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supplying 40 high speed trains to Sweden - hopefully PEG will as usual be in the frame for more work: Https://www.investegate.co.uk/bombardier-transportation--0qzp-/gnw/bombardier-wins-contract-to-provide-40-high-spe---/20180406132457H2445/
...and continuing to rise today on tiny volumes. Still no stock around and a decent-sized buyer in the background I'd assume.
Yes, fairly large per centage rise on low trading.
I assume not much stock around.
Bombardier have just announced they've won more business with TFL for �73m more AVENTRA trains: Https://www.investegate.co.uk/bombardier-transportation--0qzp-/gnw/bombardier-to-provide-five-additional-aventra-t---/20180327145558H9841/ PEG have of course already won business for AVENTRA trains/Bombardier.
Rising nicely, and looking good chart-wise - now above the Oct'17 peak and looking upwards to 30p+.
Excellent news today, with �1.1m of further secured income through to 2021 from the MOD - a big vote of confidence in PEG: Https://www.investegate.co.uk/petards-group-plc--peg-/rns/mod-contract-extension/201803190700040546I/ "The contract extension is expected to be worth in excess of �1.1 million over the two year period to 31 December 2021 in addition to the original contract which was worth in excess of �1.6 million for the three year period to 31 December 2019."
Hybridan have also issued a new note. They go for 2.15p EPS this year, with a closing cash pile of �2.51m. They summarise as follows: "Petards ended the year with a strong order book of over �18m, with over �12m thereof deliverable in the current financial year. This has been further augmented by a subsequent �1.5m order from the Ministry of Defence (MOD). Prior to this, defence orders scheduled for delivery in 2018 were almost 40% higher than at the same stage last year. 2017 was a significant year of investment for the Group, particularly in eyeTrain software and hardware products. Nevertheless, positive cash flow from operations combined with a conversion of all outstanding debt meant that net cash grew from �775k to �1.3m. The outlook for the rail division remains strong. Petards has six of the world's largest train builders as its customers. The 2017 edition of the Long Term Rolling Stock Strategy published by leading players in the UK rail industry forecast that the number of vehicles in service will increase by 20-25% in the period to 2024. The outlook for Petards� defence products is positive in the medium to long term as the MOD, encouraged by Brexit, turns to cheaper UK suppliers, and is released from EU competition rules. Our 2018 forecasts are looking for revenue growth of 12.3% to �17.5m and adjusted EBITDA growth of 17.8% to �1.91m. On a current year EV/EBITDA multiple of 5.8x and PE multiple of just 11.5x, we do not believe the rating adequately reflects the solid niche, that Petards has built in the rail sector which is underpinned by very solid long-term growth drivers. In due course we would hope to see Petards grow its product offering in the sector either organically or by acquisition."
WH Ireland, as well as forecasting 2p EPS this year, also forecast that the cash pile will rise to �3.5m by the close of 2019 from �2.5m this year (against a �13m m/cap). They note: "The order book stood as at 31 December stood at over �18m, providing excellent visibility over the next 18-months, including over �12m order coverage for FY 2018E. Following the results, we have left our FY 2018E earnings expectations unchanged, whilst introducing FY 2019E forecasts for the first time. At current levels, the shares trade on a lowly 11.7x FY 2018E PER and 5.6x EV/EBITDA and we continue to see fair value at 30p." And conclude: "Looking forward, the Group is well set for the year ahead with the order book standing at �18m as at 31 December, with �12m for delivery in FY 2018E and �5m for FY 2019E, including Stadler Bussnang AG on the list of customers for the first time. Encouragingly, management notes that the Group is in ongoing discussions for new projects across each of the areas of the business and it was encouraging to see the �1.5m Defence order last month. The shares currently trade on a FY 2018E fully diluted PER of 11.7x and EV/EBITDA of 5.6x. Given the level of secured work, in addition to the pipeline of opportunities, we believe that these multiples continue to undervalue the business."
Construction well under way. Passed there the other day https://www.google.co.uk/amp/s/www.bbc.co.uk/news/amp/uk-wales-south-east-wales-40585636
WH Ireland retain their 30p target today. They see 2p EPS this year, with the cash pile rising to �2.5m.
PEG's results show them to be in excellent shape for this year, with the �1m deferrals from last year helping towards an impressive order book for 2018 and beyond. PEG also have �2m net cash, against the �13m m/cap. And PEG will gain a further �130k or so this year with no loan note interest payable. The Chairman's outlook statement is nicely confident, with new project discussions "across all areas of the business": "The Group's order book at 31 December 2017 was over �18 million, of which �12 million is expected to be taken to revenue during 2018. We are also engaged in on-going discussions for new projects across all areas of our business, many of which our customers have themselves already been awarded. This coupled with a strong balance sheet provides the board with confidence for the Group's prospects in 2018 and beyond." Good news today re QRO: "has also recently been awarded two multi-year framework contracts, the first with Thames Valley Police and Hampshire Constabulary and the second with the Cheshire Police. Both contracts are expected to contribute to revenues in 2018." With a core �1.62m positive EBITDA, and a good outlook in Rail, Defence and Traffic, prospects look pretty good imo.
