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yes indeed. Very highly rated at this price on stockopedia. it made me wonder if small UK based suppliers are going to be back in vogue now. Perhaps the lowest possible price will not be so important for a while now? Quality and guaranteed ability to deliver from a local base could be back in vogue? The sort of stock that might steadily drift back up over the rest of the year I think....and maybe that will be typical for this type of UK based business who can offer something more than just "cheap".
8.44 - 8.9
Moving on up
Expect more - imho
Great contract win which secures the subsidiary's entire budget for this year and much of it going forward!
https://www.investegate.co.uk/petards-group-plc--peg-/rns/services-support-agreement/202005270954030661O/
" Services Support Agreement
Petards, the AIM quoted developer of advanced security and surveillance systems, announces that its subsidiary RTS Solutions has now been awarded a multi-year contract for the provision of software support services to one of its major rail infrastructure customers referred to in its announcement of 24 April 2020.
The contract, which runs until 2024, fulfils RTS's budgeted order book for the current year while providing strong additional cover for it in the years over the life of the contract.
Commenting, Petards Chairman Raschid Abdullah said ;
"We are delighted to receive this contract for software support services within the rail infrastructure and the visibility it provides for RTS's order book for the current year and beyond."
Now up 9%, and someone just bought 100,000 shares at 7.8p at a huge premium to the 7p offer price. Very keen.
Excellent news this morning, with this Siemens support agreement providing recurring revenues for two years.
There's a hint in the narrative that there's more of these recurring income deals to come:
Https://uk.advfn.com/stock-market/london/petards-PEG/share-news/Petards-Group-PLC-Services-Support-Agreement/82430985
" Petards, the AIM quoted software developer of advanced security and surveillance systems, announces that it has signed a two year Services Support Agreement with Siemens Mobility for their Desiro City Fleet Projects.
The agreement with a commencement date of 1(st) August 2020 is for the provision of technical and software support, servicing and repairs to the Petards eyeTrain systems fitted on Siemens Desiro City for Class 700 Thameslink EMU's and Class 717 Moorgate EMU's.
Commenting, Petards Chairman Raschid Abdullah said;
"Having worked with Siemens Mobility since 2012 we are delighted to now enter into our first Services Support Agreement with Siemens UK. We are committed to providing ongoing support to our customers throughout the life of the trains. Services Support Agreements provide long term recurring revenue, operational efficiency and protection of the customer's asset value whilst in service. With a typical train life of 35 years and Petards eyeTrain systems presently installed in over 12,000 vehicles this provides a strategic milestone to significantly grow our Rail Support Services business."
Yes it’s ok. The debt position is fair too. Not sure I would buy these atm but one to watch as we move towards end of lockdown
It's as good as one could have hoped for in the current circumstances:
- all factories/sites are open
- PEG are a critical supplier to its customers
- train builders still in production and order books still OK
- QRO sales stronger than expected in Q1 and RTS negotiating large renewal contract
- Defence performing to expectations
- financial position is OK with CJRS utilised
- the outlook is uncertain as with everyone, but the above is better than most
Https://uk.advfn.com/stock-market/london/petards-PEG/share-news/Petards-Group-PLC-COVID-19-Update/82298596
not looked at this for a while. 4.5p! Ouch. Sold out of these at many times this and all those divis when they bought out a cash rich stock....cant remember the name now.
Guess the trains wont be running. No new contracts. Will it survive? It is this type of business that is going to find it difficult to do so
v difficult times ahead for sector imv
& now so many better capitalised opportunities emerging elsewhere across markets
Downing selling down not a good sign.
appalling weak c/f
Downing selling down, it seems
Still not happy that they can pull this round. Losses will continue into the current year as is always the case. Confidence may have gone in house and with the customer base, also margins are likely to be under pressure. WHI forecast is fine but I always look for EPS after tax rather than a nil tax basis. At least two years as far as I can see before they return to growth.
WH Ireland now forecast for 2020 a £0.5m PBT, with 0.8p EPS.
PEG are forecast to close 2020 with £0.8m net cash given reduced cap ex this year.
With rose-tinted glasses on we must be hopeful that the well-known hiatus in rail sector/train building in 2019 will now pick up (and the signs for this are good).
If PEG can start to win one or two larger contracts again on the spending pick-up - as it should with a market-leading position - then the forecasts could/should be left in the dust as the company gets back on its growth path.
Further problem here is that the loss for the second half will be well over £200k and could continue into the new year. I also wonder if the £15m order book includes any of the delayed deliveries. Quite a mess and could spook confidence in future orders.
Muktass - I share your thoughts and it looks as if they have had their eyes of more than one ball at the same time. As you hint there could be someone ready to step in to acquire what is a company with good products.
