ShareCrazy.com: Hard Data, Harder Opinion

Date	Comment
05-07-10	05.07.10 :+1.9, (427) Travis Perkins's acquisition of BSS Group (BTSM.LN) should bring healthy synergies to the group and remove major questions over Travis's growth prospects, says Collins Stewart. Says the merger will create the largest UK plumbing and heating group and estimates market share will rise from 17% to 25%. Has the stock at buy, with 909p price target.
08-06-10	08.06.10 :-9.7, (425.2) Morgan Stanley lifts Travis Perkins price target to 1150p from 1020p following its interim management statement. Says trading in the merchant business is better than expected, with stronger than expected like-for-like growth. Now forecasts FY '10 +5% organic growth for merchant, from +2% previously. Elsewhere, says the indicative offer for BSS Group (BTSM.LN) looks attractive both financially and strategically. Notes that Travis stock has been out of favor year-to-date. But on 10.8x PE and 0.63x EV to sales for FY '10, says the shares are not expensive. Keeps at overweight.
28-05-10	28.05.10 :+8, (437) MF Global upgrades Travis Perkins (TPK.LN) to buy from neutral and raises the target price to 950p from 800p following the company's announcement of its bid for BSS Group (BTSM.LN). "It once again shows that one no longer needs to play the weak companies normalizing their earnings, but the strong benefiting from their balance sheet to make deals and increase capex to drive earnings." The strategic rationale is strong given that the two plumbing and heating businesses will have the leading market share in the UK, while purchasing benefits should be very useful, says MFG.
28-05-10	28.05.10 :+8, (437) BSS Group (BTSM.LN) could invite interest from counter-bidders after Travis Perkins (TPK.LN) offered GBP553 million for BSS, says Panmure Gordon analyst. Believes "there is high potential for a competing bid to emerge, as opportunities to acquire a business like BSS do not come around very often." Says potential rivals could include construction materials manufacturer and distributor Saint-Gobain, which owns UK building materials supplier Jewson, or international building materials group CRH PLC (CRH.DB). Reiterates buy rating on BSS Group and target price or 450p.
28-05-10	28.05.10 :+8, (437) Travis Perkins's (TPK.LN) bid for BBS Group (BTSM.LN) for about GBP553M in cash and stock is a major positive for Travis Perkins, says Goodbody Stockbrokers. Says the deal, which is supported by the BSS board, has the potential to add up to 12% to FY'11 earnings, when potential synergies are included. "Strategically, this is a good fit for Travis Perkins." Says the deal would add BSS's 300 plumbing branches to Travis Perkins's own offering of 194 branches, making it the leading plumbing and heating distribution business in the UK. Reiterates buy on Travis Perkins.
28-05-10	28.05.10 :+8, (437) BSS Group (BTSM.LN) +34% at 436p, following advanced discussions under way that may lead to Travis Perkins (TPK.LN) acquiring BSS for 433p in a cash and shares offer. Says BSS's FY earnings this week show the company is a good quality operation and the combination of Travis Perkins and BSS at this level would be extremely positive for Travis. Panmure retains a buy rating on the stock and lifts target to 450p from 340p, as it expects there to be interest from other parties. "We believe that there is high potential for a competing bid to emerge, as opportunities to acquire a business like BSS do not come around very often," it adds.
28-05-10	28.05.10 :+8, (437) Travis Perkins' (TPK.LN) proposed acquisition of BSS Group (BTSM.LN) would dilute the retail element of the group (predominantly Wickes) and would materially increase the group's market share of the plumbing and heating market, says Shore Capital. However, says that it will also dilute Travis' margins, result in debt rising to circa GBP800M and heighten risk factors in the event that a "double dip" emerges. Adds that at this stage, there is no commentary on synergies or cost cutting measures. The deal values BSS at GBP620M (enterprise value), says Shore. Has rating for Travis under review ahead of further details on the proposed deal.
