Tclarke Share Discussion Threads

[igoe104] 08/9/2023 10:06

Looks like CTO are part of this massive framework.

[muckshifter] 08/9/2023 10:02

I would think CTO will be quite happy to let competitors busy themselves with the bits and pieces of electrical work involved in remedial work because of the failed "aero" concrete, which, scandalously, probably only just achieved its design life before beginning to deteriorate. Short sighted, short term government decisions as usual.

Where I could see CTO work would be in an accelerated new school building programme where their expertise would count.

[rivaldo] 08/9/2023 08:44

Cheers igoe104 - here's his commentary:

"I've picked up some T Clarke CTO.

It looks mighty cheap! A forward PE of just 6. A peg of just 0.3 and a dividend of nearly 5% ticks a lot of boxes.

It also has major support at 130p. I've been trying to buy it on DMA so I could buy at the sell price but try as I might I couldn't find any sellers which I suppose is a good sign.

I wonder if TCO might get some work in some of these schools that will need work doing that we're all read about this week.

It offers building services across the UK, including schools, residential, hotels etc and offers engineering services and facilities management.

Seems a decent well run company at a great price. Initially targetting a lift back up to 150-160 but it could end up a longer-term hold.

TCO boss Mark Lawrence has been with the company for 37 years, that is some experience!"

[igoe104] 07/9/2023 18:24

Robbie Burns the naked trader has just purchased some CTO, thats why its suddenly spiked.

[igoe104] 05/9/2023 10:46

Looks like lots of potential work for CTO..



TClarke announces place on UK decarbonisation framework

TClarke is announcing a second strategic public sector framework win. The Procure Partnerships Framework, which starts in November 2023, will focus on the £25bn challenge of decarbonising UK public buildings. To hit the UK government’s stated target for 2030, 91% of public buildings in England and Wales will need to be upgraded in the next seven years.

This company deserves a much better rating...

[igoe104] 03/9/2023 07:43

All problems with alot of schools and hospitals being unsafe. Could be good news for CTO as they should pick up alot of business...

[thorpematt] 29/8/2023 13:48

I reckon this is way below any fair valuation - even on a contractor's discount. So I have increased position size.

I ought to add that I took quite a bit off the table at a far higher price in late 2021, so in some respects I am simply buying back what I sold.

The fundamentals for the sector have continued to develop positively since and predictions of a rise in net margin here rather backs that up.

I have made deductions for PD contributions and used PAT as opposed to PBT and I still cannot justify the discount.

If you consider the demand for data centres,smart buildings, energy transition etc. the tailwinds here, coupled with the company's expertise (barrier to entry) mean the investment case is compelling. And at this discount it make sense to load up a little I think.

[stevesham] 25/8/2023 05:16

Link below to framework announcement

[igoe104] 24/8/2023 18:36

Large framework announcement.

TClarke wins place on key £545m Public Sector framework

TClarke has been selected as an engineering services provider on the 4-year Pagabo Framework that supplies UK Public Sector Bodies across the country from education and research to the NHS, emergency services, councils and housing associations.

[rivaldo] 06/8/2023 06:22

Tipped by Midas in today's Mail:



Conclusion:

"Midas verdict: Midas recommended TClarke in 2017 when the shares were 76p. By last year, the price had surged to £1.53. Today, they are £1.30. That decline should swiftly reverse. TClarke is known for delivering top-notch work, 90 per cent of its customers come back for more and the recent fundraise highlights management confidence in the future. Existing investors should hold. Newcomers to this business could also find the current price attractive."

[rivaldo] 02/8/2023 12:43

The tip for CTO in July's Momentum Investor write-up hasn't been posted here, so here's its concluding summary:

"Order book up £135m

Looking ahead, prospects are rosy with the AGM statement noting that following strong trading in the early months of 2023, the order book has increased from £585m to £720m, covering most of this year's forecasts right through to 2025. As well as data centres it has great prospects in healthcare, ranging from fitting out single MRI rooms to two new hospitals in Bournemouth and Scarborough as the Government's much delayed 40-strong new hospital program swings into action. Even the mature commercial office refurb market is gaining a kicker from legislation to upgrade the energy saving credentials of a building to band E or better before from April 2023 and band B by 2030. Lawrence says the overall bidding pipeline is now over £1 billion and crucially Clarke's capacity investment means it could handle turnover above £700m without recourse to further spend.

