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Will say a lot if Hargreaves Hale completely sell out ...
https://www.hargreaveaimvcts.co.uk/
What investor visit? Who was visiting the company yesterday?
"The numbers are worst case"
yes..but they cannot afford to be in that situation....as they need every £ to invest in the phase2 completion and phase 3 kit out and working capital .....any fall back will put the timetable behind IMO
The current contracts means they really cant afford any timetable slip ups , and any loss of time on phase 3 opening will hinder new contracts beyond the current ones
£400m order book? "(£390m)\* This is based on the directors' expectations, their understanding of the relevant OEMs production plans and estimated demand for discs and it takes into account the expected lifetime revenue"
" £300m prospective contract pipeline"
So its directors interpretation and a 'prospective' pipeline, i.e. not an actual sales pipeline.
BUT
"We are maintaining sales guidance of £23m for the year ending 31 December 2024"
"projected FY 2024 range of £17.5m to £22m sales"
Also
"Quarterly capital repayments will commence in the first quarter following the completion of the availability period."
"The remainder of the £44m capital investment programme will be funded from free cash flow as the Company moves into profit, still expected during 2024."
Fingers crossed aye? No mention of actual profit as yet. The pipeline isnt being converted yet, but this will obviously depend upon getting the new capacity up and running asap.
This could turn around but it is almost certainly going to need some cash as has been discussed. With the loan facility available for capx the placing is going to be needed purely for working capital purposes, including paying off the loan. In which case its got to be at a large discount.
Crazy times-£400m order book and I’m told the investor visit yesterday was fine.The numbers are worst case which is sensible given previous disappointments
** the main raise was to build more factory units on the site to cope with increased orders.
"Are we talking about a zombie company here? One unable to survive without regular infusions of cash?"
They've had contracts with most of the supercar manufacturers and impressively the US Army. There has been no regular infusion of cash here via raises. Yes, there have been raises but not excessive ones.
If memory serves most of the management team bought a hell of a lot of stock at around 50p a while back.
"Does anyone know why this 'scrap' issue is causing such a profound impact on the profitability"
Its ceramic. ceramic is massively expensive & they appear to lose a lot in construction. thats all i can assume
"the market has totally lost trust in management's ability to deliver."
They have admitted just how amateur they are , unfortunately...using shareholder money in a "learning" scenario
Glad I never bought in, although seemed an interesting product
The current SP is just investors showing their discontent and indicating they want more in the RNS about the cost implications of the scrap problem
I see SCE has been around a while - it's not a 3-year wonder like Saietta was - but I don't think it has ever made a profit in all of that time. Are we talking about a zombie company here? One unable to survive without regular infusions of cash? Well, in this macro climate the party's over. Today's share price reaction says the market has totally lost trust in management's ability to deliver. Not a good vibe. I'm starting to doubt management can turn it around.
Does anyone know why this 'scrap' issue is causing such a profound impact on the profitability of the operation? Would have thought it was a marginal cost consideration only.
No cash level given and that means only one thing!
9th April 2024 - " unchanged sales guidance of £23m"
17th April 2024 - " FY 2024 sales range of £17.5m to £22m"
they are such amateurs
Great update. Good to see BoD are keeping pi's in the loop.
GLA