When mulling the launch of a training division earlier in the year, Premier Technical Services' (PTSG) chief executive, Paul Teasdale, said it was just one of the opportunities the group was pursuing. Another was building out the group’s capabilities in fire prevention and suppression, which has now become a crucial area as focus on safety has increased following the Grenfell Tower tragedy. In a restructuring announced with the half-year results this week the training services division was repurposed for fire solutions, with training activities now intended to take place within the separate businesses.
The impressive growth seen in recent years has continued, with underlying organic growth of 14 per cent in the top line, complemented by acquisitions such as Nimbus Lightning Protection during the period. However, one-offs of £2.4m related to contingent payments on acquisitions and share options for directors led to a decline in pre-tax profit during the period.
Net debt was just £0.1m up from the year-end at £12.2m, but leverage was well within covenants. Management expects this to come down a little, but is more focused on acquisitions, working on a dozen at the moment, ranging in size from around £2m to £35m and focusing largely on the maintenance-focused parts of the business.
Analysts at Numis are forecasting adjusted pre tax profit of £10.2m, giving EPS of 8.7p for the 2017 full year (from £7.5m and 7.6p in 2016).
| PREMIER TECHNICAL SERVICES (PTSG) | ||||
| ORD PRICE: | 190p | MARKET VALUE: | £198.6m | |
| TOUCH: | 188-192p | 12-MONTH HIGH: | 215p | LOW: 66p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 93 | |
| NET ASSET VALUE: | 14p* | NET DEBT: | 86% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 18.5 | 2.1 | 1.71 | 0.70 |
| 2017 | 21.9 | 1.7 | 1.15 | 0.80 |
| % change | +19 | -18 | -33 | +14 |
| Ex-div: | 05 Oct | |||
| Payment: | 27 Oct | |||
| *Includes intangible assets of £13.3m, or 13p per share | ||||
