Sureserve Share Discussion Threads

[rivaldo] 09/1/2023 09:53

Cheers Tole - reads well. Although with 9.2p EPS forecast to this September a 106p price target seems pretty conservative to me.

Even at 106p the P/E would only be 11.5, and when you take into account the large cash pile and terrific forward revenue visibility then this seems particularly good value imho.

[knowhow77] 07/1/2023 13:19

Thanks for that all sounding positive

[tole] 06/1/2023 16:12

https://masterinvestor.co.uk/equities/small-cap-round-up-end-of-the-beginning/Sureserve Group (LON:SUR) – Setting a New Target Price of 106p Before The FinalsOn Tuesday 24 January this £145m capitalised compliance and energy support services group will be reporting its final results for the year to end September 2022.The group is expected to declare over £300m (£244m) of revenues, while adjusted pre-tax profits could show a good advance to £16.4m (£13.6m) increasing its earnings to 8.1p (7.1p) per share.Solid operational performance will have been shown for the year, despite its inflationary pressures.The period end showed up a 16% increase in the group's order book to £565m (£503m), while its net cash position was very strong at over £23m (£16.6m) with its £15m revolving credit facility undrawn.Analyst Alastair Stewart at Shore Capital estimates that the current year to end September could see revenues improve again to £319.2m, helping to lift profits to £18.6m, worth 9.2p in earnings.That very positive order book shows an excellent visibility of future earnings, as long as the group's management can keep firm control of its costings – and I have no reason to doubt their ability to do so.The group's shares have been edging higher from the 66p level at which they were trading a month ago.Now at 85p they appear to me to be significantly under-rated considering its financial strength, its order book, growing revenues and continually improving profitability.If one used a market average pe ratio, then its shares would be trading at around 115p.In my view I see these shares rising to well over the 100p barrier in early 2023, before heading even higher.Accordingly, I now set a new Target Price of 106p.

[igoe104] 06/1/2023 12:41

I'm glad CEOs are available to speak with holders from time to time. I get in touch with alot of the CEOs i have a holding in. I think its something folks should in encourage, and not moan about.🤷

[rbewes] 04/1/2023 20:30

Send him an email, let him know PJ1.

[pj 1] 04/1/2023 07:53

igoe10423 Nov '22 - 17:06 - 1918 of 1978
0 3 0
Just been intouch with Peter Smith. Feel more resurred about the company now. He said nothing new, but the company is in very good shape, going forward,.

CEO personally responding is normally a good sign..

Might have to add afew.🤔
KNOWHOW7723 Nov '22 - 17:29 - 1919 of 1978
0 2 0
I also received an e mail reply recently which was responded to quickly by Mr Smith so his being consistent !!
Blue finish finally albeit a penny
===================================================================================

Shouldn't he be busy building or re-building the business rather than sat behind his desk waiting for emails to respond to whilst just repeating information you already know and offering nothing new?

[pinemartin9] 03/1/2023 16:17

I think you may be right! I'm ok holding though given recent sentiment and defensive nature of this share. I'm about 12% up across my holdings here in about a 14-15 month time period. Not spectacular but OK. It's on a yellow card though!

[hsmith_08] 03/1/2023 15:11

KH Only if Pine Martin sells…

[knowhow77] 03/1/2023 11:16

HNY
Will sure finally break through the £1 barrier and push on this year?

[rivaldo] 03/1/2023 10:09

Happy new year everyone.

SUR's results will be published on 24th January, so not long to wait. Hopefully we'll get a further run-up prior to then given we already know the results will be in line with 8.1p EPS expectations.

With 9.2p EPS forecast for the year already three months in, plus a £23m+ cash pile and terrific forward visibility given the £585m order book, hopefully the recent upwards trend will continue for some time to come.

[damo88] 01/1/2023 18:49

I question the logic of selling the 'fire' businessSureserve is an energy services and compliance services business and 'fire' is a core part of this service offering Fire services are typically a much higher margin product (40% v 20% in heating) Every social housing client needs this - the fact that Sureserve would rather take the easy option and sell rather than offer this to its national client base astounds me You only have to look at companies like Protec and Marlowe to see the success they have made in this market

[johndoe23] 30/12/2022 10:35

Full 88p being paid

[rivaldo] 30/12/2022 10:32

Good to see the rise continuing - but SUR remain on a miserly P/E given 9.2p EPS forecast for this year, plus a £23m+ cash pile.

Nice finds Knowhow77 - here's a link to that £48m contract win going through to 2025 for Aaron Services:

[johndoe23] 30/12/2022 10:04

Maybe New Year tip?

[diesel] 30/12/2022 09:57

Sudden activity in the last few minutes something announced somewhere?

[knowhow77] 29/12/2022 11:05

Longhurst group in East Midlands 3year
Contact and if successful a further 2 years

[knowhow77] 29/12/2022 10:59

eating Servicing, Repairs and Installation Services
Source: Contracts Finder
Published: Mon 19 Dec 2022
Closed: Mon 04 Jul 2022
Provision of Heating Servicing, Repairs and Installation Services through Efficiency East Midlands Ltd (EEM) framework agreement EEM0026 Lot 1 Heating and Hot Water Services.

central heating provision of heating servicing boston efficiency east midlands ltd installation services repair and maintenance repairs heating heating works hot water services
3 year framework, ends Sep 2025

award: Aaron Services£48M

[rivaldo] 22/12/2022 14:39

SUR were one of Andrew Hore of i.i.i's five tips for 2022. This afternoon he's updated those five tips, including SUR - he says Buy:



Conclusion:

"The fire and lift services businesses are both non-core although management will not sell without obtaining a good price. These disposals could provide further cash for acquisitions, and they continue to be cash generative as part of the group.

The order book was 16% higher at £585 million at the end of September 2022. Sureserve continues to win orders and the latest is a £5.4 million PV order from the MoD.

The shares are trading on less than 10 times 2022-23 prospective earnings. The share price will eventually reflect the strength of the business and its cash generative abilities. Buy."

[gswredland] 20/12/2022 13:02

Good to see it moving in the right direction!
Thanks for the posting Rivaldo

[angersharkz] 20/12/2022 09:15

The bears have gone very quiet here all of a sudden lol.

I hope everyone was buying these down at 69p when you had the opportunity.

[rivaldo] 20/12/2022 08:16

The new issue of Momentum Investor is out, so it should be OK to paste their Buy recommendation on SUR from the prior December issue:

"Sureserve (SUR)

Sureserve expects full year results for the year ended September to be in line demonstrating solid operational performance despite inflationary pressures, which are being mitigated. The order book rose 16% to £585m while net cash was also higher at £23m versus £16.5m in FY'21.

Two non-core businesses held for sale are performing well "providing the opportunity to find the right price".

Shore Capital says the decision to move from two divisions - Compliance and Energy Services - to one could improve cross-selling opportunities for tackling fuel poverty while performing regulated gas safety audits. For example the recent completion of a solar PV project for the MOD could open up opportunities across the latter's vast estate of military housing and other buildings.

After a year of flat performance the shares look cheap on a prospective PE of 8.0 ( FY'23 eps forecast: 9.2p), enterprise value/EBITDA of just 5.3 and free cash flow yield of 7%. I am a buyer."

[aishah] 16/12/2022 21:30

He always makes money from investing:-)