One has to wonder why five weeks after year end do the management only then discover that a couple of projects have gone badly awry, coupled with having burnt through a load of cash when they predicted that product investment was nearly finished and the cash would start flooding in. Can’t see this company staying independent for long, which is a shame as there is value in there.
Contracts or not I feel that at sub 15p we are undervalued. I only hope we are not on the shopping list of of a larger business that sees the massive potential in PEG.
It would be helpful if we could secure some sizable contracts. The £1 -2m are OK but we need a lot of them. I wonder if the investor who exercised their options will be selling.
Interview with the director of the Defence division:
Http://www.manufacturingmanagement.co.uk/features/make-uk-annual-manufacturing-conference-meet-the-speaker
Extract:
"Scott Patterson, defence director, Petards
Tell us more about you and the company
I am proud to be representing Petards (one of the founding members of NDI and now a leading provider of security, surveillance and communication technology) at the Make UK conference. Petards helps the military, government agencies and other companies adopt innovative technologies. Following a career as a Weapons Engineer in the Royal Navy I spent eight years with Bab**** International where I helped to create their Smart Technology roadmaps, Augmented Reality systems and high performing support solutions.
Now with Petards I oversee our Defence division. We provide a range of rugged military equipment from Electronic Warfare systems on aircraft to control systems on Main Battle Tanks. I recently led the development and launch of their newest product - eyeCraft 360™. EyeCraft 360™ is the world’s first 360-degree spherical camera system for armoured vehicles. It dramatically improves local situational awareness for the crew, making them safer and the vehicle more capable. EyeCraft 360™ was launched at DSEI this year and has already been taken forward by the British Army for trials."
Hybridan have issued a new note following the £1.3m contract win announced earlier this week here:
https://www.investegate.co.uk/petards-group-plc--peg-/rns/contract-award/201910070700058894O/
Hybridan have a 30p target price, and have PEG on a P/E of only 8 for next year given the strong order book etc.
They summarise as follows:
"Today, the software developer of advanced security and surveillance systems, announced that it has been awarded a contract to supply Bombardier Transportation with Petards eyeTrain systems. The £1.3m contract is to supply systems to be fitted to ELECTROSTAR Electrical Multiple Unit (EMU) trains as part of an upgrade programme with train owner Porterbrook and train operator Govia Thameslink Railway (GTR).
This is a welcome addition to the order book whose growth in H1 was restrained by delays concerning certain rail franchise awards that are now expected to delay into 2020. Today’s order is a reminder that eyeTrain has had considerable success in the retrofit market. This is the case in both surveillance and Automatic Selective Door Operation systems (ASDO).
The range of equipment in this order reflects the completeness of Petards’ train-based surveillance and data-capture solutions and includes Forward Facing CCTV, Track Debris/Third Rail Camera and Digital Video Recording (DVR) systems.
Activities will commence immediately with the first equipment deliveries starting early 2020 and it is expected that the deliveries will be completed in 2021. This adds further confidence to our forecasts for 2020 (unchanged) for which order coverage stood at £7m as reported in last month’s interim results. We are forecasting modest year on year growth in 2020, to £17.7m and adjusted EBITDA growth of 24% to £2.11m equating to PBT growth of 70% to £1.01m, reflecting ongoing cost savings and lower R&D requirements.
We believe that the shares have been somewhat oversold post the recent interim results and are on a current year PE of just 12.8x falling to 8x for 2020. The EV/EBITDA multiples are 6x and 3.7x respectively. A share price of 30p, double the current price, would equate to a 16x 2020 PE which we see as more than justified by the Company’s prospects, technology and blue-chip customer base."
yep, worth focusing on neg fcf imv
Debtor days have increased from 47 days (audited) to 79 days (unaudited) since the year end. This doesn't smell right to me. Are there some trade receivables that are going bad or have sales been brought forward to June in order to flatter the sales figures. Either way, not a good sign.
The company is poor at communicating and doesn't seem to be concerned with the cash burn. In the space of 18 months the company has gone from having net cash of £1.3m to net debt of £0.7m.
Market cap is now just £9m and PEG must surely be on the radar of some of the private equity firms out there. A lowball bid of 25p would probably be enough to tempt shareholders which would be a shame.
Perhaps it is a company run by engineers with little regard for the finances. Just my opinion, will still hold the shares as things must surely improve from here. Good luck to all long term holders.
Net debt at 30 June 2019 £0.7 million* (31 Dec 2018: net cash £1.0 million)
o Diluted EPS 0.35p (2018: 0.88p)
Held these for years since when they issued converts for cash held by a shell and I converted and then sold out for a cracking profit. Rather gone downhill since and I see these halving again to about 8p myself. In debt now and going backwards. Peg have done very well for a lot of investors and I still watch but I would not be a buyer. GL holders