Rtc Share Discussion Threads

[shanklin] 27/2/2015 07:39

Glenn

Do you have a link for the above article please?

Thank you, Martin

P.S. Are there any other small companies you currently see with as much potential as RTC?

[glennborthwick] 27/2/2015 00:12

And ata division looks to be growing as well by the look of this.

ATA targets capital construction growth



ATA Recruitment has announced plans to nearly treble the size of the team at its London office as it targets the construction and engineering sectors in the South East for rapid growth by the end of the year.

The company will be making a series of key appointments as it builds from the current team of seven at a time when the construction and property industry estimates it will create an additional 223,000 jobs by 2019, according to figures from Construction News.

The company, which is already one of the leading UK recruiters in engineering and manufacturing, is expecting its number of team members to rise to 20 across its construction and engineering teams, which are both based at its office in Bloomsbury, London.

Sales Manager Leanne Noble said the time was right for ATA Recruitment to increase its recruitment offering and boost its construction proposition, as these complement its existing engineering capabilities.

“Construction output is currently now only three per cent below pre-recession levels, and we are seeing renewed optimism and buoyancy right across London and the South East – and ATA Recruitment is gearing up to meet that demand,” said Leanne.

“Flagship projects such as Battersea Power Station, Project Nova in Victoria and One the Elephant are making construction in the capital an exciting place to be, but there’s also a raft of office and housing developments where demand is high and contractors need a reliable recruitment partner.

“The market is changing very quickly, and we are starting to see that, in some cases, there is as much as a 25% uplift in pay rates when changing jobs – especially in areas where skills are at a premium.

“The exciting part for us is that this plays perfectly to ATA Recruitment’s strengths to advise and guide clients and candidates on how to position themselves as an ‘employer or employee of choice’ in such competitive market conditions.”

As well as having offices in London, the company has centres in Birmingham, Bristol, Leeds, Manchester, Derby and Leicester, with more than 90 specialist recruitment consultants working across a wide variety of sectors, including general engineering, manufacturing, transport, the built environment, infrastructure, commercial disciplines, sales and technical sales, and the scientific, chemical, energy and utility, defence and aerospace industries.

Leanne added: “The development of our centre in London is a key part of the overall growth of ATA Recruitment this year, and we feel our partnership approach with contractors will set us apart in a busy marketplace.”

[mr hangman] 26/2/2015 20:56

Good work David, the Lionel Messi of stock selection

[glennborthwick] 26/2/2015 20:20

Good work. Onwards and upwards.

[davidosh] 26/2/2015 16:40

IC2 @476....good stuff and now folks will see where I am coming from when I say an eps target of 9p within the next two years is perfectly reasonable IMO and that is just on the pretty certain business that is coming our way. I think additional work will come in just because of the improved position and profile we have working in the regions on these rail contracts.

[tomboyb] 26/2/2015 16:21

Some seeing abit of value here -

[battlebus2] 26/2/2015 16:16

Finishing on a high :))

[cfro] 26/2/2015 14:46

Thanks for those calcs Ic2, i suspect you are not too far out there.

Good to see the results date bought forward.

[interceptor2] 26/2/2015 14:42

Just thought I would share what the segmental net margins are at RTC.

Last finals = ATA 0.82%, Global 1.2%, Ganymede 1.5%

Interims = ATA 1.04%. Global 1.51%, Ganymede 1.86%

As can be seen Ganymede have the highest net margins and are increasing nicely.

RTC have stated that they are aiming for 3% net margin within 5 years, so if I take a conservative figure of 2% net margin for Ganymede 2016 contract win £13,5m, that would add 2.0p EPS to current estimates of 6.14p, which = 8.14p EPS.

Then the following years contribution would be £18.0m, which could add 4.0p to whatever the existing estimates are for 2017, if they achieve 3% net margins.

Conclusion is that RTC look rather good value.

[tomboyb] 26/2/2015 14:13

It should be an interesting set of results -

They were/are generating cash so i think as a buisness a long way to go -

[sailing john] 26/2/2015 13:51

That's what I thought as well - hope we are right.

I already had a note in my diary for that date to look at adding RTC ahead of results the following week!

[shanklin] 26/2/2015 13:47

RTC obviously cannot wait to tell the market how well things are going :-)

[21trader] 26/2/2015 09:34

Lovely cheaper stock coming today not expecting that thought it would leave 70p+ for good this morning but I for one will love a cheaper top up.

[glennborthwick] 26/2/2015 08:12

There's ready a dividend. Probably 1p in total for the year. Debt is nigh on zero as really it's invoice factoring.

[21trader] 26/2/2015 07:46

Glenn

I was thinking a little similar along the lines of a 2.5 mil increase in market cap for a contract so big on a PE of 10 it's either saying they are only going to
make 250k a year from it or the market still has not took in the significance of the contract but stocks never rerate overnight these things take time.

[bckttsim] 26/2/2015 06:55

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, confirming Ganymede's position as one of the UK's leading suppliers of contingent labour to the rail industry. The Contract represents the maximum value of order book spend on core contingent labour that can be permissibly awarded to a single labour provider.And this is only part of the company.Market Cap of £8 million looks a bit silly.And there is talk about dividend on the way .

[battlebus2] 25/2/2015 23:14

That is the only concern GlenB but you would expect them to have already sourced what staff they needed before they applied for the contract.

