Waterman Share Discussion Threads

[brummy_git] 02/10/2015 19:38

Given that the shares have ticked up of late - against a pretty poor FTSE backdrop - says to me there will be at least some good news.

[norbert colon] 02/10/2015 15:15

So the big question for Monday will be....have they satisfactorily turned their civils business around and is it now at break even? This will contribute greatly to the further re-rating of the company. More extensive analyst briefings next week will also help to get the word out.

I am hoping that my patience over the last 3 years will finally be rewarded :)

[southfly] 02/10/2015 10:36

Construction output growth accelerates to a seven-month high in September

hxxp://www.markiteconomics.com/Survey//PressRelease.mvc/d7221fcd0bae4cb7aaa9cf60248f6f81

Maybe a good sign for WTM ahead of the preliminary results on Monday.

[norbert colon] 26/8/2015 15:40

Further consolidation and interesting to see WSP have now bought MMM (Canadian consultancy - 2000 strong) for CAD$425m. They certainly are on a mission when it comes to acquisitions with the PB merger only recently bedded in.

No gross revenue figures provided to enable an accurate P/S multiple.

[tradejunkie2] 05/8/2015 22:17

Gone no where this stock,

[shanklin] 04/8/2015 11:35

NC, Have messaged you.

[norbert colon] 04/8/2015 11:18

Hi Martin

I am pleased to hear that and agree with your caveats. Both appear on target as I understand. The turnaround of the Civil / Transportation business is likely to be a return to breakeven in 2016 which in itself is very good news. The combined C&T business ('Consulting' and Waterman Aspen) should now have broken even (H2 2015) although we need to see the results to confirm that.

I would like to think that a TS will be issued although as you say they are not obliged to.

Do you have an email address?

[shanklin] 04/8/2015 10:30

Norbert Colon,

Just bought an initial holding in WTM at slightly under the mid-price. Would have bought more but, before that, I would like to see more tangible evidence of:
- the turnaround in "Civil and Transportation Consulting"
- progress towards the 3 year target

A post year-end TS would be helpful but I guess WTM will only be obliged to issue that if they expect results to be 10%+ outside the existing broker consensus.

Cheers, Martin

[norbert colon] 23/7/2015 10:17

Good news for both WTM and CSG along with ATK etc

Architects’ confidence about future work prospects is now at an all-time high.

The latest RIBA Future Trends Workload Index shows that the overall index climbed to +44 – the highest since the RIBA began compiling the data back in January 2009.

June’s figure is up on the +37 recorded the previous month with practices in the Midlands and East Anglia the most confident about workloads over the next three months, both recording a score of +51.

RIBA executive director members Adrian Dobson said: “The overall picture is of a profession that is confident about its future workloads and is beginning to feel the invigorating effects of a sustained period of real growth.

“Commentary suggests that many practices have a rapidly filling order book, with private housing continuing to be the primary driver of growth in demand for architects’ services.”

Large practices are most optimistic about upcoming workloads while private housing and commercial remain the sectors driving firms’ confidence.

Confidence about the public sector inched back into positive territory last month with a score of +2 – from May’s figure of -1.

Earlier this month, official figures showed that the number of architects on the dole is just 100 – the smallest since the Office for National Statistics (ONS) began including architects in its unemployment statistics back in January 2005.

And the RIBA survey underlined the ONS figures with its staffing index reaching a record high of +20 while just 9% of respondents reported that they had personally been under-employed – the lowest figure recorded since the Future Trends survey began.

[shanklin] 01/7/2015 08:32

Hi Norbert Colon

No I won't be attending the Sharesoc AGM.

Best wishes, Martin

[norbert colon] 01/7/2015 08:28

Hi Martin. No worries and glad you are interested. Working capital days also down to 50 for period ending Dec 2014 although I understand that 65-75 is a more average number for the business. Are you attending the ShareSoc AGM tomorrow?

[shanklin] 01/7/2015 08:23

Nobert Colon

Thank you for your post 1437. This is the first I have looked at this thread since then.

Cheers, Martin

[norbert colon] 01/7/2015 08:21

Further consolidation in PM and Engineering Consultancy space with WSP-PB buying Faveo Group (400 strong PM firm - Norway / Sweden). They have also recently bought FLK Sverige and Vicicom AB (both Sweden) adding a further 85 staff. No commercial terms of the deals available that I am aware of. Not resting on their laurels after the PB purchase.

[norbert colon] 19/6/2015 11:14

Cancun. Yes, very pleased to see Michael Baker make his inaugural investment in Waterman. I am still confident that the shares will continue to re-rate with a likely move up into the 80p area during Q3 and then 100p by end of Q4 assuming no disasters!

[cancun tango] 19/6/2015 10:46

A director buy and some steady buying today, should see a tick up soon.

[southfly] 12/6/2015 10:41

Inline with the strategy to focus resources on the UK market Waterman are expanding with another office.

"We are delighted to announce the opening of our new office in Victoria Wharf, Leeds.

Our expansion in this thriving area is part of our strategy to significantly grow our regional presence as the consultant of choice.

Our team of engineers and environmental consultants have been involved in many significant mixed use developments across the UK. Our portfolio of achievement in the Yorkshire region includes the ‘Best of the Best’ Viva award winner Trinity Leeds, Victoria Gate, Playhouse Apartments and 21 Queen Street. With a continuously growing portfolio in Leeds we have also had the great pleasure of welcoming a number of strategic appointments to strengthen our expertise across a wider range of services.

The new Leeds office is home to specialist teams lead by Steve Halmshaw, Mark Billington, Barry Lister and Richard Meredith.

