Tclarke Share Discussion Threads

[cc2014] 07/8/2017 11:58

yeah - trip back to 89-90 enticed a few more weak sellers out. Slowly slowly the sellers are 89-90 are being replaced with new buyers at 90.

Depending on how you look at it, there seem to be a number of buyers on the sidelines who are now buying any small pullback. Good to have some support below even if we cannot quite get trough 90 yet.

[its the oxman] 07/8/2017 11:43

Up a tad now, almost through 90p

[croasdalelfc] 07/8/2017 11:18

Another 0.5m will be paid when results to presumably May 17 are published. They could easily show £11-£12m revenue and up to £0.5m PBT

[igoe104] 07/8/2017 11:13

great post cc2014, that's going along the lines what I was thinking this morning.

[cfro] 07/8/2017 11:12

Finally we have some movement. Is this company understated/over-looked by the market or what?!

Very pleased and surprised i was able to add at favourable prices this morning.

[rivaldo] 07/8/2017 10:41

N+1 Singer will be updating their forecasts after tomorrow's results.

They expect the results "to strike a positive tone following upbeat recent reports from sector peers (notably Morgan Sindall). The acquisition looks a very sensible fit, as T Clarke’s clients are demanding ever more sophisticated systems to control their buildings. The combination enhances T Clarke’s range of services in
the targeted growth area of Intelligent Buildings."

The acquisition alone will probably result in 4% EPS upgrades - hopefully the results themselves will prompt additional upgrades.

[its the oxman] 07/8/2017 09:49

Good acquisition, good price, earnings enhancing, surprised we are not up a tad at least.

[cc2014] 07/8/2017 08:29

PSR will increase by the time you've:
1. Chopped out some rent costs when they move to CTO existing locations
2. Chopped out some finance costs due to overdraft and all those leasing agreements
3. Removed one directors pay
4. Removed 90k dividends
5. Leveraged some other economies of scale.
6. Cross sold product leveraging sales

All in all looks a decent price paid to me for something strategically important.

[ed 123] 07/8/2017 08:21

Ta, Flagon and cfro. :-)

[interceptor2] 07/8/2017 08:21

Nice acquisition and agree rivaldo that the only reason not earnings enhancing this year is due to valuation at similar low levels as CTO, which is a great buy.

As cfro says PSR is 0.27 along with margin of 3.1%, CTO has a PSR of 0.13 and margin of 1.75%.

[cc2014] 07/8/2017 08:20

Vertical integration to get hold of the bits of the supply chain where margins are much better. Also, an expanding sector and gives better control if you own part of the supply chain when delivering any project.
Intelligent buildings are the future and the directors have got this very right indeed.

[cfro] 07/8/2017 08:13

Price-sales ratio. A way to measure what 'value' a particular company is paying.

[flagon] 07/8/2017 08:12

PSR : Price to Sales Ratio

[ed 123] 07/8/2017 08:05

What is PSR? Ta.

[croasdalelfc] 07/8/2017 08:03

Expecting 10% rise today with this news and preresukts but ins.

[cfro] 07/8/2017 07:43

What a great acquisition this is and very interesting. If the total consideration is payed of £2.6m then the PSR ratio works out at 0.27 which is very good value.

[rivaldo] 07/8/2017 07:07

Good news - looks like a sensible - and sensibly priced - acquisition, with £2m plus deferred buying £0.3m PBT, £0.7m net assets and an entrée into a new, complementary sector.

Plus it's earnings-enhancing next year (and not this year probably only because CTO are on such a cheap rating already!):

[its the oxman] 03/8/2017 16:36

Poised to explode upwards, hoping it can do a northern bear.

[allstar4eva] 02/8/2017 09:22

Results Tue 8th Aug

[cc2014] 02/8/2017 09:19

Morning. So, we have to wait a few hours now to see how keen people are to get in before the interims. Any buyer would reasonably be expecting a few sellers at 90 based on the chart but so far very few sell trades are going through at 89-90.

I expect if they don't appear once the bid returns to 90 they aren't going to do so and any buyer is going to continue to have to pay nearer 91.5. It should all play out during the course of today

[larva] 02/8/2017 08:03

Moving up early doors

[interceptor2] 02/8/2017 07:46

Net margins increased to 1.75% (1.40%) for last full year and in the statement they said their focus in improving margins is showing through. Then in the AGM statement in May they stated that they will continue to further improve margins, so their focus is certainly on margin improvement.

A 22% increase in the order book in the first 4 months of the year, combined with margin improvement is a strong combination.

[larva] 02/8/2017 07:26

Great looking chart