28-05-10	28.05.10 :+8, (437) Travis Perkins PLC (TPK.LN) will double its debt to between GBP800 million and GBP900 million to buy heating and plumbing distributor BSS Group PLC (BTSM.LN), in a deal expected to complete in three months at most, the company's chief executive said Friday. But CEO Geoff Cooper told Dow Jones Newswires in an interview the company will have "comfortable financing ratios after this deal" and "we will have more than sufficient headroom" to operate and expand the business. He expects a firm offer in about four weeks and completion of the deal in two and a half to three months, when Travis Perkins would integrate BSS Group's operations. Travis Perkins earlier Friday said it was in advanced talks to buy BSS Group for about GBP553 million in cash and stock. It is offering a mix-and-match facility where shareholders can indicate whether they would prefer more equity or more cash. "We can satisfy some shareholders with cash or equity [within] the plan to pay 55% cash and 45% equity," said Cooper. The combination would create the largest plumbing and heating trade and retail distribution business in the U.K. Travis Perkins was previously expected to have debt of between GBP350 million and GBP400 million at the end of the year, but will have to draw down some GBP250 million from existing facilities to buy BSS Group. BSS has some GBP80 million of debt which Travis Perkins will take over. However, Cooper said taking on more debt wouldn't be a problem because the expanded company will make more profit, which in turn will enable it to carry more debt. At 0900 GMT Travis Perkins shares soared 66 pence or 8.9% to 811 pence, while BSS Group shares rose 111 pence or 34.2% to 436 pence. Panmure Gordon analyst Andy Brown said the combination of Travis Perkins and BSS would be extremely positive for Travis Perkins, but he expected interest from other parties. Cooper didn't want to comment about lifting its price for BSS Group in case other interested parties out-bid them. Interest could come from construction materials manufacturer and distributor Saint-Gobain, which owns U.K. building materials supplier Jewson, or international building materials group CRH PLC (CRH.DB), according to Brown. Although the CEO said he wouldn't be keen to consider further large deals after buying BSS Group, he also wouldn't ignore potential deals if other companies, such as rival Wolseley PLC (WOS.LN), decided to sell some of its operations. There has been speculation that Wolseley would sell some of its U.K. operations and that Travis Perkins would be interested in its Build Center business. Analysts are concerned the risk of a double-dip recession could hit the company's sales. However, Cooper said Travis Perkins was a highly cash-generative business. "We are at the bottom of the trough and will be bumbling along the bottom of the trough for some time, but we allow for that in our projections," Cooper said. He said there was currently a threat of contagion from the euro zone, which could hit trading.
26-05-10	26.05.10 :-8.9, (314.1) Citigroup raises BSS Group target price to 400p from 330p following the company's FY results. Citi says pretax profits were ahead of expectations at GBP50M against a consensus of GBP48M. Says 4Q sales were impressive. Expects a turnover growth of around 4% in '10/'11. Says the balance sheet gives the group options to either continue bolting on new businesses or expand through organic means. Raises EPS estimate for '11 to 34.8p from 28.5p and for '12 to 43p from 37p on the back of better turnover expectations. Keeps at buy.
25-05-10	25.05.10 :+7.4, (320) Collins Stewart cuts BSS Group to hold from buy as the stock is trading in line with the 315p price target. Says the stock has had an impressive run year-to-date and views it as fairly valued. Meanwhile, says the FY results are in line with expectations, with the boiler scrappage scheme and improving trends towards the end of the reporting period clearly helping the results. Lifts pretax profit forecast for the year to March '11 to GBP50M from GBP48M.
14-04-10	14.04.10 :+7, (297) Arden Partners upgrades BSS Group to buy from neutral, in anticipation of significant upgrades in the coming months. Says the year to March '10 saw a progressive improvement in like-for-like sales. As a result, increases '10 pretax profit forecast to GBP48M from GBP46M. Says if momentum is maintained in April and early May, guidance for the current year will have to be significantly raised. Arden has been cautious on the outlook for this year based on the likely weakness in commercial new build and potential cutbacks in Government capex but says these fears have now receded somewhat.
11-02-10	11.02.10 :+3.4, (277.3) in a trading update, says revenue for the first 19 weeks of the second half of fiscal 2010 inched up 0.9%, in line with expectations, with market conditions remaining challenging. Revenue for the company--which markets and distributes heating, plumbing, process, pipeline and mechanical services equipment--rose to GBP473.4 million for the 19-week period. However, BSS said it expects government capital expenditure, which represents around 10% of revenue, to be reduced significantly in the coming years. The firm is trying to mitigate this by pursuing new revenue streams, adding that it remains confident new opportunities it has targeted can offset the impact of reduced public sector investment in the years ahead. Gross margins in the period are down on year due to competitive market conditions and stronger contract sales, but the company is focusing on recovery and says price conditions are stabilizing. Costs in the period are 5.2% down on year. The company said it expects fiscal 2010 profit to be in line with market expectations and its financial position to strengthen further this year, but it didn't give further details. Panmure Gordon analysts Andy Brown and Dymphna D'Costa expect BSS to make a pretax profit of GBP46.5 million for the year ending March 31 and earnings per share of 26.9 pence, compared with GBP20.9 million and 11.8 pence a year earlier. For fiscal 2011, Brown and D'Costa are forecasting pretax profit of GBP51 million and earnings per share of 29.4 pence. "BSS is a Panmure Gordon stock of the year," the analysts said, adding that the firm has a resilient operating model, strong management and clear strategy. They have a target price of 270 pence and "buy" recommendation on the stock. The company had debt of GBP86.2 million at Sept. 30, 2009 and cash of GBP9.4 million.
06-01-10	06.01.10 :+4, (267) Wolseley jumps to the top of London's blue-chip index. One trader points to positive read-across from builders merchants and DIY group Grafton (GRF.DB), which sees sales trends stabilizing in its full-year update, although the outlook is still challenging. Meanwhile, Collins Stewart says the new government boiler scrappage scheme will to some extent be of benefit to Wolseley and Travis Perkins (TPK.LN), as well as BSS Group (BTSM.LN), with up to 125,000 households eligible for a GBP400 refund for the upgrading an old boiler. Finally, traders says the cold weather could be a factor as Wolseley supplies heating and plumbing equipment.
