Tclarke Share Discussion Threads

[its the oxman] 07/8/2018 09:27

Should be up much more but what can you do. Surely becoming a very tempting target for somebody though.

[cc2014] 07/8/2018 08:15

Building services specialist T Clarke has returned to profit across all regions in the first half of the year as revenues rose 7% to £153.5m.


Pre-tax profit doubled to £4m in the period helped by the turnaround in the Central and South West regions.

This helped to lift underlying operating margin across the group to 2.6% (2017: 2.0%).

In London, where T Clarke has secured several major M&E related contracts for tower work, margins were held at 4%.

The capital accounts for 60% of total group revenue and delivered an underlying operating profit of £3.7m.

T Clarke’s London office has recently secured major work packages at Battersea Power Station, 1 Triton Square and Virtus Data Centre.


It is also on site at 22 Bishopsgate, 100 Bishopsgate, Bank underground station, the International Quarter London and South Bank Place.

Mark Lawrence, chief executive, said: “T Clarke has made a strong start to the year and, as announced previously, overall planned revenues are secured for 2018.

“Central and South West has returned to profitability and our core London & South East operation remains strong. We are pleased to report that we continue to expect revenues and profits for 2018 to be in line with current market expectations.

He added: “For 2019 we have already secured 50% of our planned revenues, and our market reputation for operational excellence and successful delivery of the most complex assignments underpins our optimism for the future. “

Central group costs rose to £1.6m(2017 £1.2m) and included the termination payment to the former finance director Martin Walton.

[cc2014] 07/8/2018 07:31

Bingo,

At half time EPS of 7.06p vs full year target of 13.2p.

Plus £4.5m improvement in pension deficit from year end.

Plus another £500k recovered from the fraud which is non-underlying

[rivaldo] 07/8/2018 07:28

Excellent H1 results, strong cash flow with the cash pile up to £4.7m, revenues already secured for this year and 50% for next year, strong order books, all regions now performing well....very good indeed.

And further confirmation that expectations will be met, being "revenues of £300 million, underlying operating profit £7.8 million, underlying profit after interest, but before tax of £7.0 million and underlying EPS of 13.2p".

With 7.06p EPS already achieved in H1, there must be a strong likelihood that forecasts will be beaten, perhaps even strongly.

[cwa1] 07/8/2018 07:19

Liking the look of those:-



Mark Lawrence, Chief Executive, commented



"The Board is extremely pleased with these results which demonstrate that TClarke is in excellent shape. The success of our strategy targeting repeat work for blue chip clients, sensible growth, focusing on improving margins and seeking new markets aligned to our core business, is beginning to be reflected in our results.

and

Summary and Outlook



On 31st July 2018 we confirmed the appointment of Trevor Mitchell as the Group's permanent Finance Director. In the short time since joining us, Trevor has demonstrated an excellent knowledge of the industry and its challenges and has made significant contributions to the Group.



TClarke has made a strong start to the year and, as announced previously, overall planned revenues are secured for 2018. Central and South West has returned to profitability and our core London & South East operation remains strong. We are pleased to report that we continue to expect revenues and profits for 2018 to be in line with current market expectations. To put those in context, for the year ending 31st December 2018, these are forecast to be revenues of £300 million, underlying operating profit £7.8 million, underlying profit after interest, but before tax of £7.0 million and underlying EPS of 13.2p.



For 2019 we have already secured 50% of our planned revenues, and our market reputation for operational excellence and successful delivery of the most complex assignments underpins our optimism for the future.



In conclusion, the Board remains cautiously optimistic about the Group's future prospects and we look forward to updating shareholders on the progress that we make during the second half of the financial year.

[cc2014] 06/8/2018 14:56

Indeed. 85.0 to 85.2. Can quite happily sell 50k inside the spread.

[cc2014] 06/8/2018 13:33

I assume the MM's have a large buy order in as:

1. They will let me sell 125k shares at 83.0p on instant fill
2. Everything coming on the order book at 85.0 is ripped off instantly
3. Anyone buying even just 5k shares is being made to pay pretty much the full offer
4. They've opened up the spread and WINS have changed their spread this morning a couple of times. It's now 8 about 3 higher than usual

Or in my alternate universe the house broker N+1 Singer has some sense of the results and knows that whatever they can pick up today they can shift on tomorrow at a profit. These things don't happen do they?

[cc2014] 06/8/2018 10:19

The challenge for any contractor is to balance your resources against a suitable workload. If you can secure a large project or two at acceptable margins, it gives you the opportunity to pitch other work at higher margins as you know your turnover and profit for the year is pretty much secured.

