London Ordinary Share GB0002920121 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 54.50p 52.00p 57.00p 54.50p 54.50p 54.50p 0 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 71.7 1.3 8.1 6.8 4.92

RTC Group Share Discussion Threads

Showing 1301 to 1325 of 1325 messages
Chat Pages: 53  52  51  50  49  48  47  46  45  44  43  42  Older
DateSubjectAuthorDiscuss
09/8/2018
13:55
I'm afraid acquirers don't pay twice - once for profit and again for assets. Would also cost an acquirer around £2m relating to the options/LTIP, another ~£0.5m to terminate directors employment contracts plus the acquirers legal/due diligence costs.
stemis
09/8/2018
13:20
Simso And the Derby Conference Centre on top? Any idea as to what that may be worth if flogged off by acquirer? I assume it is a leasehold within the £1.5m fixed assets.
tiswas
09/8/2018
12:48
This does look increasingly like a sitting duck for acquisition. The business is owed more than in owes, so has a positive net working capital balance of £2.5m, equating to c30% of the Market Cap. HVN has a negative net working capital balance of -£5m. Even if an Aquirer paid £12m, 50% more than the current price, it would be getting: 1) £2.5m of Net Working Capital,(HVN equivalent number is -£5m). Agree with David's point about the need to consider receivables and not just the Debt secured against those receivables in isolation. 2) a Forecast PBT for 2018 of £1.8m, rising to £2.1m next year, 3) Significant Central Cost savings. The RTC Board remuneration was £800k last year. Some of the Back of House functions like Finance, IT and HR could fulfilled by the Acquirer's existing structure. Surely at least £1m of costs could be saved...and potentially more? An Acquirer who pays £12m to get £2.5m of net working capital and potentially £3m profit pa after savings looks like a bargain price. Surely predators must be running their slide rule over this.
simso
09/8/2018
12:44
Can someone smarter than me tell me if the Derby Conference Centre is making money? I am confused that it falls under central services so how much of the admin expenses (£1.67m) are for running the Group and how much is for running Derby. Thanks
tiswas
09/8/2018
05:54
It will be interesting to see if that 75k was a small overhang that has been holding these back. Plenty of buying following the excellent Interims yet static. Maybe this will start to move north now that trade has been booked
the big fella
08/8/2018
19:59
davidosh, If the debt wasn't there then would you not value the equity as worth £6m more? But it is there, so you value the business first on a debt-free basis and then deduct the debt (and perhaps some other items) from that number to arrive at an equity valuation. JakNife
jaknife
08/8/2018
16:57
You can't separate acquired debt (however it arises) from valuation in any acquisition.
stemis
08/8/2018
15:19
SteMis......Surely the £6m of debt relates directly to £14m of receivables and that is how companies in this sector work so it will be directly linked to workers employed on contracts ? The more RTC have as approved contractor debt then the more profit the company can deliver so long as ultimately there is no bad debt from those to whom they supply. It is even more comforting that so many of these contracts are very long term like Network Rail so it is not like buying equipment with a big loan and then worrying whether you will get enough work to service the loan. The five year record whilst I have been a shareholder has been good with dividends increasing well over 100% and profits and eps up even more. The forecasts are for 10p of earnings this year so a P/E of 5.5 is pricing in disaster which I simply cannot see from the interim results and outlook statement. The chairman said... "The optimism that we expressed earlier in the year has been justified by a highly satisfactory set of results. We remain confident of continued strong trading, in line with expectations, during the second half, and of delivering our ambitious growth plans across all our Group businesses "
davidosh
07/8/2018
21:11
lets hope they don't do any hair brain, value destroying acquisitions of their own. 3800
3800
07/8/2018
13:39
That certainly would be the attraction for any bidder
the big fella
07/8/2018
12:48
Certainly there'd be more synergy I agree from taking out the rather overpaid central management...
stemis
07/8/2018
12:45
RTC is small, but seems to be more successful than Gattaca of late (perhaps easier being small). Someone might take them out as an extension or for synergies, or even simply to remove competition. It's definitely on the cards... Meanwhile cheap as chips and with a good and sustainable yield...
edmundshaw
07/8/2018
12:28
The bid for HVN values it's enterprise value at 9.0 x EBIT. Currently RTC is on about 8.6 x EBIT (based on rolling annual EBIT of £1.63m and debt of £6m). Obviously it's not just as straight forward as that (plus RTC also has significant dilution from the share option/LTIP which would up their multiple) but it doesn't suggest a huge under valuation. GATC on the other hand is on about 6.5 x EBIT....(disclosure: I hold so I'll restrict my detailed comments to that board).
stemis
07/8/2018
11:34
I presume you guys all saw the bid announcement this morning for Harvey Nash HVN. Gattaca has moved up nearly 10% and also looks in a weak position. I would like to see RTC trading much higher or we will be attracting attention here too.... https://www.investegate.co.uk/harvey-nash-group--hvn-/rns/recommended-cash-offer/201808070710230263X/
davidosh
07/8/2018
11:19
Oh, go on then, put me down for a few. In the light of the(somewhat cheap) takeout of HVN, some sensible looking metrics and confident management speak I'm up for some skin in the game! Trade not printed yet, so assume delayed. Good fortune all.