11-11-09	11.11.09: +3.6, (259.8) an article in the Times reports: BSS Group fell 3.6p to 255p despite Collins Stewart starting coverage on the stock with a BUY rating and a target price of 315p.
10-11-09	10.11.09 :-0.7, (255) Collins Stewart initiates BSS Group with a buy rating and 315p target price. Says the company is a rare breed in the UK building sector, noting that its a company in no need of a rights issue. "Accordingly, it can strengthen its position materially during this downturn without diluting shareholders in the process," it says. Adds the company is winning market share, expanding its branches, and could spend up to GBP100M on acquisitions.
28-05-09	28.05.09 :-17, (273) Citigroup upgrades BSS Group to buy from hold. Says the group's reported GBP57.8M pretax profit in its final results is impressive, given the underlying difficult trading conditions. Thinks the balance sheet remains in good shape and notes the group's cost-cutting to reflect the slower market. Says although conditions will be tough in '09, this is already factored in. Says "arguably, with further bolt-ons and market share gains, the group could surprise on the upside." Increases the price target to 330p from 260p.
27-05-09	27.05.09 :-4.75, (281.25) BSS Group's final results are solid and highlight the relative resilience of the BSS model, says Panmure Gordon. Says that medium term opportunities have been identified, with the strength of its cash flow and balance sheet providing the flexibility to pursue these. "We believe that BSS should trade at a premium to its peers, which provides further upside," it adds. Has a buy rating with 320p target.
25-11-08	25.11.08 :+15, (271.75) the specialist building supplies group says it may be difficult to achieve top-line sales growth over the next twelve months, prompting a downgrade from Numis Securities. Numis says it expects sales to fall into negative territory, but that it should still outperform its peers. It looks for pretax profits of 62.5 million pounds for the year to end-March 2009, but has downgraded its 2009/10 estimate by 14 percent to 54 million pounds.
04-07-08	04.07.08 :+4, (265) Citigroup has cut BSS Group Plc. to 'sell' from 'hold', while lowering its target price to 280 pence from 420, pointing out that the company's relative valuation and 100 percent UK exposure will likely see the business suffer from the sharp construction slowdown, according to market sources. In a note to clients, Citigroup said it has cut its EPS forecast for 2009 to 35 pence from 36.1, and for 2010, to 31.3 pence from 39.2. The broker pointed out the sector has sold off significantly and looks to be pricing in a sharp downturn in end-markets. Citigroup said it resides on 2009 estimated PE and sales multiples of 7.2 times and 0.45 times, respectively. While the macro outlook remains so unclear and unpredictable, the shares are likely to continue to be held back, said the broker, noting it has cut all its target prices.
04-07-08	04.07.08 :+4, (265) Citigroup has cut its target prices and earnings estimates and some ratings on a number of builders merchants stocks, as it believes this market will remain under pressure until the outlook becomes more predictable, traders said. In a note on builders merchants published Friday morning, Citigroup said it has downgraded its rating on BSS Group Plc. to 3M from 2M, slashed its target price to 280 pence from 420 and clipped its estimates. Citigroup retained its 2M rating on CRH Plc. but cut its target price to 16.50 euros from 26.00 euros and reduced earnings estimates. Marshalls Plc. was retained as a 1M rating but had its target price chopped to 180 pence from 255 pence, whilst its forecasts were also clipped. Meanwhile, SIG Plc.'s rating was held at 2M, but its target price was lowered to 460 pence from 825 pence and its forecasts were also downgraded. Travis Perkins Plc.'s rating was left unchanged at 1M, but its target price was almost halved to 670 pence from 1,290 pence, whilst its forecasts were lowered. Finally, Wolseley Plc. stayed as a 2M rating, whilst its target price was dropped to 370 pence from 550 pence and its estimates reduced. Citigroup concluded that the sector looks bereft of near-term catalysts, and with their limited exposure to emerging markets and heavy exposure to residential markets in the developed world, cyclical pressure are weighing heavily on earnings.
