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Utilitywise Share Discussion Threads
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|It occurred to me that they might have taken the payment hit as they were fully aware that they could make up the defect very quickly with the new water customers .
Bearing in mind, that if a company already trusts Utilitywise to manage their existing services, then addding on the additional water service to each of their 40k customers should be a piece of cake.
I have topped up quite heavily recently, with this being one of the reasons.
I also am impressed by their new digital advertising campaign.|
|Here too, and second what you say.|
|No I'm still here. And still think there is potential esp after the latest changes, painful as they are in the short term.|
|I know I am talking to myself on here, but I was thinking the new water offering has 40k ready made (and probably receptive customers).
It also presents a very good opportunity to find new customers.
This should result in the few months sales figures being very good !|
|And an interesting video.
|Some good efforts in their digital marketing offerings
|I would have thought the new water offering will help figures from this month.
I also saw that on one of the results slides presentation that there was a mention of insurance and telephone company / internet provider as services UTW could possibly provide.
If all of this comes good then I cant see why the price wont get to a multiple of its current level over the next few years.|
|150 coming back up,|
|Inevitable considering you could get 2% div on your investment by holding until 18 May on a stock with a PE of < 6. Can't get that in the bank.|
|Someone must have left the trampoline out last night!|
|What looks like a chunky 4 million buy showing after hours. Someone's confident!|
|I get the feeling there is a big seller in the background and we will have to wait until its cleared.|
|Could eventually present an opportunity though.|
its the oxman
|Wouldn't count on it without some positive news flow, it could just drift down, often happens when shares are out of favour.|
its the oxman
|due a bounce soon,
price edging up despite sells|
- Enterprise Europe swings to +ve EBIDTA
- Contracted revenue (finally) rising faster than headcount
- Net debt
- Various isues in corporate division
- Enterprise UK has negative operational gearing? Where are the extra costs coming from if not headcount?!
- Lack of director skin-in-the-game
If this is misunderstood and unfairly unloved, why aren't we seeing directors adding?|
|I'm waiting for it to hit £1.20 1.25 and it looks like it might ! Bought some Pets this morning thinking it's about to turn . Good Divi too|
|I see UTW as a finance company - spend now (racking up debts early on), call in the cash later. There's some amount of risk (and a sense of jam tomorrow to begin with) but the eventual margins should be reasonable if your risk-management and operational cost-control are sound.
The supplier advances always seemed a nonsense to me - because I assumed they were at a discount that exceeded UTW's debt-financing costs.
They were surrendering margin to front-load cash collection - but why would a finance company want to act like a retailer..?
Going forward, assuming their genuine free cashflows are sufficient to finance future growth, pay a dividend and work down the debt pile, then it's a viable investable business...otherwise..
Was Thompson after a quick-buck?
Were they masking financial strain as the only way to grow quickly?
Was it both?
Don't know but it's an interesting recovery play. I'll let the market provide signals before I perhaps buy in though.|
Firstly may I declare a position in UTW's peer INSE, so simply look in periodically to compare relative valuations & execution of their strategies.
I checked back, & found that I last posted on this thread in August 2015. This was on the back of finnCap downgrading earnings, dividend forecasts and slashing the year-end net cash balance (post 1538 for anyone that cares to look back).
At the time I suggested that UTW would not command a strong rating until they were in a position to demonstrate positive cashflow. Share price at the time was c.225p
Let's travel back. finnCap had forecast net debt of £0.4m at the end of FY 2015 (31.07.2015) & the full year results for 2015 highlighted net debt figure of £6.7m which was a considerable miss in anyone's book.
Now fast forward to the latest interim statement & it appears that UTW are still dealing with the same issue. finnCap released a note last week that indicates,
"We have factored in a higher interest charge due to the higher net debt. Our net debt forecasts have increased by £24m in FY 2017 split: £5.5m from prior year adjustments, £16.4m from the reversal of supplier advances, £1.1m from exceptional costs and £0.7m from higher and reclassified interest. We have also reassessed our working capital assumptions in FY18 and FY19 assuming the level of extensions seen in H1 17 continues at 23%."
Wow! A £24m increase in net debt! That places the 2015 increase in net debt of £6.3m in the shade.
While finnCap have left earnings & PBT forecasts relatively unchanged, forecasts for the cash position of the company has taken a significant hit over the next 3 years: -
PBT £18.8m (old £19.3m)
EPS 19.5p (old 19.8p)
Net Debt £19.7m (previously net cash £4.5m)
PBT £21.0m (old £21.6m)
EPS 21.8p (old 22.3p)
Net Debt £13.7m (previously net cash £11.6m)
PBT £23.2m (old £23.6m)
EPS 24.1p (old 24.3p)
Net Debt £8.4m (previously net cash £20.9m)
Other commentators, such as the excellent Paul Scott, have produced more extensive reviews that question a number of aspects of the business. To be perfectly honest though, I & others have questioned the revenue recognition policy in UTW previously and I reckon that we have simply observed this playing out with a dramatic fall in cash since the t/s in August 2015 which I alluded to at the beginning of this post. The market accordingly have afforded the company a lower rating as a result.
I wish UTW holders well, but I reckon they won't do quite as well as the departing Geoff Thomson who pulled off a masterstroke by selling down 5.4m shares at 290p in June 2014 (13m shareholding reduced down to 8m) when the group employed a different revenue recognition policy. It's been downhill ever since!
Thanks, but I'll stick to INSE meantime.
|I would not be surprised if Woodford buys some more.
I see Geoff Thompson has other things on his mind at the moment.
What a great story.
|I doubt he looks at the daily moves of the share price ..Its all about the long game. Buy low, sell high or buy low & hold.|
|I wonder what is going through the mind of Neil Woodford.|
|For what it's worth, IC has UTW as a buy. Thinks the negativity is over done.|
|Re posts that are removed.
I am all for hearing the negatives, but I do think a line has to be drawn when a poster brings the honesty of the company into question or as was the case, talked about 200 staff leaving at once.(Which obviously was not true )
In todays litigious climate, posters could find themselves in legal trouble if they get too carried away.|