I'm a bit more greedy than you Lasmo. I'd like to see orders and margins rising. ;-)

[lasmo] 06/8/2018 09:54

I’d be happy for orders to remain static or even see reduction. The more work they have the harder it is to control the margins. What I’m looking for is proof that the strategy is working and margins are increasing. Battersea is a great opportunity for TClarke to demonstrate this. There are few electrical contractors who can take on these size of contracts.

[cc2014] 05/8/2018 09:47

It will be interesting to see the forward order book number on Tuesday.

Recent project win - phase 2 of Battersea Power Station for Mace

"Having worked on early preparatory works, including the rebuilding of the chimneys, Mace was well placed to take over in August 2017 as construction manager for Phase 2 of the redevelopment – transforming the Power Station, and building an energy centre and six acre public riverside park.

As the cornerstone of the entire regeneration project, the Power Station will include approximately 100 new retail, food and beverage units, as well as a 2,000 capacity events venue and unique chimney lift experience. The Power Station will also provide c.500,000 sq ft of new office space which will be home to Apple’s new London Campus, and will include 253 new residential homes."

[cc2014] 02/8/2018 09:34

Construction PMI 55.8 vs 52.8 expected

[cc2014] 01/8/2018 09:49

I like the way they are focusing on long term business in FM which will flatten out the peaks and troughs of the economic cycle.

Much more margin in FM as well.

[grahamburn] 27/7/2018 09:42

Think you mean 7 AUGUST, cc2014!

Otherwise a reasonable assessment.

[cc2014] 26/7/2018 12:55

It's like a game of cat and mouse. Who is more eager? The buyer or the seller?

Both of them can see the others actions and to date they've been trading them away in the 80.5 to 82.0 area. It does seem like the price is nudging up during this battle albeit at an incredibly slow rate on a daily basis.


I have the luxury of watching L2 all day and what is clear is that the pattern has changed over time. The seller initially declared their intention and there was lots of stock available to buy at 81-82. That's changed now. It's still possible to buy inside the spread with ease but the MM's are opening the spread up. In addition as you can see the time the volume is sitting on the bid at 82+ is getting longer and longer. It's now longer being ripped off quickly.

All of which suggests to me that Miton have shifted enough (for now?). 83.6p to buy now for just 1000 shares.

Clearly Miton are holding back the share price from rising. Just to have wait until they stop selling or run out.

[hvs] 26/7/2018 12:52

So ????

Are you still shedding tears ?

[middlesboroughfc] 26/7/2018 12:39

Regent has invested in utw and lost a packet
Down 80pc

[rivaldo] 26/7/2018 12:35

Yep, Regent Gas have bought an extra 2% of CTO and now own 6.18% with 2.585m shares.

They seem to be buying all the shares which Miton and Diverse Income are shedding. Why on earth they can't come to an agreement between them to buy a job lot and stop all this drip-feeding nonsense which is taking so long is beyond me.

Good to see you here bb2.

[lasmo] 26/7/2018 12:04

Regent Gas still accumulating.

[battlebus2] 26/7/2018 11:43

Joined you here Rivaldo, looks very cheap then again it always does. Bought mainly for the income so a long term hold barring any deterioration in the sector 🤞

[rivaldo] 26/7/2018 10:23

200,000 shares just reported at 81.2p. Perhaps the closure of an/the overhang? About time too if so!

Interims on Tuesday 7th August. Worth re-reading the mid-May AGM statement, notably "the planned Group revenues for 2018 have now been secured":

"We are pleased to report that we continue to expect revenues and profits for 2018 to be in line with current market expectations. To put those in context for the year ending 31 December 2018, these are forecast to be revenues of £300 million, underlying profit before tax of £7.0 million and underlying EPS of 13.2p. We also expect to maintain our trend of underlying positive movement in net cash year-on-year.

Our forward order book has been replenished and as at 30th April 2018 stood at £368 million, increasing from £337 million as at 31st December 2017. Encouragingly, we are seeing no lack of opportunities, but we maintain a strict policy only to bid for projects that meet our internal risk analysis and where we are comfortable with the covenant and market reputation of the contractual counterparty.

Overall, the planned Group revenues for 2018 have now been secured with some capacity in the North West and Newcastle businesses to address. Future secured revenues are £145 million for financial year 2019 and £40 million for years 2020 and beyond....

....Once again, TClarke has made an excellent start to the year and the Board looks to the future with continued confidence."

[cc2014] 24/7/2018 09:10

haha Larva. We know you want the stock to fall to buy in.

Just bite the bullet and pay 82.44

[squarepeg86] 23/7/2018 21:14

Based on what? Convenient that you pop up out of nowhere spouting this cr@p 2 weeks before results isn't it! Wasn't even a month ago that the FD bough nearly 100k worth of shares so come on, why do you know something he doesn't?

[larva] 23/7/2018 20:44

Profit warning ⚠️ I suspect
40p