Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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All in all, very impressive Presentation. Some points to take away:
Very impressive Gross margins now being achieved in the Glazing Division, 40% during 2024. "Glazing division Gross Margins improved from 3.6% in 2022 to 28.7% in 2023 (and reaching 40% in 2024)" and "Further improvement in Gross Margins expected from continuing operational improvements."
"Major BT nomination still expected in H1 and further Glazing PDLC wins expected" They also mentioned that there was a possibility of a further large nomination win in H1.....
"Lifetime sales value of all nominated business now is £53m which supports the expected growth to 2026 and beyond. So additional nomination wins will only enhance this, and I suggest lead to a positive re-rate of forecasts
"Two major PDLC wins announced for Glazing division – lifetime sales value £18.6m – with more to come"
I was also impressed by Mark Perrins and how he presented. Seemed on the ball to me.
Balanced opinion
Note that 2024 is a "transition" year as Singer Capital put it this morning.
Overall STG are forecast to make a £2.2m loss before tax this year, compared to a £1.5m loss last year. Even 2025 is forecast to bring a £1.2m loss.
EBITDA worsens this year to a £0.4m loss.
Net debt increases to £5m this year, up from £2.6m, and then worsens to £6.1m in 2025.
STG looks extremely "promising" as so many companies do, but as is so often the case it has a long way to go to deliver in terms of becoming (1) profitable and (2) cash-secure/generative.
Particularly as it looks like it'll need a fundraising at some point for working capital etc to support growth.
FY23 results show a much-improved financial performance with sales of £10.8m (FY22 £10.2m, +6%) and adj. EBITDA of £0.1m (vs a £2.2m LBTDA FY22a), in line with our expectations. This is the direct result of management action on productivity, pricing, quality and service. FY24e will, as expected, be a transition year given the lead times on new contract awards, but the business is in excellent shape to return to growth from FY25 onwards. Our forecasts show sales doubling over the next 3 years with recent nominations and a building pipeline of opportunities providing strong visibility on this growth. After the two recent new nominations in Glazing, which in aggregate bring £18.6m of revenue, the total lifetime sales value of all nominations held by the company is now £52.7m (over 5x FY23 sales). Management remain confident in converting in the near term (1H24) at least one significant opportunity in the renamed Battery Technologies division (previously EV) with a meaningful pipeline beyond that. In what is a well-managed succession plan, CEO Richard Barton will become Deputy Chair and hand over the reins in June to current group MD Mark Perrins. We think the current share price substantially undervalues the value creation potential with an inflexion point in growth in sight. No changes to forecasts or recommendation. BUY, TP 75p.
All reads very positive. High visibility of future revenue makes this a very solid investment.......
"Strong momentum already demonstrated in 2024 with two significant new wins announced in the emerging "smart" glass market, in which Strip Tinning benefits from first mover advantage, with sales growth coming in 2025 once serial production commences."
"The Company anticipates securing further major programmes across its Battery Technologies and Glazing product lines throughout 2024, with a significant new Cell Contact System win for the Battery Technologies division expected in H1 2024, with sales from volume ramp up anticipated in Q4 2025. "
Another contract win will likely push this much higher, however charts showing 58p+ by the end of next month based upon analysis earlier today (https://twitter.com/Share_Talk/status/1784904224599597159?t=yc76ATvlE7kTiupb1GEu4Q&s=19) Although this could be achieved much sooner based upon buying towards today's close.
Another 1% declared by an existing TR1 holder, so less than 12.5% sitting here with holders excluding BoD and TR1 holders
Thanks Janet 2007 I saw your recommendation on the insp page and someone else recommended this a few minutes later on Friday so I invested 2.7k so I’m well happy with todays rise ! Rare for a recommendation that comes good !
According to http://www.striptinning.com/investors/securities-information/, 86.7% of shares in hands of either Directors or investment firms (TR1's), although likely to be other large holdings (less than 3%). So leaves only max of 13.3% remaining. And after the sustained buying, can only see supply drying up and pushing the price closer to 100p
According to http://www.striptinning.com/investors/securities-information/, 86.7% of shares in hands of either Directors or investment firms (TR1's), although likely to be other large holdings (
According to http://www.striptinning.com/investors/securities-information/, 86.7% of shares in hands of either Directors or investment firms (TR1's), although likely to be other large holdings (
Balance the 5m raised in placing as 4m in convertible. Asset vs liability. Just so people do not think we just have cash
Yup..that is why there is a boost and timing of upcoming presentation
Gaining wider coverage... also Nicholas Slater has recently bought in and is openly stating this could 5 bag based upon it's fundamentals (he's often correct) - https://x.com/patviera/status/1784219776463589707
There are many reasons why people are buying, read back earlier chat and RNS releases:
Director Buys and participation in Placing which raised £5.1M in January.
Reasons for fund raise: "The Company does however need new capital to invest in its EV division so that it can seize the opportunities that are within sight, including the Company's first high-volume serial EV nomination which is anticipated in the first half of FY2024. "
Read back previous RNS releases, look how many sales nominations they have been awarded recently.
Market Cap : £7.1M and of that, £5.1M was raised in the placing.
Do u know why people are buying? The trigger?
Good buying in here today and now moving up ...up 15 percent ....should break past 50.00 very soon
Expecting more contract wins Outside of glazing very soon
In the top 10 gainers on the leaderboard risers looking very strong and ready to move up higher this afternoon
See some Chunky buys late Friday and early morning in here....may really take off this week
This is in the top 15 risers on the leaderboard Northernboy and probably finish in the top 3 this afternoon
Buyers coming in strong today and good volumes
Incoming here....great morning so far should rally this afternoon
Big player in the automation market and share very cheaop and unheard of and will bounce up big time in 2024 ....multi-bagger coming
A lot of sales nominations recently, a lot to look forward to......
A couple of Warren Buffet quotes for today:
"The investor of today does not profit from yesterday’s growth."
"The stock market is a device for transferring money from the impatient to the patient"