Sureserve Share Discussion Threads

[vfast] 24/10/2022 13:07

There is no doubt SUR is a good company with substantial growth and profitability. Growing cash in the bank £23 plus and debt free.

The outlook also looks very good however the only problem is the share price does not reflect the present value let alone the potential of the company looking forward.

I believe we need management to be more proactive and highlight the positives and push the company’s potential to investors and attract them in.

For that to happen I would like to hear some news coming out, whether that is special dividend, start-up of annual dividends, the sale of the 2 businesses. There may be an argument for an acquisition but it must be at a good price and will add good EPS…not risky.

For me the sale of the 2 businesses and/or special div / annual div.’s The company needs to appeal to investors rather than seeing investors selling. Good figures and cash in the bank is good but they need to reward their shareholders!

IMO DYOR

[rj777] 20/10/2022 11:08

Share prices are umbilically linked to earnings per share, if they keep increasing earnings the share price will follow suit in time.
As previously mentioned I do not see the logic in pulling the dividend, restoring it would be a positive step. The last time they paid one it cost the company £1.6M over the year. It’s more attractive to investors than not having one, and is only a small percentage of what the company is sitting on in cash balances.
As regards management we will find out over the short term if they have the ability to take Sureserve further. A cash pile of more than £20m combined with a £15m overdraft facility to call upon for acquisitions and expansion. How this money is employed will determine the future growth of the company.

[vfast] 19/10/2022 21:53

Very quiet from the management but to try and take a positive view they may be silence for a good reason hopefully a head of some good news coming and waiting for it to be released before Mr Smith starts pushing the company's potential.

Just trying to be positive, anyway after the drop in the share price last week I think we are due some good news.

[johndoe23] 18/10/2022 09:32

Flicker of life, bid creeping up

[pinemartin9] 17/10/2022 18:55

Hope so. Chart starting to look quite negative. I'm under water now on my holding. Very disappointing.

[vfast] 17/10/2022 16:50

At one stage today the MM's were biding for up to 235,000 shares. So may be buyer(s)coming back.

It would be good to see the 2 businesses sold for circa £30M and that should kick start the share price with an estimated £50M plus in the bank.

[boadicea] 17/10/2022 16:22

I suspect that last largish and delayed sell not being the usual (50k or 100k) round number could be a hangover clearance. Many recent sales around 76.2p and shown as sells are in fact buys. The mm has just started selling over nominal mid-price for the first times since last Wednesday.

[knowhow77] 14/10/2022 17:05

Nice to end the week with no response to the drop in share price the silence is deafening

[marktime1231] 13/10/2022 22:07

So why did he leave abruptly, do you know that?

I am just speculating like everyone else. A contrarian perspective, or at least trying to look at things from all sides. SUR is in safe hands going along nicely and so I am not looking to blame the guy getting on with successful execution for why the share price has shrunk. The UK stock market is currently full of stocks where the share price has disconnected from value, including ones paying a splendid dividend. Enough good news in the brief trading statement to be happy even without a dividend. Might get one yet.

[vfast] 13/10/2022 19:05

Interesting post!

Totally made up implying Bob Holt was incompetent and given unfounded examples.

Smith knows everything and doing a good job.

It feels safer, more trustworthy...than what?

You use the term "for all we know" and then speculate about Holt and disposals and acquisitions.

For all we know...you could be Smith or Winks and coming here to defend your strategy and trying to persuade investors your the right man for the job.

You've implies some horrible things about Bob Holt who transformed the business and put it on a level footing and cleared off a £40M plus debt not to mention what he did at Mears Group and that we do know!

[marktime1231] 13/10/2022 18:05

For all we know Bob Holt was promoting growth by selling services without a decent test of contract profit margins, in the face of rising costs and resource challenges. He has a salesman's tongue. Like I said he did a good job selling confidence, as a result lots of tipsters were talking it up. But the industry is competitive and well known for slender margins, easily eroded. Bob Holt's sudden exit was never explained.

Smith is delivering profitable positive cash-flow and managing the downside, imposing financial control to minimise the risk of hidden bad news, without spending time making exciting outlook comments. It feels safer, more trustworthy.

I agree pulling the dividend is a puzzle and a disappointment, I too was looking at progress and bought some in to my income portfolio. Took the profits and rebought in my growth portfolio with the change in strategy. Reset expectations over a year or two for all the cash to be ploughed back in to the business for growth. Presumably that is what major shareholders want the board to deliver, and it seems they are delivering. Give Smith a chance, let the impressive performance speak for itself. When margins are confirmed to be sound we can enjoy the dividend again, hopefully sooner rather than later.

