Tclarke Share Discussion Threads

[micos] 08/1/2014 20:20

Any particular reason for today's sudden leap upwards?

[ddahj] 08/1/2014 13:35

Friday update:
I would like to know what is the amount of final accounts they are trying to finalise.
Mentioned at interim management

[grahamburn] 22/11/2013 11:44

Two interesting holdings RNS's today. Looks like Henderson Global have sold down and Miton Group have bought the vast majority of that sale (ie 800k), while Henderson still hold a substantial interest in T Clarke. Probably reasonable news all round.

Miton Group seem well resourced and interested in a wide range of sectors:

[grahamburn] 20/11/2013 19:16

Those scenarios may well be more likely ones, rather than the possibilities of total bad debts. Variations/additions to original contract specifications in the building trade are often a nightmare, but one would have hoped that a company of this stature would have had the appropriate procedures and approvals nailed down in the majority of cases.

At the end of the day, we'll just have to wait till those accounts get finalised!

[huttonr] 20/11/2013 17:46

Just to offer yet another opinion on the comment in the statement:

I think there are 2 points -
1. Failure to agree - ie customers are ensuring that they pay as little as possible - I believe their contracts are actually dependent on exactly what has been done and how it varies in detail with the initial contract - so there is probably room to vary the exact amount to be paid.
2. promptly - the negotiations can take some time and also management time - so the actual money involved takes longer to get.

Results:
Point 1 - probably the margins get a bit slimmer.
Point 2 - cash flow gets a bit worse.

[goliard] 20/11/2013 17:21

I (sort of) agree with that Graham. I think they are flagging up a possible problem with being paid in the future by one or more customers, so if it does happen they can say "As we highlighted in November...". To me it just says that everything is ok NOW and the balance sheet is strong NOW (although 'strong' is a bit subjective), but there is a possibility of that not remaining the case.

I guess we will see, but having written a fair few RNS's in my time this once just looks like a pretty obvious warning that the cash position may become a problem if the final accounts don't get paid. Given their very slim margins, this also makes perfect sense and has always been a potential risk and that is why I find the fact that they highlight it here to be pretty important, ie it is going up the 'Risk Register' in importance and shareholders need to made aware of it... but in gentle terms.

[grahamburn] 20/11/2013 16:51

I don't think the opening gambit in the IMS was about cash - as the last post says it would not have been possible to refer to a strong balance sheet if that was the case.

The reference to delays in finalising accounts may well refer to the possibility of one (or more?) large bad debts or perhaps provisions for bad debts which are yet to be agreed; hence the delay.

It's true that a serious bad debt could reduce the balance sheet strength, but the directors would be very remiss not to admit this at this point in time if it was a possibility. Indeed, it's very unlikely they would have emphasised that strength if that was a possibility - they would have been more circumspect by simply not referring to that strength in the first place.

[meijiman] 19/11/2013 12:04

you may know more about the co than me. however not sure you would talk about 'balance sheet strength' if you were running out of cash. Seemed to me there was an initial mark down and then a realisation that this was not a massive issue. Share price rises as the message gets out. I bt here as it offered decent value -happy to keep holding. Paid low 60s so Im up a bit.

[goliard] 19/11/2013 09:59

Errr, yes. Upfront on what? That would be a potential lower than expected cash position... so it's a warning on cash. Not sure how you can see it any other way. I agree that the rest of the statement is fairly upbeat. The issue is that they may end up with an improving business that runs out of cash. If that happens then they are forced to cut the dividend and potentially do a placing or rights issue and then the share price gets hammered even if the business is turning a corner.

This is a classic example of poor management of cash driven by the desire to keep paying dividends. It might work out ok if they don't need to raise funds, but if they do then all those dividends will seem like a very costly mistake. I guess we will know before the end of next year and until then it is just my view on things.

[meijiman] 19/11/2013 09:06

Not how I'm reading it. Good of the management to be upfront, and to my mind this is more about delay not about a serious issue on receivables. Rest of the statement reads pretty well.

[goliard] 19/11/2013 08:20

Back to reality here. They should not have been paying dividends and now there is a warning on cash. Had to happen at some point and all too obvious.

[hvs] 20/10/2013 15:04

Its hybernation time aint it ?

[kneecaps2] 20/10/2013 10:24

Bears running for cover he he

[empirestate] 30/9/2013 08:33

nice break out on the chart at the mo

[empirestate] 30/9/2013 08:32

nice break out on the chart at the mo

[hvs] 16/9/2013 10:46

Looks like it

[gargoyle2] 13/9/2013 11:05

Breaking out nicely. Quick run up to the low 70s from here...?

[hvs] 18/8/2013 17:44

Nah not really.

No Grandees here on on the BOD.

[drewz] 16/8/2013 13:48

CITY made SH*TE, shurley.

[hvs] 16/8/2013 13:46

Good blue day again.

Its stirring.

[hvs] 14/8/2013 13:27

Slowly but surely.

A lot more to come.

[brando69] 14/8/2013 13:08

stealth climber this one

[hvs] 06/8/2013 14:13

lol !!!!!

sheep come in handy then ?

Or the Border collie ?

Our cash position is solid and we ended the half year with an increased balance of GBP7.8 million.

[ladyfarmer] 06/8/2013 14:10

They are imprudent maintaining the dividend in my view. I expect the share price to fall so have sold

[dozey3] 06/8/2013 09:17

Must admit I found results somewhat disappointing. Not so much in reported figures but in the lack of director-speak of any visible recovery. Given their solid customer base and careful cash husbandry I still think the future is brighter.