Sureserve Share Discussion Threads

[thelongandtheshortandthetall] 01/2/2022 07:55

They aim to double revenue over the next 5 years.. Due to operational leverage that might mean a 4 fold increase in profits. DYOR of course.

[angersharkz] 01/2/2022 07:45

Excellent news this morning about another long term contract win. 20m over 10 years. More visible earnings for this sound business.

[dave2608] 01/2/2022 07:45

All you seem to get from this company is good news.

[weatherman] 01/2/2022 07:05

Another contract comes through.

[angersharkz] 31/1/2022 21:29

Marktime1231 - As I said in an earlier post I would expect a well established mid or large cap company to pay a dividend but I don’t think you would invest in SUR as an ‘income’ or ‘quality’; stock. I think you invest in SUR today for its growth potential and visible earnings.

With interest rates rising this year and inflationary pressures households and businesses are going to be looking at areas where they can ‘trim the fat’. One of the things I like about SUR is that it’s work is ‘non discretionary by nature’ ie, homes or businesses can’t really choose not to have their gas or electricity appliances or systems maintained.

They seem like a very ambitious company and want to become a market leader in their field. With further M&A this year they will look to continue to grow the company and secure more long term contracts. It’s a very solid business and not only does it have a very full order book and visible earnings the growth potential here is very encouraging. Not easy to find stocks like this in todays market. Happy to hold this for the long term.

[marktime1231] 31/1/2022 20:27

Not much to argue with, pretty well reasoned from all sides. Maybe things will become clearer why 4p earnings in 2020 with a 1p dividend became 7p earnings in 2021 with 0p dividend, something in the analysis of cash flow or average net cash/debt versus the reported year end position perhaps. Or investment in growth.

Of course it is difficult to see SUR as an income stock when there is no income, and yes it does become a growth stock if projected expansion to 8.xp earnings is stepped up with acquisitions.

[angersharkz] 31/1/2022 13:49

There might be some share price movement around this one as markets remain unsettled and continue to digest the results.

I was pleased with what I read and see lots of potential upside in SUR. I’ll tuck it away into the bottom drawer, very much a long term hold.

[johndoe23] 31/1/2022 12:31

I see in IC this week, their coverage of the final results has a hold recommendation. Justifies why I cancelled my IC subscription!

[knowhow77] 31/1/2022 12:12

But despite all the positive comments the share price still seems to struggle!!

[hjs] 31/1/2022 11:45

Se81, rivaldo and others,
I totally agree with what you say. In my personal analysis, I always check EV/EBITDA and as long as a rule of thumb, is under 10, it is good value. In sureserve case, the ratio for 2022 is 7.10, and 6.04 for 2023.

[vfast] 31/1/2022 08:26

Spot on rivaldo, and with a few good acquisitions it will be even more compelling.

[rivaldo] 30/1/2022 22:27

Exactly. As stated above, an extremely low P/E, a very healthy Balance Sheet with a £13.5m cash pile after the post year end CorEnergy acquisition, high revenue visibility from 3-5 year contracts, with a huge and fast-increasing order book....

As Shore Capital say, the valuation is "compelling" to say the least.

[angersharkz] 30/1/2022 17:48

Se81 - Very much agree. Currently trading at less than 10x earnings, market cap of only 150m, a healthy net cash position and plenty of scope for growth… at a share price of 92p I see alot of potential upside here.

[se81] 30/1/2022 16:49

some fairly bizarre commentary creeping in on here post the results- whether it be mentioning alongside CWR & ITM, questioning margins, suggestions the expansion here needs to be capital intensive or there being a lot to do justify the current share price....

based on 2021A, this currently trades at around 8x EV/EBITDA

good luck trying to find something else in this market with such a lowly rating that has similar prospects :)

[thelongandtheshortandthetall] 29/1/2022 21:01

What I like best about Sureserve is they don't need to out lay cash on lots of materials and have project delays. It's all basically maintenance work.
Low capex, very reliable, predictable earnings and they are gaining market share AND INCREASING MARGINS.

Lovely jubly :)

[vfast] 29/1/2022 20:47

Thanks igoe, looking great for this financial year!

