Rtc Share Discussion Threads

[simso] 09/4/2018 17:59

I now hold just under 1%, having recently sold a few in annoyance! cannot go to AGM but happy to vote against resolution 2 by proxy

[the big fella] 09/4/2018 16:06

David

I hold 100000 across 2 accounts (a fraction over 1%). I have instructed both brokers to vote via proxy against resolution 2, which they have confirmed they will, as I will unable to attend in person. I am also happy to put pen to paper and will do so in the next day or so when I get a free minute.

[davidosh] 09/4/2018 15:56

3800.....Have you written to the company to advise that you are unhappy as 1% is quite significant ?

I will need to know the level of support overall as it may be that an EGM is needed specifically on the remuneration issue if it has been too late to flag up the need to vote at the Agm. The options were only highlighted after the Annual Report was released so many shareholders may not have seen them.

[3800] 09/4/2018 13:26

I cannot come to the AGM but hold about 1%
3800

[davidosh] 09/4/2018 12:41

Can you guys email me an indication of the size of your holdings and whether you are attending the Agm /voting

[3800] 08/4/2018 15:55

Hi ALS the figures were supplied to me by someone who unlike the two of us hasn't bought any RTC. If some one can show me they are wrong feel free. sorry about the formatting




Simply this is the use of deferred tax credits accrued from previous periods of losses.
.

Factors affecting tax expense
Origination and reversal of temporary differences (74)


2017 2016
'000 '000
Result for the year before tax 1,337 1,073
Profit multiplied by standard rate of tax of 19.25% (2016: 20%) 257 215
Non-deductible expenses 24 45
Tax credit on exercise of options (8) (22)
Origination and reversal of temporary differences (62) -
Adjustment in respect of previous period 5 35
216 273

if you normalise this to 19.25% (corp tax rate) against the PBT - this would give the following

2017 2016
PBT 1337 1073
Tax 257 215
Net Income 1080 858

Adjusted EPS 7.77 6.22 25%
Basic EPS 8.06 5.8 39%
You can see the favourable tax adjustments added an extra 15% in the EPS number.

[arthur_lame_stocks] 08/4/2018 15:08

Are you sure they're using tax credits. If so can you point me in the right direction because I can't see it. I thought they were paying tax on profits.

As for free cashflow, I think that includes movements in working capital which is why I don't like it. I imagine for a business turning over £70m it's not unusual for there to be some pretty sizeable swings in working capital. Good point though, I guess if the company is going to grow over the next couple of years there is the danger that more cash will get sucked into working capital and with relatively modest headroom on their facilities they may have to cut the dividend. Who knows?

Hopefully it's not another Pittards.

[3800] 08/4/2018 14:27

Can the company AFFORD to pay this level of dividend in the long term? Free Cash Flow is negative and this years use of deferred tax credits accrued from previous periods of losses appear to have added 15% to this years EPS figure. I'm first to admit that company accounts are not my strong point but I'm beginning to wonder if anyone else's understanding of them is any better than my own.

3800

[battlebus2] 08/4/2018 12:53

Love it 😊

[cheshire man] 08/4/2018 09:12

Not to shabby at all Masurenguy :-)

[masurenguy] 08/4/2018 08:42

Cheshire Man - 1175: potential confirmation of increased divi at AGM in April

If and when approved, that will provide a current yield of 6.4% on Fridays offer price! :o)

[cheshire man] 08/4/2018 08:00

Maye news with the inerims in July regarding an acquisition ?

plus potential confirmation of increased divi at AGM in April

Commenting on the results Andy Pendlebury, CEO said:

"I am delighted to announce that 2017 was a very successful year for RTC. I believe our success demonstrates that our business model of building and investing in independent and complementary subsidiary businesses is both robust and capable of delivering long term value to our shareholders. We enter 2018 with optimism.

In addition to our incremental organic growth plan the Board now believes the time is right for RTC to pursue a transformational acquisition plan. During 2018 we will continue the process of identifying complementary organisations that offer a broad range of consolidatory and diversification opportunities for our Group to integrate into and alongside our existing subsidiary businesses."

