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CLLN full year results

Practical discussions about equity High-Yield Portfolios (HYP) for income
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daveh
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CLLN full year results

#35325

Postby daveh » March 1st, 2017, 9:21 am

Can be found here:
https://www.rns-pdf.londonstockexchange ... 17-3-1.pdf


Financial performance in line with expectations
- Total revenue growth of 14 per cent, primarily organic(1)
- Performance led by growth in support services
- Support services contributed over two thirds of total operating profit and more than offset expected reductions in profit from Public Private Partnership projects and Middle East construction services
- Underlying operating margin(1) lower as expected at 4.9 per cent (2015: 5.3 per cent)
- Underlying profit from operations(1) fully cash-backed – cash conversion(1) 117 per cent
- Net borrowing of £218.9 million at 31 December 2016 (2015: £169.8 million) and average net borrowing(1) for 2016 of £586.5 million (2015: £538.9 million), with the increases mainly reflecting adverse movements in foreign exchange rates
 High-quality order book and strong pipeline of contract opportunities
- £4.8 billion of new orders and probable orders in 2016 (2015: £3.7 billion)
- High-quality order book plus probable orders worth £16.0 billion at 31 December 2016 (2015: £17.4 billion)
- Revenue visibility(2) for 2017 of 74 per cent (2015: 84 per cent for 2016)
- Expect over £1.5 billion of revenue from framework agreements not yet included in orders, probable orders or revenue visibility
- Substantial pipeline of contract opportunities worth £41.6 billion (2015: £41.4 billion)
 Proposed full-year dividend increased by one per cent to 18.45p (2015: 18.25p)
 Begin reducing average net borrowing over medium term


Dividend
For 2016, the Board has recommended a final dividend of 12.65 pence per share, making the proposed full-year dividend 18.45 pence per share (2015: 18.25 pence per share). The one per cent increase in the proposed full-year dividend is in line with the one per cent increase in underlying earnings per share, with underlying dividend cover maintained at 1.9 times (2015: 1.9 times). The final dividend of 12.65 pence per share will be paid on 9 June 2017 to shareholders on the register on 12 May 2017, subject to approval by shareholders at the Annual General Meeting to be held on 3 May 2017.


Look a decent set of results. Only problems I've noticed so far is that net debt is up (by ~30%) but they have said that they will reduce debt over the medium term. Margins are down and pension liabilities have doubled. Hopefully the latter will reduce if and when interest rates rise.

idpickering
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Re: CLLN full year results

#35350

Postby idpickering » March 1st, 2017, 10:51 am

Anyone topping these up on these result? I'm still tempted.

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Re: CLLN full year results

#35352

Postby Darka » March 1st, 2017, 10:55 am

idpickering wrote:Anyone topping these up on these result? I'm still tempted.


Topped up this morning after the 4-5% drop as I'm planning to hold for a long time and the dividend income is well covered, the market may not like the share, but I think for a long term hold it'll do just fine.

regards,
Darka

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Re: CLLN full year results

#35355

Postby tjh290633 » March 1st, 2017, 11:14 am

idpickering wrote:Anyone topping these up on these result? I'm still tempted.


I thought that you didn't like them, Ian. Unfortunately for me they are ruled out because I have spent too much on them already.

Nice dividend, though. It is more in cash terms than any other company in my portfolio in the last year. Someone else might take that crown later in the year.

Now when are these shorters going to concede defeat? The dividend is 1.9 times covered, so what are they hoping to achieve? The pension fund is in deficit, but that purely because of the stupid level of interst rates. Time for the Bank of England to do something on Budget Day.

TJH
Last edited by tjh290633 on March 1st, 2017, 11:14 am, edited 1 time in total.
Reason: Correction

daveh
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Re: CLLN full year results

#35361

Postby daveh » March 1st, 2017, 11:26 am

idpickering wrote:Anyone topping these up on these result? I'm still tempted.


