Tclarke Share Discussion Threads

[yf23_1] 30/3/2022 12:03

Can anyone help me ?
This site has CTO net debt at 122m.
This appears not to include debtors, which is account receiveable which should be included in current assets which should be used to arrive at net debt.
I was thinking of buying these but when I looked at market cap 65m and the size of net debt that threw me.

However it looks fine if you include debtors.

[edmundshaw] 16/3/2022 09:28

Quite a good write-up.

But I can hardly believe the last line "my new target price of 170p.". Surely with the tailwinds and the 2022 EPS estimate of 21.2p and the great growth story this should be 200p or even more??

[dr biotech] 15/3/2022 13:16

That’s odd I’ve had two say it worked but two that didn’t. I’ll pm you.

If you have an iPhone try using that.

[edmundshaw] 15/3/2022 13:00

It didn't work for me I'm afraid Dr. B. I took the route you suggested but the same paywall...

[dr biotech] 14/3/2022 16:45

There’s an easy (legit) way round the IC paywall, just PM me..

[tole] 14/3/2022 14:31

https://masterinvestor.co.uk/equities/tclarke-bringing-a-building-into-life-pays-off-for-this-undervalued-group/TClarke – bringing a building into life pays off for this undervalued groupBy Mark Watson-Mitchell 14 March 2022 4 mins. to readTClarke – bringing a building into life pays off for this undervalued groupIt is a fair bet that you may never have heard of TClarke (LON:CTO).This company is over 130 years old and has offices and operating centres across the UK.To developers and construction companies, however, it is a very well-known, respected and important name.The businessFrom St Austell to Falkirk this building services company plies its trade. From its four main regional operating areas and its 19 offices, the company has an excellent national coverage.It spreads five main market sectors – infrastructure; residential; technologies; mechanical and electrical contracting; and finally, facilities management.It is involved in providing building services and solutions, not for the shell of a building or the internal fabric and decoration, but instead for practically everything else.Its areas of expertise are in powering a building, heating it, lighting it and, importantly, making it intelligent.Effectively TClarke 'brings a building to life'.The company within its M&E contracting business has capabilities in sectors, including commercial offices, retail, education, healthcare, financial services and media.Over the last few years, it has been involved in a number of UK Data Centre projects. It is now widening its offer into the European market, where such projects can have overall £30m-£40m values, with some topping £100m.Bringing the building to life with power, services and systemsA building has a shell and a core that keep the weather out and keep it standing. It also has an internal fabric and decoration. Everything else in between – all the things that power it, heat it, light it and make it intelligent – are the group's area of expertise.Power is distributed and controlled.Services – including heating, lighting, ventilation, water, waste and their networks and controls.Data networks are made resilient and secure.Internet services and coverage are delivered throughout the space.Alarm, security and safety systems are integrated and controlled.Building Management Systems are integrated along with all the IP addressable components on the system. Data and control of the building is brought together within advanced graphic user interfaces that make them easy to use.Last week's finalsLast Wednesday the group declared its final results for the year to end December 2021.It reported a 41% increase in its revenues to £327.1m (£231.9m). an adjusted pre-tax profit up 53% at £7.8m (£5.1m), generating a 46% improvement in earnings of 14.99p per share (10.29p) easily covering a 10% increased dividend of 4.85p (4.4p) per share.A split down of last year's £327.1m revenue identifies that M&E contracting represented just over a third of the business at 35.7%, with infrastructure 24.1%, residential and hotels at nearly 17.1%, technologies 15.1%, and facilities management making up the 7.9% balance.At the year end the group's order book stood at a record £534m (£456m).The group's CEO, Mark Lawrence, stated that"The business is in excellent shape having finished 2021 on a high and delivering the first year of our £500m revenue growth plan, winning a wide range of work across our chosen market sectors. This is clearly reflected in the strength of our order book which again has reached a new record high."He goes on to confidently declare that:"Our order book will translate to record revenues; TClarke can offer our clients the widest possible solutions from a single contractor, utilising our resources so that they are assured we have the ability to deliver. That's why we believe TClarke remains the contractor of choice for so many and we remain focused on maintaining our market leading position.We start 2022 in excellent shape and well placed to deliver a strong future performance."The group's growth strategyThe company's growth strategy is focused on maintaining and developing its core markets whilst significantly expanding its data centre business.It is also undertaking more large projects outside of London, such as those being delivered for a major financial institution by its Manchester business. As well it will be expanding both its healthcare offering and its energy efficient smart building solutions.Through successful targeted tendering and operating efficiency it is focused upon its margin sustainability at 3% and better.The EquityThere are some 43.92m shares in issue.Large holders include Regent Gas Holdings (16.9%), Interactive Investor (7.83%), Heritage Capital Management (5.74%), Hargreaves Lansdown Stockbrokers (5.32%), Barclays Bank, Private Banking (4.60%), Walker Crips Investment Management (3.11%), TClarke Employee Share Ownership Trust (2.52%), Cavendish Asset Management (2.01%), Hargreaves Lansdown Asset Management (1.99%), and finally Chelverton Asset Management (1.37%).Brokers ViewAnalyst Kevin Cammack, at the group's brokers Cenkos Securities, estimates that for the current year a £410m turnover is possible, upon which the company could make £11m of adjusted pre-tax profits, worth 21.1p per share in earnings, and a 5.1p per share dividend.For next year his estimates are for £500m turnover, £13.5m profits, 24.6p earnings and a 5.3p per share dividend.Totally understandable why he rates the shares as a 'buy'My ViewOn the face of it this may look to be a boring company – but I would totally disagree with that impression.It is a good solid business, only valued at around £74m, it is ungeared with some £7.3m net cash and that should increase to over £10m by this year-end.Furthermore, it also has unused banking facilities of £25m.In the last year the shares have been up to 186p, I see them going back up there again in 2022.Its shares at 147p, looking for a current year yield of some 3.5%, and trading on only 6.9 times earnings – are a 'no-brainer'.

