Shearwater Share Discussion Threads

[celeritas] 18/12/2009 22:47

New wind farm winners to be released 6th Jan, SWG should pick up some work from the projects. These are massive projects.




We are one of the leading international consultants in hydroelectric power generation. Our experience covers hydropower projects from 100kW to over 5000MW. Our other renewable low-carbon expertise embraces onshore and offshore wind farms, mini and micro hydropower schemes, biomass and bio-fuel projects, marine current power plants, energy-efficient cogeneration, energy from agricultural waste and geothermal power stations.

[dickbush] 18/12/2009 13:52

Thanks again, Celeritas. Great input.

[mattjos] 18/12/2009 13:10

Thanks Celeritas .... certainly shows the oportunity that Scott Wilson are capitatalising on & India infrastructure is ramping up and attracting investment from all over the world .... roads, power & water are all sectors that India needs to invest significantly in & the new govt there has made it a priority. Brits have a good relationship there too

[celeritas] 18/12/2009 13:02

SWG India


Shows the growth chart in India.

[indomie] 17/12/2009 21:31

Very interesting story indeed!

SWG was worth £10m more that Hyder HYC on Monday. Today its worth £8m less! I seriously dont get these mkt cap valuations when consolidation is clearly on the cards, maybe someone's trying to flush out a bidder.

[dickbush] 17/12/2009 15:39

Thanks, Celeritas. Great find.

[celeritas] 17/12/2009 13:16

US giants plan raid on British consultancy sector
11 December 2009

By Tom Bill

Davis Langdon, Turner & Townsend and EC Harris thought to be among takeover targets

Three giant American consultants, Aecom, CH2MHill and Jacobs, are stepping up their hunt for UK acquisition targets.

According to sources close to the firms, they have accelerated their search in recent weeks as a result of the comparatively low valuation of UK companies and a growing sense that the worst of the US recession is behind them – partly as a result of President Obama's fiscal stimulus.

One source said: "All three are over here and there have been lots of meetings and informal approaches that have come about via partnerships on jobs like the Olympics, Crossrail and the nuclear consortiums."

In addition to consulting engineers such as White Young Green and Scott Wilson, large QS and project management firms such as Davis Langdon, Cyril Sweett, EC Harris and Turner & Townsend are understood to be in the sights of the Americans.

The valuation of companies is based on the price-to-earnings ratio of listed consultants, which is currently lower in the UK than the US.

One senior source at a large UK firm contacted recently by Aecom and CH2MHill said: "The Americans are keen to increase their project management capability in Europe and now is an obvious time to do it because of the low valuations. These firms are desperate to increase their numbers to make sure they can compete for global projects."

Another boss at a UK consultant said: "The engineers are talking to everyone. If you look at some of the big infrastructure projects in the Middle East and north Africa, the winners will be those that bring in a huge pool of talent." The US companies dwarf their UK counterparts (see graphic) and takeover speculation has grown as UK firms have lost out on projects such as Crossrail.

A source close to one of the US companies said: "I'd put my money on a deal being done in the second quarter of next year. Companies may not be planning to sell, everyone has their price."

Davis Langdon, EC Harris, White Young Green, Cyril Sweett, Turner & Townsend, Aecom and CH2M Hill declined to comment. Jacobs and Scott Wilson were unavailable for comment.

[cwa1] 17/12/2009 09:04

103p looks a decent level to dip a toe in for a few but there looks to be a determined seller out there hitting the bid with 5000 at a time. Fingers crossed.

[celeritas] 17/12/2009 08:16

Focus will move to BRIC economies
17 December, 2009 | By Rhiannon Hoyle, Nick Whitten

Dubai's plentiful construction market may have been the place to be during the noughties but, as 2010 approaches, eyes are turning to the burgeoning Chinese sector in the hope it will prove the goldmine for the industry in the coming decade.


The emirate provided a flurry of work for contractors this past decade, with the market booming from 2002 when the government first permitted the ownership of freehold property to expats.

Now a new report, which predicts the global construction market will increase 70 per cent to £7.8 trillion by 2020, has tipped Eastern Europe and the BRIC economies – Brazil, Russia, India and China – to have some of the best opportunities for contractors on foreign soil in the coming decade.

China

The Chinese market will grow 110 per cent by 2020, storming to the top of the global construction league, according to the report from Global Construction Perspectives. Rok chief executive Garvis Snook said China would be the place to be over the next 10 years, despite raising fears that opportunities for UK firms may not materialise to the extent hoped.

He said: "The real powerhouse of the world economy over the next decade or two has to be China and that will, like the Middle East, suck in technical ability from the more developed parts of the world.

"The Chinese though – much like the Japanese did in the 60s and the 70s – may look at what we do, and then just copy it and improve it."

Major projects currently on the table include multi-billion pound plans to build new subway lines in as many as 20 cities.

Brazil



Having secured the 2014 World Cup and 2016 Olympic Games in Rio, the UK Trade and Investment board is encouraging British contractors to cash in on what is expected to be a significant amount of work on sports facilities and infrastructure in Brazil.

