Tclarke Share Discussion Threads

[trickyricky] 01/8/2019 07:36

Solid enough results. Be interesting to see what market makes of this:Our long-standing client base, particularly in the London market, is frustrated by the ongoing political uncertainty and we are seeing some new schemes being held back as a result. Despite this, we remain busy and there are many active discussions with our clients indicating that schemes could be accelerated once the political situation becomes clearer.

[igoe104] 01/8/2019 07:30

God knows why this has been drifting, it all looks good to me.


Business Highlights:

· Revenue up 12% to £171.3 million.
· Underlying operating margin increased to 2.9% from 2.6%.
· Cash of £3.6 million.
· 14% increase in interim dividend to 0.75p per share (30th June 2018: 0.66p per share).
· £370 million forward order book maintained (30th June 2018: £370 mil

[squarepeg86] 31/7/2019 17:53

Https://www.tclarke.co.uk/london-mechanical-strategic-goal-achieved/

[master rsi] 30/7/2019 12:30

Some share price movement first 116p "AT" and now 117p "AT"

But a large spread 117 v 121p and better middle price than yesterday ( 116 v 119p )

[master rsi] 29/7/2019 13:15

3 days away for the results 1 August

Time to think ahead and if the movement up and down from 117 to 120.50p for the last 3 weeks is going to break after the expected good Interims.

[rivaldo] 29/7/2019 11:40

More news:



" Design & Build : Sustainable Quality

24/7/19 : Our Colchester-based Design & Build operation, which undertakes complete design and build projects in the £2m – £15m range, in the commercial, education and health sectors, is now 5 years old and on target to achieve its 5 year business plan objectives. Paul Barnes who leads the team, reflects on the growth and progress that has been achieved.

A Strategic move that has delivered as promised

TClarke’s 2015 Annual Report says the Design & Build start up was “ a potential new revenue stream and also an area featuring high value, high quality services, innovative thinking and deeper client relationships.” Today, we have a full order book and a pipeline of work to take us into 2021 and hit our initial planned target of creating a sustainable £25 million business from a standing start back in 2014.

Since then, we have grown our in-house design and CAD team to the point where it is now 15 strong and the team comprises 40 people in total, based in our offices in Colchester. We have grown very steadily, building long term relationships both with clients and supply chain partners and the net result is a very solid, sustainable business bringing value to the group.

etc"

[lasmo] 18/7/2019 11:07

Interesting read from TClarke yesterday. Nice to see them moving towards more specialist offerings with hopefully higher margins. www.tclarke.co.uk/mission-critical-future-mega-power-mega-modules-next-gen-cooling-and-europe/

[lasmo] 17/7/2019 07:40

Positive ML tweet yesterday which mentioned expanding into Europe.

[owenski] 08/7/2019 07:28

Cheers Riv.

Steady well disciplined company with some nice verticals beyond it's standard fare.

Still sub 10 PE and decent divi.

[rivaldo] 08/7/2019 07:20

Good news, and in a fast-growing sector:



"Healthcare wins two more hospital imaging projects and expands into vet market

1/7/19 : TClarke has won hospital imaging projects for new Cath Labs at Heartlands Hospital, Birmingham and a new MRI facility at St Helier Hospital, Carshalton. This follows on a string of recent completions including a new Cath Lab UPS installation at HCA London Bridge Hospital, a Fluoro Room UPS installation for London Hammersmith Hospital, a new Cath Lab installation at NHS Royal Blackburn Hospital and twin Cath Lab and Infrastructure Modifications for NHS Wythenshawe Hospital, Manchester. Nigel Thompson reports on the ongoing success of our healthcare operation which he leads.

Growing demand as equipment lifecycles shorten and need increases

The demand in diagnostic imaging increases year on year across the Health sector and whereas the average lifespan of imaging equipment used to be seven to ten years, it is now around five years due to technology advances and competition between global equipment suppliers.

TClarke is a market leader in medical controls panels manufacture and in turnkey installation of medical imaging suites

We have deep partnership relationships with major global imaging companies – Our Controls Panel operation (where we manufacture medical imaging control panels at our manufacturing operation in Stansted) has now expanded beyond GE and Siemens, with a new 3 year deal being agreed with Philips Healthcare.

We are also currently in negotiations with another Medical Imaging supplier for the same. These partnerships keep us at the cutting edge of the technology as it develops and they have also helped us establish ourselves as a leader in imaging equipment installations.

Steady and sustained growth opportunities

As ever with TClarke, we are disciplined and selective in seeking low risk projects, where we can deliver the returns our business strategy targets – so our growth opportunity here is steady and sustained.

