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Yeah but I bet those net assets are all intangible - software, capitalised development costs etc. They much more than tangible assets have a tendency with troubled firms to so pooof....
Now you see them now you don't!
If only to see whether there's a dose of insider trading going on here. And there being no RNS - come on -44% is material. The Board now have a fiduciary duty to communicated with the market
Yeah but if PEG suddenly tell us they're delisting we'll know why it was a distressed seller. On the other hand that would be an obvious case of insider trading like no other, either way I may assume there's more to sell as the nearest share ownership of that size is about 1m away.
Fascinating !
Got to be worth some bedtime reading... £87k sell tanks the price by 44%. Market Cap now under £2M. Net assets £8.25M...
There's only 2 shareholders with that many to sell so which one ?
El-Khereiji Financial Company WLL
Corporation 8.6m
Charwell Investments Ltd.
Corporation 5.1m
Look at the trades, somebody sold 4 million for 2.125p . I've seen some crazy sales in my time but to sell this for 2p when 5-6p is desperate
Seems odd - must be a leak somewhere. I have googled and searched twitter but can't see anything. Not looking good.
48% drop so far today, no RNS, no chat. Anyone know why?
I don't normally go for conspiracy/leaks, but don't know what else to posit except some terribly urgent forced seller for there own reason.
???
Good to see PEG still launching new products - and incorporating AI too :o))
Https://news.railbusinessdaily.com/petards-rail-launches-technology-to-prevent-trap-and-drag-incidents/
"Petards Rail launches technology to prevent trap and drag incidents
November 7, 2023
Petards Rail has launched its PTeye solution, an innovative technology designed to support in the prevention of Platform Train Interface (PTI) incidents.
A new development in passenger safety, the PTeye system incorporates the latest in AI-ready technology and digital (IP) technology matched to the harsh environment of rolling stock applications. Its purpose is to prevent trap and drag incidents before train dispatch and, as a secondary safety measure, to detect drag.
The PTeye boasts an adaptable pod design that has been bespoke engineered for seamless integration with both new and old rolling stock. The versatile solution can be implemented as a standalone system or incorporated as a module into existing Petards Rail on-train camera/monitor technology.
Designed as an edge-capable device, the PTeye solution minimises impact on bandwidth and system load. This optimisation ensures long-term reliability and performance and is one of the many future-proof functionalities offered by the system.
Petards Rail designs and delivers train technology to help companies within the rail industry maximise passenger safety, optimise train performance and meet ever increasing passenger and industry demands. Its technology includes forward facing and rear facing cameras, track debris cameras, an on-train camera/monitor system, Automatic Selective Door Operation, interior cameras and pantograph surveillance cameras. In addition, the company offers supporting services and a back-office software, eyeTrain Connect.
etc"
Dreadful set of figures - truly awful on every metric. Crystal clear that management change is now needed - chairman Abdullah is clueless and has to go. Management clearly has no idea what is happening in their markets - hence totally false lead at the FY results published in May. Abdullah either had no idea how bad the tendering was or just lied - either way it’s a disastrous set of figures.
Rail has been an inside for ages - but what have they done to reduce dependence on UK market = Nothing! One tender only FFS….
Defence seems to have been a surprise to them too….
Meantime SFA is happening to change the dynamics. Shameful performance by Abdullah and I feel desperately angry and sorry for the staff. He needs to go!
For the record Techinvest had a nice summary of PEG's 2022 results inb their June issue. They concluded thus, noting also that PEG had £1.68m net cash, or almost 3p per share, against the current £4.2m m/cap:
"A lull in sales to the UK rail market acted as a drag on Petards’ revenue last year, but management report that the business is now seeing encouraging signs for new projects, particularly in the new build and retrofit rail rolling stock market. Moreover, service revenues are expected to continue their increasing trend as the installed base grows.
The current financial year has started satisfactorily with the group continuing to trade cash generatively.The broker consensus forecast for fiscal 2023 is 0.51p per share, rising to 0.77p for 2024. On a prospective P/E of 8.9 for a little over eighteen months out, the rating looks undemanding.
Petards’ book value (total assets minus total liabilities) is currently £8.25m or 14.6p per share, which is an exceptionally attractive value metric in the context of the UK market. Strong hold."
Was going through the subsidiary accounts and this does look extremely undervalued, esp once QRO is taken into account. One of the major shareholders has increased their holding recently. Quite a wide spread though.
I agree that this company has a strong base, but the Abdullahs seem to have no energy or vision to drive the company forward.
