Tclarke Share Discussion Threads

[niklol] 22/5/2022 16:53

Should go up tomorrow after that Midas tip?

[tole] 22/5/2022 13:49

https://www.dailymail.co.uk/money/investing/article-10840063/MIDAS-SHARE-TIPS-UPDATE-tip-T-Clarke-lit-Windsor-Castle.html?

[tole] 13/5/2022 18:13

https://masterinvestor.co.uk/equities/small-cap-catch-up-macf-bms-vtu-and-cto/TClarke (LON:CTO) – data centres business growing fastThis group is a nationwide specialist in electrical and engineering services. It covers span design, installation, commissioning, and maintenance. It provides its services to the UK construction sector.At Wednesday's AGM, investors were told that trading for the 2022 has started strongly, with its orders flowing in very well.On 30 April its high-quality order book stood at a record high of £585m, which compares with the end 2021 figure of £472m.It would appear the growth of its data centre business, a relatively new activity for the group, has been building up impressively. It is expected to account for a third of the group's business by the end of this current year. More growth from this side can be expected.Market estimates for the group this year centre around £410m of sales and an EBITDA of £13.9m, pumping earnings up to 21p per share.Those estimates compare with the current 153.5p share price for this £666m capitalised group.The group's interim results, to end June, will be announced on 14 July.Its shares peaked at 186p late last September, a level at which I consider they will be trading very soon.

[edmundshaw] 11/5/2022 20:55

So comfortable to hold and trade a bit on the ups and downs.

[chrisb1103] 11/5/2022 08:16

PE 7 on track for FY22 EPS 21pCheap as ever here

[cwa1] 11/5/2022 08:15

Snippet from Cenkos this morning:-

Valuation: The share price trades closer to its YTD ‘high’ of 167p than its ‘low’ of 118p, where it stood just prior to FY21 results which scored big wins on dividend and order book. However, the rating is still attractive in both actual and peer relative terms and does not reflect the transformation in the group’s core strength and reliability of delivery over recent years. On unchanged forecasts our model ‘fair value’ remains 182p and at the current 148p the 2023E EV/EBITDA of 3.2x, or 4.7x including the Pensions deficit, PE of c6x and over 4x covered 3.6% yield offers attractive core value. Add to this an improving cash conversion, net cash per share (24p) and FCF yield (c13%) by 2023E and the investment case builds stronger still. BUY

[cwa1] 11/5/2022 07:20

Very satisfactory:-

11 May 2022

TClarke plc

AGM AND TRADING UPDATE

DATA CENTRES FUEL GROWTH IN REVENUES

Ahead of the Annual General Meeting, being held today at 10.00am at 200 Aldersgate, London EC1A 4HD, TClarke plc ("TClarke" or the "Group"), the Building Services Group, issues a Trading Update covering the period from 1 January 2022 to date.

The Group is pleased to report that trading in the early months of the 2022 nancial year has continued to be strong and the Group is very well placed to deliver year two of its three-year plan to achieve annual revenues of GBP500m. The Board remains very con dent that revenues and pro ts for the year will be in line with market expectations.

For the year ending 31 December 2022, market expectations are forecast to be revenues of GBP410 million; EBITDA of GBP13.9 million; operating pro t (EBIT) of GBP12 million and earnings per share (EPS) of 21p.

The Group is pleased with the continuing high quality of its forward order book, which as at 30 April 2022 is at a record high of GBP585 million (2021: GBP472 million).

The Group is maintaining historically high levels of orders across our core markets, with a strong pipeline of further potential opportunities across all of our target market sectors. As always, we focus on projects and schemes where clients have indicated that they are committed to proceeding.

The growth in order book is being fuelled most materially by data centres which are expected to account for one third of the Group's business by year end. The data centre market continues to be extremely buoyant and we expect the significant growth in this market to continue in the medium term.

Overall, the outlook for TClarke continues to be very positive and we look forward to reporting in due course on progress made during the remainder of the year.

The Group confirms that it will publish its Half Year results for the six months ending 30 June 2022 on 14 July 2022.

[santangello] 03/5/2022 14:48

No matter what the size I always love a Director purchase :)

[albanyvillas] 11/4/2022 08:35

Forecast E/P/S of 28p a year out from memory

[santangello] 11/4/2022 08:20

Technical buying from support base or tipped somewhere ?

