Sureserve Share Discussion Threads

[vfast] 09/7/2020 14:20

Rivaldo, I was thinking the same about an RNS!

They've got their foot through the door with EDF Energy smart metering hopefully more to come.

From the article it appears they have been working with other energy suppliers so may be there could be more contracts to come for Providor.

[rivaldo] 09/7/2020 12:10

Great spot vfast. A big £13m win is surely worth an RNSNON at the least.

The Government's huge home improvements scheme subsidies announced yesterday should also be very beneficial to SUR's Everwarm subsidiary, particularly as regards the additional insulation being fitted through the scheme.

[vfast] 08/7/2020 22:28

Article dated 01 Jul 2020

EDF smart metering contract win for Providor Worth £13 Million.

hxxps://www.sureservegroup.co.uk/news-media/press-releases/edf-contract-win-providor

Over the last 18 months the Sureserve Group’s smart-meter installation specialist, Providor, have been working hard towards adding new workstreams and contracts to their current portfolio.

This process has been all about developing relationships with suppliers around the country, and many energy suppliers have been invited into their business at Newmarket and Elland and also spent time out in the field with their engineers. These visits have been incredibly important in developing these relationships, and suppliers’ representatives have been greatly impressed with everyone that they have met along the way, with the professionalism they have seen in all departments, and the expertise that Providor have demonstrated at every level.

A result of this hard work has been the award of a sizable regional contract with EDF, one of the biggest energy suppliers in the UK. This contract will continue with the government led Smart Metering Implementation Programme (SMIP). Worth in excess of £13m over the next 3 years, the contract will be delivered by the industry leading Providor engineers and back office staff.

The contract will be mobilised over the coming weeks and will support and strengthen Providor’s coverage of northern England and Scotland.

[rivaldo] 02/6/2020 14:07

Good to see the price move up 1.5p on a single 10k buy.

Given 4.6p EPS forecast to this September, SUR are at last (just about) on a double figure P/E :o))

[vfast] 01/6/2020 09:50

MM's this morning are biding 43.81p for up to 125,000 shares and 43.25p for 310,000 shares.

The share price is under pressure to move up but I think the MM's are reluctant until they fill an order.

With the good interim figures and even with the C19 virus I believe the year end figures will be very good so believe the final dividend will increase substantially may be 100% increase to 1p.

IMO DYOR

[davebowler] 29/5/2020 16:53

Edison;
H1 interims: Good performance but lockdown impacts

Strong trading in the Compliance division

The Compliance division grew revenues by 11.6% in H120 and expanded EBITA margins to 5% versus 4% in H119. Over the last two years the group has looked to step up the service and efficiency within this division. The improving service levels have led to more work being won from the existing contract base. More gas boiler installation and electrical testing work, where margins are higher, have contributed to an improving margin mix.

Many of the workers in the Compliance division are designated key workers, reflecting the non-discretionary nature of the work. The group has worked with councils and local authorities to deliver services safely. The impact of the lockdown has led to some delays and the deferral of work and we are thus trimming our divisional revenue estimate for FY20 from £147m to £140m. However, the margin improvement has led us to nudge up our divisional EBITA estimate from £9.6m to £9.8m.

Energy Services division: More affected by the lockdown

The Energy Services division has two primary businesses:

■
Everwarm, which delivers energy efficiency solutions and technologies to help businesses and local authorities meet their carbon reduction targets.

■
Providor, a national smart meter installer that helps utility companies to meet their regulatory targets to install smart meters in every home by 2024.

H120 revenues were down 2% to £37.3m, reflecting less work at Everwarm, in part offset by a pick up in activity from Providor, continuing the momentum seen in H219. Despite the fall in revenues, EBITA margins improved from 5.0% to 5.2%. Providor, which was not profitable in H119 is now contributing to profits. The Everwarm business also benefitted from the Arbed 3 contract moving from a mobilisation phase in the comparative period last year to delivering in the current period.

Unlike the Compliance division, Energy Services workers have not been designated key workers. In addition, with significant parts of the contract base being in Scotland and Wales, where there is less visibility compared to England around a return to work, these businesses have not been delivering services during the lockdown and there remains some uncertainty around when this will resume. We have therefore cut our FY20 divisional revenue estimate from £86.2m to £72.8m. We have reduced our EBITA estimate from £4.7m to £3.8m.

