Sureserve Share Discussion Threads

[angersharkz] 24/1/2023 14:07

Anyone holding shares here should be extremely pleased with the results announced today……I’m not sure if the numbers could have been much better? If you are a shareholder in this business then your money is invested in a very fundamentally sound business.

I’m not really sure I understand the logic of anyone that is unhappy to hold their stock here and I suppose the easiest solution is to sell your holding and move on to something else? Life is too short?

Good luck finding a growth stock with better fundamentals than the stock you already own.

[knowhow77] 24/1/2023 13:35

Got to make HSmith 08 right seems to be a recurring pattern and I cannot see the day they spend £40M on a aquisition!
A dividend still attracts investors and they need to get around the city promoting the company

[igoe104] 24/1/2023 13:18

Selling the two businesses and spending the 40 million plus on a good acquisition would give the share price a lift.

It doesn’t mean there isn't a dividend in the pipeline yet, I reckon they are seeing what funds they can generate first and the price for the acquisition etc etc, before making any decision of dividend..

[rivaldo] 24/1/2023 11:44

As I noted previously Thorpematt, one has to be VERY careful with Shore's forecasts (there are no others publically available AFAICS).

Shore Capital have indeed raised their forecasts to 8.6p EPS this year and 8.8p EPS next year. BUT - this is only from "continuing" businesses.

These forecasts therefore exclude:

- the sizeable profits from the two businesses being sold
- any cash from those disposals
- any interest receivable at all, either from the exiting £24m+ cash pile (rising to £32m by this September) or from any additional cash receivable from the disposals!

Which explains Stocko's "down", because the old forecasts included all the businesses including those being sold.

Shore DO however separately outline the revenue and adjusted PBT (but not EPS) figures from the entire business. These are:

- forecast revenue this year is increased to £339.3m (from £319.2m, and £309.3m last year)
- adjusted PBT is raised to £20.4m (from £18.6m, and £17.7m last year)

The forecast EPS for this year is 9.7p EPS if one raises the 8.6p adjusted EPS for continuing business by the rise in adjusted PBT for the entire business.

Which would put SUR on a meagre current year P/E of just 9 - and that's before taking the £23m cash pile into account.

Phew!

[doobz] 24/1/2023 11:37

This should be way up today, disappointing share price reaction as usual.i suppose the business sales and future acquisitions may be the only thing that'll get us over 100. Fab results still

[knowhow77] 24/1/2023 11:34

No momentum drops 15% with no news and gains 3p on good results, been stuck in this bracket forever

[thorpematt] 24/1/2023 10:51

Correct me if I am wrong.

Shorecap. has increased forecasts for 2023 and 2024


"Year to
Sep" "Adj PBT
(£m)" "Adj EPS
(p)"
2023F 18.1 8.6
2024F 19.2 8.8

BUT Stocko has set broker forecasts DOWN

Does anyone have any broker updates other than Shore?

[rj777] 24/1/2023 09:25

Excellent set of figures. Would have been easy to say the dividend is swerved again due to the ongoing pursuit of earnings enhancing acquisitions. Communication that would have been simple and clear.

Ultimately it will come down to what management do with the £23m in terms of future growth. Business is a solid one, but not a one that would trade on a high price to earnings ratio. Therefore future acquisitions will be key to making this a more enhancing proposition for potential investors.

[igoe104] 24/1/2023 08:33

Its very clear what the strategy of SUR is. They have identified acquisitions they want, but can't complete them until they complete the sale of the two businesses, once the sale has been completed the acquisition/s, will soon follow. You can only presume they need every penny they can get there hands on, to not even mention a dividend.

I wouldn't be surprised too see the sale of the two businesses and new acquisition/s happening very soon....

[rivaldo] 24/1/2023 08:33

Quite right longandshort, the cash pile is worth around 14p per share and rising, so adding that in could take a current price target to say 165p or thereabouts.

Also worth noting from today's RNS is:

"Our ambition is to double our sales and significantly improve our net margin and earnings per share within the next four years"

With doubled sales one could perhaps expect EPS to rise to anywhere from 18p to say 25p EPS given economies of scale etc, which would support a share price of.....much, much more than where we are today.

[angersharkz] 24/1/2023 08:08

Yes, I would echo the sentiment shared by most here…….

An excellent set of results by a very solid business, pure and simple. The BoD are prioritising growth and that’s what they are delivering.

The company in now trading with a very low PE and it will surely only be a matter of time until the market corrects that.

The dividend was not the reason I invested here in the first place so for me it’s not really an issue, will have to see how the market takes it.

[thelongandtheshortandthetall] 24/1/2023 08:03

And cash on the balance sheet could take it to 180p, rivaldo.
Just patience needed.

[thelongandtheshortandthetall] 24/1/2023 08:02

PBT up 40%.
That'll do me :)

[gargoyle2] 24/1/2023 08:01

Happy with those results. Still think it would make a tasty morcel for someone like MTO or SRP imo.

[gswredland] 24/1/2023 08:00

I know it is frustrating Knowhow, but patience will ultimately reward investors here

[rivaldo] 24/1/2023 07:57

I agree with igoe104 - the share price is extremely undervalued. Forecasts for the business as a whole should now be raised for this year to say 10p EPS - even on a miserly P/E of 12 that would give good upside to 120p.

But taking into account the secure and long-term nature of SUR's revenues, the huge order books and the potential for growth both organically and via acquisition, one could easily argue for a multiple of 15 and a 150p share price target.

[knowhow77] 24/1/2023 07:51

Year on year the results are improving but not the share price anyone want to have guess where the share price is heading over the next 6 months !!
I still maintain a dividend should have been declared

[igoe104] 24/1/2023 07:49

Its looks like the sale of the two businesses are happening soon, and they will use the funds and the current cash to fund a decent size acquisition or acquisitions..

[johndoe23] 24/1/2023 07:46

Excellent results. My quick calculations indicate 50% upside here, at least

[rivaldo] 24/1/2023 07:23

Terrific results - well ahead of expectations with 9p EPS (up 29% and compared to the 8.1p EPS forecast):

- 9p EPS is almost up with 9.2p forecast for this next year through to Sept'23!
- plus SUR have a £23.3m cash pile, 17% of the m/cap
- the order book is up 18% to a massive £594m
- revenue, PBT and EBITDA on continuing operations are all way ahead of forecasts
- CorEnergy acquisition is trading ahead of expectations
- huge visibility of forward revenues stretching out for years ahead

And importantly, SUR have made "a good start to trading in FY23" and are confident in this year's outlook.

Can we please not moan endlessly about the relatively small issue of the dividend, and congratulate SUR/concentrate on the superb performance achieved and excellent outlook here?!!

[angersharkz] 24/1/2023 07:13

Had a first look through the results, they look excellent…..although there’s no mention of a dividend, which is puzzling and I think there will be many annoyed by that.

[johndoe23] 23/1/2023 14:07

Well, now two large prints certainly look like buys

[johndoe23] 23/1/2023 13:05

Certainly no buyers around ahead of tomorrow. Let's hope that all the selling is not people "in the know"