The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Terrific update. Great to see the fast-increasing sales to the renewables/offshore wind sector.
This further supports the broker forecasts of £1.3m EBITDA and 0.6p EPS for this current year to 31/5/24.
A fantastic set of new customers - as well as Volvo, Nissan and JCB, I hadn't realised Steel Dynamics are a $19.2 billion m/cap steel producing American behemoth!
Well done CMH PLC.
Excellent News!!
These guys have clearly got the bit between their teeth, and securing business left, right and centre.
Market Cap just doesn't reflect the value here.
Remember that's only an update for RDC......
There is three companies in one here!
The turnaround is in full swing. The HY report should be released in February and then we will get a real sense for the progress made
Fantastic news
Can start investigating the renewables potential now!
Big names and big contracts! Santa rally! VOLVO! JCB!
Indeed. Not seen a trade that big since around the time of the results. Be interesting to see if we get any more big trades this week
Half a Million at 2.45
Hmmm which renewables company is involved with Dogger? whats it called?
RDC has been extremely successful in winning new orders from blue-chip companies with an annualised value in excess of £4m following the demise of a competitor foundry. In addition, RDC has signed a two-year exclusivity agreement for an established company in the renewables sector, with the potential to generate up to £1m of revenue per annum. This agreement further entrenches RDC's strong position in the buoyant renewables market, which is expected to continue to expand with further UK Government funding for wind and tidal power announced in August 2023. In addition, RDC is enhancing its current steel making capabilities in order to fulfill demand from existing customers that previously the Group had to turn away. lots of positives.
Well done DMSC!
Keep em coming.
66,959 was my BUY! Stay positive.
Great spot!!
Https://www.linkedin.com/feed/update/urn:li:activity:7135956885660143616/
"The team at Petrel are very proud to announce a new partnership with I-Valo Oy. Our partners at I-Valo have a long-standing experience in lighting manufacturing, and are now stocking our 9 Series products to strengthen their presence in the ATEX lighting industry"
Oh well thats it then , we jus sit here waiting for Godot. not Gal Gadot, Godo. is he coming yet?
Personally I am looking forward to seeing a prompt half year report early in the new year, that will perhaps be able to focus more on the detail of these new projects without having to deal so much with what are hopefully now legacy issues.
Hopefully such a report, released on a prompt timescale will give more of an impression of a company that is back under control of its destiny and, touch wood, making a profit.
We need to investigate what CMH do for that exclusive renewables company....... Be good to get involved in a company that is involved in this deal PM has sorted today:
'new investment for Dogger Bank wind farm.
The PM said a deal worth up to GBP11 billion had been struck by energy firms RWE AG and Masdar which will help fund what will be the world's biggest offshore wind project.'
By the way, the forecast is for positive 0.6p EPS this year, in case anyone's confused by the bullet point hyphen!
Cavendish's new note today forecasts for this year to May'24:
- £24m revenues, up from £20.7m
- £1.3m positive EBITDA, up from negative £0.1m
- 0.6p EPS, up from -0.8p
They summarise:
"CHC turnaround.
Whilst RDC and Petrel continue to perform well, it is the turnaround at CHC which has been, and will be, central to improving overall group performance. In the 2023 financial year, CHC achieved a 48% reduction in losses that helped the Foundry division to reduce losses to £0.2m from £0.5m and – excluding a £0.2m bad debt charge – the Foundry division achieved break-even.
The strategic plan for the turnaround focuses on diversification away from the automotive sector and the addition of new business to utilise the spare capacity at both the casting and machining facility.
In November 2023, the group won a 10-year contract in the heavy plant sector which is expected to generate EUR7.1m over the life of the contract and should commence production in Q4 2024. In June 2023, the company won a contract worth EUR7.3m over 8 years for turbo charger bearing housing castings, with production expected to commence in July 2024. Production has already commenced on new casting orders valued at £1.2m across the construction, cast iron radiator and commercial vehicle markets and the machining facility has added c.£1.0m of additional revenue, which will result in improved utilisation.
Overall, the strong order book at CHC is expected to result in 2024 CHC revenue growth of between 15% and 20%. CHC is also developing a capability to produce ductile iron products, which is a larger market with buoyant demand and limited capacity."
We get some interest today, official google news not showing the proactive usual results update
The prelims to 31st May released this afternoon show a welcome return to form and a very promising outlook for CMH, which now has a mere £2.9m m/cap.
The underlying operating loss for the year was reduced to a mere £0.4m before a one-off bad debt, but having made a £0.3m such loss in H1 this means H2 saw a loss of just £0.1m.
Further, every division is now operating well and improving fast. So much so that the Chairman is now able to say:
"The Board is anticipating a further increase in revenue of between 15% and 20% and profit after tax of between £0.8m and £1.0m in FY24".
Not bad for a £2.75m m/cap. And given that CMH are now on the last day of the next H1 reporting period, the bullish sentiments expressed should be reflected in a further improvement for this H1'24.
CMH aren't out of the woods yet reading to the end of the report, as working capital remains tight and there are still pension contributions to pay, though these look manageable as trading improves.
But the tone of the report and prospects going forward are undoubtedly positive:
"the improvements and building blocks that have been hard fought over the last two years have put the Group into the position where the strategic goal of returning to operational profitability is expected to be delivered in the 2024 financial year"
"I am pleased to report significant operational improvements across the Group for the year ended 31 May 2023. The Group is well positioned to continue its journey to a full recovery and expects to return to a more sustainable level of profitability"
"Whilst having delivered incrementally modest improvements to operating performance in the last two years, the Board firmly believes that all of the Group's businesses will make further progress in 2024 and that Chamberlin will deliver the step change in performance we have been working towards"
Well if he in favour of this, thats good as he has a lot of followes
Try get Mr myles to get a quick analysis on it...... He said he would read results.
I am a lurker on twitter and don't post!