Sold our 2/3rds a while back. This company is too small and a niche company just waiting to be taken over. Too much reliance on orders, makes risk more in small companies. Will not add more as there are better cash generating companies with growth aswell out there.
The Times reports today that Siemens are considering building a new �200m rail manufacturing factory in the UK. The article demonstrates the scale of the upcoming opportunities for PEG. PEG have in the recent past won contracts with all of Siemens, Hitachi, Bombardier and Alstom.... Https://www.thetimes.co.uk/article/siemens-vow-to-build-uk-rail-factory-fn35995z3 Extract: "Transport for London is running a �2.5 billion competition to build 250 carriages in its �deep Tube� programme for the Piccadilly, Central and Bakerloo lines. It expects to award a contract in the autumn. HS2 Ltd is about to launch a �2.75 billion competition for 54 train sets for the London-Birmingham-Manchester high-speed rail network, which it expects to award next spring. Siemens is shortlisted for both � as are Bombardier and Hitachi. There is a fourth bidder shortlisted for both HS2 and deep Tube: Alstom, the French train manufacturer, which is going through a complicated merger with Siemens. ...Siemens is also targeting further future UK train-building programmes, for a project variously known as Northern Powerhouse Rail or Great North Rail, the as-yet unspecified trans-north railway linking the big northern cities and providing faster and more regular services between Leeds and Manchester."
It's worth reiterating that PEG now have �2m cash (including the �700k compensation receipt). This is forecast to rise to �3m by the end of this year - against a mere �13.6m m/cap. With forecast 2.3p EPS, the ex-cash P/E must fall to only around 8.5 or so.
I think this rise is simply a bounce-back from the incredibly low prices of a few weeks ago. Also, prices often rise in the weeks before annual report and accounts - Petards are due to report on 2017 in mid-March. And last week's MOD news means that their figures for this year are likely to be very strong. Bear in mind that Petards are still very cheap compared to other specialist engineering/software companies - so without any more big announcements I'd expect this to continue to rise about 30p in the very near future
Something else going on that we don't know about ? Link with the Spanish train builder CAF ? The new factory in Wales ?
Good to see the price moving up on a 10k buy today. Perhaps not much stock around. WH Ireland have increased their forecasts for this year per Hemscott. They now go for 2.3p EPS this year (up from 2p EPS previously).
Petards finally have a proper website - far more professional and appropriate for them. More important, they're currently advertising 4 roles - all of them in engineering and software. http://www.petards.com/careers-and-jobs/ This feels like a company gearing up for significant growth
Consistently moving up this week - hopefully the start of a decent run up.
Hybridan have issued a new note today after the contract win. They leave their forecast at 2.03p diluted EPS for this year for the moment, and conclude: "The shares are trading at just 0.7x current year revenues and circa 10x current year earnings. We believe this remains a significant buying opportunity for a Company we are forecasting to record its fifth successive year of revenue and net profit growth. The orders announced today have further de-risked this opportunity."
Explains the buys yesterday afternoon. Nice bit insider trading.
Lovely stuff - a big new �1.5m contract win for the MOD. Looks like 2018 will be a bumper year given the already deferred contracts from last year. Forecast EPS might now rise to around 2.15p-2.2p EPS or so.... Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PEG/13538643.html "Contract Win Petards, the AIM quoted developer of advanced security and surveillance systems, announces that it has been awarded �1.5 million in contracts from the UK Ministry of Defence ("MOD") for the provision of communications equipment and services in the UK. Petards has a long established reputation as a supplier of radio communications equipment together with related engineering services to the MOD and the award of these new �1.5 million projects cover the delivery of radio equipment and engineering support services, the majority of which are expected to be delivered during the first half of 2018. Raschid Abdullah, Chairman of Petards Group plc said: "Petards continues to be very proud of its unbroken 18 year relationship with the MOD in this field. We believe that the consistently high levels of customer service through our enabling agreement, together with our independently audited accreditations and expertise in supporting the MOD has again been recognised through the award of these contracts."
Agree Rivaldo, bought back in this morning at 19p, thought I'd missed the boat but this opportunity looks likely to give a nice double bottom on the chart and show good support at 18, wouldn't surprise me to see this followed up by another nice contract award shortly from the Siemens framework or another
Good to see a bounce happening now after the bonkers early markdown by the MMs, but still very cheap imo. WH Ireland this morning have a 30p fair value even on just an in-line rating for the sector - over 50% above the current share price. They cut historic EPS to 1.4p, and "conservatively" retain their existing 2p EPS forecast for this year. PEG now have a �2m cash pile (�1.3m at 31/12/17 plus today's �0.7m). This rises to �3m at the end of 2018 - almost 30% of the �10.9m m/cap. The ex-cash m/cap stripping out the �2m cash is now a historic 11.4, falling to only 8 for the current year. With: - a very strong order book for 2018 - �1m additional revenues for 2018 - �2m and rising net cash - booming markets I continue to believe PEG have very good fundamentals and prospects.