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.
23-Oct-2018 – 180p – £68.6m – PER 8.82
Trading Update For The 12 Months To End September 2018 – Results will be in-line.
I held here and sold out earlier in the year after a bit of a profit warning. In-line suggest little change in EPS from last year but with a hefty load of Cash in the bank could become more interesting soon. Neutral with an eye out for updates.
10-Dec-2018 – 181p – £69.0m – PER 8.79
Results For The 12 Months To End September 2018 – In-line with a strong Order book (up 43%). Revenue flat, PBT up 24.8%, Net Cash up 7% (£20m), Basic EPS up 24% and the Dividend is up 4.8%.
This looks like a beat on estimates to me. A decent amount of Cash here and a decent yield, I will be checking for updated Broker forecasts here. Could be tempted to buy back in – I exited previously due to a bit of a profit warning (so that’s still at the back of my mind).