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Morgan Sindall (MGNS)
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Johan De Silva
Posted: 27 March 2024 18:12:19(UTC)
#1

Joined: 22/07/2019(UTC)
Posts: 4,409
A leading British Construction & Regeneration group.

This one looks like fairly attractive investment for those looking at UK smaller cap stocks around 1 billion:

- Has Net cash
- Has yoy growing earnings
- P/E under 10
- 4.95% yield
- Thin margins providing a moat against competition.

While the UK stock market is full of unattractive non-growing or high in-debt stocks, this is one that stands out and I wish I found it sooner as its gone up significantly over 1 year, yet is still cheap imho.

Anyone invested?
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Hilda Ogden
Posted: 27 March 2024 18:47:23(UTC)
#2

Joined: 31/07/2023(UTC)
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Johan De Silva;300778 wrote:
A leading British Construction & Regeneration group.

This one looks like fairly attractive investment for those looking at UK smaller cap stocks around 1 billion:

- Has Net cash
- Has yoy growing earnings
- P/E under 10
- 4.95% yield
- Thin margins providing a moat against competition.

While the UK stock market is full of unattractive non-growing or high in-debt stocks, this is one that stands out and I wish I found it sooner as its gone up significantly over 1 year, yet is still cheap imho.

Anyone invested?

Yes.
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Johan De Silva on 27/03/2024(UTC)
Johan De Silva
Posted: 28 March 2024 17:10:33(UTC)
#3

Joined: 22/07/2019(UTC)
Posts: 4,409
Well done Hilda!

I bought a tiny amount today, but I suppose its all very well finding excellent businesses, but the key is identifying the narrative early. Getting in on that turning point. In the small cap portfolio I think this year I got the bottom of Alpha Group (ALPH) pullback. Another company I am researching Alpha Financial Markets (AFM) is having a pretty torrid time. It is also in a net cash position to stay solvent and so its a matter of time to try and catch this one at the right.

Anyway I think MGNS has potential to grow into something much bigger, but I have bought in small to buy in on any dips that could come from being a domestic play on the UK.
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Hilda Ogden on 16/04/2024(UTC)
AndyJ
Posted: 16 April 2024 18:03:40(UTC)
#4

Joined: 04/01/2016(UTC)
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It's also owner managed (John Morgan), so it thinks very carefully and for the long term about how it deploys its capital with a view to preserving and growing that dividend. It isn't flawless - Property Services had a shocker in 2023 - but it is on very solid foundations (pun intended)
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Hilda Ogden on 16/04/2024(UTC), Guest on 16/04/2024(UTC)
Newbie
Posted: 16 April 2024 18:26:04(UTC)
#5

Joined: 31/01/2012(UTC)
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Invested during the covid mania.
Saw a huge spike - then a dramatic fall.
Has resurged again
Hindisght tells me I should have topped up but given entry was on back to whisper from someone who knows the owner in a professional capacity did not have the beleif to do so..
However still holding and given the nudge here - will look into the company in more depth.
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Hilda Ogden on 16/04/2024(UTC)
William P
Posted: 17 April 2024 07:39:50(UTC)
#6

Joined: 18/09/2018(UTC)
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I bought MGNS many years ago at 512 per share and still hold with all dividends reinvested.

My only regret is that I didn't buy more.
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Hilda Ogden on 17/04/2024(UTC)
Hilda Ogden
Posted: 08 August 2024 09:23:24(UTC)
#7

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Just keeps delivering. A high quality business. From MGNS website -

Quote:
“A record set of results in the first half, once again reflecting the high quality of our operations together with the perseverance and commitment of our people. Revenue, adjusted profit before tax and the interim dividend all delivered strong double-digit growth in the period.”

HALF YEAR RESULTS 2024
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William P on 10/08/2024(UTC)
Johan De Silva
Posted: 27 August 2024 06:51:15(UTC)
#8

Joined: 22/07/2019(UTC)
Posts: 4,409
This performance update was a little frustreighting as I only held this in my inlaws account and sold it in my own account when I went away in August. Finding a re-entry is going to be near impossible as the business is not only high quality but high value. An welcome and rare combination.

The thing that puts everyone off is purely looking at the share price it looks lofty. That is the problem I have with MGNS and some others like ALPH, AET, AXL (all these are both value stocks with compounding growth). A personal investor like me attempting to put a value is dangerous and that's why discount trading and drawdown trading is more of a sure thing, but the I firmly believe that some of these will grow much faster than the world index, but its a confidence thing as I get older.

I will probably just buy in on a new high... :-)
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Hilda Ogden
Posted: 27 August 2024 08:26:53(UTC)
#9

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Johan De Silva;317080 wrote:
This performance update was a little frustreighting as I only held this in my inlaws account and sold it in my own account when I went away in August. Finding a re-entry is going to be near impossible as the business is not only high quality but high value. An welcome and rare combination.

The thing that puts everyone off is purely looking at the share price it looks lofty. That is the problem I have with MGNS and some others like ALPH, AET, AXL (all these are both value stocks with compounding growth). A personal investor like me attempting to put a value is dangerous and that's why discount trading and drawdown trading is more of a sure thing, but the I firmly believe that some of these will grow much faster than the world index, but its a confidence thing as I get older.

I will probably just buy in on a new high... :-)

MGNS has been very kind to me. Growing dividend and a share price that's doubled in next to no time. I think today I'd be patiently waiting for the cycle to turn again, as it always does, before buying MGNS. Seems resistance at 3000p may not push much higher for a while, if at all.
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Johan De Silva on 27/08/2024(UTC)
Hilda Ogden
Posted: 01 October 2024 12:58:39(UTC)
#10

Joined: 31/07/2023(UTC)
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Hilda Ogden;317087 wrote:
Johan De Silva;317080 wrote:
This performance update was a little frustreighting as I only held this in my inlaws account and sold it in my own account when I went away in August. Finding a re-entry is going to be near impossible as the business is not only high quality but high value. An welcome and rare combination.

The thing that puts everyone off is purely looking at the share price it looks lofty. That is the problem I have with MGNS and some others like ALPH, AET, AXL (all these are both value stocks with compounding growth). A personal investor like me attempting to put a value is dangerous and that's why discount trading and drawdown trading is more of a sure thing, but the I firmly believe that some of these will grow much faster than the world index, but its a confidence thing as I get older.

I will probably just buy in on a new high... :-)

MGNS has been very kind to me. Growing dividend and a share price that's doubled in next to no time. I think today I'd be patiently waiting for the cycle to turn again, as it always does, before buying MGNS. Seems resistance at 3000p may not push much higher for a while, if at all.

Oh well, one month on and while I've been thinking about taking profits, MGNS pushes over 3100p. Has the resistance been broken and we are going to see further highs? Could be an interesting time at the budget for MGNS if there's a splurge of public sector infrastructure spending sanctioned. Wait and see on this one before taking profits.
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