Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CRESTON PLC. We currently have 40 research reports from 4 professional analysts.
|22Nov16 12:45||RNS||Form 8.3 - Creston plc|
|22Nov16 12:41||RNS||Form 8.3 - Creston plc|
|22Nov16 12:37||RNS||Form 8 (OPD) Creston plc|
|17Nov16 09:05||RNS||Second Price Monitoring Extn|
|17Nov16 09:00||RNS||Price Monitoring Extension|
|17Nov16 07:00||RNS||Half-year Report|
|20Oct16 03:04||RNS||Notice of Results|
Frequency of research reports
Research reports on
N+1 Singer - Morning Song 17-11-2016
17 Nov 16
T Clarke has announced a positive Q3 trading update, which again confirms that the order book has been maintained at the very healthy £320m level and that full year expectations are unchanged. The fraud investigation continues. Legal proceedings have commenced and steps are being taken to recover the misappropriated funds, although it is too early to estimate the likely quantum. Turning to the trading environment, despite inevitable uncertainties, T Clarke’s core markets continue to demonstrate steady and cautious improvement. It is highly encouraging to read that the order book has suffered no project cancellations post EU referendum and also that contracts have now been signed on the major 22 Bishopsgate development scheme. T Clarke has won four key packages valued at £56m to be delivered between 2017 and 2019. The outlook is positive with several notable schemes currently being bid. Against this backdrop, we consider the shares significantly undervalued and expect this to correct as any nervousness surrounding the fraud investigation settles.
N+1 Singer - Creston - Interims and BID
17 Nov 16
Interims are well ahead of our expectations and trading is said to be in-line with its own expectations (no comment on consensus), BUT the big news today is the bid from DBAY pitched at 125p (plus the announced 1.42p dividend). This equates to just 5.5x FY17e EV/EBITDA or 10.7x P/E. This is lower than our conservative 6x EV/EBITDA based Target Price of 135p and below what a reasonable industry multiple is (c8x) based on a business delivering reasonable growth and margin. DBAY has 28% holding and therefore in a strong position to influence the outcome. At the business level US doing well but UK more mixed (previously flagged client restructuring and some budget variability). Health still struggling in the UK. We cut our TP to 125p.
Interim results and agreed 125p cash bid
17 Nov 16
Creston has published its interim results to end September, which show flat revenues with a like-for-like 4% decline. There was, however, a step up in PBIT margin from 10.3% to 11.6%, reflecting operational efficiencies from the Unlimited initiative and other planned overhead reductions, along with some benefit from currency. The company has this morning received a cash bid of 125p per share from DBAY Advisors, which controls 28.0% of the equity, recommended by the independent directors. Our forecasts for Creston are therefore withdrawn.
N+1 Singer - Morning Song 05-10-2016
05 Oct 16
Summit is entering into an exclusive license and collaboration agreement with Sarepta for its utrophin modulation pipeline, including its lead DMD programme ezutromid, in Europe. This is very exciting and the most substantial event in Summit’s history. Summit will receive $40m upfront with potential ezutromid-related milestone payments totalling up to $522m plus royalties. We view the deal as highly value enhancing and look forward to the partnership progressing ezutromid to market.
N+1 Singer - Small-cap quantitative research - Consensus EPS falling…falling…falling…rising 3.0
05 Oct 16
At the end of April we re-ran our so-called “3 down then 1 up” screen. This selects companies with estimates that had been declining consistently since a year previously, but which had risen in the immediately preceding three months (see our note dated 29 April 2016). We have reviewed the performance and, while not being quite as strong as the previous period, it was still well ahead of the market and the screen appears to have some signalling value. In the c.5 months since selection the weighted average rise was 18.4% against a 9.8% rise in the main All-Share index. So we have re-run the screen, which selected 41 companies from the universe of nearly 800 companies. We note a number of companies where we also have a supportive fundamental stance including Creston (CRE LN, Buy), Restaurant Group (RTN LN, Buy), Senior (SNR LN, Buy), Sinclair Pharma (SPH LN, Buy) and (to a lesser extent) Speedy Hire (SDY LN, Hold).
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
17 Nov 16
Topic of the quarter: Following on from our last quarterly we have delved further into the potential and challenges that the Internet of Things present the sector. Having spoken to a wide variety of companies from the sector (large and small, UK and overseas) it is apparent that there is going to be a very significant increase in the amount of data either generated by or available to Support Service companies. The key to generating value from this change will be breaking down the silos in which data is currently held, attracting and investing in the right skills and talent, seeing beyond the short-term investment that is likely to be needed and engaging with clients on a higher, more strategic level. If the sector doesn’t react, then the door is wide open for the Technology sector.
Response to Government consultation
02 Dec 16
In the 2015 Autumn Statement, the Government stated the intention to remove the right to general damages for minor soft tissue injury claims with compensation for injuries such as whiplash now being made in medical care rather than cash. In addition, the Government proposed to raise the small claims limit for personal injury cases from £1,000 to £5,000.
05 Aug 16
Audioboom (BOOM.L) | Cloudcall (CALL.L) | Porta Communications (PTCM.L) | S y m p h o n y E n v i r o n m e n t a l Technologies (SYM.L) | Blue Prism Group (PRSM.L) | B e n c h m a r k Holdings (BMK.L) | Bexi mco P harm a (BXP.L) | S t e r l i n g E n e r g y ( S E Y . L ) | AFC Energy (20.75.L) | PHSC (PHSC.L)
02 Dec 16
"By late Sunday, we should have a good idea whether or not Italian Prime Minister, Matteo Renzi, will be stepping down. The polls suggest his constitutional referendum, which has effectively become a confidence vote on his premiership, will get a 'thumbs down'. No new election is actually required until February 2018, but any attempt to simply replace him with another technocrat leader could well see a public, suffering from implosion of their bad-debt laden banking system, 38% youth unemployment and an inability to stifle giant capital outflows, clamouring for a snap election. This, of course, would open the door for Bepe Grillo's Five Star Movement, whose denouncement of the Euro could, in turn, generate in a wave of similar populist referendum voting across other dissatisfied EU nations, with France's own presidential election, due to take place on 7th May, the headline this morning following Francois Hollande's overnight declaration that he has decided not to stand. The prospect of Eurozone's collapse, however, was not the driver of the US session, which started in the positive following release of strong November Manufacturing ISM data, but waned later as a sell-off amongst tech issues pushed the NASDAQ sharply down, while the Dow Jones managed to hold onto modest gains due to sustained switching into financials, as divergence between the two sectors and the rout in government bond markets since Trump's election continued. Asian shares were lower across the board, with the Nikkei suffering as the Yen found buyers amongst US$ sceptics waiting for flaws in the Trump rally to show through, which dragged the other regional markets with it. With investors now virtually taking a 25bp hike by the Fed later this month for granted, focus this afternoon is likely to centre on the important US employment report, with forecasts in the 180k to 200k range, taking unemployment to 4.8% with a modest rise in hourly earnings of around 0.1%. The UK will also report Construction PMI figures this morning while corporates due to disclose earnings or trading updates include 88 Energy (88E.L), Altona Energy (ANR.L) and Berkeley Group Holdings (BKG.L). Traders meanwhile continue to watch oil futures carefully; although prices moderated during the Asian session, sentiment following OPEC's agreement remains positive with January's light, sweet crude trading a whisker below US$51 on the Mercantile Exchange, as they weigh up expectations on the terms being upheld or the various participants instead deciding to cheat on quotas rather than give up market share to US shale producers. London equities opened in a nervous mood this morning, with the FTSE-100 down over 57 points in early trading." - Barry Gibb, Research Analyst