Tclarke Dividends - CTO

Tclarke Dividends - CTO

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Tclarke Plc CTO London Ordinary Share GB0002015021 ORD 10P
  Price Change Price Change % Stock Price Last Trade
2.75 2.43% 115.75 16:35:27
Open Price Low Price High Price Close Price Previous Close
110.50 110.50 116.00 115.75 113.00
more quote information »
Industry Sector

Tclarke CTO Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

wfcreserves: @Sphere25 Sorry, can't afford a bench. Perhaps when CTO take off? You would likely be better off and fitter running "up and down" the touchline with a flag. They're apparently all the rage currently.
janeann: Same sphere - managed to get some at 100p; did get a quote at 99.6 but it didnt execute which was a little annoying. Been in CTO for years.
effortless cool: profdoc, The restructuring costs are covered in the Group Financial Review: "The cost of the programme was £3.7m accounted for in non underlying items. The programme has reduced the Group's cost base by in excess of £4 million per annum; 2020 results have benefited by £2.5m of these savings". Personally, I think it nonsense to count the £3.7m of costs as non-underlying, but take full credit in the underlying for the corresponding £2.5m of savings. I consider them as underlying costs, but not necessarily repeatable. However, give the frequency with which they occur with CTO, I am also going to build an 'average' annual restructuring cost into my projections going forward. Finally, these savings are another reason that they should now be targeting an operating margin in excess of 3%.
sphere25: Noted CTO has a tendency to drop on updates, but then it gets bought up, and and then it is back to sitting around doing very little, so here we are again with more apprehension. We can all see the issues from the past year with delays and closures galore. There is the pension deficit, though clearly rates are on the rise. What else is bad in there... We know that margins are thin and we know the sector has been fraught with problem contracts. This is the thing though. These are known knowns with CTO. I think it is all in the price here. The slightly surprising thing is how the market is not willing to price in any substantial recovery, let alone the new £500m revenue target. Yes they have mentioned a "slightly slower start", and in a normal year, that would cause more concern. However, these are clearly far from normal times and they have also mentioned a strong second half recovery which should feed through to the following year. The market isn't looking at that though and refuses to price it in. If the market did, the price should at least comfortably sit back at those pre-covid levels in the mid 130's. Perhaps more patience is needed, but the market is very stubborn here so it looks like someone will have to get the extra large mop out to clear out sellers at these levels to give the price a chance of breaking higher. I can see a highly irregular 200k buy order (Regent Gas wanting more? They added last month) on the bid at 101.5 willing to back the future and the £500m plan, but overall there continues to be no substantial interest. All imo DYOR
thorpematt: tiswas, One of the difficulties with that approach is that CTO undertakes works for other construction companies. If we take the example of rivaldo's above, for the hospital in Exeter, CTO is also undertaking another large, complex project in the same city for a different construction company (kier) hTtps:// hTtps:// As an independant specialist CTO has relationships with many such organisations. Often they will be the largest sub-contractor on site by some distance. Although it's its expertise that truly marks it out, its independence is an asset when it comes to it being nominated as contractor of choice. I doubt that other construction companies would see CTO as an preferrd contractor if it were tied to a competitor. Yes, I think we'll need to be patient in seeking returns but it sits very nicely in the portfolio for me.
tiswas: rivaldo I wonder if Sindall would be interested in acquiring CTO. Not many companies on a pe lower than MGNS themselves, probably similar if they offered a 50% premium. Cut out a few central costs and they have a one stop shop and cross selling opportunities? Not really thought it through to any great extent, just desperate for CTO to have a rerating.
rivaldo: I bought some of these back today on the dip. Cenkos' forecast today is for 15.4p EPS this year, with a 4p dividend. CTO have £10.2m net cash against a £40m m/cap, and most importantly the order books are still rising and now total £456m - CTO apparently already have secured work underpinning 95% of this year's revenues. That's a very solid place to be going forward. Hopefully Simon Thompson will feature CTO again soon, and I seem to remember SCSW cover CTO too.
thorpematt: I think these types of shares have a tendency to trade on lower PERs than other businesses. This is due to the lack of transparency on long term revenues and of course the risk of one particularly bad contract wiping out earnings. Traditionally CTO is about a PER of 9. Presently forward guidance is > 6. Unless you consider the cash pile and then its >5 Judging by the order book there, is a pretty steady stream of work. And hudging by the very small lag in revenues invoicing the lockdown hasn't stemmed it much. So I’d say those transparency of earnings worries is a little misplaced. I think that in this interest rate environment (where Graham's formula dictates higher PERs are apropriate) that CTO's PER needs to be >10. But quite what Mr Market thinks I have no idea! and frankly not much concern.
