The Martian - Lets Do The Math (a bit of fun)

The Martian - CTO takes off like Mark Watney (some more fun)

The Math - CTO background, financial metrics and financial modelling Sept 2018(the serious stuff)

Directors present at Mello video Nov 2018

Investors Chronicle Alpha 17 page article Dec 2018
https://pdfs.investorschronicle.co.uk/IC_Alpha_TClarke_Simon_0712.pdf

Company Website

Financial Calendar

Recent Broker notes & Director Purchases

BarChart Indicators

Recent Market news

TClarke Fundamentals (CTO)

Old thread here

If you do nothing else read the serious stuff link. The basis proposition for the trade is that even in the worst case scenario, with a forecast EPS of 13.2p per share and a dividend of 3.5p per share so much cash is being retained in the business that for a company with £11.7m net cash at 2017 year end, we reach a point soon where the directors have to increase the dividends by more than 10% a year and the share price rises as well.

Market expectations of profit before tax £7m with £4m done at half time, £12m net cash and a market cap of £35m and a growing business with improving margins.

Bizarre trade flow. Share price up 5% this morning for no apparent reason and buyers happy to pay a price we haven't seen for a month.

I don't get my JLIF money til next week!!!

I used to like this thread :-)

.

Looks like Regent are back. 3 x 25k blocks yesterday and now another 25k sitting on the order book at 81.0

TClarke plc, ("TClarke" “the Company” or the "Group") the Building Services Group, is pleased to announce that Louise Dier has been appointed as an Independent Non-Executive Director of the Company with effect from 1st January 2019. She will also join the Audit, Remuneration and Nomination Committees of the Company.

Louise Dier is 58 and until recently was Managing Director of London based David Chipperfield Architects having joined them in 2013. Whilst undertaking the role of Managing Director, Louise also project managed significant assignments, such as the redevelopment of the Metropolitan Museum of Art in New York.

Louise studied law at Cambridge University and was called to the bar, however quickly moved into management, spending nearly 8 years at International Management Group, the US based sports management group, the last 2 years as head of HR for IMG Europe.

A very exciting appointment.

A search of David Chipperfield Architects brings up an impressive portfolio of projects. All high end stuff. Exactly the sort T Clarke are the go to company for. Too many exciting projects globally to list. Includes the Sterling Prize in 2007 for the Museum of Modern Literature in Marbach which kinds of fits nicely to the Sterling Prize in 2018 for Bloomberg London where T Clarke did the building services.

Contacts, expertise. And her profile shows she's got a degree in law, was called to the bar and has also been head of HR in her career. A wide set of skills showing the ambition and aspiration of the directors.

It's always good news when directors surround themselves with heavyweight non-execs.

oh and there's something going on with the trades. Regent back again?

36k sells at 81.34 yesterday. Another 18k today

And I can get a quote to sell 100k on instant fill at 81.34 (which is usually the most you can get on one ticket)

A couple of large trades on Friday.

A purchase of 484,820 shares at 81.8 by the Company Employee share ownership scheme and a 450,000 trade at 81.5 which I assume is Miton selling another lump of shares.

If correct given Miton have been dripping shares into the market over the last month I reckon they are now down to slightly less than 3m shares to sell.

Possibly what is more interesting is that CTO hasn't fallen with the rest of the market and Miton seem to be comfortable letting their shares go at 81.5 and don't want to go any lower.

I am at a loss to understand the price action here. Not that it matters as it's all good.

Someone has just bought 28k shares at 84.9 when we haven't seen that price in a long while. Either the MM's have completely ripped them off or they've got no stock or both. The trade flow would suggest the MM had no stock and have been waiting for the sellers to come to them without success but they usually find a way to force out some sellers.

I don't know and I guess I don't really care. The trading update is in a couple of weeks and there seems to be a flow of buys going through which outweigh the sells. Not before time imho given the likely future of CTO.

MM must have large buy order in.

Fly baby fly :-)

T Clarke using the Math strapline

Coincidence?

