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Bundred and Johnson remain in place which absolutely does not give me any comfort given the recent disasters....Bundred simply has to go: the longer the two of them remain joined at the hip, the more likely it is that investors will give this a wide berth beyond those of us stuck at much higher levels
You said it! And one non executive director refused to take any!
Considering the Open Offer was way oversubscribed.....it now looks even more disappointing that the main man ..the CEO...only took £15k worth of shares in the Placing ....
That would be very welcome Superda. As I said yesterday, for me the first trading update of 2024 is vital (I believe we're due one in January). That needs to demonstrate that the £1m sales in October continued into November and December at a minimum. Latest Hardman note forecasts £23m sales in 2024 (£9m H1; £14m H2), so run rate for the first six months of 2024 is £1.5m sales per month. If production ramp-up goes smoothly (big if) and £1.5m per month is achieved in the first half of the year with confidence to move to £2m+ per month, then this should definitely climb again, because most other parts of the jigsaw are coming into place, the most important parts of which are the order book and pipeline themselves (all very well having the production capacity unless you have the customers!). Broader market sentiment notwithstanding, I see little reason why the market cap wouldn't climb back to the £80m-£100m range - it was there before with a significantly weaker order book - which would represent a share price of 30p-36p at today's values. At this point, I'd settle for that this time next year.
Https://www.thebusinessdesk.com/northwest/news/2125501-surface-transforms-concludes-13m-loan-deal-to-boost-production-capacity
Rerate soon ! SP back to 20s !
GLA !
Your post nails why there needs to be boardroom change and soon before Johnson et al burn through all this new discounted funding sorting out yet more issues. Precious little faith in Johnson's CEO capabilities to drive this business to consistent performance and profitability over the long term. Lets hope there is some proper strategic discussions about the management's competence taking place around the board. Johnson and Bundred cannot afford yet another operational disappointment
Next tick in the box - Bundred has to go and be replaced in the new year. We cant have the 2 Board members most responsible for this shambles still in situ. Johnson's time must come (but not yet), but we do need Bundred to go, and be replaced by an expereinced international plc chairman.
More news ! Rerate soon !
GLA !
https://www.business-live.co.uk/manufacturing/supercar-brake-firm-surface-transforms-28268852.amp
Supercar brake disc manufacturer Surface Transforms raises £24.2m in new funds and predicts profitability in 2024.
https://lbndaily.co.uk/brake-disc-maker-will-be-profitable-in-2024/
Should see. Re-rate now, all change
That is good ...they only needed the second part of the raise to go through as the outstanding condition..... they probably been sent the positive votes for Resolutions from the major shareholder in advance of the AGM anyway
RNS out ! GLA
You haven’t a clue what you’re talking about.
DamayHill
The thought has to be that they have learned a lot from the issues of 2023 and that with a new experienced COO added to the team things can indeed look better from now on , in terms of the production.... and of course sorting the funding requirement puts to bed the work needed for that...
The loan decision appears to be "imminent" and I would guess is waiting for the AGM to pass the Resolutions so the fund raise is fully voted on ...
Thanks pokerchips. Unfortunately, there's a world of difference between having the capacity equivalent to £50m sales per year and actually delivering product at volume, as we've seen this year. October sales were apparently £1m, so they need to demonstrate a gradual ramp-up during H1 2024 and certainly not a further reversal.
" problem-free sales of £1m+ per month "
DamayHill
They have stated.... if this can remain on course ...and the production faults be resolved ..then £1m+ per month seems more than possible
" The Company remains on course to have capacity equivalent to £50m sales per year run rate in 2024 and for £75m sales run rate in 2025"
Surely... SURELY, 2023 will be in line with guidance issued on 3 Nov of £8.6m sales. If not, the Board are continuing to tell us one story whilst conscious of another. I'm taking it as read, perhaps foolishly, that there will be very little variation from that.
Therefore, the critical moment becomes the first 2024 trading update., where we need to see largely problem-free sales of £1m+ per month. If the first few months of production are materially behind the run-rate for 2024 full year guidance, then my confidence in this management team will be eroded. In the meantime, I'm prepared to give them the benefit of the doubt.
" the share price has remained higher than the Offer price even as the Institutional shares have gone live"
Only 18.6m and 1.35m shares have gone live so far....the bulk ...62.9m and 27.4m have yet to hit the market ( post AGM)
So...the whole fund raise will collectively add 110.3m shares and be a 35.5% dilution with 90.3m shares still to go live after the AGM
" We continue to expect to move into profitability and free cash generation in 2024."
"The Company does not currently anticipate requiring any further external funding for future expansion up to Phase 3"
The production capacity must be functioning 100% as planned if they are indeed going to be able to fully fund Phase 3 from cash generation (the combined revenue capability of the existing and extended Knowsley footprint will be £150 million p.a.)
Apologies I was including the loan…Bundred seems confident…. But again with him & Johnson, the Chuckle Bros, at the helm, what could possibly go wrong?
I think it raised £2.7m not £27m and around £11m overall.
Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs is pleased to announce that the Open Offer was significantly over-subscribed, raising gross proceeds of £2.7m.
Subject to the Resolutions being passed, £11.0m gross proceeds will have been raised pursuant to the Placing, Subscription and Open Offer
£27m raised.Chairman & CEO responsible for operational/financial debacle. What could possibly go wrong?
It's good to see the level of confidence in SCE's Open Offer. £27m raised, versus £20m they were aiming for.
https://www.lse.co.uk/rns/SCE/result-of-open-offer-05tqj6w00zhm7lt.html
I have a modest holding, and a 1:12 subscription didn't net me many more shares, so I applied for quite a few more and got them all.
The Offer shares go live on 19th December, so I'd expect the share price to remain sluggish until after Christmas as PIs cash in their 5-10%, but after that (fingers crossed, touch wood, sage the room, avoiding ladders, black cats and cracks in the pavement) the share price should rise significantly from 10p over the next 12 months.
It was only July that 4 board members put in a hefty chunk of their own money, buying shares on the open market at an avg of 32p.
It's interesting to note that the share price has remained higher than the Offer price even as the Institutional shares have gone live, suggesting that they aren't being flipped significantly.
Totally agree....CFO made a big play about it. Other critical issue is that Bundred resigns and we get a competent plc chairman who can actually kick t5his into shape and hold Johnson's feet to the fire.