Premier Technical Services

LN: PTSG

£147.2m market cap

119.5p 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

PTSG delivered record levels of revenue and profit in H118 including good organic growth and contributions from three FY17 acquisitions that are now fully integrated. It also demonstrated the benefit of diversity, overcoming short-term variations in individual sub-sector activity levels. A good underlying cash flow performance and 13% increase in the interim dividend completed the H1 trading picture. In October PTSG undertook a £20m placing and acquired Guardian Electrical Compliance (a complementary national testing and compliance company) for £12m. On 21 January, it acquired Trinity Fire and Security Systems (an electrical/electronic fire and integrated security systems specialist) for an initial c £8m net cash. Taken together, investing the funds raised enhanced our previous earnings estimates by 13% and 16% for FY19 and FY20 respectively. Management also noted that FY18 ended in line with expectations.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 39.2 9.0 7.5 7.6 15.7 175.5
2017A 52.9 12.3 10.2 9.7 12.3 N/A
2018E 69.9 17.3 14.4 11.8 10.1 14.2
2019E 124.4 23.4 19.7 13.6 8.8 12.9
Last updated on 21/02/2019
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 21/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 11.2
Forecast gearing ratio (%) 20
Price performance
%
1m
3m
12m
Actual (22.2) (17.6) (35.9)
Relative* (24.2) (19.1) (34.7)
52-week high/low 199.0p/107.0p
*% relative to local index
Key management
John Foley Chairman
Paul Teasdale CEO
Mark Watford CFO