Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Would be good to see some follow through support on this one as prospects look pretty decent.
Not a bad six months for a £5.6m m/cap company....H1 brings £929k EBITDA and £430k PAT.
Plus PEG have £2.7m net cash against that £5.6m m/cap.
Trading is broadly in line for the year, i.e just slightly below, and order boooks are down due to Eyetrain and the UK Government's train company reorganisation, but just look at that £1.7m cash generation in H1. And every division remained profitable, with QRO and RTS looking very good indeed.
There are also strong hints that more acquisitions are in the pipeline.
There are further hints that Eyetrain should recover relatively soon. With fundamentals like the above I'm happy to hold here.
only q is when to buy back from cashed out profit
tp 8p
AGM today and no trading statement :-(
Agree with the Great Rivaldo regarding 20p to 30p in the short term.
WH Ireland have issued an update this morning. Against PEG's £7.2m m/cap, they forecast:
this year : £14m revenues, £0.5m PBT, 0.8p EPS, £2.3m net cash
next year : £15m revenues, £0.8m PBT, 1.4p EPS, £2.9m net cash
It's not difficult to see a share price of anywhere from 20p-30p in the next few months imo assuming the business continues to progress along with the upturn in the train sector, particularly with a cash pile representing around a third and rising of the m/cap.
Market does not seem interested. Bid back to 12p. Maybe, a late surge during the day.
Another £0.5m contract win - and significantly this is (1) for QRO, so an unusually large win for them, (2) is for a new customer, and (3) is for overseas, which raises the prospect of further sales across the globe - as hinted at in the comment "we look forward to the possibility of working with them on future projects":
Https://uk.advfn.com/stock-market/london/petards-PEG/share-news/Petards-Group-PLC-Contract-Award/85488329
Incidentally, no-one here posted re the other £0.5m contract extension win for RTS only a week ago, bringing in more recurring revenue for the next few years:
Https://uk.advfn.com/stock-market/london/petards-PEG/share-news/Petards-Group-PLC-Contract/85432931
I think the answer to a decent sized acquisition would be a combination of bank debt + cash + deferred consideration / payment in shares.......I think that this will come good. I believe management know that the only way to scale the business is thro niche acquisitions which is I think what they are working on.
hmm my main takeaway from the results was this:
"The Board remains open to further expanding the Group through quality acquisitions and the acquisition of rights to product"
and:
"Currently discussions are taking place with potential vendors of their businesses, any of which, if terms can be agreed and the businesses satisfy the due diligence process, would positively benefit the Group."
And my immediate reaction was how could they make a substantial acquisition with nett cash of only £1m ? I guess they could utilise the £2.5m overdraft facility which was put in place through the year but that moves the company into a nett debt situation, not ideal.
I'm interested but I have doubts
WH Ireland have reinstated forecasts this morning. They see £0.5m PBT this year, rising to £0.8m next year (with 0.8p EPS and 1.4p EPS respectively).
Net cash is expected to be £2.3m rising to £2.9m.
They conclude that PEG "should now be positioned well to build out from the current base, including potgentially through further bolt-on acquisitions".
WHI should hopefully have been "guided" to these numbers by the company.
It's easy to see substantial upside from here - assuming these numbers are delivered, and particularly if the rising cash p[ile is utilised for more acquisitions.
PEG's track record in terms of the performance of the QRO and RTC acquisitions is extremely good.
Interestingly the WH Ireland £500k and £800k PBT figures are not even the adjusted PBT (or EBITDA) before amortisation, share-based charges etc. They're increased from the 2020 £1.2m loss as per their forecasts table, so they must be the net-net PBT after amortisation, finance costs etc. So the figure for adjusted PBT/EBITDA must be a lot higher!
Let's hope they're right....
No nasties as far as I can tell which is a relief as the results took five months to appear. It is difficult to predict where revenues, gross margin and ebitda might end up for 2021 but reduction in operating costs and improved cashflow gives me hope.
An encouraging set of results this morning for what is a mere £6m m/cap company.
The order book looks healthy at £12m (£10m already for this year), PEG have £1.6m net cash, and the outlook commentary is pretty positive. H1 results should look good too given the expected weighting and that 2021 has "started well".
Given the continued investment in new product (such as the 360 degree tank video systems and via the new Virtual Technology Centre) PEG should also continue to receive healthy tax credits going forward.