01-04-08	01.04.08 :+11.75, (402.25) fell in late morning trades following the release of the company's trading statement, with one trader saying the figures were strong but the company needs to do more. The update prompted ABN Amro and Panmure Gordon to reiterate their 'buy' recommendations and target prices of 530 pence and 415 pence respectively, traders said. Separately, another trader said BSS needed to do more to improve its already strong numbers, without being more specific. In a statement issued earlier this morning, BSS Group said trading across all its divisions remains positive and that it expects full-year revenue and earnings will be slightly ahead of market expectations. The distributor to specialist trades said it will announce its full-year results on May 28. In reaction, Panmure Gordon called the announcement 'upbeat', with full-year 2008 estimated earnings likely to be ahead of expectations after a "particularly strong final quarter". The broker said it expects pretax profit to be 54.3 million pounds with an EPS of 30.8 pence, adding, that there may be scope to nudge up its forecasts. Panmure concluded that with, a solid non-discretionary spend exposure and an expanding network, it retains its positive stance. Meanwhile, ABN Amro said the trading update was positive, while also noting the last three months saw strong growth as some other merchants notably flagged. The broker said, with this statement and the earlier Birchwood deal, it was increasing its March, 2008 pretax profit and EPS estimates to 56m pounds and 31.5 pence respectively, as well as upping its March, 2009 forecasts.
03-03-08	03.03.08 :-1.50, (362) following news this morning it has bought Birchwood Products for up to 22.1m, in reaction ABN Amro said the acquisition was positive and repeated its 'buy' stance. Earlier, the distributor of specialist construction related products, said it bought Birchwood Products for an initial cash consideration of 18.4m for the business, and a maximum rise of 3.7m in the next three years, which is expected to be earnings enhancing in the first full-year. In reaction this morning, ABN Amro said it believes although BSS are buying at 0.8 times EV/Sales, the deal should be 1.7% EPS enhancing in March 2009 and it raises its March 2009 pretax profit estimates to 62.5m. Although BSS gave no update on current trading, the broker thinks BSS Industrial have had strong January performances and the group has the right ingredients to have taken further market share in UK plumbing & heating, in its view. Elsewhere, Panmure Gordon said the acquisition would be complimentary and it feels the move fits well strategically and will enhance its 2009 earnings expectations. The broker continues to be encouraged by the strategic direction being pursued by BSS and repeated its 'buy' stance and 415 pence price target.
07-02-08	07.02.08 :+4, (339.25) higher late morning as Panmure Gordon and ABN Amro reiterated their 'buy' stances following an upbeat trading update yesterday, market sources said. In a note published this morning, Panmure Gordon said BSS Group has confirmed that trading across the group remains resilient and it remains on track to "at least" meet expectations. The broker added that the integration of Buck & Hickman is on track for the group while the largely non-discretionary exposure remains highly attractive. Panmure Gordon said it is staying positive and expect good news with the full-year results. The broker has a target price on the group of 415 pence. Elsewhere, ABN Amro said the BSS Group trading statement was positive. ABN Amro said the key points are that the company says its trading is showing "resilience" and trading is "in line with expectations". The broker added the group also is showing market share, revenue and profit growth.
26-11-07	26.11.07 :+23.5, (411.25) the company's first-half results came in ahead of expectations, with Dresdner Kleinwort reiterating its 'buy' rating along with a 542 pence target. Earlier, the distributor of industrial supplies said first-half pretax profit rose to 26.3m from 21.3m last year, helped by strong growth in both its industrial and domestic divisions, and said it expects to at least meet forecasts for the second half. A consensus of seven analysts collected by the company had forecast first-half pretax profit at 24m. In reaction to what it termed "very good" results, Dresdner Kleinwort said it expects to be lifting its forecasts. It highlighted that BSS is a well-managed and fast-growing company, looking to grow organically, by branch expansion, and by acquisition. The broker noted that BSS's acquisition of Buck & Hickman from Premier Farnell could alone add around 9% to full-year operating profit, and pointed out that BSS is winning market share from competitors.
08-10-07	08.10.07 :-0.5, (460) Goldman Sachs has revised its price targets for the midcap building materials sector to factor in expectations of lower growth in markets such as German, UK, US, Irish and Spanish residential construction, market sources said. In a note published this morning, Goldman Sachs said that it is cutting its price target on BSS Group to 386 pence from 481 pence and Geberit Holdings to 164 sfr from 205 sfr. Elsewhere, the broker added that it is downgrading Kingspan Group to 19.60 eur from 21.92 eur and Marshalls to 327 pence from 366 pence, SIG to 1,130 pence from 1,421 pence. However, Goldman Sachs said that it is reiterating its 'buy' stance on WAVIN, but cutting its price target to 18 eur from 23 eur. The broker added that it believes the market is pricing in lower German growth following H1 2007 results, but is not taking into consideration the fact that Wavin has no exposure to the US or Spanish residential markets. However, Goldman Sachs said that it is revising its estimates for Wavin to reflect continued softness in the German construction market, a more conservative growth assumption for Central and Eastern Europe and a slight decline in the UK residential construction market in 2008.
