Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thanks Mandello. lol essentials, shares buy keep in the draw for future. Gareth Jenkins plenty of experience, will build it up ,would not surprise if take over target in future. there where rumours a while ago over by a big hitter.
Causal, comments like that lead me to think you must be one of those "ANALysts". Gerrit? ??
@causal - Who needs a broker's note and @surprised analysis when you summed up the reason to hold / buy in a mere few words : )
My favourite post on the BB to date
Good time to top up here, everyone has to wipe there Asses, covid or not.
https://twitter.com/surprised_trade/status/1450779698913554432
second broker note out
Second broker, Liberum, note out -
Accrol remains fundamentally strong after significant progress in FY’21
The business remains in excellent operational shape with scalable foundations for growth and a strong market position across UK retail. Acquisitions of LTC and John Dale in FY’21 have provided the company with further scale, complementary new customers, synergies in distribution costs, spare capacity and entry into the complimentary adjacent category of fully flushable wet wipes. Accrol completed the full automation of the Blackburn tissue plant in FY’21, with robotisation replacing all manual finished goods movements. The four converting lines at the LTC plant are already fully automated. With a small element of automation to be completed in Leyland in FY’22E, as a new machine arrives, the Group will have three fully automated greenfield sites to achieve the lowest possible operational cost base in the UK. The group has no further significant capital requirements for the Tissue Converting division. Accrol’s has made significant advancement on its plan to develop its own paper mill. It has finalised the specifications and costs of the machine and the building and is currently running a selection process for the mill’s location. This machine will be a UK leader in efficiency, quality and carbon neutrality. The machine, once completed, will fulfil half of the business’s current tissue requirements. The company is mindful of the current energy costs and their impact on the feasibility of the mill investment, and it will look to secure a long-term energy supply contract, as well as explore options for on-site energy generation before committing to the investment in the mill. No additional funding is expected to be required from shareholders to deliver this investment.
Valuation appears cheap at 7x CY’22E EV/EBITDA
Our Target Price 80p (from 95p) to reflect lowered forecasts.
Btroker note out ....
Impact on forecasts: As a result of this update, we now anticipate FY22E revenues to grow by c.25% YOY
We expect profitability to be significantly H2 weighted given the immediate cost pressures versus the time lag
Investment view:
Accrol trades on a FY22E PE of 16.5x falling to 10.9x in FY23E. A rerating of Accrol to 15.0x-16.0x FY23E PE (in line with listed peer average) implies a valuation of 61.0p – 66.1p, implying upside of 38% to 47% versus last nights close.
Intrinsic value
Based on the average FY2 P/E of the Group’s listed peers, a rerating of Accrol to 15.0x – 16.0x FY23E P/E implies a valuation of 61.0p – 66.1p, equating to upside of 38% to 47%. We believe the Group in its current form can generate revenue of c.£250m and EBITDA in excess of £35.0m over the medium term. Profitability could be boosted further through the development of its planned paper mill, with an update on its status expected at Interim Results. We believe the addition of a paper mill would drive gross margin towards 33%, with EBITDA margins at c.18%. On this basis the Group would be capable of delivering EBITDA in the region of £45.0m, implying significant uplift versus current levels and driving a material improvement in shareholder value.
https://*********************/companies/uk/household-goods/accrol-group-holdings-plc/research/zeus-capital/accrol-group-holdings-plc-acrl-ln-trading-update/92fa8f66-49ba-41ec-be24-c135d0a75b6a/bbece8f1-36a0-495c-9093-f3cae5555a26
Sorry folks - I'm new here and interested. Why the massive fall today?
plenty of other shares trading at cheap, BOO ASOS to name few.
I'm selling out and bought more BOO
Still great growth potential with 2021 buys of wet wipes, john dale purchase north wales, and tissue plant I'm buying at 11p