Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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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!
I reckon market would like this, shame it was a late afternoon rns, but my twitter post has 311 views at the moment so surely we will see some interest tomorrow
During the year, orders with a potential aggregate annualised revenue value of approximately £1.2m were secured in the construction, cast iron radiator and commercial vehicle markets.
In June 2023, the company also secured a major new contract worth approximately £7.3 million of revenue over an eight-year term with a leading European automotive industry components supplier.
In November 2023, CHC received a letter of intent and tooling orders from an existing customer in relation to two 10-year serial production programs for products in the heavy plant sector. These programs will ramp up through the early part of 2025 and are expected to contribute approximately £7.1 million of revenue over their lifetime.
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.
During 2023, Petrel has invested in two new machines that will enhance productive capacity and deliver cost-saving efficiencies. In the first half of the current financial year, Petrel has introduced upgrades to its product range, including a self-test emergency option for the popular 7 series. With expectations of double-digit revenue growth again in 2024 at operating margins that have consistently been around 16% for the last 2 years, the Board believes that Petrel is well placed to contribute a materially enhanced operating profit in 2024.
Like 9 minutes after the rns came, so has anyone spotted any contracts alluded to in the rns that we previously did not know about?
Fundamentals of business all on track and improved, wheres the massive share price rise going to come from? only way is to keep announcing big contracts
Lol that just usual stuff in a going concern paragraph, that doesnt say they will actually do it. anyway they probably will. but anyway they should try at a premium and now do lots of rnss to drive the SP up
Group's funding strategy is to maintain flexibility in managing its day-to-day working capital needs through the use of an invoice finance facility, and to fund acquisitions and significant capital projects through the use of longer-term funding, including bank loans, hire purchase and equity. The Group's £3.5m invoice finance facility is ongoing, as discussed in the commentary on the Consolidated Cash Flow Statement. The availability of adequate liquidity to fund operations is a significant risk to the ongoing viability of the Group. The Group reviews its ongoing headroom weekly and projects forward on a daily basis for 13 weeks and produces longer term projections that give monthly headroom for a 2 year period as part of its budgeting and quarterly reforecasting process. In addition to the invoice finance facility, the Group has the ability to raise capital from shareholders if required
What this?
t. The Board continues to review the various options available to support the Group's working capital requirements as we continue to deal with repaying legacy debt and providing adequate funding for three growing businesses.
Deep deep into it near the bottom however, it's basically a last resort should need be.... I'm not worried by it in the slightest!
Where does it say that in rns? you have eagle eyes, wheres that?
Might be done at a small premium i would hope
Does say in the rns they’ll look to do a fundraise. Only thing that wasn’t so rosy. Everything else looks great
Market waking up to the positive rns.
Great work Gerry!
The progress each unit has made is excellent!
CHC have a second large multiyear contract and pletny of other orders.
RDC exclusivity contract for company in the renewables sector
Petrel With expectations of double-digit revenue growth again in 2024 at operating margins that have consistently been around 16% for the last 2 years
Well I bought 70K shares at 2.45 about 10 min before the RNs, so I'd better read the results now. Broke my rule on this one.
...and we're still here.
Onwards.