GIven revenues have halved over the last 5 years from close to £20m in 2018 to £11m last year (a drop of 30pc on prior year), where is teh energy to rebuild and expand coming from? We have yet to have any meaningful acquisition, and the busines just potters along. Without QRO the company would have been in trouble. What QRO shows is that they are pretty good at acquisitions...but that was bought back in 2016......
Lots of unaswered questions that Mr Market has given up asking hence the share price slump.
Hybridan have issued an update this morning. They forecast revenues rising this year to £11.5m and then to £11.9m next year.
They see 0.53p EPS this year rising to 0.97p EPS.
The cash pile is forecast to rise to £2.5m this year and then £3.2m - almost 70% of the current £4.7m m/cap.
In conclusion:
"Hybridan forecasts: We forecast 2023 revenue to be slightly higher than 2022, as the demand for the Group’s ANPR solutions continues and the UK rail market for core product eyeTrain has shown signs of recovery in 4Q22, with significantly higher bid levels than have been seen over the last two years, particularly in the new build and retrofit rail rolling stock market."
Considering the hiatus in UK rail spending - which it seems is now improving - these are imo a rather good set of numbers.
PEG have a m/cap of just £4.8m, yet have remained profitable despite their main division being so stymied.
They made a £0.52m PAT, and have almost £2m net cash (pre-IFRS), i.e backing up around 40% of the m/cap.
They also have excellent recurring revenues, up another 11% to £5m.
QRO is performning outstandingly, RTS are doing OK and are expected to improve, and Defence should finally pick up traction given the Ukraine war.
Above all, the recurring income and the pick-up in Rail gives encouragement for this year - a "satisfactory" and cash-generative start to trading bodes well.
Plus there's an encouraging note to possible further acquisitions from the cash pile.
And:
"We are now seeing encouraging signs for new projects, particularly in the new build and retrofit rail rolling stock market, for some of which we are currently in active negotiations."
These could be huge relative to PEG's minnow-sized m/cap.
Chelverton Growth Trust issued their prelims this morning. They have a £180,000 holding in PEG and stated the following:
Https://www.investegate.co.uk/chelverton-grwth-tst--cgw-/rns/final-results/202211090700057451F/
"Petards has transformed its business to manage the reduction in sales in the railway supply side. It has significantly increased gross margins which has helped to manage the decline in its sales. Its objective two years ago was to move to a higher value-added service with stronger recurring revenue. It is well on the way to achieving this objective. As a measure of its undervalue, some 50% of market capitalisation is represented by cash reserves."
Hi Dr_Kaboom, agreed re acquisitions. And PEG have a very good recent record in picking up companies which have subsequently performed well.
Could you expand on your comment re potential contracts with MILEX customers? I can't see any link with PEG yet?
More news - good to see Eyetrain being used by Network Rail to adopt "novel technology" to spot and alert areas of track and surroundings which are overgrown with leaves/vegetation/branches etc and reduce delays and track problems:
Https://news.railbusinessdaily.com/greater-anglia-is-using-cutting-edge-tech-to-help-cut-delays/
Rivaldo, thanks for this. One key ommision and which I think should have been mentioned is potential acquisition. It's been mentioned in the half year results - wonder whether anything will come out of that.
Techinvest's new issue is now out, so it should be OK to post their review of the interims from last month's issue:
"Petards Group
9p (PEG; AIM)
Petards’ results for the six months ended June 30 reflect challenging conditions within the UK retail markets. Revenue was £5.5m, down from £7.7m in the first half last time. However, the result in the comparative period benefited from revenues of £1.8m from two individual shipments of equipment, one relating to Rail and one to Defence. Gross profit margin increased to 49.3% from 39.6% a year earlier due to enhanced contribution from higher margin engineering and support services and a lower cost base. Adjusted EBITDA was 35.4% lower at £0.61m and post-tax profit was £0.1m compared to £0.43m in the first half of 2021. Diluted earnings per share fell from 0.74p last time to 0.17p.
Cash generated from operating activities declined by 32.9% to £1.12m, but net funds at the period end were up by £1.0m to £2.5m (4.3p per share).
One bright spot from the results was the improved performance from the traffic management systems unit, QRO, where revenues were up over 30%. Petards’ defence business also traded above expectations in terms of revenue and margins and delivered a good result for the first half of the year. Activities in the period included the delivery of new equipment to the RAF as part of the JETS threat simulator systems five-year framework contract secured last year. The rail market, by contrast, remains challenging for Petards and the period saw a marked reduction
in eyeTrain revenues. However, revenues from spares and repairs services were back to pre-Covid levels and the company is experiencing a higher level of enquiries and tenders for rolling stock refurbishment and upgrade programmes.
