charlie51
16 Feb 2017
Re: Strange Can't offer a reason, but volume is the highest it has been for some years. Three big trades this morning - looked more like sells than buys to me, so maybe there has been some sort of overhang cleared?
pearlsasinger
16 Feb 2017
Strange Strange price movements/volumes here..Any reasons?(holder)
gretel
07 Feb 2017
N+1 Singer earnings upgrade FYI here's Singer's update from last week - they go for historic 11.2p EPS for 2016, with a 3.2p dividend:"Exceptionally strong trading performanceT Clarke’s year end update highlights an exceptionally strong underlying trading performance. Before exceptional items relating to the previously announced fraud at DGR, full year profits are expected to be £6.0m, materially ahead of our £4.2m forecast. The Group’s year end net cash position was also better than expected at £9.2m (£5.4m forecast). A confident outlook statement, a growing order book (£330m, 10% higher than the prior year end) and the strength of recent trading prompts upgrades to FY17. In our view, the shares have been impacted far too severely by the fraud investigation. Post upgrades, they trade on <6x current year P/E with a 5%+ yield.EventT Clarke’s year end update highlights an exceptionally strong underlying trading performance. Before exceptional items relating to the previously announced internal fraud at DGR, full year profits are expected to be £6.0m, materiallyahead of our £4.2m forecast. Exceptional charges and provisions relating to the fraud are expected to be £2.2m including £0.4m of professional costs directly associated with the efforts to recover the misappropriated funds. Legalproceedings to recover the funds are ongoing. The Group’s year end net cash position was also better than expected at £9.2m (£5.4m prior forecast) reflecting in part the timing of major project completions and stage payments receivedin the second half. The cash position was 39% higher than the prior year. Banking facilities have been renewed as planned. The order book closed 2016 up 10% year on year at £330m, which also compares favourably to the £320m reported in November. Notable new project wins include two significant London office fit out projects for a social media client and a major asset manager.Impact on earnings & valuationWe have upgraded our FY16 adjusted PBT forecast to £6.0m, a 43% uplift. We have also reflected the £2.2m exceptional item and have increased our FY16 cash forecast to over £9m from £5.4m. In FY17, we upgrade PBT by 14% to £5.8m and roll forward the outperformance on cash to give net cash of £11m at the end of FY17 (from £6.8m previously). In our view, the shares have been impacted far too severely by the fraud investigation. After today’s upgrades, the shares are trading on <6x P/E, 5.2x EV/EBITDA and yield 5.3%."
faddy10
27 Jan 2017
Re: Full Year Prospects/ststement due Positive statement and a nice reaction from the market, continuing to hold for now.F.
pearlsasinger
26 Jan 2017
Full Year Prospects/ststement due There is a trading statement scheduled for 27 01 17 (tomorrow)There was a small flurry of buyingearlier this week,Hopefully it was based on well-informed insight!.
numberbiter
11 Jan 2017
Re: Full Year Prospects A basic rule of investing is that you should NEVER buy a falling share to average down the overall price paid. Rather, the correct strategy is to SELL half your holding, giving you an each way bet. If the share continues to fall you have cut your losses, while if it goes back up you still have half your holding getting the benefit.I think the shares will slide when details of the £2.8 million hit becomes well known. However, I may be wrong so I would not sell the lot. Hence the strategy.
faddy10
22 Dec 2016
Re: Full Year Prospects AM,it must be the weather for it!, I doubled up at 60.12p on the 8th Dec, My previous average was over a pound, so getting the chance to reduce that and having a decent forward outlook, it seemed to make sense. I hold Clarke in the LTBH part of my holdings, so happy to take the divi's while I wait.F
addmaster123
22 Dec 2016
Full Year Prospects For better or worse, I've added to my holding recently. If the second half matches the first, we should see earnings per share of 6p, putting them on a p/e of ten, with a five percent dividend. That seems reasonable value to me. A negative remains the pension deficit, which they have said will not affect the dividend, and which may be partly remedied by rising interest rates, and I note that although there's a healthy order book, a quarter of it relates to just two large contracts. Impressive wins which will need careful management. There is usually an update mid-January, so we will get a clearer view then.