[arthur_lame_stocks] 07/4/2018 20:01

I also think the outlook for the next couple of years is probably pretty good.

[cheshire man] 07/4/2018 15:22

I'm with you on that ALS and will be holding on to my stock :-)

[arthur_lame_stocks] 07/4/2018 15:16

I'm about breakeven on these, a few pence down but despite the management greed i'm not sure I see the point in selling when they're on such a miserly rating and the divi is pretty good too.

[shanklin] 06/4/2018 17:08

Hi David

To be more specific I sold on 21-Oct-16.

Having reviewed my records, I see that my decision was in part based on concerns about excessive remuneration as highlighted in earlier posts AND also a reaction to the profits warning that morning.

Another MAJOR concern related to the the share sales on 03-Jun-15 and 06-Jun-16 and how these proved to be exceptionally well timed given:
- the reaction to the HY results (to 30-Jun-16) announced on 10-Aug-16
- the subsequent profits warning on 21-Oct-16 about H2 trading

Additionally the prior H1 results were issued on 24-Jul-15. Whether I was being overly cynical or not, I was concerned that the issue of the H1 '16 results may have delayed a further 2 1/2 weeks purely so that the sales on 03-Jun-16 and 06-Jun-16 were not within the two month closed period where directors are unable to deal.

Obviously H2 started less than four weeks after these sales, so investors have to take a view on how much visibility there was of H2 trading at the time of these sales and whether investors should have been advised much earlier of the likelihood of an H2 downturn.

My view on 21-Oct-16, given the above facts and my concerns, was that, despite the financial hit, I felt much more comfortable being OUT looking IN than the other way round.

[davidosh] 06/4/2018 16:19

Thank you for the feedback and please do tell the chairman why you sold as it explains a lot and makes the need to stop this so important.

[shanklin] 06/4/2018 15:32

If one is running a private business it is not unreasonable for the owners to extract the entire annual profit in remuneration on an ongoing basis. Replace the word "owners" with "management" and anything anywhere close to this is far from reasonable, which is one reason why I sold out of RTC eighteen months ago. Obviously all IMHO.

[davidosh] 06/4/2018 14:33

For obvious reasons I need to be careful about what is said on a public forum but I honestly think it is very important that individuals turn up at Agms and engage with directors and support the view of all the minority holders.

I also think a shareholder mentioned writing to the chairman and directors to show concern about both remuneration and the LTIP and that is also very important especially if unable to come to the Agm.

Does anyone know Graham J Chivers ? Does he post here by any chance ?

[sailing john] 05/4/2018 17:16

"davidosh5 Apr '18 - 16:22 - 1164 of 1164
That perversely leaves a great opportunity for another company to make a bid and make huge savings on costs."

Davidosh that is an excellent point! Perhaps Morson Group will be tempted?
SJ

[tiswas] 05/4/2018 17:00

To be clear I was not consulted at all before these new options were created and they are four times greater than last year.

I don't need to tell you David, as you are an expert in these matters, but you with your material shareholding contacting a few of the other larger independent shareholders will carry far more weight than some of us turning up with a few thousand shares each.

Arrogant individuals will only listen when cornered and I would have thought that Mason is your man. Don't know why the chairman swallows all this.

Regards.

[davidosh] 05/4/2018 16:22

The level of remuneration is already incredibly high for a small cap of just £7m market cap as board pay was £800k last year and the CEO took out £430k....so the remuneration is already nearly matching post tax profit.

That perversely leaves a great opportunity for another company to make a bid and make huge savings on costs. I prefer to grow the company steadily and do well as a shareholder over the long term but remuneration and LTIP have crossed the line for me and I raised the issue last year at the Agm. To be clear I was not consulted at all before these new options were created and they are four times greater than last year.

[arthur_lame_stocks] 04/4/2018 23:25

Just had a thought, I may have forgotten RPI in my figures so that's probably about another £100k. Still suggests shareholders will be worse off if earnings grow though.

[tiswas] 04/4/2018 22:02

Getting Mason to reverse Morson Group in to RTC is probably your best bet!

On a serious note I am surprised that he would waive this through but I presume they would have already sounded him out.