[igoe104] 29/1/2022 20:41

Anyway gents let's get back too business.

Great to see two of Sureserve businesses too be possibly be involved with these £1.25 Billion frameworks Everwarm and Corenergy.

[davidro77] 29/1/2022 18:03

Ok so what did he say because you haven't really said anything. I didn't call him a tipster - read what I said. I said just it's up for debate and each person can make up their own mind on it. But what I said about that specific share was true as he doesn't update the tables and he did make A LOT of comments on that share and then the very next week doesn't say anything about it at all. I'd love to know how he managed to get out with a £1200 loss did you ask him that?Just stating the facts, I am not having a go at NT nothing personal to him at all. He has disclaimers saying he's not tipping any shares and I accept that. So I apologise if that is how it has been construed

[angersharkz] 29/1/2022 06:42

Davidro77 - I’ve emailed Robbie personally and he’s replied without charging a penny and I’ve been to his seminars, not a single share was ‘tipped’…..so debunked your lies.

‘I have noticed that when it goes wrong he falls silent and just moves on without much if any comment.’

His ethos is to sell anything that tanks for a quick loss, why is he going to spend time banging on about anything he unemotionally dumped?

‘Just saying I think NTs interest is irrelevant’

But your opinion is relevant? Behave yourself.

[thelongandtheshortandthetall] 28/1/2022 21:12

from the year end 176% growth in eps from pre covid levels.
Solid and very predictable revenue from housing associations.

What more do we need to know.
Let the management keep the dividend and carry on the good work :)

Market will catch up soon and realise the opportunity here.
Cheap and growing - Ideal zulu share.

Net Profit Margin from 2017: -8.8 0.0 0.6 2.0 3.2 4.7 going in the right direction.
Profit before tax from 2017: -3.1 1.9 5.3 7.8 13.8 16f 18.0f going in the right direction.

Bung in an acquisition or three and that £18m forecast for full year 2023 becomes £22m?

Not bad for £150m today.
My largest holding :)

[davidro77] 28/1/2022 20:54

I think marktime's post is good and well balanced. The divi announcement is rightly questionable and the analysts and tipsters are just focusing on all the other positives in the report. But margin of safety to enter or add here appears small. In this market SMEs are being severely punished for bad news. They have to execute well now. Hopefully they will but with hindsight 105p was a great place to take profits. I bet many on here thought about it but then decided to hold because of all the predictions about it going to 120p after results....

[davidro77] 28/1/2022 20:49

Gattaca was a prime example. He covered it so many times and also at his seminars. He bought it again last week and according to his tables he held/holds many thousands of shares. And yet after the price disastrously fell 35% last week he slipped into an update that he exited at a loss of £1200. So when ppl here say he keeps tables of trades go take a look you'll see Gattaca still listed as open, he can't be bothered to keep them up to date. Zero transparency and no commentary about why he got it wrong or how he managed to exit with such a small loss on a massive gap down. He says SUR is his largest holding now. Really? He has millions of TEP and other residual holdings. I highly doubt he would keep his largest holding in a small cap like this. Just saying I think NTs interest is irrelevant as if it did go spur he'd magically be out before it happened

[davidro77] 28/1/2022 20:44

Don't want to hijack the board about NT, but I think it's worth pointing a few things out. Of course he claims he's not a tipster, but that doesn't mean he isn't one. His business model relies upon ppl people paying him for his emails, seminars and books. Probably a large chunk of his earnings vs the trading itself these days. You'll find he will go on and on plugging certain shares and often when he chooses small caps it can influence the price. However I have noticed that when it goes wrong he falls silent and just moves on without much if any comment.

[stemis] 28/1/2022 13:01

I like a dividend as much as the next man (and my SIPP is largely invested on that basis) but this isn't a yield stock. Raising capital for companies like SUR is expensive, especially for PIs who are inevitably the ones who lose out. Pointless to pay dividends and then have to come to the market for funds. Having cash in the bank for acquisitions is cheaper, faster, flexible and more certain.

[stemis] 28/1/2022 12:56

THe good thing about SUR, of course, is that, an historic P/E of 13 for a cash company doesn't bake in a huge price expectation for future growth.