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.. (like so many micro-caps)
up
Yes, my main short term, linked concern(s) are - The full potential liability from this lease dispute: gross (not time or uncertainty discounted) liability for DSN of possibly as much as £2-3m by my back of envelope calc or 3-4.5p/share (it is this high, of course, because there are still more than 10 years to run on this lease according to the rns) & - How any settlement would be funded by DSN (any thoughts? Rights issue plus some additional o/d?) However, even an adjusted sp of 10p (taking a great deal of account of this potential liability) leaves DSN in value territory on multiples (p/e or EV/EBIT) imo What is your read of the strength of DSN's markets and the quality of its management? Cheers Jolly
I tend to agree with you,,,,,,,,,could be a very good entry/topping up level
this morning @7.45p DYOR/not investment advice of course, but forecast EV/EBIT of around 5 makes this worth a punt imo
Densitron Technologies: Westhouse Securities resumes with a buy recommendation and a target price of 18p.
for half holding. Profits warning (though relatively mild) combined with more than my usual ignorance (about management and markets here) gave me no choice A bother - but may be great buying opp later on/at lower price
Densitron Technologies has been hit by a profit warning coupled with concerns over its exposure to a lease liability that is going to mediation. House broker Westhouse Securities had pencilled in full-year pre-tax profits of £1.62m on revenues of £26.16m. However, the company revealed that although profits will be above last year's figure of £1.06m, they will not meet Westinghouse's estimates. The company commented: "The primary cause of this is certain orders being received later than anticipated as a result of which the Directors now expect the deliveries associated with these orders, and therefore resultant sales, to be delayed into 2013." Nevertheless, the company emphasises that orders booked in the first 9 months of the year remain strong and are in excess of 10% higher than those booked in the same period in 2011. As regards the leasehold liability, estimated to be around £370,000, this relates to a lease signed 25 years ago for a property that was used by a subsidiary of Densitron that has since been sold. Densitron will now undertake mediation with the fund manager (Ashtenne), that owns the property and its former subsidiary that rented it, Fenograph, in the interests of progressing the matter in an expedient manner. It is hoped that this will enable the property to be re-marketed, after which the historic liability can be settled.
Grahame Falconer, Chief Executive of Densitron said: "We are disappointed that the Company will not sustain its recent growth in the current financial year. However, the current strength of our order book along with the development of intellectual property suggests that the outlook for the business is positive and we look forward to the coming year with confidence. "In moving the Newcastle property claim into mediation, we hope to be able to draw a line under this issue and allow management to focus all its energies on developing the core business."
Trading and Legal Proceedings Update Densitron Technologies plc announces that it expects its results for the year to 31 December 2012 to be behind market expectations. It does, however, expect that the operating profit for the year will be ahead of that achieved in 2011. The primary cause of this is certain orders being received later than anticipated as a result of which the Directors now expect the deliveries associated with these orders, and therefore resultant sales, to be delayed into 2013. Orders booked in the first 9 months of the year, however, remain strong and are in excess of 10% higher than those booked in the same period in 2011. This trend is expected to continue for the remainder of the year. In March 2012 the Directors announced that the Company had received notification of legal proceedings against it in respect of a lease of a property located at Wallsend, Tyne and Wear, near Newcastle. Full details of the action are set out in the announcement dated 1 March 2012. The claim is defended but in the interests of progressing the matter in an expedient manner, the directors have resolved to enter into mediation proceedings to seek a negotiated settlement if the other parties to the litigation are prepared to do so.
iii bb
Decent buy yesterday,,,,,wonder if the legal proceedings are reaching a conclusion ????
Densitron Technologies, an information display systems manufacturer, has reported a 6.2% decline in revenue for the half year ended June 30th, to £10.6m (2011: £11.3m). Pre-tax profit fell from £0.5m to £0.04m, while more positively the order book increased by 4.5% to £11.7m (2011: £11.2m). Earnings per share of 0.52p turned to a loss of 0.11p. The interim dividend was maintained at 0.2p per share.
When I know how much I owe the builder, I'm having a few more of these. Hopefully it will be a nice steady rise from here.
Jan G Holmstrom, Chairman of Densitron, commented: "I am delighted with the progress that the business has continued to make during the year. The foundations that were laid several years ago have enabled the business to develop and grow despite difficult economic conditions."