numberbiter
18 Nov 2016
Re: the missing Yes, I have got the right company. These are the figures taken from the 2015 Annual Report (all £'million). Revenue 242.4, cost of sales 214.9, gross profit 27.5 (gross margin % = 11.3%). Operating profit 4.4, Net profit 0.1. Of course it is only net profit that belongs to shareholders. Now, whenever you agree a fixed price contract, you should have something in there for contingencies. Margins at only 11.3% don't allow for this!A few months ago this share was trading at 90p, now it trades at 61p. Dividends are not any good if capital value is being eroded in the process.I am not suggesting that this company will go under; what I am suggesting that with its invaluable asset of engineering and electrical expertise it should be doing much better.
foolish learner
18 Nov 2016
Re: the missing Have you got the right company, the annual report gives revenue of £242m with profits of £4.6mAgree there is still a big question as to how £2.8m can disappear even over a ten year periodThere is nothing wrong with fixed priced contracts if you have the price fixed at an acceptable profit margin and the accounts support this with the dividend well coveredPerhaps a head wind coming but i can only see the April dividend increasing and the sp moving back to the 80p plus mark
numberbiter
17 Nov 2016
Re: the missing The year to December 2015 showed profits of £100,000 and cash generated on operations of £500.000. Given such low figures, a loss through misappropriation of £2.8 million is both material and very significant. The reality is that it is impossible to be defrauded of such an amount if the company had only the basic financial controls in place. Given they clearly didn't it is hard to see how the Finance Director survives and even more difficult to understand why the company don't sue the auditors for gross negligence.There are only two ways that cash of this scale can be stolen; one by issuing fake invoices and the other is stealing cash. Fake invoices can be discovered because profits will be below budget and the subsequent investigation will reveal the fake invoices. On the other hand if cash is being taken, the Cash Flow Statement cannot reconcile. Either way, any competent accountant or auditor would have exposed the problem a long time ago.This company employs many skilled engineers and their expertise is not being rewarded. Margins are extemely low and may get worse as the company takes risk by agreeing fixed price contracts, A new CEO and a new FD would transform the company. Unless such changes are made this share should be avoided.
Blanketstacker
17 Nov 2016
Re: the missing £2.8m. The RNS about this was phrased in such a way that it made the missing money seem irrelevant. The implication was that it simply never entered the company accounts. Given that, and todays update, things seem very positive. However the uncertainty of the theft may keep the price here suppressed for some time. In the background we still have
ER = 6.5PEG = 0.1Price to book = 1.9Yield = c5%Div cover x2Recent buying by MitonThere is much worse out there.
addmaster123
17 Nov 2016
Latest Update Generally satisfied with the update. Order book still fine, and the dividend safe. Furthermore, rising bond yields should help Clarke and other companies with big pension deficits, because I did note the large provision made in the balance sheet at the half-year. Would be interested to know more about the alleged fraud. Some years ago, I came across a case where someone had put bogus invoices through the books, and paid themselves the money. So the reported figures in that instance were, in essence, “correct”. Though I'm not implying that's what has happened here.
pearlsasinger
16 Nov 2016
the missing £2.8m. Tomorrow's IMS should be interesting.£2.8m "misappropriated" by an employeeover a number of years-(see recent RNS)- is not exactly peanuts for a company with a market cap. of £25m. and low single digit£m profit expectation.Worrying -- with regard to management controlsystems.However the bright view must be that theunderlying profitability of the group may beenhanced?(holder- long term)
pearlsasinger
05 Aug 2016
Re: Latest Interims AddmasterI agree with your observations.The company is over 100 years in business.And lots of good quality work over time.Appears to have a good enduring ethical approach.Which helped it survive the 2009 crash.I am glad to be associated with it.I intend to increase my holding- which is long term.