28-09-07	28.09.07 :+10.25, (459) posted an upbeat trading update, prompting Panmure Gordon to stick with its 'buy' rating on the stock. Earlier today, the distributor of industrial supplies said its trading performance has been strong in the first half, with sales and operating profit significantly ahead of last year. The company -- which announces its interim results for the six months to Sept 30 on Nov 26 -- said the outlook continues to be positive and that the board remains confident that it can at least meet expectations for the second half. In reaction, Panmure Gordon said the upbeat trading statement shows trading is significantly ahead of last year, with the prospects continuing to look positive. Upgrading its full-year 2008 top line forecasts by around 1% to around 52.8m from 52.3m, the broker said it also expects to increase its full-year 2009 estimates by a similar amount, to around 58m. The broker said the positive trading statement is at odds with the recent share price softness, in its view, noting that the scale and breadth of the BSS network means it can continue to add new sites that have an impact on the group, while the recent specialist division acquisitions are bedding in well.
31-05-07	31.05.07 :+19, (503) up in early morning trading as Citigroup raised its target to 515 pence from 500 but kept its 'hold' rating, following recent full-year 2007 results which beat the broker's expectations, dealers said. On Tuesday, the plumbing equipment maker reported full-year pretax profit to end March 2007 up 28.2% to 47.3m, and earnings per share which were 6% ahead of Citigroup's forecasts, up 29% to 27.1 pence. In reaction, Citigroup said it has raised its 2008 estimates modestly and now forecasts full-year 2008 pretax profit of 52.5m and EPS of 29.3 pence.
29-05-07	29.05.07 :-4, (487) lower in early trading with broker reaction to the company's full-year results mixed, dealers said. In a final results statement this morning, BSS Group said full-year pretax profit to end March 2007 rose 28.2% to 47.3m. The plumbing equipment maker said its two divisions continued to outperform the market and sales passed the 1 bln stg mark for the first time. In reaction, Bridgewell Securities downgraded the group to 'neutral' from 'overweight'. It said BSS's full year pretax profit came in some 4% ahead of its 45.5m estimate and it remains positive on the outlook and the group's ability to generate organic growth. The broker noted, however, that on a forward price to earnings ratio of 17 times BSS shares are fairly rated and would match the likes of Travis Perkins, which has similar upside but trades on a 17% P/E discount to BSS. Elsewhere, Panmure Gordon has reiterated its 'buy' rating with a raised target price of 550 pence from 500 pence. The broker added that the outlook looks upbeat for the group.
30-03-07	30.03.07 :-5, (483) downgraded to 'add' from 'buy' by Dresdner Kleinwort on valuation grounds following the firm's strong trading update yesterday, with the target price raised to 524 pence from 500, dealers said. In a research note issued this morning, DK said the group performed well in 2006/2007, both in terms of organic progress and from benefits of recent acquisitions. It added that these trends look set to continue through the broker's forecast period, given more recent purchases, and it has therefore lifted 2006/2007 pretax profit forecasts by 1.0m, followed by an increase of 0.6m in 2007/2008 and 0.9m in 2008/2009. As a consequence of lifting its forecasts, DK said its target price has been hiked to 524 pence but following the share price rise, it has lowered its recommendation to 'add'.
29-03-07	29.03.07 :+10, (488) the group said it expects full-year revenues to be 'slightly ahead' of expectations, dealers said. This morning, the plumbing equipment maker said it expects its full-year profit and revenue to be slightly ahead of current market expectations. The group's industrial and domestic divisions had encouraging like-for-like sales growth, though at a slower rate than in the first half. Reacting to the update, ABN Amro said its best guess is that 'slightly' could mean around a 2% improvement to its own or market guidance, though nothing has yet been confirmed. The broker reiterated its 'buy' stance on the stock. Meanwhile, Dresdner Kleinwort also stuck to its 'buy' rating, noting that the group has made some "astute bolt-on purchases", which should provide further momentum for the domestic division in 2007-08.
21-03-07	21.03.07 :+23, (476) the group announced it was acquiring tools and supplies business BuckHickman InOne, with Bridgewell Securities retaining its 'overweight' stance, dealers said. In a statement this morning, Premier Farnell said it has agreed to sell BuckHickman InOne, its tools and supplies business, to BSS Group for about 27m on a cash and debt-free basis to focus on the electronic design engineer market. In reaction, Bridgewell noted that overall, 0.28 times EV/Sales appears to be an attractive price to pay for a business with a strong asset underpinning and will strengthen BSS Group's position in tools distribution.
09-01-07	09.01.07 :-2, (425) Goldman Sachs ups its price target by around 14% to 400p from 349.72p, updating its model in light of H1 results back in November and the Spendlove and AHED acquisitions. The bank also increased its EPS forecasts for this year and next by around 6.0% to 26.07p and 27.93p respectively. The broker reiterated a "neutral" recommendation.
07-12-06	07.12.06: -12, (438) an article in the Times reports: BSS Group rose 26p to 450p amid vague rumours of bid interest.
