Tolent Share Discussion Threads

[piedro] 31/1/2008 19:44

MrT8 - apology accepted. Will post on the other thread if that is the general consensus.

[mrt8] 31/1/2008 16:40

Thankyou, Gateshead, for correcting me (on the other thread), and also Piedro and jonwig, for your contributions. Also apologies for late reply - been away, as you know, Gateshead. It is true that I used the figures quoted in ADVFN's fundamentals, although (being a reasonable shareholder) I did know the current situation, and that last year was a special payment year. On the basis of that 15p in the current year, compared with 11.5p in 2005 is still a 30% increase. The move to more conventional dividend payouts makes good sense.
Is the high debt situation not common in the sector, Gateshead?
I apologise to the other thread contributors - this was not intended as any kind of hijack. I merely thought that there did not appear to be much interest in this stock, and maybe some charts might help, and I just wanted to generate some discussion. My knowledge of the company is quite limited (annual accounts/web search/news releases etc), so I was hoping to pick some brains of other more long-standing holders! I did try posing questions on this thread before, and I did get a few answers, but the posts were far and few between, Quite happy to revert back to this thread. m8

[jeff h] 03/1/2008 22:43

"Over 12% yield"....."Net Debt"....hardly comments from people who are
well informed, though the chart adds something.

Bit like The Sun maybe...look at the pictures and ignore the writing!

[jonwig] 03/1/2008 09:44

Piedro - for me a big plus with a thread is having the basic charts at the top (especially when I don't hold the shares - so that I can just keep an eye open).

I don't hold TLT (probably never will) but the sector is one which I follow a bit.

[piedro] 03/1/2008 09:34

Looks like some ...'cowboys'.....have started another thread....should we join them ?

[piedro] 03/1/2008 09:30

Delays harm income at construction company
Aug 9 2007 by Iain Laing, The Journal
PROFITS at Gateshead construction company Tolent have fallen by nearly 30% to £1.5m in the first half of 2007.
Turnover also suffered – falling nearly 10% to £76.2m as several contracts suffered delays.
But chairman Mike Speakman said the company was still confident of prospects for the full year, with several big projects due to start in the second half.
Tolent is part of the Kajima team which is behind the £40m PFI project to rebuild Newcastle and High Heaton libraries.
Mr Speakman described Tolent's first-half performance as satisfactory, although it was slower than the same time last year.
He said: "Due to a number of large contracts suffering delays in commencement in the first half of 2007, group turnover, excluding our share of joint venture turnover, of £76.2m was down on the comparable six months last year of £84.2m ...
"The outlook for the rest of the year remains encouraging and the board looks forward to reporting a satisfactory outcome for the year as a whole."
Tolent shares closed down more than 4.5% at 285.2p after the results statement was issued shortly before 4pm.

[piedro] 03/1/2008 09:27

New thread !!!!!
What's the great secret?
Having not been invited (from the other bb)..... there is no need to Gate...crash.....

[jonwig] 22/12/2007 12:51

I think the error arises here (last year's finals):

The recommended final dividend for 2006 of 11.7pence per share payable on 9th
July 2007 to shareholders of record on 8th June 2007. The total in respect of
2006 is 23.4 pence compared with 11.5 pence for 2005, an increase of 103%.

So they are moving to a more conventional approach with, as G says, 15p expected for the current year.
No doubt they intend to be progressive, though.

Interesting company - deserves another look.

[gateside] 22/12/2007 12:50

You ask why does the Market not like TLT so I have had a look at them in a bit more detail..

As you are aware the whole construction, property sector has been hammered, with most stocks down over 50% in 2007, I agree that at some point that will change and this sector will again be in favour, but that could be a while coming. Plus the Market always seems to over react, both in big swings down and up.

The main thing which strikes me when I look at their balance sheet, is that they are very highly geared, their Net Debt is greater than their Market Cap. Not a good position for a company to be in with today's 'Credit Crisis'.

In time, you might strike it good here, but it could be a long wait.... Good luck.

[gateside] 22/12/2007 12:42

m8....How do you get to the figure of a dividend yield of 12.65%?

In TLT's Interim Results last August, they stated that the dividend would be 5p They also said that they were changing their dividend policy...

"whereby the dividend attributable to the full year is broken down so that about one third is payable at the interim stage and two-thirds at the final".

This suggests that the final dividend for the year will be approx 10p making a total dividend of 15p, which at the current share price is a dividend yield of approx 7.8%

[mrt8] 21/12/2007 15:56

TLT is a profitable NE based builder in a nicht market. Currently yielding 12.65%, covere 1.2 times. With EPS of 28.65, EPS growth of 103.48, and PE of 6.46, why is this stock not flying? The building sector is out of favour, but surely that is the traditional housbuilding market. TLT are well established in the build of Shopping Malls, and other corporate contracts. I believe there are not many shares available to the general market, which probably explains the large eratic movements of the stock, when little or no stock actually changes hands. I have been steadily adding on the falls, from over £3, and have no intention of selling until the price is well back over that figure again. Meanwhile I will have banked income over 3x that I could get almost anywhere else. m8

[jeff h] 30/11/2007 13:02

Joan - I don't see any reason why it can't expand though you'd have to
also judge if it could do so profitably.

