Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Son of Tanfield ?
"The Board would therefore expect the initial cash proceeds to the Group of the Potential Disposal, should it be completed, to be sufficient to pay off all existing Group bank borrowings, provide significant operating cash and the Company would retain a 20 per cent. interest in the ongoing operations of the Laser Business."
Wow - unbelievable. Best I can tell, rather than sell the company and distribute the net proceeds to shareholders they've come to arrangement whereby they continue to collect salaries whilst providing zero return to shareholders.
Halved in value today from last Fridays after hours RNS. Doesn't look to have much of a future for current shareholders but an asset management co just invested around half a million pounds sterling at 5.5p a share?
Shares to be suspended. Loss making and unable to refinance. Glad I was not suckered into the subscription...
IMO back to the future is their only hope. Having said that, if they got back to where they were before, according to the laws of causuality, the paradox would result in the implosion of the existing universe. IMO no hope ...
Sad indeed. I hope there is a future.
Sad
Group net debt excluding lease liabilities was $2.5m as at 30 September 2022 (31 March 2022: $17.0m)
All revenue no profit despite the so-called move to 'high margin' laser products. Family silver already sold, debt mounting and supply problems through to end of financial year. So much for the new positioning/strategy.
There is a need for some decent sized director buys, to bring confidence.
Abrupt CFO departure, needs explanation.
Trading update for the new 100%laser company format would be helpful.
The p/e here must be ridiculously low.
An RNS or update is due for SIXH.
The stand alone laser business will be profitable, the questions as to how much, we should soon hear.
Indeed, the tool making business was high volume with razor thin margins; not the sort of business for a lowly capitalised entitiy. Good riddance to it if you ask me. Laser business looks much more attractive based on recent filings.
Selling family silver? Perhaps escaping legacy millstone.
Historical accounts will mean little as this is a new vehicle, debt free with a growing laser business which has a increasing order backlog.
Concentrating on the larger custom built product, designed for client needs is proving successful.
Forward looking P/e of less than 5, suggests substantial re rate is due.
Semiconductor issue notwithstanding.
The question is - what effect on operating expenses was the machine tool business having?
The reason for this question, is that the operating expenses are the issue here, the company is not really making any money. Gross profit - $12.2M. Operating expenses $10.7. Subtract finance expenses & tax, and you are left with $0.5M.
Seems the company has not been profitable and this has incurred debts. Ok they now have a chunk of money from the sale of a business, but there is a sizable debt to pay. How will they focus on growing the laser part of the business?
Also talk of exposure to microchip shortages in the interims I read. Only took a quick look. I also went back to pre covid times and still read familiar sob stories. Doesn't strike me as a growth opportunity - yet.
You can only sell the family silver once. I will keep watching from the side-lines.
*Tidied up previous post*
Sale complete and cash received.
Any thoughts on the below?:
Market Cap @ 16.15p: $24.8 million
Cash minus Debt: $6.9 million net cash
Market Cap minus net cash: $18.7 million
FY22 H1 Laser Profit: $1.8 million
Proposed Current PE = 5.2 based on FY22 H1 figures
Sale complete and cash received.
Any thoughts on the below?:
Market Cap @ 16.15p: $24.8 million (£19 million)
Debt at 30 September 2021: $14.1 million (net of forgiven PPP)
Cash from sale: $21 million
Cash minus Debt: $6.9 million net cash
FY22 H1 Laser Revenue: $15 million
FY22 H1 Laser Profit: $1.8 million
Market Cap minus net cash: $18.7 million
Proposed Current PE = 5.2 based on FY22 H1 figures
Indeed, yet Mr. Market has not noticed.
The next set of results cannot be far away, then a re rating may be due.
$21 million for the machine tool solution against a market cap of £15 million, that's a good result if it goes through
This deal is just what the company needs - a realisation of cash hungry assets at close to book value, with a potential clearing of debt finally paving the way for growth investment/dividends/buybacks in future. It also looks to fit in with the purchaser's existing interests so quite possibly a win-win.
Must be about time for an update. Expecting strong trading news.
Probably correct. Excellent results and significant growth in higher margin laser operations ,bodes well.
Debt increased by $4M (albeit $2M written off under the PPP), makes me think cash flow may be (rightly) redirected to delivering the significantly increased forward orderbook prior to a dividend of any significance.
Resumption of the dividend now looks a distinct possibility.
I see this component marking side of things doing well. Traceability of parts is important especially if you want to out source and and keep quality control.
Gone are the days when a nut is just a nut: need to know who ,where and when it was made
https://youtu.be/4aC0LnLlbbQ
A leaner and more efficient business well placed for the future
I particularly liked this bit:
· Current Group order book $22m against $11m at the same time last year.
Looking good going forward.
Potentially looking at 70 m turnover, profitable multinational company valued at just 16 million. This is another U.K. market undervaluation.