[glennborthwick] 25/2/2015 23:06

its the stability, no company non payment risk, no country risk, easily understood model. FOr me its only an execution risk - can they get enough trained people to do the job. They have rail people in charge of the division so know what theya re doing.

[battlebus2] 25/2/2015 22:59

Makes a mockery of the current m cap even if you take the lower estimate of 80 million over the 5 years i have a target of 120 so still a doubler from here over time. Not many stocks with that low valuation alongside signed contracts.

[glennborthwick] 25/2/2015 22:44

Been looking at segmental stuff for Ganymede. It looks like every 2 million added to Ganymede nets down to about 230k net profit. Looking at allenby report Im alllowing 6 million of this years ganymede turnover to be rail already so If they can maintain that an average of 14 million per annum should add to ganymedes turnover and an extra 1.6 million of net profit.

If they can keep the 1 milion they are set to announce on March 9th plus grow ATA a bt, plus the new acquisition we should be looking at 3 million net in 18 months to 24 months time.

On a sectional average PE of 10 market cap should be 30 million. 9 milion shares in issue Share price target on spikes up would be 320p on a two-three year frame. Glad to have been in here at average 20p but theres a long way to go for my shares. Im was aways a bit optimistic on LOQ with these things and teneded to be about 6 months ahead of the curve but 200p would be my absolute minimum for a 3 year time frame.

[glennborthwick] 25/2/2015 21:47

haha welcome Mr H. Longtime no see.

[mr hangman] 25/2/2015 20:46

Thanks for all the hard work Glenn, I was fortune enough to get in a few days ago, but still looks very cheap, I see DavidD and a few others are in here, this is starting to look like a certain theme park share......

[glennborthwick] 25/2/2015 19:38

If I can find time before the weekend I will see if I can have a chat with Ian Jermin at Allenby. He normally is spot on with RTC and his last three analysis documents have been well written with clarity yet realistic. No ridiculous hyping up there.

Heres his last take on the interims re Ganymede; Think it reads that about 50% of Ganymede turnover is rail based but some of that might be London underground etc and not natinal rail.

hxxp://www.allenbycapital.com/research/research-rtc_3_3192494142.pdf

[glennborthwick] 25/2/2015 19:23

Under-performing contractors will lose out on work through Network Rail’s new frameworks.

The railway operator will measure the performance of its framework contractors against a series of indicators and those that fail to meet them will win less work in future.

Simon Kirby, Network Rail’s director of infrastructure projects, said: “Within all frameworks we will allocate work based on performance.

“We have KPIs [key performance indicators] on performance, which are much broader than cost, looking at quality, safety, hand-back consistency, all that sort of thing so if they do not perform they will fail on those KPIs and won’t win as much work.”

Mr Kirby said the railway industry was entering a busy bidding period as Network Rail will be letting frameworks for control period 5, which runs from 2014 to 2019, over the next few months.

By April 2014, 65 per cent of the value of work to be done in CP5 will be let and a year later 85 per cent will be contracted. He said getting work let so early was a “huge shift” from past procurement.

Network Rail wants to form closer, longer-term relationships with a smaller group of main suppliers through frameworks and alliances. He said 60 per cent of work would go through frameworks, 27 per cent via alliances and 13 per cent through competitive tenders.

However the rail operator was keen to stress that good companies that do not get selected as main contractors could still get work as tier two suppliers. David McLoughlin, finance and commercial director for infrastructure projects at Network Rail, said: “Even though we are working with fewer, the volume is there and is increasing in some parts… Everyone is still in the game. If you are a good, competent supplier who wants to work with us then one way or the other there are still opportunities.”;

Similarly tier two suppliers could act as tier one firms on some packages offered through regional frameworks. Mr Kirby said: “We would determine where it is better to have some tier twos becoming tier ones or whether to have an existing tier one deliver all the packages.”

He said cost only formed a small part of the assessment process for bids and other aspects, such as quality and safety were more important, which should mean contractors cannot “buy” work. Mr McLoughlin added that Network Rail wanted to see a “proper working relationship” between tier ones and their suppliers that was not just about lowest cost.

The person in the safety management role on a project must work for the tier one supplier or Network Rail, under plans that have gone out for consultation. Mr Kirby said: “Where you have someone who is potentially second or third tier running safety are they really going to feel accountable to stop the job when the person they are trying to stop decides where they have a job again next week?”

Network Rail will also have suppliers directly employ more of the people on projects although Mr Kirkby said there will always be some need for temporary workers to deal with fluctuations in particular types of skills needed a different stages of projects. Mr Kirby said: “In some longer term frameworks we are looking for a level of employment and in some areas suppliers are saying if you give us the commitment [of work] we will employ 70, 80, 90 per cent of people ourselves.”

He said Network Rail would look for suppliers on frameworks to invest in skills. He said in the last few weeks its three suppliers on its signalling framework had already recruited around 100 people - many of them ex armed forces personnel - to be trained as test engineers from September.

He said Network Rail had “pretty good dialogue” with HS2 about the effect that might have on demand for rail construction workers. He said major construction of HS2 did not start until the end of CP5 but thought that there was enough time to invest in training people to do the work.

[glennborthwick] 25/2/2015 18:53

Love a share like this. Can easily understand the business model. It's not some dodgy mine in iragunistan. It's not some pie in the sky technology that nobody really understands. It's micro cap so can grow quickly low in debt (mainly invoice factoring) and already profitable.