With next year's prospective P/E just 6.4 (me - at the then 153p) and underpinned by a useful 3.9% (5.9p forecast) dividend yield, the shares have both short term and longer term potential. I am a buyer."

In addition:

"this month's front-page write-up, mechanical and electrical contractor TClarke, is benefiting from a massive boom in data centre construction. A confluence of factors ranging from growing cloud adoption, the Internet of Things, emerging technologies like AI, big data and blockchain, data compliance (driving demand for its storage) and the roll-out of 5G infrastructure have all led to a steep increase in demand for data centres."

[squarepeg86] 01/8/2023 11:33

Theres 2 delayed trades of 479k shares from after close yesterday that have just shown up @ 132p, could be interesting.

[rivaldo] 01/8/2023 10:20

For the record, Cenkos' latest note forecasts 17.4p EPS this year, rising to 24.2p EPS and then 27.1p EPS.

The cash pile is forecast at £9.2m at the end of this year, rising to £11.3m then £16.9m.

And the dividend is 5.9p rising to 6.5p and 7.1p.

They summarise (extracts):

"TClarke Plc
Momentum into H2 and beyond

Following the successful placing, todays interims are in-line with expectations, with revenues at a similar level last year (with significant growth forecast for H2) and an improvement in the margin to 2.8%. The group has excellent revenue visibility and is taking strong growth momentum into H2 and beyond, particularly with contract opportunities in the London region. On a FY24E PE of 5.5x, EV/EBITDA of 2.6x and an attractive 5% yield, we believe the valuation significantly underestimates the ongoing growth potential and quality of earnings. BUY."

" Forecasts: We make no changes to forecasts post our recent upgrades, following the placing. The proceeds of the placing will provide additional resources which will enable the group to capture and deliver identified short- to medium-term attractive contract opportunities in the London business, (which are expected to be margin enhancing). The placing is expected to be significantly accretive to underlying profitability. We forecast an operating margin improvement to 3.2% in FY25E, up from 2.4% in FY23E, with a 2-year CAGR (FY23-25E) in EBITA and EPS of 30% and 25% respectively.

 View: In our view, management’s track record of delivery to date of its growth ambitions, which has been achieved without acquisitions or fully supportive endmarkets has been excellent. The recent placing will allow another step change in the growth profile of the business, whilst also (and importantly) improving the quality of its earnings. There looks to be significant opportunities ahead, backed up by supportive end markets, such as government backed investment in infrastructure, the move to net zero and the significant expansion in the Data Centre market. On this basis, TClarke looks very well positioned to benefit and we retain our BUY."

[davidosh] 24/7/2023 18:55

The increase is merely due to the recent placing....

The Company's largest shareholder, Regent Gas Holdings Ltd, has subscribed for 4,000,000 Placing Shares at the Placing Price.

-- Cenkos is acting as Sole Broker in connection with the Placing.

[stevesham] 24/7/2023 15:24

Regent Gas increase again to 21.51%, must be getting close to making an offer, will have to I think if they go over 30%




Interesting to see how this plays out

DYOR

[tole] 18/7/2023 06:37

A little write up on MI last week toohttps://masterinvestor.co.uk/equities/small-cap-catch-up-hat-cto-cnic-and-biln/TClarke (LON:CTO) – Record Order BooksThis very well-established building services group announced it half year results yesterday and the statement was more than encouraging.The revenues for the six months to end June were hardly changed at £207m (£206m), while the pre-tax profit was lower at £4.8m (£5.5m), with interim earnings easing to 8.68p (10.24p), but with an increased halfway dividend of 1.375p (1.25p) per share.However, we can now expect a very much stronger second half, with almost £300m sales anticipated, taking it up to some £500m for the year.The record order book of £781m (£586m) helps the group going forward, with £600m sales in 2024 and then at least £650m in 2025 being group targets.Analyst Andrew Gibb at Cenkos Securities rates the group's shares as a Buy.He estimates £10.7m adjusted profits for 2023, worth 17.4p in earnings and paying a 5.9p dividend per share.Jumping ahead he sees £17.1m profits next year, worth 24.2p enabling a dividend lift to 6.5p.The shares closed last night at 131.5p, undervalued at this price.(Profile 10.12.19 @ 120p set a Target Price of 165p*)

