Premier Technical Services

LN: PTSG

£90.2m market cap

73.2p last close

Premier Technical Services Group (PTSG) is an independent provider of regulated and safety related specialist building services in four divisions across the UK. It listed on AIM in February 2015 at 52p.

Investment summary

FY18 results were in line with our estimates with good organic growth rates generally – especially in Electrical Services and Fire Solutions – supplemented by acquisition contributions in those two divisions. The new businesses appear to have settled In well and management has ambitious plans to build on the enhanced platforms created by the additions of Guardian Electrical Compliance (acquired October 2018) and, subsequent to the year end, Trinity (January 2019). An improving debtor collection profile was the other notable feature of FY18 results and year-end net debt stood at £14m (or pro forma c £25m including Trinity), equivalent to just over 1x 2019 EBITDA. Our FY19 estimates were substantially unchanged and we nudged up FY20e PBT by c 4%. As a result, our three-year EPS CAGR (rolled forward to include FY21e for the first time) is now almost 12%.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 52.9 12.3 10.2 9.73 7.5 N/A
2018A 69.1 17.1 14.3 11.86 6.2 17.2
2019E 124.5 23.2 19.7 13.55 5.4 7.0
2020E 136.6 27.0 23.2 15.22 4.8 5.5
Last updated on 22/05/2019
Industry outlook

Core markets are the provision of specialist services in the UK and demand is substantially underpinned by regulatory compliance in the construction and ongoing usage of buildings and structures and the safety of people in those environments. General and specific requirements are contained in wide-ranging legislation, regulation and guidelines.

Last updated on 22/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 18.8
Forecast gearing ratio (%) 29
Price performance
%
1m
3m
12m
Actual (11.3) (43.3) (61.1)
Relative* (9.7) (44.3) (58.0)
52-week high/low 199.0p/68.0p
*% relative to local index
Key management
John Foley Chairman
Paul Teasdale CEO
Mark Watford CFO