[edmundshaw] 12/3/2022 22:22

Was behind a paywall for me :((

[dr biotech] 11/3/2022 15:59

Positive write up in the IC. Its quite easy to access the article for free if anyone wants it. Decent article as always by Simon Thomson.

[igoe104] 11/3/2022 15:12

Excellent presentation, they seem a very focused management team with a clear vision.

[cwa1] 11/3/2022 07:19

Investor presentattion:-

[squarepeg86] 10/3/2022 10:10

Ah really, thanks. I was just assuming it was because people absorbed yesterday's results last night.

[gdjs100] 10/3/2022 09:46

It was on the website last night, that's the reason for today's move.

[squarepeg86] 10/3/2022 09:33

I wonder if this will feature in IC tomorrow, Simon Thompson seems to have T Clarke on his radar and likes to tip it. That generally brings the biggest rise here.

[johnwise] 09/3/2022 18:15

09/03/2022 7:00am

RNS Number : 0892E

TClarke PLC Final Results

[edmundshaw] 09/3/2022 08:40

Fall on net cash is of course just a consequence of the cash requirements of ongoing contracts. So in a sense it is a good thing!

Anything under 150p seems stonking good value to me. Really consistent and safe growth stock at a value price.

[thorpematt] 09/3/2022 08:05

Funny, I was gonna post (roughly0 this: -

"can anyone can find any negatives?" (struggling)

...I see you're all struggling too.


Essentially I had forecasts as bang on track.

Fall in net cash is all I could come up with FWIW. I would have to read the statement more thoroughly to assess the reasons on that, but VAT changes etc. I'd guess.

[cwa1] 09/3/2022 07:50

Couple of small pieces from this morning's Cenkos note:-

We are not fundamentally changing our forward forecasts save for an upgrade to dividends, so after a 25% price correction YTD (All Share -8%) the shares represent outstanding value. TClarke trades on a FY23E EV/EBITDA of 2.5x (4x adjusted for pension deficit), PE of c5x, yield 4.5% with a FCF yield of 16% and an ungeared balance sheet. Buy.

and

Valuation: Until the recent market and particularly sector sell off, TClarke had been showing solid outperformance. The setback is a buying opportunity; given the group’s momentum an adjusted EV/EBITDA of 4x and PE of 5x with now accelerated dividend is highly attractive.

[cwa1] 09/3/2022 07:39

That seems reasonable 18BT. Off with their heads :-)

[18bt] 09/3/2022 07:37

The only thing I can think of is that it is spot on the market forecast on all metrics except for the dividend, which it has beaten. So they could mark it down for not out performing the forecasts which the company guided them to...

[saurish] 09/3/2022 07:34

Not yet, I was looking for the same comma, but couldn't find it! Results look pretty good and the business seems to be heading in the right direction. A 17% increase in order book that comprises of a 188% increase in technology orders ensures a smoother runway and reduces the cyclicality of the business. IMHO DYOR

[john09] 09/3/2022 07:20

Looks good

Has anyone found anything that the market can use as an excuse to mark this down? A COMMA MISSING OR SOMETHING LOL. Thats the current environment !

[cwa1] 08/3/2022 12:11

I've had a bit of a wild swish and taken a few. Not expecting this to be the bottom, sadly I fear there's worse to come. However, fingers crossed it might be reasonable value longer term...

[santangello] 08/3/2022 11:30

Looking forward to 07.00 tomorrow and Results :)

[albanyvillas] 10/2/2022 13:42

off she goes

[albanyvillas] 10/2/2022 13:16

:) Yes especially when we can buy Perky on a Price Earnings ratio of 7