Upcoming Dividend • May 10
Upcoming dividend of UK£0.045 per share Eligible shareholders must have bought the stock before 16 May 2024. Payment date: 07 June 2024. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of British dividend payers (5.7%). In line with average of industry peers (3.3%). Reported Earnings • Apr 17
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: UK£0.14 (down from UK£0.20 in FY 2022). Revenue: UK£491.0m (up 15% from FY 2022). Net income: UK£6.50m (down 23% from FY 2022). Profit margin: 1.3% (down from 2.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 7.3%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 3.1% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 17
TClarke Intends to Apply for Listing Cancelation from the Official List and the London Stock Exchange The boards of directors of Regent Acquisitions Limited (‘Regent’) and TClarke plc (‘TClarke’) announced that they have reached agreement on the terms and conditions of a recommended cash offer by Regent for the entire issued and to be issued share capital of TClarke not already held by any member of the Wider Regent Group (the ‘Acquisition’). It is intended that the Acquisition will be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act (although Regent reserves the right to effect the Acquisition by way of a Takeover Offer, subject to the consent of the Takeover Panel and the terms of the Co-operation Agreement). The purpose of the Scheme is to provide for Regent to become the owner of the entire issued and to be issued share capital of TClarke (other than the Excluded Shares). Under the Scheme, the Acquisition is to be achieved by the transfer of the Scheme Shares held by Scheme Shareholders to Regent in consideration for which the Scheme Shareholders will receive the Consideration. Prior to the Scheme becoming Effective, it is intended that an application will be made to the FCA and the London Stock Exchange to, subject to the Acquisition becoming Effective, cancel the listing of TClarke Shares on the Official List and the trading of TClarke Shares on the London Stock Exchange respectively, with effect from or shortly following the Effective Date. The last day of dealings in, and registration of transfers of, TClarke Shares on the London Stock Exchange is expected to be the Business Day immediately prior to the Effective Date and no transfers will be registered after 6.00 p.m. on that date. Upon the Scheme becoming Effective, share certificates in respect of the TClarke Shares will cease to be valid and should be destroyed. In addition, entitlements to TClarke Shares held within the CREST system will be cancelled on the Effective Date. As soon as practicable after the Effective Date, it is intended that TClarke will be re-registered as a private limited company under the relevant provisions of the Companies Act. New Risk • Apr 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 9.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.0% average weekly change). Profit margins are more than 30% lower than last year (1.3% net profit margin). Shareholders have been diluted in the past year (20% increase in shares outstanding). Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to UK£1.61, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Construction industry in the United Kingdom. Total returns to shareholders of 34% over the past three years. Declared Dividend • Mar 18
Final dividend increased to UK£0.045 Dividend of UK£0.045 is 10% higher than last year. Ex-date: 16th May 2024 Payment date: 14th June 2024 Dividend yield will be 4.8%, which is higher than the industry average of 3.6%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 6.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 71% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 16
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: UK£0.14 (down from UK£0.20 in FY 2022). Revenue: UK£491.0m (up 15% from FY 2022). Net income: UK£6.50m (down 23% from FY 2022). Profit margin: 1.3% (down from 2.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 3.1% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. New Risk • Jan 29
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (UK£67.1m market cap, or US$85.2m). Upcoming Dividend • Aug 24
Upcoming dividend of UK£0.014 per share at 4.1% yield Eligible shareholders must have bought the stock before 31 August 2023. Payment date: 29 September 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of British dividend payers (6.3%). In line with average of industry peers (4.0%). New Risk • Jul 30
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 20% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (UK£68.9m market cap, or US$88.6m). Announcement • Jul 14
TClarke plc Declares an Interim Dividend, Payable on 29 September 2023 The Board of TClarke plc declared an interim dividend of 1.375 pence per share (2022: 1.250 pence per share) to be paid on 29 September 2023 to shareholders on the register at 1 September 2023. Reported Earnings • Jul 14
First half 2023 earnings released: EPS: UK£0.086 (vs UK£0.10 in 1H 2022) First half 2023 results: EPS: UK£0.086 (down from UK£0.10 in 1H 2022). Revenue: UK£207.0m (flat on 1H 2022). Net income: UK£3.70m (down 16% from 1H 2022). Profit margin: 1.8% (down from 2.1% in 1H 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Jul 07
TClarke plc has completed a Follow-on Equity Offering in the amount of £10.7 million. TClarke plc has completed a Follow-on Equity Offering in the amount of £10.7 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 8,770,492
Price\Range: £1.22
Transaction Features: Regulation S; Subsequent Direct Listing Announcement • May 10
TClarke plc to Report First Half, 2023 Results on Jul 13, 2023 TClarke plc announced that they will report first half, 2023 results on Jul 13, 2023 Upcoming Dividend • Apr 27
Upcoming dividend of UK£0.041 per share at 3.9% yield Eligible shareholders must have bought the stock before 04 May 2023. Payment date: 02 June 2023. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of British dividend payers (5.8%). In line with average of industry peers (3.7%). Board Change • Apr 21
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Aysegul Sabanci was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 09
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: UK£0.20 (up from UK£0.15 in FY 2021). Revenue: UK£426.0m (up 30% from FY 2021). Net income: UK£8.40m (up 33% from FY 2021). Profit margin: 2.0% (up from 1.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.6%. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Jan 31