Trading update moved to Tuesday 27th to coincide with Mello.

I assume they've got something good to say.

New website launch today ahead of trading update tomorrow

Trading Update.

TClarke plc ("TClarke" or the "Group"), the Building Services Group, today issues a trading update for the period from 1st July 2018 to date.

Results

We stated at the half year that the Group had experienced a strong first six months of 2018 and the results delivered were in line with expectations. We are now pleased to report that the Board expects results for the full year ending 31st December 2018 to be ahead of current market expectations.

We expect an underlying operating profit before interest and taxation of circa £8.6m (2017: £7.3m) and revenue of circa £320m (2017: £311m). The implied underlying operating profit margin of 2.7% provides further evidence that we are on track to achieve our target of 3%.

Order Book

Our established strategy is to selectively target projects that we believe will add value and strengthen the margin profile of the Group. The Board is encouraged by the continued opportunities available to the Group which meet our tendering criteria, suggesting that there remains a strong demand for our services and our approach, particularly on high profile projects from clients who value our ability to deliver large, complex projects successfully.

This is reflected in our forward order book which has grown by 6% year on year and now stands at a record £403m against £380m at the same time last year. Looking ahead, revenues of £230m for 2019 have already been secured, against an equivalent figure of £190m at this time last year.

Project wins totalling £150m have been secured since the announcement of the half year results, which include the following:

· Additional Works at Battersea Power Station Phase 2 with the award of the Office Shell and Core Package

· KGX1 Project, Kings Cross, Mechanical Shell and Core and Fit Out Packages

· Global Switch Data Centre, London

· Additional Works at One Bishopsgate Plaza, 160 Residential Apartment Fit Out

· Forth Valley College, Falkirk

· Maiden Castle Sports Park, Durham University

· Royal Cornwall Hospital, Truro, Mortuary and Bereavement Centre Refurbishment

· Waitrose, Portishead

· Claremont Complex Refurbishment, Newcastle University

Regional Expansion

We have recently opened new offices in Liverpool and Manchester. Building upon the Group's established relationships, bids totalling £40m have been submitted across a range of projects.

Banking Facilities

To support our growth ambitions and strategy we have agreed new banking facilities on improved terms. The new facilities comprise a £5m overdraft facility, repayable on demand, and a £15m revolving credit facility expiring 31st August 2022.

Outlook and Summary

This update provides clear evidence that the Group's strategy is working and underpins our confidence that our underlying operating profit margin target of 3% is attainable in the near future.

The strength and reputation of TClarke is evidenced by our record forward order book. We have maintained our market leading position in our traditional markets whilst securing Technology driven projects, where project complexity and specification levels play to our strengths.

We approach the new financial year in excellent shape, both operationally and financially.

Ends

Looks good to me.

Well done CC - you need to amend the "broker link" in the header to this.

Thanks Skinny. Will do

This from house broker N+1:

Specialist building services group TClarke has reported strong trading in FY18. Operating profit is expected to be 11% ahead of our previous forecast, driven by better than expected revenue and margin progression (approaching management’s 3% target). The outlook statement strikes a confident tone, supported by a record order book, which stood at £403m in November. We have increased our EPS forecasts by 12% and 15% in FY18 and FY19. Our FY19 revenue forecast is 70% covered by the order book, giving us confidence that earnings momentum will continue. We believe the shares are attractively valued, trading on an FY19 P/E rating of 5.3x, and believe a peer group rating is justified. We also note the attractions of a >4% dividend yield

Following your thread has been both interesting and profitable, thank you

What next? Well P/E of 5.3 for 2019 according to N+1 and the sector average is 10.47 for the top 7 if you strip out Interserve. I'll continue to hold as planned and await the break of resistance at 90p.


CTO turned out to be a good place to be over the last 2 months. The share price has gone up whilst almost everything else has got bashed relentlessly.


Welcome Jean. Feel free to post and ask any questions.

Quid by xmas CC ?

:-)