Styles & Wood Share Discussion Threads

[smallcapinvestor1] 05/4/2017 18:22

I think I'm right on this people. Read between the lines. They are telling us 2016 forecasts will be met even with some revenue having moved into 2017.That means 2017 could be phenomenal and maybe this is the shape of things to come.To sell out now would be madness after this news.I bought quite a lot more today.My price target is 700pDyor my opinions are my own.

[plutonian] 05/4/2017 16:28

Thanks.

We now expect 2016 Rev 104.65.

[smallcapinvestor1] 05/4/2017 16:07

Shore cap2016Rev 122.6 eps 38.6p2017 Rev 154.3 eps 54.4p (recently upgraded following acquisition.)2018Rev 164.8 eps 59.4p

[plutonian] 05/4/2017 15:50

What brokers cover STY? I can find any up-to-date research.

[smallcapinvestor1] 05/4/2017 15:45

The board gives guidance to the broker for the forecasts so they are normally pretty similar. This is standards stuff. No reason to worry that the board has very different expectations to the broker. Use the forecasts in the market for your calculations.

[ccraig69] 05/4/2017 15:45

or just saywhat the expectations are. Companies should always say. Just they dont

[ramridge] 05/4/2017 15:32

All the company has to say is something along the lines of "in the context of this RNS, the Board's expectations are identical or very close to current consensus market expectations"

That's it. That would clear all the noise and doubts and send the share price north. They can do this as an explanatory note which does not require issuing a new RNS, because it would then not be considered new information but just a clarification.
They can do it via their broker too.
It would be good if they did this today. But if no such clarification appears by tomorrow, you got to ask yourself (a) are they really that incompetent? or (2) what are they hiding?

[smallcapinvestor1] 05/4/2017 14:57

This is a veiled reverse profits warning. Maybe 70-80p of eps now this year so shares should be north of 700p.

[smallcapinvestor1] 05/4/2017 14:55

I think this could be a massive upgrade to expectations for this year. Management expectations are similar to the market which is for eps of 38p but now from £104m revenue rather than £122m so the mix if work has changed and become much higher margin.The missing £18m of revenue should appear this year on top of expectations of 154m revenue, alright this year could see slippage too into next year.All this at the higher margin too means the eps forecast of 54p for this year could be way way too low now

[lefrene] 05/4/2017 14:53

The news of the adjustment was badly handled as is often the case with smaller companies. I suppose if one believes the overall prospects are good, then there is now an opportunity to accumulate a larger holding. Unfortunately confidence has taken a knock, which is unfortunate considering what an excellent job has been done in turning STY around from the 50p levels. With an order book said to be 35% ahead of the same time last year, I look forward to profit projections for 2018, unless of course there's another 'Ooops' rns.

[davr0s] 05/4/2017 14:20

....Could have been better managed. Capital preservation is my no1 aim so had to go. Plenty more fish out there

[qs99] 05/4/2017 14:18

should have said "market expectations." IMO, but no reason board and market should not be the same or at least similar IMO...DYOR!

[davr0s] 05/4/2017 14:17

I sold at the open - RNS wasn't bad but it felt like expectations

[lefrene] 05/4/2017 13:05

It would have been better to have brought this out on results day, instead of creating doubt and uncertainty. It rather looks as if they 'puffed' last years prospects and now the truth is something else. So the claimed 35% 2017 improvement presumably includes the missing 9%, thus in reality a 24% improvement is nearer actuality. One would have thought that Mr Lenehan would have learnt by now that the market does not like fudge. Now there are three weeks before some numbers can be scrutinised, one wonders if anything else will emerge in the interim?

[martinc] 05/4/2017 12:43

Comparison to "board expectations" is pointless as we don't know what they are. Whether this is just sloppy, or intended to mislead, it gives a poor impression.

[lefrene] 05/4/2017 11:42

Order book 35% ahead of same period last year, and strong margins, doesn't sound like a veiled profit warning.

[smallcapinvestor1] 05/4/2017 09:36

We need some clarification here. It's a badly worded statement. It could be very bad if it's a veiled warning or really fantastic if they are going to make the profits forecast off much lower revenue and then smash the current year forecasts with a boost to revenue and much higher margins.I will find out and revert later.

[ali47fish] 05/4/2017 09:14

so on balance do people here think it is a buy/add opportunity? lombard have been adding just before the update!

[smallcapinvestor1] 05/4/2017 08:56

No change to forecasts for current year from broker at this point.

[qs99] 05/4/2017 08:51

Valh agreed and market waking up to the fact, provides opportunity IMO....

[valhamos] 05/4/2017 08:48

This is not a disguised profit warning. The profits are in line with expectations.

Because they relate to the start up phase of new contracts I doubt that there was much profit associated with the revenue deferred until 2017

[qs99] 05/4/2017 08:44

Bounce coming now IMO

[sheep_herder] 05/4/2017 08:28

That's a kick in the teeth for a company that has executed so well so far. Hope it's not a sign of things to come.

What I'm worried about is whether that 'order book' is the same as backlog, i.e. the percentage of revenue for each deal that is not due until certain deliverables have been met. If the order book is totally new business then it looks great. If the order book is the same as backlog, then the positive spin would most likely be due to deferred payments from 2016.

Anyone know how they have split order book and backlog previously?

[essential] 05/4/2017 08:24

Longer term there is no change to the story - the revenues are still there albeit being recognised slightly later - this happens all of the time with framework contracts. They have provided thus update to manage expectations for the results