Possibly. I have to pay in the last of this years ISA allowance sometime this month. To do that I may need to sell something outside the ISA, but will have to do that after the end of the tax year as I'm close to the capital gains limit due to the ARM takeover. So I may use the last of this years allowance to buy more Carillion and take it back up too median value.

Last months purchase was S32 in the ISA and I will sell the small non-ISA holding after April 6th - so that will be a Bed and ISA of sorts, though I'm buying rather more than I'm selling to take the ISA holding up to a decent size (but not yet a full holding). I had two small holdings of S32 from BLT split across the ISA and non ISA accounts and will have one somewhat large tax sheltered holding once the dust settles.

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Re: CLLN full year results

#35382

Postby OZYU » March 1st, 2017, 12:34 pm

Like TJH, I can't top up because of % on costs up to self imposed limit. If not would definitely do so on present divi cover, yield and sp.

Let's hope these shorters get a bloody nose one of these days, at current sp, it could be through surprise corporate action, one hint of such, and those shorters are undone, would serve them right.

Much of those widespread pension deficits would melt if UK interest rates turned.

Ozyu

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Re: CLLN full year results

#35385

Postby idpickering » March 1st, 2017, 12:41 pm

Cheers for your input guys. I'm not looking at buying until my next scheduled monthly top up on 22nd. CLLN still look like that top up.

Ian

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Re: CLLN full year results

#35390

Postby monabri » March 1st, 2017, 12:49 pm

Ian,
I added a few.. Increasing from 3.2% to 4.2% of my total portfolio but that's all for now folks!

On a positive note (regarding the shorting) - here's an opportunity!

monabri

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Re: CLLN full year results

#35395

Postby Minesadouble » March 1st, 2017, 1:01 pm

I am backing up the truck to go overweight in these now these promising results are in.


What do you find promising about the results?

MAD

Disc: holding CLLN

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Re: CLLN full year results

#35397

Postby CommissarJones » March 1st, 2017, 1:06 pm

idpickering wrote:Anyone topping these up on these result? I'm still tempted.


I won't be adding to my position, but that is solely for reasons of portfolio balance. Having had a quick glance at the results, I see nothing that causes me to feel concern about CLLN.

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Re: CLLN full year results

#35410

Postby Minesadouble » March 1st, 2017, 1:46 pm

Well the dividend is not under pressure, the company is both profitable and clearly viable going forward without changing structure. The order book looks strong. Actuarial deficits in pension schemes can be serious but in this case seem to be under control.

It looks and feels like an unfashionable boring mature business, with a few legacy issues sure, but nothing fatal. Certainly I think it is undervalued.


Thanks for response.
I currently have a 35% capital loss on CLLN, but the dividend is fat enough to encourage me to hold.
I do think these need to be monitored and followed carefully.
I take solace from the order book , but hope it's profitable work that they can execute flawlessly.
Again thanks for coming back.

MAD

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Re: CLLN full year results

#35432

Postby Arborbridge » March 1st, 2017, 2:45 pm

....and I thought: why not? I have some headroom for CLLN, a purchase would bring it up to just over 4% capital invested.
So I did. But NO MORE, do you understand? If I catch you doing that again, I'm going to get a new manager who'll buy me "safe and stodgy". :roll: I'll talk to that nice Mr Dod and he will tell you what to do, after saying what an idiot you've been.

Peer pressure, I dunno :)


Arb.

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Re: CLLN full year results

#35443

Postby monabri » March 1st, 2017, 3:06 pm

Arb
Ahh but when you get some divis you can invest them in something else thus diluting your overall holding percentage wise in CLLN...that might assuage some of the guilt :D alternatively come and join me on the naughty step - I'm at just over 4% too.

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Re: CLLN full year results

#35450

Postby Arborbridge » March 1st, 2017, 3:14 pm

alternatively come and join me on the naughty step


See you there later!


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