PRELIMINARY UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011 Densitron Technologies plc ("Densitron" or the "Company" or the "Group"), the designer, developer and distributor of electronic displays is pleased to announce its preliminary unaudited results for the year ended 31 December 2011. A further year of substantial growth has enabled the Group to move forward with its growth plans. Ø Revenue increased by 11% to £23.1 million (2010: £20.8 million). Ø Profit from continuing operations (excluding loss on disposal of available-for-sale asset in 2010) increased to £1.1 million (2010: £0.7 million). Ø 2011 profit from operations reduced by £0.1 million due to exceptional legal costs. Excluding these costs the profit from operations would be £1.2 million (2010: £0.7 million). Ø Capital reduction and special dividend totaling 5p per share paid to Shareholders. Ø Dividends for the year totaling 0.6p per share (2010: 0.3p per share) an increase of 100%. Ø Earnings per share (excluding disposal of available-for-sale asset in 2010) increased to 1.18p (2010: 0.72p). Ø Increase in gross margin from 28.1% to 29.6% reflecting an increase in the Group's range of quality products. Ø Growth of the new branch office in Italy. Ø Introduction of internally developed products providing intellectual property for the Group. Ø Promotion of new products and growth in the range of existing products.
http://www.investegate.co.uk/Article.aspx?id=201205040700147092C
Densitron, the European manufacturer of display technology for hand held devices, reported that the second half is continuing in line with management expectations; and that the business remains on track to achieve market expectations for the full year and the remaining two years of the Company’s challenging three year growth plan. The Company’s order book remains strong enabling management to be optimistic about the first quarter of 2012. The new Italian office continues to build a successful presence and is performing ahead of internal forecasts, and an Indian office is scheduled for January 2012.
DensitronBUY 31/08/2011 Miles Nolan We recently recommended shares in Densitron (DSN) and the electronic displays minnow has repaid our faith with a solid set of figures. In the six months to June, sales increased 31% to £11.3m as pre-tax profits soared more than five-fold to £504,000 (2010: £97,000). Despite the recent payout of a 5p a share special dividend, shareholders are to benefit from a doubling of the interim payment to 0.2p a share. Orders booked in the first half rose 6% to £11.2m, though stripping out a large one-off £500,000 order gain last time the underlying growth was nearer 10%. Sales in Europe stepped up 26% to £5.9m, as gross profits increased 15% to £1.3m. Growth in the US was good, however Asia proved the star performer - here sales leapt 75% to £1.4m. Speaking to Growth Company Investor, finance director Tim Pearson said 'despite the global economy, we are encouraged that our business is moving in the right direction.' On future growth he highlighted the intention to open an office in India next year, to tap into its 'massive economy' and the 'huge number of leads it receives.' Densitron has withdrawn its appeal against the rejection of planning for the 1.25 acre strip of land it owns in Blackheath, this will be a slow-burn is potentially very valuable. Broker Westhouse forecasts 2011 pre-tax profits of £1.3m and EPS of 1p. We suggested buying Densitron in June at 10.5p, with the price currently at 11.625p we retain our view. Buy.
http://www.growthcompany.co.uk/recommendations/1650848/densitron.thtml
Revenues at Densitron Technologies (DSN) increased 31% to 11.3 million for the first six months of 2011, while pre-tax profits increased 400% to 500,000 pounds following a strong order book and significant growth in its Asian arm. Sales in Europe and the US, its main channels of custom, also continued to perform positively. Additionally, the manufacturer of electronic displays announced a special dividend of 5p following the disposal of Evervision
House broker Westhouse Securities predicts 2011 pre-tax profis of £1.41 million and EPS of 1.49p. Shares in Densitron were recommended in Growth Company Investor this month at 10.5p, so the 17 per cent increase in the price to 14p today is pleasing. Densitron remains undervalued.
Densitron in upbeat mood 28/06/2011 Miles Nolan Electronic displays specialist Densitron (DSN) has issued a bullish trading update, thanks to strong demand for its products. The AIM counter has reported that order intake in the first half of 2011 is up 9 per cent to £10.6 million. Of more significance Densitron has increased both its sales and profits 'substantially' with revenues of £11 million and gross profits of £3.2 million - compared to £8.6 million and £3.2 million respectively last year. The result of this is that pre-tax profits in the first half will now equal what was achieved for 2010 as a whole. Aside from the strength in core trading Densitron also owns a 1.25 acre piece of land in Blackheath, as expected its attempts for planning permission were recently rejected by the council. An appeal is planned, however the likely realisation of value is unlikely to be achieved in the short term. Densitron is confident that robust demand provides good levels of visibility, therefore providing comfort it will hit market expectations. The sales office it opened in Italy last year is opening doors for potential new orders, further out there are plans to replicate this model in India later in the year and potentially China in 2012.
A year of substantial growth has positioned the business well on its three year growth plan.  Revenue increased by 37% from £15.1 million to £20.8 million.  Profit from continuing operations (excluding loss on disposal of available-for-sale asset) increased from £0.2m to £0.7m.  Orders booked in the year increased by 64% from £13.3 million to £21.8 million.  Re-financing exercise completed with all borrowings now supported by trade.  Pipeline of new business opportunities continued to be strengthened during the year and into 2011.  £3.9 million received following capital reduction and subsequent disposal of Evervision.  Proposed repayment to shareholders of 5p per share consisting of a 4p Capital Reduction and a 1p Dividend.  Interim dividend of 0.1p per share paid and a final dividend of 0.2p proposed.