Tclarke Share Discussion Threads

[cwa1] 05/5/2021 07:45

Very solid update IMO:-

In summary, TClarke has made an excellent start to the year and the Board looks to the future with continued confidence underpinned by excellent revenue visibility and we look forward to reporting on the progress that we make over the remainder of the year.

[podgyted] 01/5/2021 13:33

TU on Wednesday - day of AGM.

[squarepeg86] 30/4/2021 11:12

Really? News from 2016/17... A quick google search will provide you with all the information you need and more.
It's funny this share, it sits low for long periods and no one has any interest. Yet the minute it starts to rise the bb is full of negativity from people who don't hold. Makes you wonder why such an interest in a share they don't hold!

[zingerburger] 30/4/2021 10:42

did they ever sort out that guy who did fraud in one division

[landay] 30/4/2021 10:39

effortless cool

when do any directors/companies admit they have made a mistake over an acquisition

[gdjs100] 29/4/2021 15:50

True, but maybe they overpaid for that and this was the problem, rather than incorrectly valuing Gooee at £100m.

[effortless cool] 29/4/2021 15:39

£2m seems a steep price for exclusivity, on the face of it. Given their results, it doesn't seem like others were exactly clamouring for Gooee products.

[gdjs100] 29/4/2021 15:32

The payment was to win the exclusive contract, not just the 2% equity.

[effortless cool] 29/4/2021 15:24

That's interesting additional information, Jeff H. £2m for a 2% holding obviously values Gooee at £100m, probably 2x the market cap of CTO at the time.

I find it difficult to make sense of that.

[edmundshaw] 29/4/2021 15:19

Obviously, the awards are based on the increase in EPS over the 3 year period.

The new options also have the same criteria.

Annual growth rate in EPS above Proportion of award vesting
RPI*
Less than 3% Nil
----------------------------------------
3% 25%
----------------------------------------
Between 3% and 10% Between 25% and 100% on a straight-line
basis
----------------------------------------
Above 10% 100%
----------------------------------------

[jeff h] 29/4/2021 15:17

I asked Trevor Mitchell a similar question re Gooee EC and also asked about what percentage stake in Gooee CTO had acquired. He replied:-

"Our investment in Gooee was made to secure an exclusive contract to install and maintain their suite of products in the UK. These products are an important component within our smart buildings offering illustrated on page 18 of our 2020 investor pack on our website. Smart buildings represent a significant opportunity for TClarke. 2% of equity was acquired as part of this deal.

Under international accounting standards we are required to fair value our investment at year end. This is very difficult when it comes to unquoted investments and so we took the decision to carry the investment at zero and let any profits from our offering go through the profit and loss account as and when they arise."

I further mailed him a couple of days ago regarding Gooee going into adminstration but have yet to receive a reply.

[landay] 29/4/2021 14:53

Directors have been awarded 808,000 free shares. Is this their reward for the investment write-off of £2 million in Gooee?

[effortless cool] 29/4/2021 14:15

On 30 January 2020, CTO announced a “strategic partnership” with Gooee, in the form of “a 5 year UK exclusive agreement … to sell, install and maintain the revolutionary Gooee suite of smart building products”. The announcement also advised: “As part of this agreement, TClarke has made a small but strategic investment in Gooee”.



At the time of that investment, the latest set of published accounts for Gooee, which were the unaudited accounts to 31 December 2018, showed it to be technically insolvent, with negative total equity (shareholders’ deficit) of £5.7m. The movement in the ‘profit and loss account’ line on the balance sheet indicated that a loss of £2.1m had been booked in 2018.

On 21 July 2020, CTO published its interim results to 30 June 2020. These quantified the Gooee investment at £2.0m and it was recorded as a non-current asset in the balance sheet accordingly.



On 14 August 2020, Gooee published its accounts (unaudited again) to 31 December 2019. These showed a further severe deterioration in Gooee’s finances, with an apparent loss of £7.5m in the year taking the shareholders’ deficit to £13.2m.