[joan of arc] 30/11/2007 12:46

Thanks Jeff. You are clearly able to keep a closer eye on things than me. So I guess my question is do you see the business continuing to expand or not?

[piedro] 30/11/2007 12:44

It would seem that most constructors are out of favour with the market.

The drop in dividend I think was more an error on the part of Tolent - they should have announced the 23.4p as with a bonus, as the general dividend trend is up.

Although there is very little information available, I base my confidence on the AGM statement of the26 June 2007.......

'Trading in the first half has been satisfactory albeit slower than for the
comparable period last year. Nonetheless our confidence for the full year
remains high and the secured order book stands at £243 million.
'In the first half a number of large contracts have suffered delays, much of
which should be picked up in the second half. In particular the contract at
Newcastle City Library as part of a PFI scheme has now achieved financial close
with work commencing on site in June. The award of several major projects is
anticipated in July, which should ensure that we achieve turnover in line with
expectations.
'In addition, we have made a £400,000 provision against the balance of amounts
due under a contract for the construction of apartments in Huddersfield. The
development company has recently been placed into administration. We are
following this situation closely and will pursue a recovery wherever possible.
'Overall, we are pleased with our levels of activity and the outlook remains
encouraging. The Board remains confident that the results for the full year to
31st December 2007 will be in line with expectations, despite the slow first
half and debt provision.'

[jeff h] 30/11/2007 11:47

There's lots going on, just that the company rarely gives updates or updates
its website.

Recently the co. took a 25% stake in a £300m development



Then there's the steady flow of new contracts:-

- £3.5m offices in Teesside



- £5.3m hotel in Crewe



....and bids in for contracts that maybe won, such as a 2 horse race for this £20m one:-

[joan of arc] 30/11/2007 10:06

Yes, I am still holding - all the way down from the top. Not much is going on here I agree but there is precious little information to discuss. I must confess I have rather parked these in a drawer and have no real idea how their future prospects have changed or indeed how the current economic outlook will affect them. I do believe their fortunes are entirely tied up with their dividend. Since that has dropped (halved I think)then, if there is a risk of this being cut again, the share price will drop proportionately. It seems that Mr Market has some doubts about their ability maintain the current level. Any thoughts?

[mrt8] 30/11/2007 08:39

Does no-one else hold this stock? The price has suffered purely because the industry is suffering. This is an excellent, highly profitable, and well run operation - with a high yield, to boot. DYOR, but look at them. Lousy spread, but it moves in multiples of 10! m8

[mrt8] 03/10/2007 10:29

Anyone explain why this stock seems to be in a downward slow spin? I know the building sector is out of favour, but we have a very profitable company without, it seems, any skeletons in the closet. I have been adding as the price drops, but how far can it go? m8

[westcountryboy] 09/8/2007 19:15

Quite - who would sell now, in view of that statement and the 15p divi to come?

[deadly] 09/8/2007 19:10

Well, the results didn't spark much interest, but at least it's up today in a bad market.

This statement may have helped:
"A number of the contracts noted above as having been delayed have now been
secured and will make significant contributions to the level of activity in the
second half of the year."

[jeff h] 08/8/2007 22:01

Dividend

The Directors intend to pay a dividend of 5 pence per share on 5 October 2007 to shareholders on the register on 3 September 2007.

The Group has previously operated a policy of making payments based on the
results achieved for each half year with no recognition of the likely result for the full year. It is the intention to move to a more conventional dividend
policy whereby the dividend attributable to the full year is broken down
approximately as to one third payable at the interim stage and two thirds at the final.

...so 15p total dividend on the cards compared to Brokers Forecast of 14.3p

They must be very confident of the future - I know for example they took a 25% stake in a company that plans a £300m media complex in the north east.

[mrt8] 03/7/2007 17:03

Thanks for the explanation Piedro. 3 trading days on have you seen any direction, with the price dropping, then climbing nearly all the way back? I have always been cautious of charting, as, in my view, it really only reflects what happened in the past, based upon news that is also past. I know that a lot of people make a lot of money using charting, so my views are not really valid.
BTW, speaking of the building industry, I have watched SIG (SHI) rise from a £4 stock to it's current dizzy heights. Having touched £15 it now appears good value at around 1335. My son-in-law works for them, and informs me that they are busier than ever. DYOR. m8

[piedro] 28/6/2007 13:00

Not much of a chartist myself.
The 'flag' is a triangular formation that can be drawn on the price chart.
In the case of the above mentioned index it is a right-angled triangle with base at 5960 and the hipotaneuse(spelling?)sloping from 6353 to meet the base line.
Theory says that if either line is breached then there will be a breakout in that direction.
......Hope that helps.
One could also imply that the market is vacilating in its opinion of the Construction & Materials sector and getting screwed up for a decision, (breakout), up or down.