27-11-06	27.11.06 :+6, (377) the market welcomed a set of consensus-busting interim figures, dealers said. Earlier today, the construction materials supplier reported a 38.3% jump in first half pretax profits on the back of a 14.8% growth in sales and said the second half has begun in line with its expectations, but may grow slower than a year earlier because of a strong performance in last year's second half. Pretax profit rose to 21.3m from 15.4m, while sales rose to 475.1m in the first half from 413.9m a year earlier. Reacting to the figures, Bridgewell Securities said the pre-tax profit of 21.3m came in some 24.6% ahead of last year's figure, and 1m above its estimates. The broker remained 'overweight' on BSS, highlighting the strong like-for-like sales in both divisions as one of the key positives of the release, while adding that it expects full year consensus expectations to rise by around 1 mln-2m to 43 mln-44m.
27-11-06	27.11.06 :+6, (377) Dresdner Kleinwort lifting its target price to 426 pence from 419 pence following the group's forecast beating interims, dealers said. Earlier today, the construction materials supplier reported a 38.3% jump in first half pretax profits on the back of a 14.8% growth in sales and said the second half has begun in line with its expectations, but may grow slower than a year earlier because of a strong performance in last year's second half. Pretax profit rose to 21.3m from 15.4m, while sales rose to 475.1m in the first half from 413.9m a year earlier. The forecast-beating figures prompted Dresdner Kleinwort to lift its target price to 426 pence from 419 pence, noting that despite upgrading expectations during the half year trading update in early October, it is again lifting forecasts on the back of these results. The broker reiterated its 'buy' recommendation on the stock, pointing out that pre-tax profit of 21.3m exceeded its forecast of 19.9m, prompting Dresdner to increase its pre-tax profit full year estimates by 1m for each of the next three years while improving its EPS forecasts. Meanwhile, ABN Amro reiterated its 'buy' stance on the group, noting the interims were 'robust', with pre-tax profit ahead of its forecasts. The broker noted that given the tough comparatives in the second half, it expects a slower rate of growth, but raised its 2007 and 2008 full year profit to 44.7m and 47.4m respectively. Elsewhere, Bridgewell Securities said the pre-tax profit of 21.3m came in some 24.6% ahead of last year's figure, and 1m above its estimates. The broker remained 'overweight' on BSS, highlighting the strong like-for-like sales in both divisions as one of the key positives of the release, while adding that it expects full year consensus expectations to rise by around 1 mln-2m to 43 mln-44m.
13-09-06	13.09.06 :-4, (333) upgraded to 'buy' from 'add' by Dresdner Kleinwort after encouraging results from competitor Grafton Group today, dealers said. In a note published this morning, Dresdner Kleinwort said that the interim results from competitor Grafton Group lent support to the belief that BSS should be trading well. The broker expects the plumbing and heating distributor's Domestic unit to maintain its good record of outperforming the underlying market despite weaker conditions in the UK, noting that Grafton's Plumbase operation has recorded a healthy increase in sales and operating profits.
02-06-06	02.06.06 :+5, (330) ABN Amro upgraded the stock to 'buy' from 'add' on expectations of continued outperformance, dealers said. In a note to clients, ABN Amro this morning pointed out that BSS shares have consistently outperformed the market throughout the cycle. The Dutch broker added that it expects this outperformance to continue based on current trading. ABN Amro said that good levels of housing market transactions should lead to a stronger RMI (Repair, Maintenance, Improvement) market, underpinning its confidence in BSS' prospects for full year 2006/07. The broker added that it believes BSS is well positioned to supplement organic growth with meaningful acquisitions. Against this backdrop, ABN said the stock's valuation looks undemanding.
30-05-06	30.05.06 :-15, (320) succumbed to profit taking in late morning trade as the building materials distributor pleased investors with its 10th successive half year of increased sales. In response ABN Amro upped the stock to 'buy' from 'add', dealers said. BSS, which distributes heating, plumbing and pipeline equipment to the industrial and domestic construction and maintenance markets, said sales increased by 15.7% to 863.6m and pretax profits were up 12.2% to 36.9m. The Dutch broker said that BSS has been a consistent performer in good markets and bad, the last 12 months having been a weak merchanting market, and it expect this to continue. Furthermore, the group should benefit from improving market conditions as high housing transactions begin to feed through to the repairs maintenance and improvements market.
08-04-06	08.04.06: an article in the Times reports: BSS Group rose 2p to 357p as Arbuthnot Securities noted that the company should benefit from Thursday's award of a GBP12 billion MoD PFI contract to upgrade army barracks, for which it is due to provide the sanitaryware.
06-01-06	06.01.06 :+1, (313) IC say buy (315p) - BULL POINTS Strong organic growth profile - Improving profitability - Robust balance sheet - Potential bid target BEAR POINTS Impending management change - Shares already highly rated for sector
26-07-05	26.07.05 :-1, (297) an article in the Guardian reports: BSS Group rose13p to 298p on talk that it could be a takeover target for Irish rival Grafton, which recently raised �500m (?345m).
21-07-05	21.07.05 :+1125, (1125) an article in the Telegraph reports: BSS rose 44p to ?10.90 ahead of its planned 4-for-1 stock split on Friday.