On 24 March 2021, CTO published preliminary full year results for 2019. In these, the £2.0m investment in Gooee had vanished from the balance sheet, replaced with a £2.0m write-off against retained earnings of ‘minority shareholding equity investment’. This was reported in the ‘consolidated statement of changes in equity’, thus avoiding the income statement. There was no explanation of this in the prelims.

I emailed Trevor Mitchell, the CFO, on 29 March to enquire as to the change in accounting treatment of the Gooee investment. I received a reply from his Executive Assistant, giving the following explanation:

“Under international accounting standards we are required to fair value our investment at year end. This is very difficult when it comes to unquoted investments and so we took the decision to carry the investment at zero and let any profits from our offering go through the profit and loss account as and when they arise”.

My response to this was:

“Thank you for this prompt response. By way of feedback, given the materiality of this management decision, I do believe that it should have been specifically identified within the “Group financial review” section of the full year results statement. Its omission makes it seem like it is a subject that management preferred not to address directly. I am sure that is not the case in practice, but it is important not to give this impression, even inadvertently”.

On 28 April, Gooee entered administration.



The sequence of events set out above do not sit at all comfortably with me, and I have sold my entire holding in CTO today.

[daniel levi bmd] 29/4/2021 11:54

FYI

ADVFN: The Battle For Control Has Begun! Takeover! The Israelis Are Back! £2/£3?

Dan
x

[mfhmfh] 29/4/2021 11:54

hopefully positive AGM statement on 5th May.

[podgyted] 28/4/2021 00:01

I think if you look at the noises coming out of the construction sector, £500m Revenue in 2023 looks eminently achievable - IMO I think they can beat that. BWDIK.

[igoe104] 27/4/2021 19:33

Interesting quote from wheelie dealer on his twitter site


Chronicle has a "Buy" on #CTO at 116p.
It's jumped since then but look at that
Forward p/e for 2021. It could be 230p and still on a reasonable Forward p/e. Growth to £500m Revenue in 2023 looks demanding.

[ansc] 27/4/2021 10:19

Slowly, slowly up she goes and not a trader in sight! That'll do nicely.

[jeff h] 26/4/2021 16:37

CEO Mark Lawrence sounds very upbeat and confident with the outlook for T.Clarke:-







One of the current contracts featured also:-



I recently was in contact with FD Trevor Mitchell regarding a few queries regarding the recent Annual Accounts one being why the Benefits Paid under the Defined Benefits Pension Scheme were £8.8m in 2020 compared to £1.3m in 2019.

The answer was some members of the scheme have transferred their benefits out to their own arrangements which presumably extinguishes liabilities in the CTO scheme and so I assume helps in eliminating the overall pension scheme deficit.

[podgyted] 24/4/2021 16:34

Also expecting a trading update (hopefully positive) on the day of the AGM - 5th May. Think they will be doing well.

[tole] 24/4/2021 13:42

Nice finish to the week here. Shares went ex-div on 22nd also.The Directors are proposing a final dividend of 3.65p (2019: 3.65p) per ordinary share totalling GBP1.6 million (2019: GBP1.6 million). Subject to approval at the Annual General Meeting, the final dividend will be paid on 21st May 2021 to shareholders on the register as at 23th April 2021. The shares will go ex-dividend on 22rd April 2021.

[podgyted] 24/4/2021 12:58

Good read-across from Morgan Sindall as well.

[mfhmfh] 20/4/2021 16:13

share price just past December 2019/January 2020 highs of 132.5.

next resistance 140p from May 2019 then hopefully onwards to 160p.

IMHO.

[edmundshaw] 19/4/2021 08:36

Cannot disagree with ST tipping these.

Thanks for the information, explains todays rise which was amystery to me!

Medium term this has a long way to go, so I am holding on tight...