cwa1
31/7/2018
08:28
Good to see you clear that up davidosh, thanks for the broker update rivaldo :-)
cheshire man
30/7/2018
13:56
Schway.....The profits here are not illusory at all. The banks take a close look at credit lines for obvious reasons and are comfortable about increasing NOT decreasing the amount of available facility. There was a one off delay in collecting payment from Network Rail according to the broker and as we saw stated in the results this has now been paid so very little to worry about on that score.
davidosh
30/7/2018
10:07
Whitman Howard have reiterated their 95p price target. They've also kept their forecasts of: this year: 10p EPS, 3.85p dividend next year: 11.6p EPS, 4.24p dividend They summarise - and note that 80% of profits are recurring with £125m of visible forward revenues: "2018 interims | Upbeat interims confirm full year forecast Adjusted PBT at the interim was £0.83m representing growth of 27% with management remaining confident of ‘continuing the performance in the second half’. Trading on a 2018 PE of 6x and offering a dividend yield of 7%, having increased the interim dividend by 8%, we maintain a buy recommendation and price target of 95p (72% upside). At this level, the 2018 PE rating and dividend yield is still only 9.5x and 4% respectively." "RTC continues to be undervalued. RTC’s valuation/growth profile continues to compare favourably to its small cap recruitment peer group. This is despite the fact that c80% of gross profits (ex the Derby Conference Centre) are recurring and it has visible revenues of c£125m over the next three years. This confirms our belief that RTC is undervalued and that 95p reflects a fairer value." Incidentally, Ganymede deal with customers like Network Rail and SSE - these are as creditworthy as you can get. And Whitman Howard confirm today that the increased debt was due to "an increase in receivables of £1.8m as RTC is winning more business with clients who request 60 days credit and a one off delay in receipts from Network Rail. We understand this has now been resolved such that net debt will return to more normalised levels by the year end".
rivaldo
30/7/2018
09:48
Published profits could be illusory, as borrowings are rising inexorably due to extended credit being granted to some customers. As such does not say much about creditworthiness of said customers. As a result bad debt is a big risk for RTC and clearly this is not reflected in the interims.
schway
30/7/2018
07:45
Happy to hold on this news and of course that yield is not to be sniffed at in choppy times :-)
cheshire man
30/7/2018
07:40
Not forgetting a dividend yield of 6.5% as well.
the big fella
30/7/2018
07:26
Good H1 results today, with 4.38p basic EPS up 22% and PBT up 31% (and I assume the adjusted EPS used by the analysts will be higher). Forecasts from Whitman Howard are for 10p adjusted EPS this year, which looks pretty nailed on, given the extremely confident outlook: "The optimism that we expressed earlier in the year has been justified by a highly satisfactory set of results. We remain confident of continued strong trading, in line with expectations, during the second half, and of delivering our ambitious growth plans across all our Group businesses " ATA and GSS are going great guns. Ganymede has gone backwards - but imagine the upside in this H2 and going forward now that (1) Network Rail contract levels have returned to normality, and (2) when smart meter deliveries improve next year as outlined. Cash/working capital could be better, but are due to good reasons as explained (ATA contracts and a specific customer now resolved). Overall RTC are looking very cheap on a current year P/E of just 5.5....
rivaldo
30/7/2018
07:26
"Long term incentives. For some years prior to 2018, very few share options were granted to senior and top management. The Remuneration Committee is keenly aware of the need to ensure that key staff are suitably incentivised both in the short and long-term. The responsibility to secure, motivate and retain top quality talent at Group Board level falls to the Group Chairman, assisted by the Remuneration Committee on rewards matters. The short term is accomplished by heavily weighted Profit Related Pay and the long-term is secured by the long-term incentives. Earlier this year an award of LTIP options was made to Group Executive Directors to restore an appropriate level of options to vest only on achievement of three-year performance objectives. That process is now complete." Some might argue that management have done very well out of incentive schemes in the past few years.
shanklin
30/7/2018
07:16
Very good half year results this morning https://www.investegate.co.uk/rtc-group-plc--rtc-/rns/interim-results-for-six-months-ended-30-june-2018/201807300700050657W/ Sales growth in H1 of £6m (+17%) appears to be in line with what Whitman Howard were forecasting as growth for THE FULL YEAR. At first scan this is better than I was expecting.
simso
18/7/2018
11:19
The increase is sizeable - to 1,100 from 660 per the article. Next month's interims should have a confident tone given both this news and the AGM statement: "I am pleased to report that the Group has traded well since the publication of the 2017 results in February and we continue to experience a strong demand from both new and existing customers. The Board is confident of the trading prospects of the Company in the current financial year."
rivaldo
Chat Pages: 53  52  51  50  49  48  47  46  45  44  43  42  Older
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