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Carillion selected as the preferred bidder

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idpickering
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Carillion selected as the preferred bidder

#12894

Postby idpickering » December 7th, 2016, 9:25 am

Carillion Canada subsidiary selected as the preferred bidder for a power transmission contract worth approximately £120 million

Carillion Canada subsidiary, Rokstad, has been selected by Manitoba Hydro as the preferred provider for the next phase of its Bipole lll high-voltage transmission line project, which has an estimated revenue value of £120 million.

The project involves clearing rights of way, the installation of access roads, foundations and anchors, the assembly of towers and the stringing of cables for three packages of the Bipole lll project, which includes 1,384 km of transmission lines and two converter stations, starting at Keewatinohk in Northern Manitoba and ending at Sandy Bay Ojiway First Nation in Southern Manitoba. When the whole Bipole lll project is completed, it will deliver renewable energy to Southern Manitoba and to the United States.

We expect to agree final terms and achieve contract signature shortly to enable work to begin before the end of the year, with completion scheduled for 2018.

Carillion Group Chief Executive, Richard Howson, said: "We are delighted to have been selected for this important project, which further demonstrates the quality and strength of Rokstad's offering and the success of our strategy of expanding our infrastructure services activities in Canada into the power transmission and distribution market, with the acquisition of Rokstad in 2014."

http://www.digitallook.com/cgi-bin/dlme ... d=25300371

I hold CLLN. What is interesting regarding the fact that I hold them, is the fact that on the capital front I'm down 22%. In fact, despite this seemingly good announcement from CLLN, the stock is down 4% as I type. This all harks back with the thread currently ongoing regarding IG Group, and the losses sustained yesterday. Am I concerned regarding the lower share price of CLLN? No. In fact I'm inclined to buy more of CLLN as there's a sale on. I get that this is easier to say as I'm a HYP builder rather than someone living on their HYP now.

Regards,

Ian.




Notes to Editors

idpickering
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Re: Carillion selected as the preferred bidder

#12897

Postby idpickering » December 7th, 2016, 9:37 am

Further to this CLLN put out their trading update this morning;

Full year trading update

MEETING EXPECTATIONS LED BY A STRONG PERFORMANCE IN SUPPORT SERVICES

Carillion plc is providing this update on trading in 2016 ahead of announcing its preliminary results on 1 March 2017.

Highlights

"· Performance meeting expectations

· Expect strong growth in total revenue and increased operating profit

· Performance continues to be led by revenue growth and a strong margin in support services

· Expect net borrowing to reduce from the half year level

· New orders plus probable orders in 2016 expected to reach £4.5 billion, with total orders plus probable orders of approximately £16 billion (December 2015: £17.4 billion) by the year end

· Visibility of revenue from framework contracts expected to be approximately £1.5 billion

· Revenue visibility(1) for 2017 of around 70% (December 2015: 84%)

· Pipeline of specific contract opportunities broadly unchanged at over £41 billion "

http://www.investegate.co.uk/carillion- ... 00071370R/

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Re: Carillion selected as the preferred bidder

#12900

Postby 77ss » December 7th, 2016, 9:47 am

idpickering wrote:I hold CLLN. What is interesting regarding the fact that I hold them, is the fact that on the capital front I'm down 22%. In fact, despite this seemingly good announcement from CLLN, the stock is down 4% as I type.


Ian, I think the 4.5% drop n CLLN is probably down to the full year trading update, which doesn't read that well to me (at a very cursory glance). The Canadian contract, while doubtless welcome, is fairly small beer - what will the profit on a £120m contract be?

http://www.investegate.co.uk/carillion- ... 00071370R/

I hold and like you am underwater on the capital front. I am not about to sell, but will not be adding (but then, I am no longer building - which gives me a different outlook.)

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Re: Carillion selected as the preferred bidder

#12901

Postby toofast2live » December 7th, 2016, 9:48 am

Ian, CLLN have sales revenue of about £4bn. £120M over 2 years, or £60m a year (1.5% of sales), while good news is unlikely to counteract their widely reported negative views on slower government spending decisions, and their revenue visibility declining by 20%.

I would say the slump is down to a teenage scribbler downgrade today, despite the optimistic update you quote.

