A leading provider of essential infrastructure services to the UK house building and commercial sectors.
25-Oct-2017 – 191.5p – £73m
Trading Update For The 12 Months To End September 2017 – An in-line update with an order book of £202.7m, up 25% on the same time last year.
First time I have come across this company, that’s the beauty of reading the news – For me it’s the best way to find investment ideas. Anyway, quite like this. It’s not the most consistent or strongest growth story out there but I think there’s potential. The order book is up 25% LFL, the ROCE is fantastic, the Operating Margin is above average for the sector, Net Debt is £9.67m (over 10% of Mkt Cap) and it looks forecast to start paying a 3% Dividend. On a PER of 8.82 I reckon this is worth a further look.
Subsequent note – I bought in here following this update.
9-Jan-2018 – 235p – £89.6m – PER 10.8
Preliminary Results for the Year To End September 2017 – Revenue flat at £135.0m (in-line with expectations) and Operating Profit of £9.3m is ahead of expectations. Order book up 25% and Cash of £27.1m. Dividend for the year of 6.3p per share, in-line with policy.
Still quite like this, seems like a potential slow and steady tuck away. Great ROCE and Operating Margin, it’s got a decent Cash pile, a modest yield (about 3%).
6-Mar-2018 – 259p – £98.7m – PER 11.1
AGM Statement – In line with Boards expectations, encouraged by the Order Book level up 11% to £225m providing good visibility for the year ahead.
I remain long here, a slow and steady tuck away. Great ROCE and Operating Margin (for the sector), a decent Cash pile and a modest yield (about 3%).
Subsequent note: I sold out after a mild profit warning issued whilst I was at Mello.
30-May-2018 – 205p – £78.1m – PER 10.4
Interim Results For The 6 Months To End March 2018 – Can’t work out if this is a good update or not.
Having previously held until the mild profit warning at the end of April, there’s not enough here for me to be anything but Neutral for now.