Sureserve Share Discussion Threads

[davidro77] 25/1/2022 17:03

I love articles like this, celebrating that the shares surged, forgetting that the day before they tanked and are still 10% below the pre announcement price LOL

[igoe104] 25/1/2022 16:58

Positive write-up in the shares mag.

[hjs] 25/1/2022 16:25

Patience will pay huge rewards so just wait and see.

[gswredland] 25/1/2022 16:09

It's effectively doubled in the last 18 months
That's like a growth stock and still on a low pe

[thelongandtheshortandthetall] 25/1/2022 15:56

I think SUR will now start to be appreciated by the wider market.

[knowhow77] 25/1/2022 15:48

K&T Heating have been awarded a new contract with Tower Hamlets Council
value £19M

[igoe104] 25/1/2022 13:39

I hope they take a similar approach to RNWH, one or two quality acquisitions a year and steadly build the company year on year.

I happy to be holding in 10 years time if things go to plan and hopefully the dividend can be retroduced 2023...

Hopefully and combination of acquisitions and dividends looking forward.

[thelongandtheshortandthetall] 25/1/2022 13:33

176% increase in EPS from pre covid levels.
I'd say they are already delivering AND more to come!

[se81] 25/1/2022 13:27

some lovely snippets in that announcement:
-potential disposal of non core businesses to generate more cash for acqns
-full year results still not representative of expected financial performance due to covid effects in H1
-operating profit of energy division increased>400%
-the huge (?) increase in fwd order book
-air source heat pumps to supplement existing revenues in gas business
-policy of acquiring owner managed businesses (with a motivated owner to remain in the group)
-no exposure to fluctuation in gas prices
All about execution now...

[johndoe23] 25/1/2022 11:56

Covered by Paul Scott this morning on stockopedia. He's given it the thumbs up as a decent value/GARP share

[thelongandtheshortandthetall] 25/1/2022 11:56

Positive news spreading about.

Might get a CEO interview in the next day or two.

[doobz] 25/1/2022 11:36

Doubled my position as it flashed back to flat on the day around 9am, happy to hold these long term. Lovely company that has a very bright future ahead GLA

[pinemartin9] 25/1/2022 11:34

Yesterday was a punishing day. However, I'm sure we will look back at the big dip in January 2022 and it will be just like the big dip in October 2021. I didn't add yesterday, for various reasons, but I feel confident tucking this away for another 12 months. Can't see too many better places for my money at the moment.

[rivaldo] 25/1/2022 11:08

Much better to go (in a responsible way) for growth than pay a 1% or so dividend which really doesn't impact half as much as profit growth will on the share price.

Shore Capital have - they say "possibly conservatively" - raised their forecasts to:

this year : 8.2p EPS
next year : 8.9p EPS

On a P/E of barely above 10 SUR are "compelling" value per Shore.

To back this up Shore have also raised their forecasts for the cash pile - they now see £21.4m net cash at September'22 rising to £32.1m cash at 9/23.

Plenty of headroom for further earnings-enhancing acquisitions.

[thelongandtheshortandthetall] 25/1/2022 09:59

Yes a very bullish outlook.
If they double the revenue in 5 years. What will that mean for earnings per share.. up 3x, 4x?

[igoe104] 25/1/2022 09:50

I like this bit... ambition of doubling sales and bigger margins within 5 years.👍


Our strategy is to build upon our position as a heating, and heating maintenance provider to the social housing sector in the UK. We estimate that, with about 9% of this £2 billion annual market, we are already a leading provider. Our ambition is to double our sales and significantly improve our net margin and earnings per share within the next five years.

 

[angersharkz] 25/1/2022 09:39

I wouldn’t worry too much about the share price in the short term, the news has released into a very unstable, nervous market. Once the dust settles and this share is rerated we should hopefully see the share price head north.

[hjs] 25/1/2022 09:38

IMO, markets do not like cut in dividends but in SUR case I get the feeling that acquisition/s are in the pipeline and will be announced soon. share price will pick up speed after that.
The results are excellent and the outlook is bright into 2022/23. Be patient and we will be rewarded.

[thelongandtheshortandthetall] 25/1/2022 09:16

I agree JohnDoe.

A decent acquisition will add far more value than the dividend.
As posters above have suggested, on that front there might well be plans afoot.

[johndoe23] 25/1/2022 09:12

Looks like the no divi announcement is the reason the rise first thing has not been sustained.Personally, no divi doesn't bother me, I'd rather the company targeted growth. A nice earnings accretive acquisition or two would be very nice!

[slopsjon2] 25/1/2022 09:07

Well it was up 8%, unfortunately I added @93p.

[mdr26nlz] 25/1/2022 09:05

how can such result go unnoticed in term do s. p.?

[thorpematt] 25/1/2022 08:40

:-)

Several posts above hit send whilst I was typing mine by the look of it. It looks like we are all on the same page.

Se81,
Thanks for posting the summary, my maths look OK for once.

Rivaldo,
Yes order book looks strong. The RMG TS this am did talk of 15,000 absences in the peak (January),that's about 10% i think.

Of course this statement is to 30.9.21, comments that trading for the start of 2022 was strong so nothing to mention perhaps? I suspect there has been disruption but all operators will be in the same boat. I think the COVID story is behind us to a great extent now.

[thorpematt] 25/1/2022 08:29

I think we have a beat on normalised EPS here if I am not mistaken?
7.0p v 6.43p

I would guess the 2022 forecast will rise a tad.

I prefer EV/ PBT given a choice.

The rise in cash lessens the EV to about £125m, PBT of £14m gives a modest ratio here of less than 9. I'd expect it to be around 12 to 15 for this type of company with this type of outlook.