Sureserve Group Plc

0.00 (0.0%)
Share Name Share Symbol Market Type Share ISIN Share Description
Sureserve Group Plc LSE:SUR London Ordinary Share GB00BSKS1M86 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 124.25 181,205 08:00:05
Bid Price Offer Price High Price Low Price Open Price
123.50 125.00 124.25 124.00 124.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Business Services, Nec 309.27 11.07 6.70 - 206.53
Last Trade Time Trade Type Trade Size Trade Price Currency
17:33:44 O 124 124.25 GBX

Sureserve (SUR) Latest News (2)

Sureserve (SUR) Discussions and Chat

Sureserve (SUR) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-05-31 16:33:49124.25124154.07O
2023-05-31 16:16:42123.9050,00061,950.00O
2023-05-31 15:56:59123.7828,80035,647.49O
2023-05-31 14:49:24123.8530,00037,155.00O
2023-05-31 14:32:18123.7125,70031,793.47O

Sureserve (SUR) Top Chat Posts

Top Posts
Posted at 21/4/2023 07:21 by rivaldo
At 125p the premium to the share price is around 40%, which is pretty good compared to the usual 25%-30%. But then that just shows how undervalued the share price was in the first place.

I note that Slater and Harwood are taking the money and running.

If SUR had succeeded in the acquisitions that were hoped for (and/or to divest the non-core businesses) it's possible that the share price would already be at 110p-120p and the bid would be a non-starter at this level. Hmmmm.

Posted at 29/3/2023 11:47 by rivaldo
Tomorrow looks like a good news day for SUR, with new government funding to be announced for various energy saving measures which SUR provides including insulation and smart heating:


"Cheap imported products made in polluting factories abroad may face new green import taxes and middle-income families will be given grants to make their homes more energy efficient under updated government plans to hit net zero by 2050.

The measures are part of a package of proposals that will be unveiled on Thursday by the energy secretary, Grant Shapps."

"The plan will be part of a wide range of updated net zero and energy policies to be announced on what has been called “energy security day”. Ministers will confirm that middle-income households will be given grants worth hundreds of pounds to make their homes more energy efficient under a new “Great British insulation scheme”.

Shapps will announce the plan to fund loft insulation, cavity wall insulation and smart heating controls. Unlike previous initiatives, which were targeted predominantly at the poorest households, 80 per cent of the new funding will go to households that are “able to pay”.

The money is expected to be given to people in council tax bands A to D, and the government will meet the bulk of the costs of any upgrades. The scheme, which will run over three years, will be funded using a levy on people’s energy bills known as the “energy company obligation”.

Ministers believe that people will make significant savings. Installing loft insulation can cost up to £1,100 but save £640 a year, and cavity wall insulation costs as much as £2,500 but can save £525 per year. Smart heating controls such as advanced thermostats and thermostatic valves cost up to £800 and can save £525 a year.

The scheme is part of measures that will be announced by the government in an effort to cut people’s energy use by 15 per cent by 2030."

Posted at 02/3/2023 08:26 by rivaldo
Knowhow77, back at the start of Covid in March'20 SUR's share price was around 35p.

Since then it's climbed around 130%.

Sometimes you just have to accept that there are sellers out there, probably funds/institutional, who wish to take profits/need cash for redemptions/see opportunities elsewhere/change fund managers etc.

Take comfort from the fact that almost everyone appears to agree that SUR are undervalued, and relax. It's likely imo that after this extended consolidation phase SUR will go on another run upwards. The trigger for this might come next week or in another few months.

Hopefully news on either an acquisition from the £23m and rising cash pile or the disposal of the non-core businesses is imminent.

In the meantime I'm sleeping easily over this stock.

Posted at 30/1/2023 08:41 by rivaldo
SUR remain extremely cheap on current fundamentals, let alone if they announce a highly earnings-enhancing acquisition from their cash pile or announce the completion of sales of the non-core businesses.

INSE's results today prove that the stock market often just simply gets it wrong. I'm confident that this is just a hiatus whilst the market finishes taking profits from the rise in the last 2-3 years and gets back to re-rating the shares.

The current share price is a bargain opportunity imho on a P/E of 9 or so.

SUR have now highlighted the £19m 5-year contract win from Great Places Housing Group for "gas servicing, maintenance and boiler installations":


"27 Jan 2023

Sure Maintenance has secured a five-year contract with Great Places to continue carrying out gas servicing, maintenance and boiler installations. Worth in the region of £19m over five years, the new contract will commence on 1st April 2023.


Posted at 27/1/2023 10:03 by rivaldo
The IC says Buy:


"Gas business heats up Sureserve’s prospects

Longer contracts offer greater visibility over revenue, CEO says

January 24, 2023

Sureserve’s (SUR) shift towards focusing on providing energy services to social housing landlords was fortuitously timed, given the greater focus on tackling fuel poverty following Russia’s invasion of Ukraine.

The company now installs and maintains gas heating, smart meters and renewable energy systems. The gas division continues to bring in most work, though, and the
average contract length has increased from five to six years, providing greater revenue visibility, chief executive Peter Smith said.

Its order book grew by 18 per cent to around £594mn at the year-end and it had 93 per cent of this year’s expected revenue secured as of 1 January. More than 90 per cent of gas contracts are also index-linked, providing protection against rising costs. Sureserve's cash profit margin widened from 5.7 per cent to 6.1 per cent.

The company has cash in the bank, but opted not to pay a dividend for the second year in a row, keeping its powder dry for acquisitions. Smith acknowledged this hadn’t played well with retail investors, but said he was “very clear why we’re
doing that” and that he had the backing of institutions.