Estimates of the investment in infrastructure required for 2014 range from £10 billion to £30bn.

Poland

The Polish market has a decent potential pipeline of work, particularly with its roads network in dire need of redevelopment. EU funds – Poland receives more subsidies than any other nation – are primarily being spent on the construction and modernisation of transport infrastructure within the framework of the Trans-European Transport Network.

The government predicts that it will result in about 1,000 km of modernised railways. For the coming two years in particular, work will also be driven by the Polish government's desire to have transport links improved for its co-hosting of the UEFA 2012 European Football Championships.

Poland's construction market is estimated at about £30bn, and growth in construction output is expected to top 8 per cent next year.

India

According to the Planning Commission of India, more than £300bn will be spent on new power stations, airports, roads, railways, seaports and urban infrastructure over the next five years.

Mike Betts from Global Construction Perspectives said: "India has only felt a ripple of the economic crisis in its construction industry, and we predict an astonishing growth rate for it over the coming decade."

[dickbush] 16/12/2009 17:17

Thanks, Grim. Lays out the negatives but its at 5 times not 7 times assuming, safely, I think, that the second half earnings are the same as the first. I think the market is now saying "show me". So, the only thing to get this moving up short term (bid aside) is news of substantial new orders.

[ratel] 16/12/2009 16:44

I'm not sure that SWG would be too badly hit by any downturn in UK public sector capital spending. In a recent interview in the Sunday Times, George Osborne said that, if elected, he did not propose to cut back on infrastructure projects which he saw as vital to the UK's future business prospects. He specifically mentioned the development of the North-South high speed rail link.

[indomie] 16/12/2009 14:55

Just over 12 mths ago this was trading at £2+ and 24mths ago at £3+!

It sounds as though VT may be looking at some industry consolidation.........

"If VT succeeds with a bid for Mouchel, it may not represent the end of their ambitions, which include catapulting the firm into the FTSE 100 list of Britain's biggest companies.

Their CEO previously told the Daily Echo: "It could be one, could be two, three or four acquisitions. We have got a number of options."

[dickbush] 16/12/2009 14:52

I agree entirely, Mattjos.

[mattjos] 16/12/2009 14:24

The commentary in the statement does not suggest that they will simply break even for the rest of the year, quite the reverse actually - or am i reading some other report?:

"The international business continues to go from strength to strength, reflecting the benefits of years of investment outside the UK and the brand recognition we have established in key regions together with the new management structure we have implemented globally."

Scott Wilson has maintained its order book at £280m, which represented 95% of its revenue for the financial year. Around £100m of revenue has already been secured.

"Notwithstanding the economic uncertainty, our diversified business model, strong order book and financial strength continue to give us confidence that we can respond effectively to market developments and opportunities as they arise."

Even a small amount of research will reveal just how strong the Indian Infrastructure sector is at present, how strong the Australian economy is and same for Canada. China is so well known I shouldn't need to pont it out.
If the earnigs growth from these sectors ONLT equals any softening in the UK, I see no reaosn why SWG should not repeat in H2 what they have done in the H1 ... on that basis, the current share price (with the first 6 months de-risked so not entirely a forward basis) is on a P/E of around 5 at present + the dividend yield .... Deadly - may i suggest you have mis-read the opportunity here?

I don't think the the current share price reflects any t/o possibility at all right now ... it is cheap.

[indomie] 16/12/2009 13:22

trying to pick up some more of these but cant get better quote than 1.07!

[celeritas] 16/12/2009 09:21

I think he's quoting a P/E for the interims, deadly, work it out again.


More sector talk

[scotchbroth] 16/12/2009 09:17

Deadly, It was the interims announced yesterday, not the finals.

[deadly] 16/12/2009 09:03

Don't know why anyone thinks this stock is cheap at a P/E of 10. It may be a good company, but Interserve, for one, is in a similar market and far cheaper at P/E 8% and increasing profits. I know what my money will go into. Potential t/o is the only thing holding the SWG price up.

[mattjos] 15/12/2009 16:39

well someone, quietly amongst all the action, picked up over 200k shares at around 122 today .... much more of that and any takeover talk and we'll see a bounce from here.
Spending money on an acquisiton right now could leave them wide open and no ammunition to fight an approach .... they'll need to se the share price north of 130 & pretty shortly or they look vulnerable to being taken out too cheap

[dickbush] 15/12/2009 16:17

He might be denying it because he's looking to acquire someone. Fine by me, at the right price, but he'd better not add to the pension problem which, I'm sure, is what's weighing on the share price today.

How can it make sense that assets and liabilities with lives of 40 years or more can have valuations that move up and down like a rollercoaster over a period of a year? Actuarial valuation methodology is barking mad.

[celeritas] 15/12/2009 15:38

However, he refused to say whether or not the firm was in discussions with anyone about a potential takeover.

Why not just deny it then if it's not true, I'm sure more will be heard soon.

[mattjos] 15/12/2009 15:30

they know they're on the rack right now, esp in the current market .. wriggling to buy some time cos otherwise he knows they'll be snapped up