TClarke plc to Report Fiscal Year 2022 Results on Mar 08, 2023 TClarke plc announced that they will report fiscal year 2022 results on Mar 08, 2023 Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to UK£1.46, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Construction industry in the United Kingdom. Total returns to shareholders of 23% over the past three years. Major Estimate Revision • Nov 25
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from UK£450.0m to UK£410.0m. EPS estimate also fell from UK£0.21 per share to UK£0.19 per share. Net income forecast to shrink 9.3% next year vs 12% growth forecast for Construction industry in the United Kingdom . Consensus price target of UK£1.85 unchanged from last update. Share price was steady at UK£1.22 over the past week. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Aysegul Sabanci was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Aug 25
Upcoming dividend of UK£0.013 per share Eligible shareholders must have bought the stock before 01 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of British dividend payers (5.3%). In line with average of industry peers (3.7%). Reported Earnings • Jul 15
First half 2022 earnings released: EPS: UK£0.10 (vs UK£0.036 in 1H 2021) First half 2022 results: EPS: UK£0.10 (up from UK£0.036 in 1H 2021). Revenue: UK£206.2m (up 49% from 1H 2021). Net income: UK£4.40m (up 193% from 1H 2021). Profit margin: 2.1% (up from 1.1% in 1H 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 20%, compared to a 6.0% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Reported Earnings • Apr 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: UK£0.15 (up from UK£0.028 in FY 2020). Revenue: UK£327.1m (up 41% from FY 2020). Net income: UK£6.30m (up 425% from FY 2020). Profit margin: 1.9% (up from 0.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 25%, compared to a 5.8% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Jonathan Hook was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Apr 14
Upcoming dividend of UK£0.041 per share Eligible shareholders must have bought the stock before 21 April 2022. Payment date: 20 May 2022. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of British dividend payers (4.6%). Lower than average of industry peers (3.5%). Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improved over the past week After last week's 16% share price gain to UK£1.68, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Construction industry in the United Kingdom. Total returns to shareholders of 43% over the past three years. Reported Earnings • Mar 10
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: UK£0.15 (up from UK£0.028 in FY 2020). Revenue: UK£327.1m (up 41% from FY 2020). Net income: UK£6.30m (up 425% from FY 2020). Profit margin: 1.9% (up from 0.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 25%, compared to a 3.8% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 15% share price decline to UK£1.19, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Construction industry in the United Kingdom. Total returns to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment deteriorated over the past week After last week's 15% share price decline to UK£1.47, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Construction industry in the United Kingdom. Total returns to shareholders of 87% over the past three years. Price Target Changed • Nov 27
Price target increased to UK£1.86 Up from UK£1.55, the current price target is provided by 1 analyst. New target price is 13% above last closing price of UK£1.65. Stock is up 70% over the past year. The company is forecast to post earnings per share of UK£0.15 for next year compared to UK£0.028 last year. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 17% share price gain to UK£1.57, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Construction industry in the United Kingdom. Total returns to shareholders of 109% over the past three years. Reported Earnings • Jul 22
First half 2021 earnings released: EPS UK£0.036 (vs UK£0.028 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: UK£138.2m (up 30% from 1H 2020). Net income: UK£1.50m (up UK£2.70m from 1H 2020). Profit margin: 1.1% (up from net loss in 1H 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Executive Departure • May 12
Senior Independent Non-Executive Director has left the company On the 5th of May, Mike Robson's tenure as Senior Independent Non-Executive Director ended after 5.5 years in the role. As of December 2020, Mike personally held only 6.00k shares (UK£5.9k worth at the time). Mike is the only executive to leave the company over the last 12 months. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improved over the past week After last week's 15% share price gain to UK£1.31, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Construction industry in the United Kingdom. Total returns to shareholders of 74% over the past three years. Upcoming Dividend • Apr 15
Upcoming dividend of UK£0.036 per share Eligible shareholders must have bought the stock before 22 April 2021. Payment date: 21 May 2021. Trailing yield: 3.8%. Lower than top quartile of British dividend payers (4.2%). Higher than average of industry peers (2.4%). Reported Earnings • Mar 25
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: UK£231.9m (down 31% from FY 2019). Net income: UK£1.20m (down 85% from FY 2019). Profit margin: 0.5% (down from 2.3% in FY 2019). Is New 90 Day High Low • Mar 06
New 90-day high: UK£1.01 The company is up 2.0% from its price of UK£0.99 on 04 December 2020. The British market is also up 2.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Construction industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Dec 02
Market bids up stock over the past week After last week's 17% share price gain to UK£1.03, the stock is trading at a trailing P/E ratio of 14.4x, up from the previous P/E ratio of 12.3x. This compares to an average P/E of 11x in the Construction industry in the United Kingdom. Total returns to shareholders over the past three years are 59%. Is New 90 Day High Low • Nov 26
New 90-day high: UK£0.97 The company is up 6.0% from its price of UK£0.92 on 28 August 2020. The British market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 13% over the same period.