cc2014: I'm not getting this folks mostly on the basis of comparative value. My observation here is what is the opportunity cost of owning CTO? Which is more likely out of the following choice? BP. rising to 420p in 3 years time or CTO doubling to 180p? Or perhaps a large number of REITS if you don't like BP or perhaps Llodys at 27p. Or Aviva. I could go on. Anyways here's my view on the update. 1. I'm kind of with Investors Champion on what is the profit, because what I care about is how much profit a company makes after everything. Construction companies have a habit of producing exceptional costs all for different valid reasons and a spin back through CTO's annual accounts will show they are no different. What strikes me most though is that if the company has made a significant number of people redundant then it has already positioned itself for lower turnover or at best it contrains it's capacity to grow. Also, why was it that in the May trading update CTO was able to tell us this years benefit and the full year benefit of the restructing but was not able to also tell us the cost of the restructing programme? Perhaps just a simple ommission... or perhaps not... Regardless we must appluad them for the speed of response to Covid and £4m of on-going cost savings per annum is a large number. 2. I'm definetly with Tuscan on the order book. CTO turnover last year was £334m so say £167m for a half year. This year first half £106m and around £134m for the second half. They are doing around £22m of work a month and replacing it with £22m of orders, which results in long term a fall in turnover to around the £250m level 3. They can't afford for turnover to fall to £250m because there are too many employees to pay. CTO's high level of employed staff is their strength when there is a shortage of labour but it's going to work the opposite way in difficult times. Other contractors will shed their subcontract labour first but CTO will is faced with a choice of either very low productivity or having to get sufficient work to keep the labour force busy. Inevitably placing pressure on margins 4. Cash. Hmm. No update on that so I assume that cash is no longer net positive 5. Nothing to do with the update but credit risk is a concern. CTO are ruthless at trying to avoid credit risk but margins are so thin... In the end it always comes down to the order book and margins. That's 95% of what you need to know about CTO, the other 5% being the pension scheme and justification for the goodwill.
skinny: Trading Update and confirmation of Interim Dividend Payment. TClarke plc, the Building Services Group, today issues a Trading Update covering the period from 30th June 2020 to date and announces that the Board is proposing an interim dividend. 2020 Trading Update TClarke has continued to deliver an encouraging trading performance; all of our sites are now open and we are pleased with improving levels of productivity being achieved. The Group has demonstrated its resilience despite the inevitable impact on the business; b y taking action so quickly TClarke remains financially strong and profitable. TClarke achieved its target 3% underlying operating profit (EBIT) margin in Q1, broke even on much reduced volumes in Q2 and is pleased to report that it expects to return to 3% EBIT margin in H2. As previously announced, TClarke undertook a swift restructuring programme that has resulted in savings in excess of £4m per annum, with 2020 benefitting from £2.5m of these savings. The cost of the restructuring programme is £3.6m which will be included in non underlying items in the year end accounts. Dividend As a result of the Board's growing confidence, an interim dividend of 0.75p per share (2019 0.75p) is being proposed. This will be paid on 13 November 2020 to shareholders on the register on 16 October 2020 (the shares will be marked ex dividend on 15 October). Outlook As a result of the current market conditions and activity levels, the Board is now in a position to reinstate guidance for the 2020 financial year. Accordingly, we currently anticipate turnover for 2020 to be circa £240m and underlying EBIT to be approximately £6m. The strength of the business is underpinned by our forward order book which remains at a near record of £410m. Throughout the year there continues to be high levels of bidding opportunities. Assuming there are no further significant business interruptions arising from any widespread secondary lockdown the Board is cautiously optimistic for the medium term outlook and continuing to meet our 3% EBIT margin. Looking beyond 2020 our proven strategy remains to focus on projects and markets that meet our margin and growth criteria. The business is resilient and is agile, being able to shift its resources and focus accordingly. The strategy we have followed has resulted in TClarke being particularly strong in the healthcare, education and data centre market sectors, whilst continuing to serve the commercial office market. Once again, the Board would like to thank all the dedicated TClarke employees who have supported the business throughout this period.
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