[rivaldo] 17/7/2023 10:27

Tipped in the IC by Simon Thompson - subscriber-only unfortunately:



"TClarke's order book goes from strength to strength

Building services contractor’s technology also has £1bn of tenders in the pipeline
July 14, 2023
By Simon Thompson

Record £781mn order book, up £195mn year-on-year
Pipeline of current tender bids exceeds £1bn
Revenue guidance £500mn (2023), £600mn (2024) and £650mn (2025)
£10.7mn oversubscribed placing to support growth
Single-digit PE ratio and attractive dividend yield

Building services contractor TClarke (CTO:132p) has reported a 33 per cent year-on-year surge in its order book to a record £781mn at the half year stage. First half operating profit of £5.7mn was slightly down on flat revenue of £206mn, but it's not a concern given the material second half weighting as the contracted order book is delivered. The directors are maintaining guidance for 17 per cent growth in full-year revenue to £500mn.

Such is the strength of trading that the group now has more than £1bn tenders in its bid pipeline, too. The boom in data centres, the segment accounted for 31 per cent of first half revenue, and smart buildings are key drivers as is growth in the London market and improved revenue visibility outside of the capital. The technology sector order book has increased 35 per cent to £248mn in the past 12 months.

etc"

[thorpematt] 17/7/2023 07:54

Over 99% voted FOR the all the resolutions at the AGM (including the remuneration).

I regard the register as having only one institutional investor.
(Regent I would say is a family office type investor).

So that leaves it to the PIs to vote entirely as they wish.

Page 26 onwards of the PDF if you are interested in the policy and the numbers: -

[squarepeg86] 14/7/2023 15:08

So if all the shareholders were to vote against it then they'd just not go through with it? I assume most people will vote in agreement with it?

[dunns_river_falls] 14/7/2023 11:24

Mentioned in a write up on stocko as one to watch.

Flagged up director renumeration as a concern with their pay at £4.6m out of the £10.3m PBT. Final comment was added to the writers watchlist.

Even if profits go up, how much will shareholders benefit as they just pay themselves more.

[brad_k] 14/7/2023 10:57

sq86
In the original Open Offer RNS it does say that they have "conditionally raised gross proceeds of GBP10.7 million" ... and later
"The Placing is conditional, inter alia, upon approval by Shareholders of the Resolutions and the placing agreement between Cenkos and the Company becoming unconditional and not being terminated."
The AGM vote is on July 24th.

[squarepeg86] 14/7/2023 08:34

Has anyone else received a corporate action regarding the placing? I did yesterday in my AJ Bell account but not my Iweb. I don't fully understand it, I thought the placing was done and now it's asking for a vote for 4 resolutions regarding it.

[grahamburn] 13/7/2023 13:11

Suspending a dividend has a slow effect on the balance sheet as well as working capital, whilst disappointing, even annoying, long term investors who have become accustomed to a rising dividend. A quick one off fund raise reassures prospective public sector clients who require solidity in their suppliers.

[dunns_river_falls] 13/7/2023 09:39

Agree its cheap and good potential growth. No div for the year would also strengthen balance sheet and have no dilutive effect. Clearly that would not raise enough to fund the growth, but would have been understandable. Anyway if we double in price from here, It will all be worth while.

[edmundshaw] 13/7/2023 09:36

Some people are used to - and supposedly sometimes even rely on - a stable dividend income from their shares. Some funds require it. And the management probably wants to continue the long record of increased dividends which goes back at least 6 years.

Personally I'd be happy with a shelved dividend in the short term, but dividend payments in general I like as it helps maintain some management shareholder focus.