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Is that 11% drop material from 11am?
No, of course it isn’t. As usually happens the news has been sold into. The SP will be back.
About £25m was said to be forecast operating profit, but today
we are told analysts at Jefferies raised their estimates for SIG's 2021
profit to £32 million pounds from £25m.,predicting stronger profit margins from France and Germany. ( compared with a loss of £43 million pounds in 2020.)
But there you go.
There was nothing in today's 6 month results that holders should not have been expecting - perfectly in accord with the trading update, and forecast ahead of expectations for the year.That seemed to be broadly an accepted position until mid morning, when the shares were sold down onwards. I confess to being bemused though noting the reasonable, cautious outlook, indicating that though confident of full year performance, current ahead of expectations forecast may not be possible in a worsening situation -
"We are anticipating a continued impact from material shortages, which could be more significant than in H1, and which could persist for an extended period. Driver shortages have also affected the supply chain in recent weeks, notably in the UK.
Given these prevailing macro-economic uncertainties, we retain a cautious view on market conditions for the remainder of the second half at this stage. However, the strong results in H1, the solid trading seen in July/August and continuing robust demand, together with the effectiveness of our supply chain management and commercial agility, gives the Board confidence for the full year performance. Providing the disruption from material shortages and haulage constraints does not worsen in coming months, full year underlying operating profit is now anticipated to be ahead of prior expectations."
Is that 11% drop material from 11am?
Silly dick an absolute clown ??
Silly dick an absolute clown ??
It’s all relative, I am currently 48% up in my sipp and 23% in Isa but a tad under in recent sbets, happy with that after a year
Time and time again you have slated this share....yet 9/10 you have been wrong....SP will be back you'll see. I actually sold this morning and will buy up some more soon at hopefully 40p to increase my holdings by 20ish %
matt, can I have some of what you're (not 'your') smoking? The all share index is up over 1% and SIG is currently down around 10%!
SIG is a sucker share, it's that simple.
Only half year results they said this year will turn a profit and we only know half the story. Lead times for material have improved and I suspect we will see some more positive news for Q4 or potentially up to Q2 of 2022.
Remember the SP has doubled and will always be some movement depending on the markets not just results
Just a tree shake don’t worry and if the china crisis
expands the drop here will be a big opportunity to top up .
I am happy asa long term holder , the company is turning a profit ( would of been more but remember has upgraded its distribution network ) there is cash in the bank …also compare this to the many zombie companies out there which are constantly coming with the begging bowl just to stay afloat .
I feel sorry for Mick I am sure he is disgruntled ex employee who’s final salary pension was wound up in favour of a DC pension, I have been there too , but I wouldn’t sit on a public forum lamenting about it all day , he should find a hobby and put a bit of colour back in his life .
GLA
Pains me to say this but it looks like Madmick might have been onto something here. Wasn't expecting this drop after the start this morning
Tend to agree with you andsoforth, there's value here. Patience is normally required in these recovery situations and there are always problems on the way. Ok, right now it is supply dislocations, but I have faith both in the management and the market itself to surmount them over the coming months. There's a decent tailwind to their industry as well, so a more benign & forgiving environment for them to do their turnaround work.
A big area of concern for me is that despite the improvement in gross margins and sales against 2019 levels, operating profit is still significantly lower. I put this down to a big increase in underlying operating costs which rose by 8.5% to £273.4m compared to H1 2020.
I suspect this means that SIG is only partially passing on cost increases to its customers, and is absorbing the remainder itself. Hmm. Looks to me as SIG are buying market share which won't be great long term for profits.
It is a low margin business, and the company is in recovery. BIG profits will NEVER be had here. Best to shop elsewhere for that. But this still seems undervalued to me.
This is the key takeaway. 'Group like-for-like H1 sales up 1% up on 2019.'
This is pathetic. We're in the middle of a construction boom and only 1% up on 2019. Forget last year due to Covid.
Share price will open down.
Results are acceptable ansoforth lol!
Underlying profit £3m is pathetic.
LFL sales up a third. Who cares. It's the profit that counts.
Gross margin steady at c25%. Who cares. It's the profit that counts.
SIG is back on track it’s a massive animal and needed steadied, first part done, financial muscle , dots on the map, great people returning to the business and a top class management team: steady as she goes
Includes a positive glimpse into the start of H2.
"Trading in July/August remained solid, strengthening the Board's confidence in full year outlook despite caution over ongoing impact of material shortages.
As promised in trading update. Further progress expected over remainder of year. Recovery company on track.
Return to Growth strategy gathers momentum: UK profitable, and France and Poland delivering record first halves
· Group like-for-like H1 sales up 33% on prior year, and 1% up on 2019. Group sales excluding the UK Distribution business up 8% on 2019, with UK Distribution itself now back on track
· Strong gross margin management: H1 gross margin of 25.9%, 100bps higher than H1 2020
· Impact of material shortages and cost price inflation successfully managed to date, with minimal impact in H1
· £13.6m underlying operating profit in H1 (H1 2020: £42.9m loss). Underlying profit before tax ("PBT") of £3.0m (H1 2020: £53.8m loss)
· Continued balance sheet strength provides confidence to invest in growth strategy and to manage near term supply challenges. Net debt in line with expectations after H1 seasonal working capital increase, at £289.4m post IFRS 16 (H1 2020: £341.8m; FY2020: £238.2m) and £57.5m pre IFRS16 (H1 2020: £90.0m; FY2020: £4.1m)
· Trading in July/August remained solid, strengthening the Board's confidence in full year outlook despite caution over ongoing impact of material shortages and cost price inflation
· Continued profit improvement expected in H2 2021 and full year underlying operating profit anticipated to be ahead of prior expectations
Results are acceptable. The turnaround continues, but remember this is a leviathan (market cap £590m).
Underlying profit £3m.
LFL sales up a third.
Gross margin steady at c25%.
Or it’s because of Evergrande and the deep crap they are in which could effect liquidity- don’t tellme you predicted that too.
GCN, where the hell have you been? I've missed you technical analysis. It used to give me a good laugh.
Edwin, I'll make another excellent prediction. The results won't boost the share price. The opposite in fact will happen.
Ask yourself a question. Why did the share price go down 4% today just before the results are announced? In case you can't work it out it's because the results aren't going to be great.
You heard it here first.
Sell! sell! sell!!!
Gosh, he is still at it!?
Im still here, waiting patiently...
I await the impending update with interest.
I am invested and an "investor" and I am filtering Mr Madmick62 who adds no value and
clearly employed by persons shorting this stock. He is doing a good job as I feel suicidal!
hence the filter. Good luck to all genuine "investors"