06-06-05	06.06.05 :-6, (1119) shares in SIG, Wolseley BSS and BPB all downgraded on valuation grounds at Numis, dealers said. SIG had been cut to 'add' from 'buy'. Despite being one of the broker's favoured plays within the sector, with growth driven by continued strength in the insulation market, the broker noted SIG shares now trade with just 18% upside to its 685 pence price target. Wolseley has also been downgraded to 'add' from 'buy' at Numis. The stock remains Cazenove's preferred traditional merchant, given that it is less exposed than most to the weak consumer cycle in the UK and as the group expands across Europe, meaning there will be increasingly less reliance on any one market. The broker kept its 1,264 pence target price on the shares. BSS meanwhile has been downgraded to 'hold' from 'buy' with an unchanged target of 1,200 pence, despite a strong set of final results, the broker said. Cazenove said the stock is currently the most expensive-rated Merchant, although the growth outlook is strong and it believes risk to forecasts does remain on the upside. "Whilst we believe that the stock is up with events for now, we would view any weakness over the next few months as an opportunity to buy into a positive growth story," the broker added. As for BPB, it has been downgraded by both CSFB and Numis this morning. Numis cut its stance to 'hold' from 'add', with a 1,200 pence target, following a strong share price performance after last week's results. The broker added that while it believes trading will remain fine for now, it does have a number of longer-term concerns. Meanwhile, CSFB has moved to 'neutral' from 'outperform' as although it believes prospects for the US construction industry remain generally positive, its composition is likely to switch from residential markets towards a recovery in commercial and industrial activity. The broker also reiterated its 'outperform' rating on Wolseley shares.
24-05-05	24.05.05 :+13, (1056) an article in the Telegraph (Questor) comments: Peter Wood is staying confident about BSS's prospects, with further growth in its 200-branch network planned combined with the prospect of unending social housing investment by the Government. Rival Wolseley has demonstrated how successful a plumbing company can be by buying up independent rivals and centralising costs. BSS is on the same strategy. The shares trade on 12 times earnings with a 1.8pc yield. Hold on, the paper says.
11-05-05	11.05.05 :+27, (1008) Numis downgraded its rating on Travis Perkins to 'hold' from 'add', but shares in BSS Group PLC and Wolseley PLC rose after the same broker raised its stance on both stocks to 'buy' from 'add', dealers said. Numis said that while the long-term potential within Travis Perkins "remains sound", with the acquisition of Wickes driving huge market share gains and synergy benefits, the current weak consumer environment "will continue to impact trading at the group", in its view. It argued organic growth at Travis Perkins on a short-term basis "will be difficult to come by in our opinion". As a result, the broker cut its EPS estimates for 2005 by 35 pence to 146.3, and for 2006 by 40 pence to 161.3, but maintained its 1,725 pence target. For BSS, Numis noted the group's share price has edged back recently, probably due to Kingfisher and Travis Perkins, as well as other housing and consumer-related stocks, reporting a slowdown. However, the broker stressed that BSS has exposure to a diversified range of sectors, both Public and Private and is still improving its lower-than-sector average margin. "BSS is amongst those companies in our universe with positive exposure to government spending, which we believe continues to remain robust in their market sectors (Health, Education and Social Housing)", Numis stated. It kept its 1,200 pence target price on BSS shares. Meanwhile, Numis noted Wolseley's share price has fallen 10% from its 1,150 pence high on April 13. However, the broker argued that Wolseley "is not reliant on any one market to drive its growth, and can mitigate the effect from those markets which are not performing as well, for instance UK Consumer related markets". Numis said there remains plenty of scope for bolt-on acquisitions, as well as expansion into new markets, particularly in Europe. The broker maintained its 1,264 pence target price on Wolseley shares.
08-12-04	08.12.04 :-5, (842.5) an article in the Times reports: the shares fell 25p to 847.5p as Aberforth, its largest single investor took profits on its 25 per cent stake after last week's H1 results. The fund manager instructed ABN Amro, the company's house broker, to place 4.14 million shares, or a 14.1 per cent holding, which it did at 830p, a 5 per cent discount to the opening price. The stock is understood to have been bought by about 20 institutions.
30-11-04	30.11.04 :+0, (822.5) an article in the Independent (Investment column) comments: homeowner demand and the Government's social spending boosted pre-tax profits by 39 per cent from a year earlier and were ahead of analysts' expectations. Peter Wood, the chief executive, reckons that people will spend more on renovating their existing properties. The group is also benefiting from increased government spending on schools and hospitals, as well as local authority spending on refurbishing social housing. The only problem area is the commercial market, which has been sluggish. At 822.5p, BSS shares trade on an annualised 10.5 times forecast 2005 earnings, compared with a sector average of 11.2 times. With the group estimated to grow at 20 per cent a year for the next couple of years - more than its peers - this discount is unjustified. Buy, the paper says.