If you are convinced the share price does not reflect SUR value and opportunity buy some. For all we know there could be a boost on its way from pending disposals and acquisitions.

[knowhow77] 13/10/2022 14:47

I mentioned this before but what as Mr Winks brought to the table!!
I don’t think the share price would be where it is if Bob Holt was still involved he knew how to work the city and run the company

[rj777] 13/10/2022 13:43

I don’t think anyone on here would argue that the business is not sound. My point was why was the dividend pulled to save £1.6m? What difference is that going to make when you have 15 times that in the bank, know you’re selling two other businesses, and have a £15m overdraft facility. The management told shareholders it was for acquisitions, but it’s obvious to everyone that small sum would make no difference. Therefore we now have to question the management, and why that decision was made. Personally I can’t believe it was for the reason given, as the numbers simply do not back that up.

The one worry I have regarding this company is the margins that this type of business operates on. Everything else is sound, but at 5% margins a bit of headwind can have a real impact. I wonder if that is the true reason for cutting the dividend.

[vfast] 13/10/2022 13:09

I thought it was Bob Holt that transformed business. It was under Holt that the £40m plus debt was totally eliminated and he left cash in the bank when he departed. His policy was organic growth / acquisitions and with a progressive dividend policy.

Bob Holts was always beating the company drum to the City and investors because that is part of Chairperson & CEO job.

Mr Smith changed that strategy and stop the dividends which limits certain investors and as rj777 has pointed out there was no need to stop the dividend. Uptil now Mr Smith acquisitions strategy is not working however we might get an RNS tomorrow saying he bought X company at a good price and good fit which will boost eps but somehow I doubt it.

So failing that Mr Smith needs to attract investors back buying rather than selling. The trading update was excellent but investor still bailed out. So there needs to be a change to attract investor back in and hold their shares such as a dividend.

You could say the figures speak for themselves but you need management that will communicate that to the investment community and that is the responsible of Mr Winks & Mr Smith which again could be a lot better.

With all the progress the company has made and not forgetting its great potential moving forward the share price is back to where it was in April 2021.

[marktime1231] 13/10/2022 12:39

Bob Holt "charismatic" hah! He was fixing a crisis and then selling confidence with a doubling dividend to restore the share price / support the value of his investment, without necessarily having the fundamentals yet sorted.

Peter Smith is sorting the fundamentals. Building financial resilience and on the look out for opportunities at this time makes huge sense. Being honest. I am very disappointed he pulled the dividend. When it is reinstated we will know it is sustainable.

Why are you hoping the CEO would go round selling confidence in the company to boost the share price when he is flat out turning this into a really good business?

If you have faith in your conviction that SUR is worth a 50% upswing then buy some more yourself. The current bargain is an opportunity.

[johndoe23] 13/10/2022 12:27

Also be nice to see some director buying at this level. Don't want to seem like I'm constantly negative on the company, but the potential is big here, I'm frustrated with the board

[vfast] 12/10/2022 20:50

If they do reinstate the dividend which I believe they will Mr Smith needs to get it out and start promoting the company’s potential which is massive. The sooner it is in the public domain the better.

JohnDoe23, has mentioned a special dividend of 2-2.5p which may attract investors and kick start the share price heading in the right direction but the strategy change to the dividend policy is better for the medium and long term although we do need to see something happen soon to revitalise the share price

There is no doubt Suresever have a good business and massive potential and at 77p it is way undervalued and that’s why Mr Smith & Co need to get proactive working on restoring a fair price and shareholder value.

It is up to Mr Smith and his board now to get going and it is their job to resolve the issues with the share price and restore valve for their shareholders. I would put that down as Mr Smith’s number one priority. I’m sure the large shareholders will be thinking the same and they have the power to crack the whip

We cannot keep seeing the share price heading further down, enough is enough that is the way I feel.

[igoe104] 12/10/2022 20:37

You would think they would be bargains out there in this current climate?

[knowhow77] 12/10/2022 20:23

Peter smith said “he would be surprised if they hadn’t got one over the line by January “ either way they can afford both unless they are lining up a company for £20M

[igoe104] 12/10/2022 20:13

I think we were thought initially that SUR had a fairly sizable acquisition lined up with them cancelling a fairly small payment to share holders.

We can clearly see the Mr Smith isn't as charismatic as Bob Holt, under Bob contracts were regularly posted of the website or twitter, and he wasn't shy in doing various interviews.

[knowhow77] 12/10/2022 19:16

Yeah don’t hold your breath on that one can’t get 0.50p out of them

[johndoe23] 12/10/2022 18:07

Fwiw, surely a special divi of 2-2.5p could be looked at?