Member Info for Adastra

The 10p was an immediate 'now' starter offer. This has the ability to multibag quickly as workflow escalates and the anticipated £8-10m EMD earnout payments drop into the kitty...some now and some in 12 months. As I say, this is an easy multibag from here imo, thats why I got on board early and lit it up.

I think Luceco will acquire in short order. It holds around 10%, has Board representation, and can now see solid runway of cash with more than half current MCap due from earnout of EMD sale over 12 months imo. That goes straight to bottom line on top of an increasingly profitable business. This means a substantial premium to current price. Luceco paid 5p for its tranche so at leat double for starters...10p plus taken out now, onwards and upwards quickly if not.

Lots to look forward to here. Expecting imminent £2m initial earn out payment straight to bottom line here plus further £6-8m in Q1 2026 imo. Solid.

EMD...

Next RNS, should follow closely will be initial cash due from sale of EAD underpinning H1 2025 prospects. I'm expecting £2m for the bottom line as a solid start on top of excellent outlook. Good time for Luceco (a 10% holder in eEnergy to launch a bid and tuck it into its p/f)

We start FY2025 with a debt free balance sheet, a record forward order book, a strengthened operational management team, a reduced cost base and are more focused than ever on improving gross margin and cash generation

Totally agree on the failure to disclose a previous higher offer received pre-Volex bid. I'm sure they will have been castigated by the instos who collectively hold 50%+ of the shares and the ability to guide control. I mentioned before that I consider this to be a prime reason that the BoD have not bought shares at this low level. I suspect they are compromised by insider knowledge of an impending approach. Supposition, as I say bit it would explain a lot here. The management are under the microscope to perform and excel. US suitors must be watching closely. Too cheap with contracts overseas earning non £ cash.

Luceco holds just under 10% of eEnergy and has just given a great update to the market. It would be a perfect time to bid here. Either way holders must be in for upward action given outlook and proceeds from EMD sale due anytime with further tranche end 2025. No brainer.

Minor adjustments imo. Interim statement still stands:

The Group’s order book and current momentum of order intake in our components business underpin our confidence in the full year outturn. The completion of Project Albert, significant cost action taken and some early benefits from our self-help programme, Project Dynamo, support our 10 per cent operating margin target for the year and for leverage to return to the lower end of our 1-2x target range.”

Peter France

CEO - TT Electronics

This really is begging for an upward rerate.....

Forward p/e ratio of 5.4

PEG ratio 0.17

EPS growth 47%

Dividend 7.5%

Price to book 0.6

Price to sales 0.27

Excellent value just needs overdue rerate to regain momentum north.

There's no doubt that Volex has exposed hidden value here and management are vulnerable if they fail to immediately resolve the US units. Interesting to note from today's RNS that (Volex) has exited from its investment in shares of TT Electronics plc, recognising a small profit after taking account of the associated professional fees.

It looks like Douglas Bay PE may be the recipients of that shareholding. Institutional holdings are over 50% here so the focus is now intensely on showing management ability to drive profits forward or further bids will appear. Volex can enter that process if another bidder appears and if management does not perform, is able to bid again from June. Pivotal time here given underlying strengths and exposure to foreign earnings.

Hostile bid would be best course to appeal to shareholders and replace obstinate BoD. Bigger holders may well have been canvassed for their positions already.

Given that the offer from the unidentified suitor was an all-cash bid at a significantly higher value than Volex's proposal, it's plausible that the suitor could be a private equity firm or a larger corporation with substantial financial resources. Private equity firms often make all-cash offers to acquire companies they perceive as undervalued or synergistic with their existing portfolio. Alternatively, a larger corporation in the electronics or related sectors might have seen strategic value in acquiring TT Electronics to enhance their market position or technological capabilities. However, without concrete information, any assertion about the suitor's identity remains speculative. The lack of public disclosure suggests that the unnamed party prefers to remain confidential, possibly due to ongoing negotiations or strategic considerations. This would also account for the BoD not buying any shares at this historic low despite valuing the company ar a considerably higher value than the £1.35 offered by Volex and £1.60 by the unnamed suitor.

I still expect that suitor to reappear.....Siemens Ag? DiscoveriE?.....plus Volex which could then reenter. Let the fun begin as the management must be working flat out to justify their independence before finals are announce in March. Pivotal time here and excellent loading up time imo.

£2m would be a fair guess but I suspect it will be more. Also given the info contained in Luceco announcement, the remaining eEnergy business should be thriving. That would explain the out-of-the-money management options at 9p 13p and 15p. The size and proceeds of the EMD sale are imminent following y/e Dec 2024 agreement. Looking good.

Having refused to engage with Volex and its 130p+ bid the BoD must surely be awaiting another approach. They said at the time that they'd already rejected a suitor at a higher bid and lack of buying by the board at this price leads me to believe that they may be aware of sensitive information since these two are contradictory. It wouldn't surprise me to see Siemens AG or discoverIE Group hovering. Certainly looking undervalued at 90p given forecast earnings and prospects. If management can't turn it up quickly then a multitude of suitors will be seeing assets contracts and potential here.

Volex certainly upped the ante here and this retrace imo provides a perfect time to get on board. If another potential bidder has been prompted into due diligence then Volex would surely reenter at a higher price. All supposition but with basic premise.

Package size increasing so I'm expecting a sustained upturn from here anytime. I presume directors are precluded from buying at present for numerous factors.

Bought in b4 Volex bid and sold on peak. Fundamentals still apply so have bought in again on this retrace. Too cheap on BoD sorting USA or bidder 2 appearing. Forward p/e looks good as Europe and Asia performing well.

Yep. Rose to over £5.00 in 2021 and yet it's prospects and traction now look 100x better and more secure as it adds firepower in its astute acquisitions. Should easily breach £2.00 before year is out.

Ironically we are now only at the retrace point where all directors loaded up at end of 2024! Plenty of upside in sight now....180-200 fair price for now on this t/u alone.