Adrian Hargrave, CEO of SEEEN, explains how the Company is now funded through to profitability. Watch the video here.
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It's a pity Shore Capital don't attach a target price to their sell note - they reiterated their 'sell' on 25/3/22 when the share price was 20% higher, could they be neutral now?
Anyway, they are an outlier - all other brokers are positive.
Fine, but check the broker ratings. Shore Capital, which you refer to in your quote, reiterated this as a "sell" on 25 March.
Can see a rally at the end of the day, and the price get ut back to the top once the players have eat as much as possible to hold.
Solid business with profit and dividend, what more can you want.
Simon Thompson in Investor Chronicle today "Analysts at Shore Capital estimate that LAICA accounted for between £4.5mn to £5mn of the group’s £33.7mn operating profit, a healthy return in relation to the consideration of €21mn (£17.6mn) in cash and shares paid to date and an estimated contingent earn-out of €6.9mn." Seems Laica business was a great buy for Strix. It seems Strix is firing across all cylinders with newer controller complex products to launch in 2023 as well. So a big overreaction (share price falls) to results yesterday I would defo say.
Seems I joined too early - should've followed the old ' three day rule' ...lol
To me it looks like an overreaction.
With Strix having done major investments, cost cutting & pushing up price increases with growth defensive qualities, I think bigger funds looking for positive returns in a possible global recession if it comes. So they need to invest somewhere stable with access to growing China markets & global diversity. So it’s just not bag a dividend & run away. So give it time and Strix share price should bounce back.
Yeah, looks like big buyer waiting to be reported:
Sold Value £261,479.97
Bought Value £633,332.10
Also look at the amount of 1 share sells, someone is trying to bring this down or keep it cheap SMH
@krustysmegna, yeah thought it would be an attack today to drive the price down and puck up cheap shares. The dividend on the table is going to be a big motivation to large funds, and with the CEO saying a strong profit in 2022 means that sell the sales post dividend will be easy.
I'm more surprised at how fast and easily this is dropping, which looks to me that there is a big buyer in the background.
Sometimes it those shorters working for major clients to drive down the share price. They pick up the shares on the cheap. Fools for those selling at these low prices! Then perhaps the market makers testing how far low sellers are prepared to sell out. Again here they pick up the shares on the cheap, fools for those selling out at the lows. I agree Strix is oversold completely, even moreso great value. I’m looking to add more shares too. Strix has solid growth prospects.
Tree shake? 300p soon?? I said yesterday this looked like testing 200 soon, 203 as I type. Someone wants this price driven lower, I don't know what their motivation is but this is in a downward spiral that shows no sign of turning yet. When it does, I believe it will turn hard, and fast, so be ready to jump on board sub-200p
On profit, Bartlett said he "absolutely" expects profit to rise in 2022, despite the prevailing headwinds. He also expressed commitment to implementing progressive increases to the company's payouts to shareholders, which he said will not be hindered by the current cost challenges.
Bartlett said that Strix will increase the price of its products in May, which is "intended to cover any known increases in the costs of commodities through the remainder of the year". He stressed the bit about 'known' cost increases, Russia's invasion of Ukraine having turned commodity price forecasts on their head.
"So I think we have done everything we can to mitigate those costs. Certainly for the headwinds that we can see as of today and looking at the spot prices today," the Strix CEO said.
Other costs mitigation efforts include making production more efficient, particularly in the company's factory in China. This includes the automation of production lines, which reduces the labour required, making a big impact on costs, according to Bartlett.
Adjusted earnings before interest, tax, depreciation and amortisation was up 6.3% to GBP40.5 million in 2021 from GBP38.1 million in 2020.
Liberum said that, with growth on track and with environmental, social and governance credentials to the fore, it continues to see Strix as a top-tier industrial stock and has reiterated its Buy rating, though it shaved Strix's target price to 370p from 460p.
Liberum analyst Christian Hinderake noted this was around two percentage points off the expected year-on-year growth for Strix due to the timing of rising costs versus the expected increase in the company's product prices. So they say Buy with 370 pence target. This down from 460p due to price increases around May not sooner.
It's clearly a tree shake at the moment with all the 1 share sells and trying to drop the price to pick up cheap shares to hold for the dividend coming.
Looks like the sells are slowing as no one left to sell. Should bounce soon and be a good afternoon.
I see no sanctions from China Russia trade at the moment. I agree that doubt much compliance from OEM’s anyway from western sanctions. So Equity Development are overly cautious about loss of Russia trade via OEM. So I would be inclined to go with Liberum broker Strix target price around 370p. So once sellers finished denting the share price Strix shares going to bounce off from their lows.
I'm happy for the dividend, great to get at these times.
And very happy with the companys work, revenue, and profit.
"Wonder if we will see a stock buy back by the BoD while the price is cheap. Let them reduce available shares while they increase revenue and profit over 2022."
With net debt of £51.2m there is zero chance of a share buy-back. That's only for companies that are cash-rich. Unless you want to give up your dividend for buy-backs??
The dividend will get this back up soon.
Wonder if we will see a stock buy back by the BoD while the price is cheap. Let them reduce available shares while they increase revenue and profit over 2022.
Considering the head winds and the cash used to get China manufacturing going, the company are in a great position to ramp up so big numbers.
Not necessarily disagreeing with you pernix, I also see value here and joined the party this afternoon.
Just noting that the stock market has a habit of wrong-footing us, meaning most predictions don't age well.
I doubt very much that Chinese OEM's are complying with Western imposed sanctions.
Strix shares are good value. Equity Development are speculating that lost OEM business from Russia will not be covered across other markets. Maybe over cautious. Strix is gaining market share & reasonable to assume they looking at making up any business shortfalls. Who knows when they will reach 370 pence as Liberum broker suggests? All we can do is follow the trends & be rewarded with decent dividends.
Tomorrow morning could see this easily open up, with dividend on the table, buying up and holding is a good strategy to make easy money
"Upwards share trend is my friend"... Just not quite yet, eh?
The preliminary results for Strix Group plc for FY21 were encouraging, with results modestly ahead of consensus expectations with record levels at the revenue and PAT level. Although headwinds continue, leading to pressure on gross margins, management actions have ameliorated the impact of rising input costs and the target of doubling revenues till by 2025 is still on course.
However, we think sanctions on the Russian economy are likely to result in up to a c.£3m hit to revenues in both FY22 and FY23, resulting in a 2% reduction in adj. EPS in both periods. Although Strix does not sell directly into Russia, the Chinese OEMs supplied with kettle controls do. We therefore reduce our fair value / share to 293p, still representing a 22% premium to the current share price.
https://www.equitydevelopment.co.uk/research/exciting-product-pipeline