Rtc Share Discussion Threads

[bozzy_s] 17/3/2016 15:08

Does anyone know the qualifying conditions for all those share options at 0p?

[capracomp] 17/3/2016 12:52

I was hoping this would be up in anticipation of more business from the hs3 and cross rail 2 announcements in the budget.

[glennborthwick] 04/3/2016 12:51

especially with the rail contract being five years. I will be buying some more

[shanklin] 04/3/2016 12:46

Quite bizarre to see people selling on what is probably a forward P/E of considerably less than 8 with very strong growth in the business.

[davidosh] 02/3/2016 17:30

Here is the link...

[davidosh] 02/3/2016 16:16

I am talking about RTC on the Share radio small cap show this afternoon.

[galles] 29/2/2016 16:19

Thanks Glenn. Makes sense and more reassuring!

[galles] 29/2/2016 15:21

Sure Glenn. I hope not anyway as it sure has a good pipeline of works and I want to be here to see all that Coke to fruition. And what I meant earlier by 'last year', that's the year before last when NR framework hadn't yet been awarded and their balance sheet was also running very lean.

[glennborthwick] 29/2/2016 13:31

plus galles, from recollection the debt is actually invoice factoring agreement so it best on them having invoiced the rail companies so not as big a worry as youd have thought

[shanklin] 29/2/2016 09:22

davidosh

Have WH Ireland revised their forecasts for the current year please? The pre-existing ones seems ridiculously low to me.

Thank you, Martin

[galles] 29/2/2016 09:09

Fair enough about the costs related to mobilising for the NR contract. However, the same applies to last year's figures. Millions of debt vs under £100k cash. That's a very lean business!

[davidosh] 29/2/2016 09:06

Headline from WH Ireland their broker this morning....

This morning’s results from RTC are in line with the positive update in January, with
the two main recruitment businesses showing excellent progress, and the overseas
business having declined, if anything, less steeply than expected. Last year’s
Ganymede contract win with Network Rail has bedded in well and is performing at
the upper end of expected monthly activity targets. RTC’s ATA subsidiary,
supplying skilled white and grey collar workers for the engineering sector, is well
positioned in 2016 with new capacity after a year in which it generated double digit
sales and profit growth, and lifted growth rates from the already strong previous
year. Overall the business is well positioned for the year ahead, with major
contracts providing a meaningful platform, while demand for RTC’s contingent
labour provision to safety critical industries remains encouraging. The final
dividend doubles to 2p. We retain our Buy recommendation and 92.5p target price.

[davidosh] 29/2/2016 08:51

Dividends....It is February and you will note the dividend is set to be paid out in July when they will have a much much stronger balance sheet with all the cash coming in regularly now from Network Rail as they hit the peak of the supply contract late in 2015.

That peak also suggests that earnings will be much stronger in 2016 as the profits lag behind the setting up and funding costs associated with the supply contract.

The results today stated...

Having been awarded the highest possible volume for contingent labour by Network Rail in its five year £30bn CP5 Rail Enhancement Programme, the business was under significant pressure to integrate the additional personnel the increased volume had demanded. I am delighted to report that Ganymede successfully achieved all regional integration plans and manpower deployment expectations and it is operating at the top end of the estimated five year £100m run rate. Furthermore, all additional and exceptional investment costs to facilitate the enlarged contract value were successfully absorbed in the initial ramp up period.

[galles] 29/2/2016 08:36

Really good share price reaction. But just wondering, £58k cash vs £3.9m short term borrowing and they are issuing dividends with money they don't yet have. Is that a concern?

[glennborthwick] 29/2/2016 08:05

And the growth from the train contract hasn't kicked in yet. pe sub 10. Yield 4 percent. Happy to accumulate.

[glennborthwick] 29/2/2016 07:46

Solid. Very solid.

[davidosh] 23/2/2016 12:51

tiswas....losses reduced dramatically in 2014 from £338k to £57k and as we know many of the office buildings on the site are already used or rented out by RTC themselves.

In the interim results they flagged up their intentions regarding the DCC and that work is nearly completed....

Business levels for the Derby Conference centre (DCC) were consistent with the equivalent period in 2014.

Change of emphasis for the DCC
Over the next twelve months, we expect to engage in extensive improvement and re-organisation of the premises on the Derby site to accommodate the Company's current and planned growth and to facilitate a move away from party and wedding events in favour of more business related customer activities and an increase in providing flexible office accommodation for local businesses.

[sailing john] 23/2/2016 12:50

I hadn't looked at the actual Conf Centre accounts just the RTC annual report which shows a contribution of 96k 2014 and £60k 2013 before central overheads. Of course we don't know if central overheads would decrease or increase without the Conf Centre. I ignore intercompany balances as there are often tax or legacy reasons for holding balances on subsidiary or Group accounts.

But I trust management to do the right thing. ie if the conference centre has no value or is a drain on resources I assume they would sell the lease and exit.

SJ

[tiswas] 23/2/2016 12:11

John
Thanks for the reply but if you look at the accounts there seems to be a history of losses and a big inter company debt.

[sailing john] 23/2/2016 10:38

tiswas - the DCC makes a small contribution as a stand alone business and I think this is without any transfer pricing element for providing office space/HQ for RTC.

So in effect it provides RTC with "free" office space afaik.

SJ

[tiswas] 23/2/2016 10:31

I am not aware as to the full history behind their ownership of the Derby Conference centre but I do wonder what sort of drain there is on PLC both financially and in terms of management time.

[glennborthwick] 30/1/2016 12:34

Wh Ireland reiterate rtc as a buy with a. Price target of 92.5p

[glennborthwick] 29/1/2016 21:18

yes very my pe is actually too high. It looks like they will hit 8.8p on a share price of 80p that is ridiculous as they should also have cash in the bank

[mr hangman] 29/1/2016 15:12

Wow, still looks very cheap to me

[davidosh] 29/1/2016 10:23

With the Network Rail contract as the cornerstone and all the initial costs out of the way plus the overseas business to potentially come through and the other two divisions going really well I think 8.8p for 2016 is very conservative and I have penciled in double digits.