Rtc Share Discussion Threads

[shanklin] 19/3/2015 14:28

Rugby, you plonker...

cfro, I heard the RTC CE speak after the recent results. Its your choice whether you believe that I have accurately reported what he said.

[cfro] 19/3/2015 14:16

If there isnt going to be a placing then a couple of questions:

Why dump Allenby when they have been so good for the company and change to WH Ireland that are well known for their active AIM fund-raising abilities?

They are likely to be acquisitive as they grow. Are strong cashflow and bank facilities enough of a source of funding?

Personally, i would not begrudge them a placing if for a lovely earnings enhancing acquisition.

[rugby] 19/3/2015 14:04

Plenty available right now, buy ahead????

[shanklin] 19/3/2015 13:51

I liked the fact that Allenby always got their updates issued quickly and made them available on their web-site to all parties. Perhaps WH Ireland will be what's needed through the current strong-growth phase, albeit I remain to be convinced.

FWIW, I concur with SJ that the move has nothing to do with fund-raising. However, if anybody who thinks it is for fund-raising would like to dump their shares into the market, I will be more than happy to add on the cheap.

[rugby] 19/3/2015 10:45

WH irelamd aim fundraising experts..

[sailing john] 19/3/2015 10:39

Re placing - I disagree

New business will ramp up gradually and the invoice discounting will in any case provide additional cash if needed

This from the recent results

"Post tax cash generation during the year has been strong, with cash generated from operations of £2.3m (2013: £0.2m). Effective credit control succeeded in maintaining levels of working capital similar to 2013 despite the increase in revenue and the acquisition of RIG Energy for a cash consideration of £0.9m.

It is pleasing to note that as an indicator of the quality of our earnings, free cash flow as a percentage of our underlying profit before interest and taxation is 198% (2013: 28%). It is our intention to continue to invest in our growth and supporting infrastructure during 2015, which should lead to further reductions in this percentage.

The Group's current bank facilities include an overdraft of £50,000 and a confidential invoice discounting facility of up to £7.0m with HSBC. Both are renewable annually with the next review due 28 February 2016. The Group is currently operating well within its facility cap.

The Board closely monitors the level of facility utilisation and availability, to ensure that there is sufficient headroom to manage current operations and support the growth of the business."

[cfro] 19/3/2015 10:30

Shame to see Allenby go, i agree, however, WH Ireland 'should' be equally as good i would hope.

I also agree that a placing is now very likely..

[glennborthwick] 19/3/2015 09:58

Sad to see allenby go. Quality research.

[tomboyb] 18/3/2015 21:04

I did say that to support the huge contract they probably would require more funds - albeit quicker than the cashflow they have -

Nothing wrong with it as the medium term will dictate -

[rugby] 18/3/2015 20:54

WH Ireland appointed- placing on the way......

[shanklin] 16/3/2015 16:38

Seems a bit of an over-reaction. Wonder where those shares ended up.

[bozzy_s] 16/3/2015 15:48

Good work Shanklin, well found. Their shares must have all found new homes as the share price has remained strong despite the £500k sale.

I'm hoping for a bit of RTC profit taking in next couple of weeks. Post-results and post-big contract news, with tax year end coming up after a stunning 12 months for RTC's shares, I'm waiting until April to buy my first lot.

[cfro] 16/3/2015 13:57

Couldnt believe that volume when i saw it! :-)

[glennborthwick] 16/3/2015 11:21

Half a million quid. Stake building perhaps. Should have an RNs at some point.

[shanklin] 16/3/2015 10:47

That 764k shares trade could be the whole of the ISIS Equity Partners PLC holding. Anybody know what is happening?

Cheers, Martin

EDIT: Here's the original holdings RNS...

[shanklin] 11/3/2015 18:51

I have had the benefit of listening in on two conference calls with Andy and the FD. What I particular liked was that what Andy spoke positively about doing in the first conference call was either done or well in train by the time of the second conference call. Indeed, the two directors seemed to, if anything be taking an approach of under-promising and over-delivering. IMHO this approach is reflected in the broker estimates.

All obviously only my own personal opinion.

[randomambler] 11/3/2015 18:23

Thanks bozzy_s and thanks David for the extra detail on Andy's holding; I'll look to amend my write-up.

However, as bozzy_s says, there are certainly a few shrewd investors in RTC and clearly Andy is one of them.

[davidosh] 11/3/2015 17:40

The only thing that might require amending is that Andy Pendlebury paid out about £300k for his 10% holding and they were not gained via cheap options so he is very committed to getting a return on his considerable investment in the company.

[bozzy_s] 11/3/2015 15:34

Quality write-up RandomAmbler. If a company is to be judged by the pedigree of it's investors, RTC is in a good place!

[cfro] 10/3/2015 18:24

I suppose the only other thing is that they might want to raise funds for another acquisition.

[randomambler] 10/3/2015 17:35

Thanks cfro. I must admit that I don't think that the board will resort to a placing for a couple of reasons:

1) They didn't do a placing in 2011 when the company was going to the wall and so avoided diluting existing shareholders

2) There's plenty of headroom in the invoice factoring arrangement and they seem happy to use this source of funding

Of course now the company will prove me wrong by raising a load of money for working capital purposes!

[cfro] 10/3/2015 16:25

Great analysis randomAmbler.

One question might be: is a small placing likely due to low cash levels?

I'm not sure there will be myself as cashflow is strong but always a possibility i guess.

Interesting that margins were as once as high as 9%. If they can ever get anywhere near that level again then........:-)

[tomboyb] 10/3/2015 15:23

rhps - article out -

Government contracts can send small company share prices soaring

By David Thorton -

I'm not sure i can put the article here so you can subscribe via email -

[randomambler] 10/3/2015 09:17

Thanks Martin. I'm a recent holder of RTC, after hearing David Stredder mention the company at the recent Sharesoc Masterclass event, and so aren't quite up to speed with conference calls and the like. It would be interesting to hear from anyone who was party to the call.

Ta,

Damian