Its M&A activity has been slower than anticipated – it changed advisers last year and deals were harder to complete due to a gap between buyer and seller expectations. It has faced the same issue with the two businesses it is selling – Sureserve Fire & Electrical and Precision Lift Services. It recorded a £3.5mn goodwill impairment against the carrying value of the lift business based on the value of offers received.

Broker Peel Hunt lifted its earnings per share estimate by 7 per cent to 9.3p. The shares trade at just over nine times this level, well below peers. Buy."

Posted at 24/1/2023 07:57 by rivaldo
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.

Posted at 16/1/2023 10:31 by rivaldo
Tipped again on Master Investor by Mark Watson-Williams:


"Sureserve Group (LON:SUR) – Deserving a Much Higher Rating

I like the way that the shares of this gas safety compliance and energy efficiency services group have been gently nudging higher over the last week or so.

Last night they closed up another 3.5p at 91.5p, valuing the business at £152m.

The shares have been down to 83.66p since I commented upon the group and its prospects just a week ago.

At that time, I fixed a new Target Price for the shares to rise to 106p this year, so the last week’s advance is a useful stride forward.

The group will be presenting its full year results on Tuesday 24 January.

Pre-tax profits have risen steadily over the last few years from £8.3m in 2019, then £9.4m in 2020, with adjusted pre-tax profits for the year to end September 2021 reflecting a 24% sales uplift in the Covid year to £244m, producing profits of £13.6m.

In the same three years earnings lifted from 4.4p to 7.1p per share.

The estimates by Shore Capital analyst Alastair Stewart suggest £304m sales lifted profits to £16.4m, worth 8.1p per share in earnings.

The group had an excellent order book of some £585m at the 2022 trading year end, which is very impressive and that is a figure that is sure to rise strongly over the next few years, underlining the group’s profit prospects.

What is more the group is boasting a strong net cash position, £23.2m at end September last.

The soon-to-be announced results will surely be accompanied by a positive outlook statement despite external pressures.

Shore Capital have already pencilled-in estimates for the current year for £319.2m revenues, £18.6m profits and 9.2p per share in earnings.

Based upon the strong cash balance and undrawn facility, upon the massive and improving order book and the current estimates – I see my Target Price of 106p being rapidly achieved, while later in the year market anticipation of improving profits will see an even higher rating.

These shares are headed higher and through the 100p, possibly within the month, if not days."

Posted at 12/10/2022 20:50 by vfast
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.

Posted at 11/10/2022 12:14 by rivaldo
Here's the summary from Shore Capital's note today, forecasting 9.2p EPS and £32.3m net cash this year:

"Sureserve Group

FY22F outlook confirmed with stronger cash

Social Housing Energy Services Group

Sureserve confirmed in today's trading update that it expects results for FY22F to be in line with management's expectations, with slightly better net cash than we
were forecasting and a strong uplift in orders. This reflects "Sureserve's resilient business model and...solid operational performance despite inflationary pressures". We are not changing our estimates for FY22F and FY23F other than to nudge up our net cash from £21m to £23m, in line with guidance. The shares have marked time for a year but now look compelling at 8.7x FY23F PER. House stock.

Solid performance in face of inflation pressure: In the FY results to September, Sureserve continued to experience growth in revenue, earnings and cash flow. This reflects solid operational performance despite inflationary pressures, against which the company has taken action, and remains confident it can continue to mitigate going forwards . The order book for continuing businesses rose 16% YoY to £585m. Pre-IFRS16 net cash was in excess of £23m (FY21, £16.5m).

Estimates maintained: Other than FY22F net cash, we are not changing any of our estimates for the combined business, which includes the two non-core businesses, Sureserve Fire and Electrical and Precision Lift Services. They are classified as businesses held for sale. These are both performing well, thereby providing the opportunity to achieve the right price and the right buyer for each business A full breakdown of our estimates for the continuing business and those held for sale is given in last week's note, "Better together on the home energy front, 6 September.

Fighting on an united front: The note argues that the decision to move from two divisions Compliance and Energy Services to one more effectively addresses the growth opportunities for both by concentrating on the huge social housing market. The new structure aims to increase cross-selling opportunities for tackling fuel poverty while performing regulated gas safety audits.

An example was the £5m solar PV contract for the Ministry of Defence, announced last week which could, in our view, open further opportunities across its vast estate of military housing and other buildings. The outlook could be further boosted by a new £1.5bn spend on energy retrofits of social housing in the "mini-budget'. The note also discussed the potential for a return to paying dividends.

Valuation: After a year of flat price performance and modest uplift versus the FTSE All Share, we believe the potential for long-term market growth and the visibility of revenue from increasingly long contracts, of up to 15 years, make the shares attractive at 8.7x PER, 5.3x EV/EBITDA and 7.0% FCF yield for FY23F."

Posted at 18/5/2022 18:51 by marktime1231
I could give you several examples of value stocks and trusts which are paying handsomely and appreciating in the face of an inflationary cycle. There is more to it than oil. Why is SUR your only performing stock and why can't you envisage anything better?

Look at the other energy stocks, SSE and NG are flying, and the new renewables trusts are going like the clappers. As a class REITs are doing really well. And tobacco stocks. MYI the daddy of global income and growth is having a good run. When the scaredy cats get a grip the banks and insurers are due an upswing, and builders I think/hope. Not all in a straight line.

I am happy to wait for SUR to repay my investment by building value without a dividend but it is not what I was expecting, and if all my income stocks stopped paying then I would have no income. So long as SUR share price kicks on, otherwise as davidro says we are missing the opportunity to be invested somewhere more productive. You might as well run to cash and repay the mortgage! If SUR does steadily gain 5-10p a year all will be forgiven, but it is not it is treading water.

Sureserve share price data is direct from the London Stock Exchange
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