For the record, Chelverton Growth Trust are major shareholders here with a £250,000 holding, and they said this today in their interims:
Https://www.investegate.co.uk/chelverton-grwth-tst--cgw-/rns/half-year-report/202103300700078740T/
"Touchstar has made some positive announcements in the past six months following its period of reorganisation. Petards is some way behind, but should, in the course of the next 12 months, evidence the positive impact of the remedial work it has been undergoing. In both cases, once trading picks up, operational gearing should drive profits forward."
Robotics Tomorrow are covering PEG's new armoured vehicle eyeCradt 360 camera system:
Https://www.roboticstomorrow.com/news/2021/03/18/preliminary-attendee-list-released-ahead-of-future-armoured-vehicles-situational-awareness-2021-in-april/16487/
"The next annual conference on Future Armoured Vehicles Situational Awareness, which is taking place virtually on the 12th and 13th April 2021, is the industry's only event dedicated to enhancing situational awareness technology for armoured platforms....
....This year's event highlights will include exclusive addresses presented by leading figures within the field:
• 360 Degree spherical video explained by Petards: In a presentation entitled "Feedback from User Trials of 360 Degree Spherical Video on Armoured Vehicles," Mr Scott Patterson, Defence Director, Petards, will introduce the eyeCraft 360 camera system that solves local situational problems for vehicle crews and dismounted personnel. The presentation will also cover the implications caused by human factors as well as its other use cases."
A nice 25k buy at 14p has caused a jump this morning.
I also noticed this in the Times:
"Hitachi puts high-speed UK building plan in train
The Japanese manufacturer of Britain’s intercity express and Javelin high-speed trains has committed to building more of its rolling stock in the UK.
The announcement from Hitachi Rail comes as competition hots up for the contract to assemble trains for the HS2 high-speed link between London, Birmingham and beyond.
The plan also could mean that Hitachi will become one of the first companies to benefit from the chancellor’s 130 per cent tax “super-deduction” for investment in new plant and machinery that was announced this week....
....Its main competitor for the work will be Siemens, the German company that yesterday unveiled the new Tube trains it will build for the Piccadilly line on the London Underground.
Siemens is building a plant to make rolling stock at Goole on Humberside. It will go into production in 2023 with the aim of building half of the 94-train order for the Piccadilly line, with the rest coming from Siemens’ facility in Vienna."
The Times this morning highlights the rail sector as a big beneficiary of the Chancellor's Budget big tax incentives for investment.
Note that Hitachi, CAF and Siemens are all PEG customers:
Https://www.thetimes.co.uk/article/critics-question-wisdom-of-the-amazon-tax-cut-h592gd0cb
"Another beneficiary could be train manufacturing, which is surging as Hitachi invests in Co Durham, CAF opens a south Wales plant and Siemens builds a factory on Humberside."
I agree I thought it was a decent result all told, and at a market cap of £7m this remains a bargain. The problem is that until they can scale up, they are not going to hit the radar of most fund managers. With a tiny mkt cap, low liquidity, and low profile, its only the likes of micro specialists like Chelverton that own them. They need to get several decent deals stitched together to increase the market cap and unless that happens it will remain a hidden jewel. Am tempted to pick up some more stock if I can find it, but this is one that could take years to set a light.
Management also need to do more marketing - the website for investors is pathetic ; out of date and really sub standard
The 2020 year end trading update is out.
It's not too bad for a £7.5m m/cap hit by the pandemic - £13m revenues and a tiny loss, with almost a net £1m in the bank (after subtracting deferred VAT).
In particular, the order book for this year is £10m already, with an H1 weighting which means these upcoming results should look good.
There's also a very stong hint that there could be a transformational acquisition on the way, presumably funded by a mix of cash and equity/other finance. the pandemic could be a source of big opportumity if PEG can pick up a cash-distressed company or two on the cheap.
British taxpayers are providing a £1.7bn guarantee to a consortium led by train-maker Bombardier to build two new monorails in Egypt.
The backing comes from UK Export Finance (UKEF), which is underwriting the deal, in what the Government said was the largest British financing of a foreign infrastructure project.
The agreement means that Bombardier can now invest in its Derby manufacturing base where trains for the Egyptian monorails will be designed and built.
About 100 jobs at Bombardier will be supported by the contract, along with more roles in the company’s supply chain.
wtf was that RNS for. USelesss.
Hasn't this stock been tipped around this time of year in the past ?
'Penny Share' merchant with a double barrel name ........
On today’s RNS if they dip it I will buy me self some more!
Let’s see!
To get a share that doubles in price with ease and hardly any posts about it! This one is well under the radar, happy to keep your that way as I want to add more next week on pay day!
Great moves now we need an RNS to say why and we’re off!
Yep & it's not stopping! Very solid when this one moves....it moves!