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Re: Carillion selected as the preferred bidder

#12913

Postby moorfield » December 7th, 2016, 10:35 am

Based on my own simpleton's measure of Operating Cashflow / (Equity + Non-Current Liabilities) CLLN is the least cash generative of my holdings, 7p/£, compared to the most Matthey (JMAT), 32p/£. For me it is due a top up in January, although I may postpone that until we have seen the preliminary results and dividend announcement due on 1 March 2017.

idpickering
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Re: Carillion selected as the preferred bidder

#12918

Postby idpickering » December 7th, 2016, 10:50 am

moorfield wrote:Based on my own simpleton's measure of Operating Cashflow / (Equity + Non-Current Liabilities) CLLN is the least cash generative of my holdings, 7p/£, compared to the most Matthey (JMAT), 32p/£. For me it is due a top up in January, although I may postpone that until we have seen the preliminary results and dividend announcement due on 1 March 2017.



For me they're due a top up in maybe March or April. We'll see. This isn't in keeping with Stephen Blands' 'the time is now' attitude though. Yeah I can see that that the SP drop is probably down to the trading update. Its just that I saw the preferred bidder item first is all.

Regards,

Ian.

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Re: Carillion selected as the preferred bidder

#12930

Postby moorfield » December 7th, 2016, 11:16 am

This isn't in keeping with Stephen Blands' 'the time is now' attitude though.


Slightly inflammatory remark Ian? As tempted as I am, I'm not biting ... ;) Enjoy your CLLN divis. :)

idpickering
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Re: Carillion selected as the preferred bidder

#12956

Postby idpickering » December 7th, 2016, 12:53 pm

moorfield wrote:
This isn't in keeping with Stephen Blands' 'the time is now' attitude though.


Slightly inflammatory remark Ian? As tempted as I am, I'm not biting ... ;) Enjoy your CLLN divis. :)



Thanks for your post moorfield. I've bitten the whole HYP bullet and have become very 'hands off' with my HYPing and am happy to play the 'strategic ignorance' card. Stephen spoke a lot of sense IMHO.

Ian.

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Re: Carillion selected as the preferred bidder

#13092

Postby richfool » December 7th, 2016, 7:10 pm

idpickering wrote:I hold CLLN. What is interesting regarding the fact that I hold them, is the fact that on the capital front I'm down 22%. In fact, despite this seemingly good announcement from CLLN, the stock is down 4% as I type.

idpickering wrote: Yeah I can see that that the SP drop is probably down to the trading update. Its just that I saw the preferred bidder item first is all.

idpickering wrote:Thanks for your post moorfield. I've bitten the whole HYP bullet and have become very 'hands off' with my HYPing and am happy to play the 'strategic ignorance' card. Stephen spoke a lot of sense IMHO.


Ian, I thought the HYP strategy was "hands-off", "strategic ignorance" & all that, and ignored capital values, - and therefore HYP'ers should not be taking note of these things or market noise. Reading the above posts seems to suggest you are paying attention/taking note, and then when you don't like what you see, you fall back on/play the "hands-off" and "strategic ignorance" cards. Wouldn't it be better and more in tune with true HYP'ing to either not look, or at least look the other way. ;)

idpickering
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Re: Carillion selected as the preferred bidder

#13194

Postby idpickering » December 8th, 2016, 2:42 am

richfool wrote:
idpickering wrote:I hold CLLN. What is interesting regarding the fact that I hold them, is the fact that on the capital front I'm down 22%. In fact, despite this seemingly good announcement from CLLN, the stock is down 4% as I type.

idpickering wrote: Yeah I can see that that the SP drop is probably down to the trading update. Its just that I saw the preferred bidder item first is all.

idpickering wrote:Thanks for your post moorfield. I've bitten the whole HYP bullet and have become very 'hands off' with my HYPing and am happy to play the 'strategic ignorance' card. Stephen spoke a lot of sense IMHO.


Ian, I thought the HYP strategy was "hands-off", "strategic ignorance" & all that, and ignored capital values, - and therefore HYP'ers should not be taking note of these things or market noise. Reading the above posts seems to suggest you are paying attention/taking note, and then when you don't like what you see, you fall back on/play the "hands-off" and "strategic ignorance" cards. Wouldn't it be better and more in tune with true HYP'ing to either not look, or at least look the other way. ;)


Hi richfool,

Yeah, I get what you're saying, but one has to show a passing interest in these things I think. I do wear my heart on my sleeve as say out loud what I'm thinking. :D

Ian.


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