Tclarke Share Discussion Threads

[edmundshaw] 12/5/2023 09:01

It's been a well-run business, so I have held these at varying quantities since 2017. Sell a few when the price gets hotter, buy a few when it dips, and take the dividend.

Long term growth OUGHT to exceed inflation, and we have had over 10% of that for 9 months (so getting on for 21% over two years): that SHOULD lift all stocks up at some point (all else being equal)... theoretically...

[dr biotech] 11/5/2023 20:05

That would explain the 3pm tick up. Last line states

My 185p fair valuation is based on a targeted PE ratio of 7.7 for 2024 and suggests 28 per cent further share price upside. Buy.

[igoe104] 11/5/2023 19:53

Investment chronicle Simon Thompson tipping CTO...

[kalai1] 10/5/2023 11:57

T Clarke plc issued a positive AGM statement this morning. Trading in the early months of 2023 has continued to be strong, the Board remains highly confident that the Group will successfully deliver its growth strategy with revenues set to exceed £500m for the first time in the current year, i.e. FY revenue growth of at least 18%+. The Group's forward order book has strengthened significantly and now stands at £720m (FY22 £585m). Valuation is attractive with forward PE ratio at 6.7x in the top quartile for the Construction & Engineering sector. The balance sheet is solid, profitabillity ratios are decent. The share price has been drifting sideways for 2 years and lacks positive momentum, other than that there is a lot about the investment case to like. BUY...

...from WealthOracle

[johnwise] 10/5/2023 11:20

10/05/2023 7:00am

RNS Number : 8475Y

TClarke PLC AGM Trading Update

[dr biotech] 10/5/2023 11:15

Also from Cenkos

It is encouraging to see continued growth momentum in the business, which it expects to be maintained going into 2024. There looks to be significant opportunities across data centres, healthcare and energy efficient smart building solutions and it’s encouraging to see the growth in larger projects. Importantly, the group continues to manage this growth effectively, proactively investing in both resources and capacity to support its growth trajectory. Overall, this is a positive update and should reassure on a number of fronts. This is a well-run business with a clear runway of growth ahead of it. On sub 7x FY23E PE the scope for a re-rating could be significant from current levels and we reiterate our BUY recommendation.

Obviously I should have sold back in March - its does seem a well run company, but I'm still concerned the margins are too thin for this to achieve the growth I'm hoping for. I'll continue to hold short term for a rerating

[owenski] 10/5/2023 09:36

Good to hear, so F.O. over there then.

[blackhorse23] 10/5/2023 09:06

Switched to GATC which is rewarding

[penpont] 10/5/2023 07:52

Cenkos note this morning introduces forecasts for FY 24:

Rev £600m (FY 23 500m)
Eps 23.9p (FY 23 18.9)
Div 6.5p (FY 23 5.9)

[18bt] 10/5/2023 07:48

Very pleased with that update - may have a day in the sun.

[igoe104] 10/5/2023 07:26

Excellent update, the company looks in a very strong position going forward...

Big jump in the forward order book.

[igoe104] 09/3/2023 15:05

Happy to continue to hold these, dividend rises 10% over the last few years. CTO ssing very little inflation issues. Lots of future pipeline of work, data centres and Hospitals further down the line...

[igoe104] 08/3/2023 17:26

Zoom webinaer tomorrow at 14.00 should be worth listening to...

[dr biotech] 08/3/2023 15:13

I'm currently up 2% on these, plus last years dividend. So have done OK but not exactly boomed. I'm tempted to sell - nothing wrong with the company except the thin margins on their work. I just don't feel they will achieve either a big leap in revenue or to widen their margins. Hence the share price to drift around a bit. I'll hang in for a few more days though.

[owenski] 08/3/2023 14:03

Those are good numbers and the CTO outfit are a well run business, picked up a few late last year, it seemed an anomalous valuation for where the business was at.

[cwa1] 08/3/2023 10:38

Cenkos comment:-

 Outlook and view: There is strong growth momentum with the group at present,
with significant opportunities in data centres, healthcare and increasingly energy
efficient smart building solutions. It remains focused on delivering its growth
strategy and looks to be well on track to deliver its target of achieving turnover of
£500m by the end of 2023. Whilst the share price has enjoyed a recovery YTD, a
headline FY23E EV/EBITDA of sub 5x does not appear to reflect the clear growth
trajectory at present or the strength of its market position. BUY.

[edmundshaw] 08/3/2023 10:16

They have been over 180p in 2021, and they are clearly significantly bigger business now. At that rating they would be north of £2.20; I don't see why that rating could not apply in the future.

[petomi] 08/3/2023 10:12

They have done well but margins still very tight (like most in the sector) so any hiccups are costly. Not sure it will ever get more highly rated despite their skills and market position.

GLA

[janeann] 08/3/2023 07:28

all very positive... like the increase in healthcare related work

[igoe104] 08/3/2023 07:10

Excellent results from CTO, and a lovely 10% increase in the dividend. No signs of a recession here...

[dr biotech] 08/3/2023 07:09

Seems to be an issue with the news feed. So I’ll paste this. Looks ok first glance






TClarke delivers record revenues of £426m


TClarke plc ("the Group" or "TClarke"), the Building Services Group, announces its preliminary results for the year ended 31 December 2022.

Financial Highlights

RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER
2022
2021
Change
Revenue
£426.0m
£327.1m
+30%
Operating profit
£11.5m
£8.8m
+31%
Profit before tax
£10.3m
£7.8m
+32%
Basic Earnings per share
19.60p
14.99p
+31%
Net cash at year end
£7.5m
£5.3m
+42%
Total dividend per share
5.35p
4.85p
+10%





FY 2022 summary

· Record results with the Group on course to achieve its strategic target of £500m annual revenue
· Revenue up 30% to £426m
· Operating margin 2.7% (2021: 2.7%)
· Earnings per share up 31% to 19.6p
· Strong balance sheet
· Net Cash £7.5m (2021: £5.3m)
· Average month end cash £2.6m (2021: -£2.9m)
· Net Assets £38.7m (2021: £26.5m)
· High quality and growing forward order book of £555m, up 4% on 2021
· Data centre business expanding rapidly; 2022 revenue £129m (2021: £39m)
· Further progress made in expanding in the healthcare sector, large projects outside London and smart buildings. Total 2022 revenues from these sectors £91m (2021: £51m)
· Progressive dividend policy with total dividend up 10%
· Record intake of 50 Apprentices, with 210 now employed across TClarke
· New target of 25% women in apprenticeship and training roles by 2028
· Total type 1 and 2 emissions fall to 4.8 tCO2e/£m revenue (2021: 5.8 tCO2e/£m revenue)

Mark Lawrence, CEO commented

"2022 has been a transformational year in the history of TClarke with a significant step change in the size of the Group. Our record results reflect the high quality of our operations and talent and commitment of our people and supply chain partners.

The Group is in fantastic shape. We have an excellent order book of high quality projects across a wide range of sectors. The business is supported by our strong balance sheet, which continues to grow, with net assets increasing by 46% compared with 2021. We remain committed to delivering economic, social and environmental value for all our stakeholders and are working towards achieving net zero by 2026.

Looking ahead, we continue to make excellent progress in our chosen markets and our well-positioned to achieve our £500m revenue target in 2023.''

-ends-
T

[igoe104] 07/3/2023 15:40

Results tomorrow...

[rbewes] 31/1/2023 18:47

What are you going to wear?

[igoe104] 31/1/2023 09:48

The company are doing a zoom webinaer on the 9th March. I've just had my invite.

[igoe104] 26/1/2023 08:26

Cenkos note update.