All expiring RTS software licenses and support contracts were renewed with an increased number of users, and the group order book at the period end was £6.0m. Petards added that it expects further progress in the second half, leading to a
satisfactory and cash generative performance for the year as a whole.
Petards’ activities generally performed well during the first half, apart from eyeTrain where delays in order placement for new systems reduced revenues. The order book at £6.0m remains supportive and should be bolstered in the second
half by an anticipated increase in refurbishment and upgrade contracts, which management believe will prove a precursor to securing future larger contract awards as rail passenger journeys continue to recover from the extreme low of the Covid crisis in 2020. Continue to hold."
Watch out for new contracts with MILEX customers.
Petards Group PLC - Guildford, England-based developer of security and surveillance systems - Interim pretax profit falls to GBP101,000 from GBP430,000 a year prior, citing challenging conditions. Revenue falls to GBP5.5 million from GBP7.7 million. Says that repairs services is back to pre-Covid levels. "The board anticipates the group will make further progress in the second half year and deliver a satisfactory and cash generative performance for year," says Chair Raschid Abdullah.
H1 results are out - pretty good considering the hiatus in Rail.
Against a £5.3m m/cap, PEG generated in just 6 months £1.1m of operating cash flows, and increased the cash pile to £2.5m - 47% of the m/cap.
With £606k EBITDA in H1, RTS, QRO and Defence are all doing fine. It's just a case of patience and time waiting for Rail to rebound, which perhaps we're seeing the first signs of given the narrative as regards increased order activity and the resumption of the InnoTrans exhibition in Berlin.
Techinvest updated on PEG a couple of issues ago and is a useful summary - note the 3.8p per share of cash together with the 1p+ EPS forecasts:
"Results for the year ended December 31 showed revenues up 4.4% to £13.57m. Gross profit margin increased to 44.9% from 36.4% a year earlier, reflecting a significant restructuring of the business in 2020. Adjusted EBITDA increased by 379% to £1.53m, while pre-tax profit reached £0.86m compared to a loss of £0.58m in fiscal 2020. Basic earnings per share were 1.51p.
Cash generation from operating activities was strong at £0.74m, contributing to cash balances at the period-end of £2.27m (3.8p per share) and minimal debt.
The order book at December 31 was circa £7.0m, with £8.0m revenue coverage for fiscal 2022. QRO Solutions had another record year in terms of revenue, cash flow and profitability. This was helped by the on-time delivery of an export order worth in excess of £0.5m to a new customer for ProVida speed enforcement systems, and increasing sales of the NASBox, whose rights were acquired in 2020, with 400 units being delivered in 2021.
Petards is expecting the coming year for QRO to continue strongly, with the addition of six new UK police forces to QRO’s customer list and the launch of several new products. Petards’ Defence made an increased contribution to group profitability.Following the board’s decision in 2020 to focus on securing smaller orders, order intake increased in 2021 and a 5-year framework contract, which was secured in June from the MOD for the support of threat simulator systems, is expected to give rise to additional order flow in the coming years.
Current macro-economic conditions are particularly tough for small companies like Petards (£6.8m market cap). In that context, this was a solid financial performance from the company and the strong order book provides encouragement for the current year. We view the product base as a significant strength of Petards’ business. The company’s software-driven video and other sensing systems for on-train applications, sold under the eyeTrain brand, have a strong customer base among global train builders, integrators and rail operators. Likewise, in the traffic segment there is good demand for the company’s Automatic Number Plate Recognition systems for lane and speed enforcement and other applications, sold under the QRO and ProVida brands to UK and overseas law enforcement agencies and commercial customers. Progress is also being made in the defence sector where Petards provides electronic countermeasure protection systems, mobile radio systems and related engineering services, sold predominantly to the MOD.
The consensus market forecast for the current year is for earnings per share of 1.03p, rising to 1.1p for fiscal 2023. A prospective P/E of 10.9 for eighteen months out looks undemanding. Continue to hold."
J1osf Having taken another look at Petards history, it seems it was once called Screen plc and got into difficulty, with shares trading at 1p back in 2002, so there does seem to have been a consolidation. I should have taken a more detailed look prior.
Thanks NickRubens
It seems that 200000 shares back then are now only worth 2000 shares today.
Not quite as well off as I thought I was yesterday.