The team will continue to work closely with our nearby Bramley office which heads up our specialist power and energy team.

We look forward to a bright and exciting future, and to continue on our path of success together with new and existing clients."

[norbert colon] 04/6/2015 16:07

More M&A with Sweco buying Grontmij for multiple of 0.54 x sales and EV/EBITDA of 14.1x on an adjusted EBITDA basis.

hxxp://www.grontmij.com/MediaCenter/Documents/2015/Press-release-Sweco-and-Grontmij-to-create-Europes-leading-engineering-consultancy.pdf

[norbert colon] 02/6/2015 12:18

Another great contract win...

London, June 2, 2015. Waterman Group is delighted to announce the appointment of the Merseytravel Consultancy Services Framework. Merseytravel is the Executive body that provides professional, strategic and operational transport advice to the Liverpool City Region Combined Authority to enable it to make informed decisions. The Combined Authority’s six local authorities have come together to drive a shared agenda which delivers transport projects that supports the economic growth of the thriving Liverpool City Region.

The four year framework will see Waterman provide multidisciplinary engineering consultancy services, which emphasises on an increased scope to cover expertise across rail, civil & structural, transport, highways infrastructure and business case development for bus stations, tunnels, ferry terminals, public attractions, engineering workshops, bus, rail, park and ride facilities. In addition, the framework can also be used by the constituent councils of the Liverpool City Region Combined Authority and the Liverpool City Region Local Enterprise Partnership (LEP).

Antoni Nowakowski, Waterman’s framework manager commented, “We have been working with Merseytravel for many years and we are delighted about the continued opportunity with an increased scope of services under the new framework. Securing a place on this prestigious framework is an important step for us in our long term strategy to establish a strong presence in the region.”

Waterman’s broad portfolio encompasses some of the most significant regeneration projects in the UK, including Battersea Power station and Brent Cross in London. This latest appointment follows on from a number of recent successful frameworks, of which two significant long-term framework extensions with the London Borough of Bexley and the Midlands Highways Agency.

[battlebus2] 21/5/2015 08:06

Yes Norbert your insight is invaluable here..

[robow] 21/5/2015 07:52

Many thanks for your interesting posts NC

[norbert colon] 20/5/2015 20:08

I have been taking a look tonight at WYG who also sits in the same sector (Professional / Commercial Services) to WTM although in recent years have repositioned themselves as a Management Consultant (of sorts) and away from 'commodity' design engineering / consulting. I was keen, having re-read Paul Scott's review of WYG 2014 results when announced last June (he was not impressed with their adjusted EPS reporting and quite right too) to see how Director pay and incentives compared to WTM. Interesting...

To set the picture, firstly WYG is around twice the size of WTM with revenue of £127m compared to £69m. PBT is also around double at £1.8m compared to £0.8m. The market cap of WTM is only £23m (with 907 staff) compared to WYG at £68m (with 1255 staff). It is evident that WYG benefit from better ROE / margins than WTM given their more niche offering. All of that said they are both consultants with sales of around the £100m mark (for the sake of argument).

Both also have 6 board directors. I was, however, interested to see that WYG's Board costs £1.15m annually (salary / bonus / pension) compared to only £0.84m for WTM; around a +37% difference. Of more interest are the share options which for WYG stand at a cool +9m shares (+13% of the issued capital) compared to only 1.6m shares (5% of issued capital) for WTM. This large number of options for the WYG Board are attributed to their Transformation Incentive Plan (TIP) from July 2011 when they restructured and recapitalised after the recession. I am quite shocked at this significant number of options.

Both companies have also set themselves challenging objectives with respect to PBT performance. WTM aims to triple PBT from £1.1m to £3.3m by 2016. For 2014 they achieved PBT of £0.8 and the current trading statement implies they are on (or near to) target for 2016. WYG aim to raise PBT from £1.8m in 2014 to a staggering £15m in 4 years time (2018).

I must admit, I like WYG's niche offering and resultant higher margin business; distinguishing themselves from the myriad of other engineering consultants in the market. What I don't like is their exposure to socio economic and other macro and geopolitical factors (including work in Africa and parts of the Middle East) and their perceived arrogance and what appears to be over zealous drive for growth.

A year ago today WYG shares were priced at 110p and today they are 100p (10% decline) - over the same 12 month period WTM have been growing their business more modestly and without blowing their trumpet (apart from me doing it...!); their shares were 56p a year ago and closed today at 73.5p (a 31% increase).

I will certainly be watching both companies with almost equal interest over the next 12 months to see if I have made the right decision (on a comparable basis) of investing in WTM where I have been accumulating since Dec 2012.

Edit: I am also sceptical about WYG putting itself up for sale against this backdrop and I note there has been no news on this front to-date.

Comments / feedback welcome.

[norbert colon] 18/5/2015 19:37

Thanks Southfly - rather apt after my previous comment.

[southfly] 18/5/2015 13:23

A £30m contract win for Waterman Aspen in partnership with AECOM "involving secondment of 70 professional and technical staff" to The Midlands Highway Alliance.

[norbert colon] 14/5/2015 15:55

Interesting to see on the Waterman website that the CEO states that the business is currently experience growth (in the UK) of over 20% year on year. This contrasts with the current PE of <10 and PEG of 0.34. WatermanAspen also seem to be doing very well buoyed by ongoing infrastructure spending.

[v11slr] 13/5/2015 13:25

Hi, whoever you are? ;-) Edit the first part of links from http to hTTp or some such then ADVFN won't alter it.
I've done it to your link below.