[thorpematt] 30/3/2022 23:33

yf23_1

Yes it is very misleading. The term net debt is not really what it is in my view.

What has always been quite useful on the ADVFN balance sheets is the pictorial view.

The LT debt not the current liabilities are in my book what to look out for . As per the dark red block, this is modest and when balanced against the yellow of the cash you can get a quick feel for the levels of a net calculation.

The sector comparison is also quite easy as a visual aid: -




As far as I can tell CTO has a small net cash situation at year end. (about £4m)

One other way of seeing what ADVFN thinks is the net position, is to view the EV. This is under the solvency ratios section and has £71m. If you compare that to the Market cap, they are actually saying there is a net debt of £7m ish.

In terms of long term leases these are neglible. The PD is worth a footnote. This is described in the annual report thus: -

"Defined Benefit Pension Scheme Obligations

The most-recent formal actuarial valuation of the Group's defined benefit
pension scheme at 31st December 2018 showed a deficit of £24.9m, representing
a funding level of 59%. Following the valuation the Group committed to a
deficit reduction plan to eliminate the deficit over a 12 year period, and
throughout 2021 it continued to make additional contributions at the agreed
rate of £1.5m per annum. The Group also continues to provide security to the
pension scheme in the form of a charge over property assets up to a combined
market value of £3.1m. A new formal funding valuation is being carried out as
at 31 December 2021 and the results will be reported in next year's Annual
Report & Financial Statements."

[theoldcodger] 30/3/2022 13:01

yf23_1

I'm not sure where ADVFN get their £122m debt from, but the consolidated statement of financial position as at 31st December 2021 (included in the final results announced on 9 March 2022) shows net current assets of £9.3m (total current assets of £125.1m less total current liabilities of £115.8m), with total net assets (and therefore total equity) of £26.5m (although that does include £25.3m of intangible assets). These figures are easily accessible on T Clarke's own or the London Stock Exchange's websites.

In comparison to many in the sector, I'd regard CTO as well capitalized, although that by itself is not necessarily a reason to buy.

Good luck,
TOC

[squarepeg86] 30/3/2022 12:31

I wouldn't use the ADVFN financials. I think last reported net debt was around £15m and a quick check on SimplyWallSt has the current debt at 15m too. Stockopedia would be a good place to check.

[yf23_1] 30/3/2022 12:03

Can anyone help me ?
This site has CTO net debt at 122m.
This appears not to include debtors, which is account receiveable which should be included in current assets which should be used to arrive at net debt.
I was thinking of buying these but when I looked at market cap 65m and the size of net debt that threw me.

However it looks fine if you include debtors.

[edmundshaw] 16/3/2022 09:28

Quite a good write-up.

But I can hardly believe the last line "my new target price of 170p.". Surely with the tailwinds and the 2022 EPS estimate of 21.2p and the great growth story this should be 200p or even more??

[dr biotech] 15/3/2022 13:16

That’s odd I’ve had two say it worked but two that didn’t. I’ll pm you.

If you have an iPhone try using that.

[edmundshaw] 15/3/2022 13:00

It didn't work for me I'm afraid Dr. B. I took the route you suggested but the same paywall...

[dr biotech] 14/3/2022 16:45

There’s an easy (legit) way round the IC paywall, just PM me..

