Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
cheers mate , must admit its not looking to hopeful , thanks for letting me know . are you still in ,or did you manage to get out ?
Looks like it is going to become a shell company how this will work not sure. But I know the 2 big investors and 1 is averaging 25p so would lose bigtime if things don't work out. Meeting again tonight will try for more info GLM
Is this a good entry point? Or is there other technical and graphical illustration for more downwards trend?
cheers mate . let me know anything you can .atvb
Hi mate HMB I'm out but SLME things happening there right now as a meeting is happening as I type.
cheers mate .I will get in tommoz , or thurs . hmb ,slme hold or sell?
You only have a couple of weeks offer going in of 1:6p from cey. Just for you only
Wolseley: Deutsche Bank moves target price from 3073p to 3197p reiterating its buy recommendation.
Wolseley: Barclays raises target price from 2850p to 3150p, while keeping an overweight rating. Credit Suisse raises target price from 3000p to 3200; outperform rating unchanged. JP Morgan raises target price from 3030p to 3150p and reiterates an overweight rating.
Positive Points: In the US, two bolt-on acquisitions were completed during the period: Davis and Warshow, a Blended Branches business based in New York, and Power Equipment Direct an online retailer of generators and power equipment, for a total consideration of £80 million. After the reporting period in November, Wolseley agreed to acquire 22 Burdens branches, a leading supplier of drainage and civil engineering products in the UK. The deal is subject to Office of Fair Trading approval. Cash generation remains a key focus for the group, with an emphasis on protecting margins and improving operational efficiencies. The company has benefited from the housing market in the US, which has continued to show signs of a recovery this year, following the 2007-2009 recession. A final ordinary dividend of £115 million was paid on 30 November 2012 with the group paying a special dividend of £350 million due on 31 December 2012.
Negative Points: Movements in foreign exchange rates reduced revenue by £81 million and trading profit by £4 million in the quarter. Competition across the group's markets remains intense. A strategic review of the group's struggling French arm is ongoing, after the business registered its third consecutive quarter of revenue declines. The statement said the group's operating expenses included a £3 million one-off insurance charge. Along with its peers, Wolseley is exposed to the overall health of the housing and renovation market. House price inflation and housing transactions are key drivers of demand. Improved credit and mortgage availability would provide the industry with a boost, both in new housing and renovation
Financial Highlights: Wolseley reported a trading profit up 7.6% at £198 million. Revenue in the three months to 31 October was reported as £3.33 billion (2011- £3.29 billion). Robust cash generation saw net debt reduce to £87 million (2011 - £523 million).
First quarter interim statement: Wolseley generates good growth in the US. The world's largest specialist trade distributor of plumbing and heating products, Wolseley Plc continued its strong growth in the US and Canada in the latest quarter. The company, which generates more than half its revenue in the US, posted a 7.6% rise in trading profit to £198 million, up from £185 million in the same period last year. However, revenues declined in Continental Europe as a result of continuing tough market conditions, particularly in the Nordics (down 4.8%) and France (down 8.2%) compounded by unfavourable currency movements. In the current macroeconomic environment, management said it is working hard to protect gross margins and to drive further operating efficiencies to protect profitability. With the challenging market conditions in Continental Europe in mind, the company said it had approved restructuring projects with associated charges of £33 million. Wolseley will issue its interim results on Tuesday 26 March 2013.
Company overview Wolseley plc is a major international specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials in North America, the UK and Continental Europe. The group has around 41,000 employees and is a constituent of the FTSE 100 index.
The October downgrade of plumbing materials group Wolseley (WOS) by Irish broker Davy seemed a little brave at the time given the special dividend and the nascent recovery in the U.S. housing market. The broker countered this by acknowledging the stock had been an outstanding recovery story over the past three years (especially in the run up to the latest special dividend of around 120p a share), but nearly two months on from the note the shares continue to climb higher still. Even with the P/E at 15, the Wolseley bull run shows few signs of slowing down.
Wolseley: Jefferies keeps underperform rating and 2,300p target.
