Telecity: Results in line. 2013 about improving returns after 2012's investment.

Wednesday, Feb 13 2013 by
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Telecity (LON:TCY) (825p and3.1% of JIC portfolio). Full year results for the year ended 31st December 2012 announced this morning seem to be pretty much in line with expectations. Adjusted earnings per share grew by 28.6% to 31.0p; consensus forecasts were for 30.5p. A final dividend of 5.0p, making 7.5p for the year, has been announced against forecasts of a total dividend of around 6.5p. The outlook statement is pretty positive with the Company saying that it has entered 2013 with a strong recurring revenue base and available capacity in all its key locations, having increased available customer power by 27% during 2012.

Conclusion: 2012 was all about investment to increase capacity, hence a number of performance indicators fell; occupancy from 83.5% to 79.6% and return on capital employed from 18.0% to 16.4%. This year should be about filling out that new capacity and getting a return on last year's capital investment. Given Telecity's high rating there is very little room for disappointment. The share price has been weak in the run up to these results and hopefully the Company has done enough to satisfy low expectations. The shares are valued at 22.4x 2013 consensus forecasts for 17% growth and 18.6x 2014 for 20% growth. Sticking with it.

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On 1st January 2012 I set up the JIC portfolio with £151,110 cash.Under "Transactions" you can see how it has been invested, "Portfolio" shows the current portfolio and my approach to investing is described under "About Me". A history of all my postings can be found under "Company Blogs". Most… ...read more or visit website »


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TeleCity Group plc (TelecityGroup) is a provider of network-independent data centers providing colocation and related data centre services. The principal activity of the Company is that of an investment company. The Company's geographic segments include United Kingdom and the Rest of the Europe (RoE). TelecityGroup’s United Kingdom business encompasses operation in London and Manchester. The RoE segment encompasses market positions in Amsterdam, Frankfurt, Milan, Paris and Stockholm. TeleCity Group derives its revenue from the provision of colocation and related services in France, Germany, Italy, Ireland, the Netherlands, Sweden and the United Kingdom. more »

Share Price (Full)
631p
Change
-8.0  -1.3%
P/E (fwd)
15.1
Yield (fwd)
2.1
Mkt Cap (£m)
1,279



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About johnrosier

Johnrosier

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In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. In January 2012 I set up www.johnsinvestmentchronicle.com in which I record my trades and the reasoning behind them. more »



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