The Engineering Services Group supporting UK infrastructure.
Trading Update For The Year Ended September 2017 – “In-line with market expectations”.
Revenue, Profit and EPS growth is steady here. ROCE is great at 50% and the rising 2%+ Dividend yield is quite well covered. The move to Net Cash is also good news. I quite like this but on a PER of 12.1 it seems fairly priced around here.
21-Nov-2017 – 440p – £268m – PER 12.7
Final Results For The Year To End September 2017 – Revenue up 6.7% to £560.8m, Adjusted PBT up 13.1% to £25.2m (£22.3m last time), EPS up 21.6% to 33.4p and Dividend is up 12.5% to 9p.
These latest figures seem to be in-line and considering the ROCE of 50% and the reasonably well covered Dividend (2%) – Looks like decent value here.
31-Jan-2018 – 450p – £282.9m – PER 13.0
AGM Statement – Trading in-line, no exposure to Carillion.
This is comment in the latest update is a bit of a concern “A slower than usual payment profile with certain customers in the public sector has led to an increase in work-in-progress in the first half. Nevertheless, cash balances as at 30 September 2018 are forecast to be broadly in line with the previous year end”. With Paul Scott (whom I have the greatest respect for) having mentioned something along the lines of, this is a potential time bomb financed through stretched working capital” I will remain quietly Neutral here.
3-Apr-2018 – 380p – £237.8m – PER 10.8
Trading Update For The 6 Months To End March 2018 – In-line with the Board’s expectations, expecting to report an increased forward order book when the interims are published. Expects NetCash at the end of the year, as forecast.
Looks OK but I will remain Neutral.
22-May-2018 – 400p – £301.1m – PER 10.9
Results For The 6 Months To End March 2018 – In-line.
Still looks OK but that’s about all – I will remain Neutral.
1-Oct-2018 – 392p – £295m – PER 10.0
I can’t get excited here, looks about fairly priced to me – I remain Neutral.