Tclarke Share Discussion Threads

[tim1478] 30/11/2023 12:03

Very disappointing. Setting stop loss not far below present price

[ansc] 30/11/2023 11:18

To hold or not to hold, that is the question? Wish I knew the answer.

[salpara111] 30/11/2023 10:05

Took a stake here recently at 125p on the expectation of a boost on this update.
I really don't care how big their order book is their margins are virtually non existent, not sure what to do as I can exit for little loss or hold on for another 3 months to see where things go.

[owenski] 30/11/2023 09:49

The problem with CTO is it's a low margin business and they've never have a lot of cash on the books either, it's just not attractive.

They said some time back that their margins in aggregate would move beyond 3% due to increasing contracts in data centres et al, this doesn't seem to have happened.

They touted more cash at this TU but they also tapped up the markets earlier this year, how much of their cash buffer is residue from that.

I suspect the divi will be flat as well.

Great pay and benefits for the directors who don't have much skin in the game and a poor return for shareholders, might be worth a buy and hold if if went sub 100, but nothing about this business is that attractive, 500m revenue targets are pointless if the already thin margins are under more pressure.

Avoid.

[edmundshaw] 30/11/2023 09:15

Looks like buying or selling depends on your timescale here.

Short term, earnings are slated to be below expectations, though still on a PE of around 8.3 at £1.20. Medium term is obviously unclear, 2024 might still be a bit difficult. But beyond with that order book, no debt and lots of demand, profitability should be excellent.

So on a 2+ year view this looks for me a buy, on a 6 to 12 month view perhaps not.

I do agree that being super bullish then just mentioning expected EBIT for the FY (not even EPS or profit) on the last line is pretty feeble spinning that fools no-one and leaves a bad taste in the mouth.

[igoe104] 30/11/2023 08:27

Its about time the Directors put their hands in their pocket and purchased some shares, if they have faith in there forward looking order book.

[iandippie] 30/11/2023 08:19

EBIT H2 last year was 5.5m. This year it's now between 3.3m and 4.3m? This statement is basically a profit warning. A pig with lipstick.

[rimau1] 30/11/2023 08:07

Nobody likes a hockey stick profile. Margins are thin and the likelihood is that 2024 will have similar issues with subcontractors and contract delays. Tough one, as the data centre story is nice, I am a holder.

[dr biotech] 30/11/2023 07:45

That would still put them on an undemanding PE of about 7.

Problem here is huge revenues don’t translate to huge profits and any exceptional costs will hit the bottom line. I’m expecting a moderate fall on opening…may be worse given how even inline updates have led to falls in this current market


Going forward though things look decent enough.

[bsdjj] 30/11/2023 07:41

So it will take a little longer for the increase in revenue to filter through to the bottom line.Order book up £325m from July to £1,106m.Undemanding rating whatever way....

[tiswas] 30/11/2023 07:41

A 26% reduction in 2023 eps estimates according to Cavendish on ResearchTree.

[effortless cool] 30/11/2023 07:40

I sold out a few years ago because I felt the management was untrustworthy. My breaking point came with the £2m investment in Gooee, which promptly went bust, with the £2m hit being taken surreptitiously below the line with no comment in the CTO results. The Gooee liquidation showed no trace of this £2m, which purportedly bought a minority shareholding for CTO in the business. I am not convinced that it ever reached Gooee.

[spooky] 30/11/2023 07:36

'It is anticipated that projects will continue to be delivered to their project programmes and, as a result of the actions taken in the second half, the Group's 2023 operating profit (EBIT) is now expected to be in the range of GBP9 million - GBP10 million.'

[spooky] 30/11/2023 07:34

Indeed, very underhand. Impacts my trust in management when they do things like that.

[kneecaps2] 30/11/2023 07:32

Why is this a sneaky update? It reads very well to me!

[gdjs100] 30/11/2023 07:10

Sneaky update. Reads like a beat. But 2023 EBIT now going to come in significantly below broker estimates. Have they really lost £2m-£3m EBIT just due to some early contract agreements and changes of supplier?

[mfhmfh] 29/11/2023 19:27

Good update tomorrow hopefully.

[peddlers] 17/11/2023 17:00

Added today but my buy is showing as a sell.

[john09] 14/11/2023 08:51

Hi all

New thread for sharewatchers. General chat about SCSW followed stocks so investors can discuss 2024 etc. No sharing of subscriber only information

[igoe104] 11/11/2023 12:28

Investors rather stick money into bitcoin rather than good solid companies like CTO. Most of these cypro Investors don't even know what they are investing in themselves.

Its hard to believe bitcoin is up 121% YTD whilst good companies continue to struggle. 🤷

[cwa1] 10/11/2023 19:46

I'm surprised at the-possible-weakness shown here also. Heaven knows, there's enough bad news out there that you don't have to look for too long to find downside catalysts...but...

Anyway, I persuaded myself to top up at 124p today 🤞

[ansc] 10/11/2023 19:11

Thanks, rivaldo. I'm still baffled by the ongoing share price weakness but will be sitting on my hands regardless.

[rivaldo] 10/11/2023 13:58

Posted on CTO's web site dated 8th November, confirming it's a big one:



"Once again Scotland beats record for M&E project scale

TClarke Scotland has won a major project with partners Heron brothers to build the vast new Eurostampa printing facility in Cumbernauld. This win improves on our previous record for project value, as TClarke cements its presence as an M&E leader in Scotland.

Scotland Managing Director Chris Harris congratulates the teams responsible for achieving the win:

“The Eurostampa UK project is an 82,000 sq ft expansion and refurbishment to create a vast new state-of-the-art specialised printing facility. This is a major project within the market and our ability to succeed here, partnering with Heron Brothers, is another step forward for the company."

[ansc] 06/11/2023 10:20

Another good find, igoe104, thanks.

[ansc] 27/10/2023 10:07

Well spotted, Igoe. The curent share price weakness baffles me.