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Oogle, can you point to me where you got this £10m from? I can see this from FY results:
Cash in the business at year end December £4.5m (2021: £11.8m). Could this be lower now?
I work in this type of business, do you realise the costs associated with keeping all of the employees, regardless of component shortages? Google says there are 600 employees (seems high to me) but you get the idea. In my own line of work, we have not had component shortage issues for a long time. I think the SW article is just highlighting that the business is rather poor, and not generating anywhere near enough cash.
Revenue 18M
Cost of sales 9M
Admin 9M
Left with ? Not much.
Tangible assets
PPE 2.6M
Cash 4.5M
Inventory (which is not selling) 10M (could this get written down?)
Basically £12m of assets, on a company that is likely burning cash. I can see where SW got their valuation from.
Regards earnings, it looks flat to me from investors chronical research portal, though they had a good year in 2019, however this is a mute point for me, I am only interested in what has happened since Miles took over, and it has declined:
· EBITDA at £2.1m (2021 restated: £4.9m)
I don't blame the CEO entirely for this, I do remember the tough times we had, but I just think there are other problems here that we don't know about. I am not sure about Miles, I think this is his first PLC appointment, and I don't think he understands markets or AIM. The company is especially poor at IR. I regularly check in on the company on linked in and the like, it looks a great company but it isn't making any money, in the defence business while there is a war on. FWIW, I hold Chemring, and this has pulled through all of the issues here, but price has not really re-rated yet, They are far more diversified as well. I might be tempted here, more that it gets bought out by PE. I think they have had long enough to turn this round and they seem unable to. Is it the core products? Look at this line form the post achievements, Successfully winning the first Systems win in excess of £1 million in value since the launch of the revised business strategy. Its taken nearly 2 years to win a 1M order. WTF.
My genuine worry now is they hit cashflow issues. Not sure what they would do in this case. £40M mcap, maybe at £30 it gets a bite from PE? Thoughts?
As for earnings decline by 9.5 per year for 5 years is complete and utter BS . You can even see that is not true in fundamentals on this site. Check your facts!
15p would be a valuation of 11 million with 10 million cash in the bank. Sheer genius . They are the look out for acquisitions. Perhaps that upset the market. Don’t want them adding value to the business as well as record orders
Miles tells a good story. A a long term investor, let's hope it will all come true.
The results are in fact slightly better than the update forecast. What is disappointing is the previous FCO inability or changes in accounting procedure. The bi one is of course supply disruption which they tried to off set by spending cash reserves on stock. Also they have invested in staff and upgrading technology. All in allI think Miles has done everything possible to not only prevent the company from dwindling away into a has been but geared it up to being a leader in this field in the not too far off, certainly by next will be a very different proposition.
Disappointing results considering increased military expenditures in the US and UK.
For what its worth, the LSE buy/sell algo might be having a bit of a wobble this morning. My buy is being shown as a sell.
Recorder order intake which improved by 25% from 25 million to 31 million. Funny how these accounting issues seem to arise when companies are going through a difficult patch. Decks cleared with good visability
That’s a good one to have out the way and right on the bell! Looks like Miles really did get here in the nick of time. Turning it from a quaint old company into a modern state of the art one please!
Still some dumb fund manager selling probably. The new systems contracts will create as much new business as the whole of the companies single boards business, like double the size of the company and more. I suppose the penny will drop eventually
concurrent technologies yesterday announced that it has secured a contract with a uk ftse 250 company to supply a custom set of embedded systems for a national defence installation.
ceo miles ad**** explains for us what exactly has been won, how the contract came about, why this is such an important win for the company and whether we can expect more contracts like this to come.
https://1lo.co/nx4jf
Doesn’t need to. Staff share option plan. Why risk your own money when you can dilute shareholders shares
..and I have great confidence in the growth of our embedded systems business."
Yet, he still hasn't bought a single share?
Onwards and upwards
Results in a fortnight. Seems to have steadied the ship. Typical market drift on no news but looks like they have been busy. Hope to see some sign of cash generation on the back of record orders and double shifts. Doubled up on Friday fortunately!
Will the upbeat talk be followed by upbeat action? Results well overdue
Very upbeat directors talk interview. 28 million record order book again. Expansion with new off ice in m4 corridor. Expansion in USA. Dividend suspension obviously spooked the market but as usual has completely misread CNc. Annoyingly it probably wasn’t necessary to suspend dividend. Can’t blame them in this turmoil not least with twat Truss and Kerching screwing up in record time
Fingers all crossed for this exciting development.
Agree in principle, but the supply issues could be more serious than first thought. If you watch the video interview I posted from earlier this year, he makes a point of saying that the design never changes, once approved by a customer. This is typical of defense but A-typical of consumer electronics, where if you were short a part you would just design in an alternative. So I am a little worried at what shortages are the issue,and whether this is affecting some long term business.
It is a great stock, and I think its going to transition to a growth story over the next few years, now we have a new BOD.
But the results also implied that disappointment would follow in the next 6 months, so I think there may be further weakness here. I will hold off from adding to my pension, and sadly had to dump my ISA holding. Cant afford to be trapped anywhere with my spare change. As I said before, if the BOD bought some shares it would show commitment, but sadly new CFO and CEO have bought nothing so far. I expect they will wait until visibility of revenue increasing.
Look at the positives - exceptional order backlog, no debts to be hammered on interest rate rises, component supply issue is only temporary, going from 3 to 8 product releases/year, most orders are for new products. This is a jam tomorrow scenario and I'm back in! This is a great little share for an IHT portfolio, and next time a broker points that out it'll pop right back up.
Lord lee I believe added to his holding in the summer. I see he also binned his holding in the popular ipo ADF last week . This was unwelcome news on top of our newly imposed economic terrorist government. I think under the circumstances it was prudent to suspend the dividend. Someone suggested a cut would have been better . I disagree. I hope this suggests this is indeed a temporary blip. ‘ revenue would have improved further without the supply disruption.’ I think without this information the fall would have been considerably more savage. Aside from the general economic carnage of an incompetent BOE aiding and abetting an inadequate government, the outlook is still promising
I did wonder why the new BOD had not bought any shares.
CEO and CFO need to back the company now before any one else does.
Very surprised to see these interims results. As far as I was aware, the news coming out of the company was positive and there was even an indication in an announcement in July re the new supply agreement that the company was managing supply chain issues! Will continue to hold but also not planning to add more at this stage
Very grim still plenty cash was always gonna get smashed especially with economy in turmoil
Not the results I had expected to be honest. Performance blamed on component shortages. I would have liked to hear more detail about these component shortages, and how they look over the next 6 months. As someone who works in the industry, the 2 large teir 1's I have worked for have had no issue with component shortages this year.
Share prices are being completely manipulated by market makers currently, the 20% drop today on light volume was entirely down to market makers taking a position, and by 10:30 we now have more buys than sells, shows that a lot of the news here was already in the price. I would like to see some director buys now, and I guess the H1 results explain why we have not seen any from the new board up to now. So this is your chance to back the company now, if as you say this is just a blip. I will continue to hold, though will not be adding on this weakness.