IFRS 16 impact on the numbers

The group adopted IFRS 16 for the first time when reporting FY20 interims. The impact on the P&L is negligible, with PBT increasing by £0.1m. The balance sheet now has a £6.3m right-of-use asset net book value added to the non-current assets, offset by £3.2m and £3.1m of lease liabilities being recognised in current and non-current liabilities respectively. The cash flow overall is not affected, but our operating cash flow is boosted by £4.3m (our estimate for FY20 for the associated depreciation) offset by an equivalent increase in financing costs.

A key KPI that the group monitors is cash conversion, measured as a percentage of normalised operating cash generated divided by normalised operating profit. Sureserve targets an 80% conversion rate and for H120 it achieved 88%. The impact of IFRS 16 would result in a 160% cash conversion being achieved using statutory reported profit, due to the impact of depreciation inflating the operating cash flow. The group intends to use its historic measure for this KPI.

Net debt and banking facilities

The strong cash conversion saw net debt fall to £3.5m at end March 2020 from £12.9m in the comparable period last year. This position had continued to improve; at the time the interim statement was prepared, the group had a modest net cash position.

Part of this cash improvement is likely to be due to the deferral of VAT payments that the government has offered all businesses and in due course is likely to unwind. It also suggests that despite the Energy Services business not being active for April and May, the group has managed to navigate through this period with an improved cash position.

The group has a £25m revolving credit facility, which was renewed in December 2018, and runs until 31 January 2022. As at 26 May 2020, the group had drawn down £6.5m of this. In addition to this revolving credit facility the group has a £5m overdraft facility. This provides plenty of headroom for the coming year.

[vfast] 28/5/2020 13:17

This morning MM's are biding 43.25p for up to 185,000 shares and 42.75p for up to 300,000 shares.

Still buyer(s) around and won't take much for the share price to move up.

[cheshire man] 28/5/2020 12:39

Thanks for that link in the header igoe104, Bob comes over as being very confident going forward :-)

[igoe104] 28/5/2020 08:38

Its fantastic to see the large debt now completely gone - And as Bob said in the video
the bank owe us money now!

Ps * ill put the note and the video in the header

[rivaldo] 28/5/2020 08:34

Cheers re the new Edison note.

Even with forecast reductions, SUR are still expected to make 4.6p EPS to 30th September this year - at which point they would also almost be in a net cash position.

Edison's 66p price target is pretty realistic given the above.

[knowhow77] 27/5/2020 18:07

I’d take £1.00 a bit sooner good luck all

[vfast] 27/5/2020 17:49

Igoe, I think the same way someone will be keeping an eye on the company plus your target price looks reasonable.

Figures today look good and great to read debt free.

Interesting when the share price dropped 0.5p late in the day the MM's were still biding 43.5p.

[igoe104] 27/5/2020 17:13

The plan is simple- keep hitting double digit growth - and eventually get taken over. couple of years id take £1.30 to £1.50 area. I'm sure the Estate of Steve Rawlings, will be looking for a takeover for the company as well.

[knowhow77] 27/5/2020 17:08

Could well be a takeover target debt free and making good profits !!

[igoe104] 27/5/2020 16:54

Bob holt, defiantly my type of guy, you see what you get, kind of guy. interesting how me mentioned about the company been taken out in the future?

[igoe104] 27/5/2020 16:40

* Latest Video

[igoe104] 27/5/2020 16:37

Edison note.

Sureserve Group update - Creditable performance through the lockdown.

[cheshire man] 27/5/2020 08:19

With Bob Holt steering the ship I have every confidence SUR will be a rewarding investment,,,,,remember doing very well with him in MER many years ago

[rivaldo] 27/5/2020 08:13

Agreed. Great to see the excellent cash flows and net cash balance now as igoe says.

With 90% of FY2020 forecast revenue covered by the order book, much of the companies' work deemed essential, and the lockdown now easing in England and presumably relatively soon in Scotland and Wales, any temporary reduction in forecast should be relatively small.

Peel Hunt have accordingly today retained their Buy and 50p price target.

[cheshire man] 27/5/2020 07:53

Very reassuring intermins this morning... a confident hold for me :-)

[igoe104] 27/5/2020 07:46

Good to see the company is now completely debt free. The company is definitely heading in the right direction. Sorry gents looks like I got the results day wrong.

[cheshire man] 26/5/2020 16:18

Certainly can't buy any size online atm

[vfast] 26/5/2020 15:17

Pressure on the share price to move up.

MM's biding 41.2p for up to 200,000 shares and 42.1p for up to 150,000 shares.

[rivaldo] 26/5/2020 13:41

New recent highs now - hopefully back to 50p soon.

[vfast] 26/5/2020 10:28

Thanks igoe.