25-05-04	25.05.04 :+0, (697.5) an article in the FT comments: BSS has managed a convincing recovery over three years, with annual earnings growth well above 20 per cent. Can the management raise this up to the 6-7 per cent achieved by peers such as Travis Perkins or Wolseley? Further integration synergies from Tricom and continuing recovery of the industrial business will help this year. On profit forecasts of ?29m, the p/e ratio of 10.5 is slightly below its peers, and there should be further growth in the share price, the paper says.
29-04-04	29.04.04 :+12.5, (702.5) an article in the Independent reports: the shares rose 10p to 690p on talk of strong trading. Business is reckoned to have been particularly strong over the past two months.
31-03-04	31.03.04 :-6, (627.5) a reassuring trading update underpinned market expectations for the year to March 2004. The group, which reported a 26.8% increase in half-time profits to 10.4m, said it continues to make progress and that the results for the full year would be in line with current market expectations. The consensus is for pre-exceptional pretax profits of about 23.8m, which would compare to a profit of 18.6m last time. Stockbrokers Teather & Greenwood, who have a 'buy' recommendation on the shares, look for pretax profits of 24.0m, which would give earnings of 54.7 pence a share. The improvement in trading will reflect the inclusion of Tricom -- bought in February for 31.75m -- and good performances from the industrial and domestic businesses. The more recent acquisition of Peglar & Louden in October will strengthen the group's presence in the process controls market, although a further exceptional charge of 1.2m is expected in the second half of the year as the business is integrated.
02-12-03	02.12.03 :+10, (597.5) an article in the FT comments: one of the relatively new executive team's key priorities is to lift margins to levels its rivals enjoy. On consensus pre-tax profit forecasts of ?24m, BSS is trading on a forward PE of 10, which is a small discount to the sector. However, the shares are not an urgent buy in the short term. Improvement will primarily come from margin growth, the paper says.
01-12-03	01.12.03 :+25, (587.5) reports interim results at the top-end of analysts' expectations and said it was well placed to meet market expectations for the full year to March 2004. Pre-exceptional pretax profits for the six months to Sept 2003 increased by 26.8% to 10.4m on sales 35.4% ahead at 320.7m. The improvement reflected the first significant contribution from Tricom -- bought in February for 31.75m -- which has now been fully integrated into the group's domestic division. Analysts believe the group, which is now focusing on driving top-line growth, is on course for profits of about 23.5m for the year to March 2004. The more recent acquisition of Peglar & Louden in October will strengthen the group's presence in the process controls market and provide further opportunities for growth. However, there will be a further exceptional charge of 1.2m in the second half as the group integrates this business into its existing flow controls business. "Both the industrial and domestic sides are the business are progressing well," chief executive Peter Wood told AFX News this morning. "Like-for-like sales, stripping out Tricom and new branch openings, were up by about 7.0% and show we are starting to deliver top-line growth. We expect this trend to continue," he added. David Taylor, an analyst at Teather & Greenwood, has pencilled in full year pretax profits of 23.5m, which would give earnings of 53.6 pence a share. "The second half, with the all-important heating season, has started well," he said in an investment note. "We (T&G) like BSS but, on a current 10.6 times earnings multiple, see it more as cheap side of hold rather than an outright buy," he added. Arbuthnot Securities and ABN Amro also reiterated 'buys' for the stock the this morning.
16-06-03	16.06.03 :+0, (527.5) an article in the FT (Sat) comments: now that most of the painful restructuring has been undertaken, Paul Wood, chief executive has the slightly easier task of looking at productivity and improved purchasing to lift sales this year. The addition of Tricom has increased BSS's presence in the repair and maintenance market, which is less cyclical than the new build market. This should provide some insulation if the housing market does slow down. Arbuthnot are forecasting full-year profits of ?23m for 2004, which puts BSS on a p/e ratio of 10 times, which is below that of rivals and looks cheap considering market demand still appears to be strong.
14-04-03	14.04.03 :+0, (417.5) an article in the Saturday Telegraph (Questor) comments: definitive proof of the group's recovery was the ?31.8m acquisition of rival Tricom in February. With Tricom comes exposure to the South East, the only region in which BSS was weak, and consolidates its position as the country's second-largest heating and plumbing supplier after Wolseley. With the top line growing, the shares, at 417p this week, look fairly cheap. Trading on seven times forward earnings and yielding 3.5pc, it's at a discount to peers. Worth a look, the paper says.
21-02-03	21.02.03 :+0, (427.5) an article in the Times reports: the shares rose 45p to 427.5p after yesterdays acquisition and prompted ABN Amro to raise its earnings forecasts for 2004 by 13 per cent.
09-12-02	09.12.02 :+7.5, (372.5) Two of the Sunday papers are like the news from industrial, commercial and domestic services company BSS. The Independent on Sunday is keen on its new management team, focused on simplicity and bolstering margins and the Sunday Times notes BSS is imbued with confidence enough to consider acquisitions. Both papers tip the group as a speculative buy at 365p.

Legal

Risk Warning

Advertise

Logout

Other recommended websites