And there is a steady trend to report. On TClarke ‘turnkey’ installation projects (where we deliver the whole construction installation of imaging suites), end clients are placing a premium on the quality and professionalism which our teams offer – and equipment manufacturers are noticing this, project by project.

The healthcare market is large, with inevitable long term growth prospects, as the population ages and as medical imaging offers more and more for patients. In the last six months, we have also ventured in the Veterinarian Market, carrying out works for IVC, the UK’s largest independent Vet care organisation, providing support for CT and MRI Diagnostic imaging equipment.

etc"

[cc2014] 05/7/2019 13:15

Accounts show they spent 0.3m on interest last year in the year that they went to no bank debt at year end. The interest on undrawn balances on the RCF is £0.1m so they can't go below that so it would seem likely they can get the interest bill down to something much closer to £0.1m.

I agree with your point EC, at least £100k savings on interest, possibly £200k. More importantly for me throwing off all this cash allows them to invest their working capital in technologies/data centres were the margins are much better and at the same time reward shareholders with an uplift in dividends.

[effortless cool] 05/7/2019 12:51

CC2014,

I know they had no debt at the end of the period, but they normally go into debt during each period and actually paid £0.2m of bank interest in 2018 H2. More cash will eliminate the costs of these in-period fluctuations.

[tuscan4] 05/7/2019 12:34

My money's on a 1p interim, partly to rebalance, but as this is a 130year anniversary how about a special of say, 1.3p?

[cc2014] 05/7/2019 11:45

2018 dividend was 0.66p first half, 3.34p second half. Total 4.0p

It is currently weighted 16.5% to 83.5% which is very unusual.

It's unbalanced as a few years ago they cut the first half dividend by 0.5p.

I am hoping they will rebalance it by raising the first half dividend disproportionately.


I think it not unreasonable to move the first half to 1p and then second half 3.4p if we are talking consensus. If the second half of the year is still going well and the order book looks good they can do more than 3.4p of course. With a consensus EPS of 17.5p I'd be hopeful they can do more than 3.4p.



Sad to say there won't be any cost savings from eliminating loans EC. They don't have any. CTO had £12.4m net cash at year end and no debt.

[effortless cool] 05/7/2019 11:13

Consensus for 2019 is 4.40p. I expect this to be split 0.75p interim, 3.65p final.

I don't anticipate them moving materially higher than consensus based on historical cash flow volatility, the potential cost savings from eliminating loans and the continuing need to reduce the pension deficit.

[lasmo] 05/7/2019 10:52

Any suggestions on what the interim dividend might / should be. My view is we’ll see 0.75p although I believe it should be more like 1p if forecast is met.

[rivaldo] 03/7/2019 13:56

Great news CC2014, cheers. And it's already bearing fruit given the last paragraph:

"we’ve already won our first two with North Tyneside Council"

[cc2014] 03/7/2019 08:39

I like frameworks as there is some certainty of work regardless of what's going on in the economy.

[igoe104] 01/7/2019 18:21

I'm sure they will do a better job with data centres, than Csf Group.

Me and Rivaldo both had out pants pulled down with that share.

in fact that was my biggest ever loss, 32k worth.

[cc2014] 01/7/2019 12:55

Share price has hardly moved for the last 10 days despite nearly every trade being a buy indicating a big seller in the background.

Hopefully those big trades and the bid and offer moving up indicates the big seller is finished. I expect we will see a large delayed trade coming through sooner or later.

[lasmo] 01/7/2019 10:02

Agreed rivaldo. I read this that they have won (or are close to winning) an European data center contract and want the trading statement to coincide with that announcement. Or maybe that’s just wishful thinking on my part. By the way I was doing some research on data centres in the USA. Like Europe there is a massive build program over the next 5 years. Clients are very keen on offsite pre-fab assembly, which fits with Tclarke’s strategy.

[rivaldo] 01/7/2019 09:39

CTO announce the H1 results will be out on 1st August - a week earlier than prior years, and an incredibly quick turnaround from the 30/6 results date.

Extremely impressive. Plus no note that trading is in any way changed from the "positive" trading outlined at the AGM:

[smartmoney100] 27/6/2019 01:37

You dont need to even bother with the http , just copy links to before that and your browser will do the rest.

[edmundshaw] 26/6/2019 22:15

The CEO made some reference to this in the rpesentation. Yes, it does add to the appeal of this business, as does the unwillingness of CTO management to risk overstretching themselves in this sector.