[tole] 14/3/2022 14:31

https://masterinvestor.co.uk/equities/tclarke-bringing-a-building-into-life-pays-off-for-this-undervalued-group/TClarke – bringing a building into life pays off for this undervalued groupBy Mark Watson-Mitchell 14 March 2022 4 mins. to readTClarke – bringing a building into life pays off for this undervalued groupIt is a fair bet that you may never have heard of TClarke (LON:CTO).This company is over 130 years old and has offices and operating centres across the UK.To developers and construction companies, however, it is a very well-known, respected and important name.The businessFrom St Austell to Falkirk this building services company plies its trade. From its four main regional operating areas and its 19 offices, the company has an excellent national coverage.It spreads five main market sectors – infrastructure; residential; technologies; mechanical and electrical contracting; and finally, facilities management.It is involved in providing building services and solutions, not for the shell of a building or the internal fabric and decoration, but instead for practically everything else.Its areas of expertise are in powering a building, heating it, lighting it and, importantly, making it intelligent.Effectively TClarke 'brings a building to life'.The company within its M&E contracting business has capabilities in sectors, including commercial offices, retail, education, healthcare, financial services and media.Over the last few years, it has been involved in a number of UK Data Centre projects. It is now widening its offer into the European market, where such projects can have overall £30m-£40m values, with some topping £100m.Bringing the building to life with power, services and systemsA building has a shell and a core that keep the weather out and keep it standing. It also has an internal fabric and decoration. Everything else in between – all the things that power it, heat it, light it and make it intelligent – are the group's area of expertise.Power is distributed and controlled.Services – including heating, lighting, ventilation, water, waste and their networks and controls.Data networks are made resilient and secure.Internet services and coverage are delivered throughout the space.Alarm, security and safety systems are integrated and controlled.Building Management Systems are integrated along with all the IP addressable components on the system. Data and control of the building is brought together within advanced graphic user interfaces that make them easy to use.Last week's finalsLast Wednesday the group declared its final results for the year to end December 2021.It reported a 41% increase in its revenues to £327.1m (£231.9m). an adjusted pre-tax profit up 53% at £7.8m (£5.1m), generating a 46% improvement in earnings of 14.99p per share (10.29p) easily covering a 10% increased dividend of 4.85p (4.4p) per share.A split down of last year's £327.1m revenue identifies that M&E contracting represented just over a third of the business at 35.7%, with infrastructure 24.1%, residential and hotels at nearly 17.1%, technologies 15.1%, and facilities management making up the 7.9% balance.At the year end the group's order book stood at a record £534m (£456m).The group's CEO, Mark Lawrence, stated that"The business is in excellent shape having finished 2021 on a high and delivering the first year of our £500m revenue growth plan, winning a wide range of work across our chosen market sectors. This is clearly reflected in the strength of our order book which again has reached a new record high."He goes on to confidently declare that:"Our order book will translate to record revenues; TClarke can offer our clients the widest possible solutions from a single contractor, utilising our resources so that they are assured we have the ability to deliver. That's why we believe TClarke remains the contractor of choice for so many and we remain focused on maintaining our market leading position.We start 2022 in excellent shape and well placed to deliver a strong future performance."The group's growth strategyThe company's growth strategy is focused on maintaining and developing its core markets whilst significantly expanding its data centre business.It is also undertaking more large projects outside of London, such as those being delivered for a major financial institution by its Manchester business. As well it will be expanding both its healthcare offering and its energy efficient smart building solutions.Through successful targeted tendering and operating efficiency it is focused upon its margin sustainability at 3% and better.The EquityThere are some 43.92m shares in issue.Large holders include Regent Gas Holdings (16.9%), Interactive Investor (7.83%), Heritage Capital Management (5.74%), Hargreaves Lansdown Stockbrokers (5.32%), Barclays Bank, Private Banking (4.60%), Walker Crips Investment Management (3.11%), TClarke Employee Share Ownership Trust (2.52%), Cavendish Asset Management (2.01%), Hargreaves Lansdown Asset Management (1.99%), and finally Chelverton Asset Management (1.37%).Brokers ViewAnalyst Kevin Cammack, at the group's brokers Cenkos Securities, estimates that for the current year a £410m turnover is possible, upon which the company could make £11m of adjusted pre-tax profits, worth 21.1p per share in earnings, and a 5.1p per share dividend.For next year his estimates are for £500m turnover, £13.5m profits, 24.6p earnings and a 5.3p per share dividend.Totally understandable why he rates the shares as a 'buy'My ViewOn the face of it this may look to be a boring company – but I would totally disagree with that impression.It is a good solid business, only valued at around £74m, it is ungeared with some £7.3m net cash and that should increase to over £10m by this year-end.Furthermore, it also has unused banking facilities of £25m.In the last year the shares have been up to 186p, I see them going back up there again in 2022.Its shares at 147p, looking for a current year yield of some 3.5%, and trading on only 6.9 times earnings – are a 'no-brainer'.

[edmundshaw] 12/3/2022 22:22

Was behind a paywall for me :((

[dr biotech] 11/3/2022 15:59

Positive write up in the IC. Its quite easy to access the article for free if anyone wants it. Decent article as always by Simon Thomson.