Wolseley, the FTSE 100 plumbers' merchant, is set to acquire the property, stock and vehicle assets of 22 sites from Burdens, which supplies drainage and civil engineering products in the UK. The consideration for the purchase is set to be in the region of £30m, which includes a goodwill payment of £5.0m. In the three months to the end of September, the sites generated revenue from ongoing business of around £40m. The sites will be integrated with Wolseley UK's core businesses and Wolseley will have exclusive use of the Burdens name in the UK. Ian Meakins, Chief Executive of Wolseley said: "Like our other UK businesses, Burdens has a well established reputation. The acquisition will extend the reach of the Group's successful utilities business in the UK and gain one of the leading positions in the underground drainage sector. We warmly welcome the Burdens staff that are transferring into the Group and look forward to building the pre-eminent brand in this attractive market."
Wolsley: Jefferies downgrades from hold to underperform, target cut from 2,300p to 2,340p.
Wolseley: Seymour Pierce maintains hold rating and 2,700p target.
Wolseley: Jefferies keeps hold rating and 2,340p target.
Irish broker Goodbody, meanwhile, has initiated coverage of building-materials company Wolseley with a "buy" recommendation and a share-price target of 3,400 pence.
Wolseley, the FTSE 100 plumbers' merchant, has acquired Davis & Warshow, a residential and commercial plumbing supplier in the New York metropolitan area. The purchase was made for a cash consideration of £49m. In the year ended December 31st 2011 the business generated revenue of £72m and trading profit of £5.3m. The net assets acquired were £24m. The business, which operates from 11 locations, including seven plumbing branches and three stand alone showrooms, will be integrated with Wolseley's US Blended Branches business. "The acquisition of a long-standing, well-respected business such as Davis & Warshow allows us to enter the greater New York City area, where we have historically been under-represented," said Wolseley Chief Executive Officer Ian Meakins. "It also provides a solid platform for future growth and expansion in this large and attractive market." The share price nudged 0.07% higher to 2,690p in the hour following the announcement.
Wolseley: UBS cuts target from 2,850p to 2,800p, neutral rating kept.
Demand in the UK heating market declined throughout the year, although demand for other product categories performed better, the company revealed. "There is no evidence yet of improving market conditions and therefore growth will only come from market share gains in the short term," the group said. The Nordic countries and France let the side down, however, with the former seeing a 2.9% decline in LFL sales while France's LFL sales were down 5.6%. Weak consumer confidence affected the RMI market in the Nordics, and margins came under pressure in the second half of the year. In France, new construction markets weakened substantially in the second half. Government incentives put in place in the last two years are ending and demand is expected to continue to decline in the current year. Share price reaction to the results was negative. The special dividend payment was not unexpected, and, as broker Charles Stanley noted: "Wolseley's markets are becoming more difficult and this can be seen in the quarterly progression of revenues." "In Q4 [fourth quarter], LFL revenue of the ongoing operations improved by 2.9% compared to Q3 (+3.8%), Q2 (5%) and Q1 (4.8%). Also, markets are very competitive and in 2012, the gross margin slipped 0.2% to 27.5%. Nevertheless, overall, the group expects to make 'good progress in the year ahead' and it was pleasing to see the special dividend," Charles Stanley said. The broker has downgraded the stock from "accumulate" to "hold", as it believes the share price, which has risen by about two-thirds over the last 12 months, is now "well up with events".
"Demand across our markets remains mixed and the economic outlook continues to be uncertain. Revenue growth rates in the new financial year have been similar to the fourth quarter of last year," Meakins revealed. "Whilst we remain cautious about the outlook for our markets, we are confident that Wolseley will make good progress in the year ahead," he added. In light of market conditions in Continental Europe the group anticipates it will incur further restructuring charges of up to £25m this year, which are expected to be charged to trading profit. Fourth quarter performance North America continued to be the star of the show in the fourth quarter with the USA seeing 6.7% year-on-year (y/y) like-for-like (LFL) revenue growth, while Canada's LFL revenue was up 4.5% y/y. The repair, maintenance and improvement (RMI) market remained resilient in the USA while the group enjoyed a boost from the slight increase in new residential construction. In Canada, new residential markets remained buoyant while infrastructure spending continued to grow. The UK, which accounts for 13% of group revenue, saw LFL revenue growth of 3.5% y/y, and Central Europe also grew, with LFL sales up 0.7%