Sureserve Share Discussion Threads

[basem1] 21/4/2023 07:09

I tipped them on the ALU board this week but do not own any - doh

[thorpematt] 20/4/2023 23:51

£200m is less than I see as a fair valuation, but then again that is predominantly why the bid comes in.

I was also hoping to hold for the opportunities in the marketplace that are rather obviously there for SUR to open up a little more and then realise some of that fair value.

[rivaldo] 20/4/2023 22:45

Just seen the news - wondered why there'd been so many posts!

I couldn't agree more with the sentiments of most above. Just far too cheap, but symptomatic of the crazy lack of interest in and appreciation of quality small caps in the UK.

Hopefully there'll be other bidders, but given the lack of alternative bidders for the similarly cheap KAPE I'm not holding my breath (though the situation at KAPE is muddied by the dominant shareholder).

Oh well. A large profit, but I'd rather hold for the long-term as there's potential here for 250p-300p in a reasonable timeframe with earnings-enhancing aquisitions from the approaching 20p per share cash pile.

[stemis] 20/4/2023 22:16

I can't say I'm massively excited by 120p. Based on forward cash of £32m and ebitda of £27.35m, it represents a forward ebitda multiple of 6.2 for a company with a solid and long term order book.

Of course it would be a 37% premium to 87.5p and probably more to the average over whatever period they'd choose to justify it. Short term a welcome gain but the loss of a long term growth stock.

What it does show it how poor the stock market has become in valuing these sorts of small caps and you can hardly blame management for wondering what the point is of a listing. A private equity company can offer a significant premium and still get it for a cheap price.

[pinemartin9] 20/4/2023 21:06

Other bidders may come in. We could see 1.50 here.

[knowhow77] 20/4/2023 19:52

Let’s hope that’s an opening offer and they come back in bigger

[gucci] 20/4/2023 19:45

brill news

[knowhow77] 20/4/2023 19:40

Great news finally getting recognition
interesting day tomorrow

[johndoe23] 20/4/2023 19:39

So that's why no acquisition, they have probably been in discussions for months. Might go against the grain here but would be reasonably happy with 1.20

[se81] 20/4/2023 19:28

I suppose one shouldn’t grumble in the wider context of the general market- just feels like all the hard work has been done since the LAKE days and we were ready to reap the rewards

[aishah] 20/4/2023 19:21

Yeah around 38% premium to EOD close today. Slater and Hardwood Capital hold 34% of the equity here.

[gamwah] 20/4/2023 19:16

They have no debt, cash in bank and fcast 19 mill PBT. Does seem cheap like most London shares, won't whinge at 1.25 if that's what they get.

[gargoyle2] 20/4/2023 19:10

A £200m bid would be at around 120p. I agree, far too cheap, although would be at an all time high for the share price, so mustn't grumble too much I guess. Let's see what tomorrrow brings.

[se81] 20/4/2023 18:52

And there’s the bid! Just too cheap

hxxps://news.sky.com/story/sureserve-joins-tide-of-london-listed-takeover-targets-with-200m-deal-12862052

Oh and I should add, still too cheap at the levels in the report

[gargoyle2] 20/4/2023 18:44

Little twitch in the share price today, with a few punters buying at 90p. Next few days might be interesting.

[knowhow77] 19/4/2023 17:42

4 weeks until the interim’s surely they got to put some kind of decent update out and hopefully the share price holds up until then otherwise back to square one

[johndoe23] 18/4/2023 18:23

Basically, yes! One of the reasons I invested in the first place.

[gargoyle2] 18/4/2023 07:23

Anyone considered the possibility that SUR might be more likely to be acquired itself than make a game-changing acquisition? Would make a tasty morsel for a bigger player imo.

[marktime1231] 17/4/2023 19:30

I can think of a few reasons why acquisitions (and disposals) have not proceeded in the last 18 months. One is that we have had a mini-credit crisis, another is that the cost of borrowing has soared. Or are you limiting SUR to only acquiring from cash with no gearing? And don't be so naive to expect a commentary on any negotiations which may or may not be underway, you will be told if and when there is any news.

Being in positive cash has actually been something of a comfort.

Besides, it is clear from the incentive plan agreed recently by the new board that Mr Smith's no 1 priority is to improve net margin and grow eps, even above the strategy of topline growth by acquisition. SUR needs to grow profitably or not at all, which may be limiting the options. Progress is being made on this, and with better commercial terms and bidding discipline more progress can be expected. But it will be a slow process, facing in to the headwind of generationally high inflation.

Those of you still impatient for a dividend need to move on, a discussion topic we have been over before. SUR is no longer an income stock or prospect, it is all about improving the bottom line and eps growth. If you are still expecting a dividend in the near term you are not going to get one, deal with that and save yourself the trouble.

[vfast] 17/4/2023 18:14

Agreed KH77, only Mr Smith & Co can answer that question. They have a considerable amount in cash and a profitable business.

They can do both so why don't they?

[knowhow77] 17/4/2023 17:34

We seem to go round in circles always hanging on the next set of results which agreed have been excellent but I’ll state again why not give a dividend and also pursue aquisitions!! There are large shareholders invested here and would appreciate a dividend they can afford to do both.

[vfast] 17/4/2023 17:00

Mr Smith stopped the dividend in Jan 2022 to focus on acquisitions that was 16 to 17 months back.

The right acquisition at the right price is very important and not easy to acquire however Mr Smith and Co should be well aware of that fact. So it could be argued by stopping the dividend and making a statement regarding when he expected things to happen shows he may not be "on the ball".

SUR in 2022 was tipped by everyone and their granny and rated to be one of the top movers but we all know that did not happen although their figures were excellent.

I was once informed by a wealthy investor that the share price movement or lack of is telling a story.

As far as I'm concerned the jury is still out nevertheless a judgement will be made in 2023.

[asagi] 17/4/2023 15:01

I agree that KNOWHOW77 has a point here. When management set deadlines for staff they are expected to be met. But when management miss their own deadlines they always trot out the excuses to make it sound like we have benefited from their shortcoming "better than the wrong acquisition" etc. No. You were supposed to do both. That's why you are paid the big money.

Asagi (long SUR)

[rivaldo] 17/4/2023 13:59

They acquired Vinshire in Dec'20 and CorEnergy in Dec'21.

I suspect you mean Jan'23. It's only been just over two months since then. Perhaps you'd rather they made the wrong acquisition at the wrong price just to keep shareholders happy. Relax.