Member Info for Adastra

Message below was RNS'd March 2015

Ten-year commercial agreement with Spirax-Sarco Limited Corac (Tpg), the specialist engineering group focused on the aerospace & defence and energy & process industry sectors, today announces it has signed a ten-year, exclusive, global licensing and manufacturing agreement with Spirax-Sarco Limited ("Spirax"), for packaged steam products containing Corac micro-turbines and compressors. Spirax-Sarco Limited is a subsidiary of Spirax-Sarco Engineering plc, a world leader in both steam system management and peristaltic pumping. Under the terms of the agreement, which supersedes the joint development and licensing agreement announced on 15 November 2012, Corac will license its patented micro-turbines and compressors to Spirax for integration into a number of their packaged steam products for sale across their global customer base. Corac (tpg) micro-turbines generate usable power from steam that is already used as a heat source in diverse industries such as food & drink, paper & packaging, pharmaceuticals & chemicals and as the primary heating in large buildings such as office blocks, hospitals, hotels and universities. The result is low carbon energy that is more efficient to produce than through conventional steam turbine systems, and can either be used locally or sold back to the grid.

As a point of interest I asked the BoD for information regarding any current progress on the original compressor motor technology held by Corac as I can see this having significant applied future potential at some stage. The technology and IP is still owned by TP Group but is not currently being developed any further. The Company is focused on driving revenues via its technology and engineering division (the design, manufacture and support of mission-critical systems), and consulting and programme services (advising clients on strategic problems and implementing technology-driven solutions).

Great networking from Polaris. TP certainly extending capabilities on all fronts. More add-ons please as the quality of each continues to impress. https://mobile.twitter.com/TPGroupUK/status/1061981808248676354

Check out: https://www.tpgroup.uk.com/about-us/news/2018/07/high-flying-information/
Excellent news - again

The fact that TPG Marine is an acknowledged leader in the field of submarine atmosphere management systems (their design and installation) is the key to opening many doors. Combined with cutting-edge hi tech engineering (that is now in-house at Dukinfield) it is a formidable combination. I would certainly not be surprised to see its expertise transferred to aerospace, space and nuclear (civil and defence) as well as to closed-system areas on surface marine vessels. The applications are seriously as diverse as management chooses to pursue IMO. Looks an interesting future builder.

Quite amazed to see there were actually no on-topic comments this month unlike previous; particularly May. I have followed and researched TP Group since its Corac days and posted when appropriate as you'll see. The management are a seasoned team who believe in, and practice, internal promotion. The skillset has increased strongly over the past 24 months and prudent diversification into high-skill high-value specialist engineering is now paying off. I have visited several sites and was impressed by the new facilities in Dukinfield earlier this year. Bringing a lot of previously outsourced items in-house is a key driver as is the fluid engineering approach utilising multiple sites to streamline the supply chain. The increasing visibility of new and lucrative contracts plus expansion into Defence related IT and services is progressing nicely and bodes well for the future. The recent Micropore and French naval news items were very welcome. I like the fact that management didn't go on a spending spree with £26m cash in the bank, concentrating on keen price and due diligence. Whilst frustrating, this solid and measured approach is reassuring to existing and prospective investors. I am sure that when a suitable acquisition is announced the shareprice will respond accordingly. Excellent platform for organic growth, loads of cash in the bank, quality long term contracts plus the added incentive of a nice complimentary addition. Looks excellent value IMO.

Yep, been following progress. I visited the Dukinfield site in March...impressed.

TP's expertise in a variety and combination of mission critical systems is powerful IP. Add in the fact that the company is cash-rich, prudent and yet acquisitive and you have a great platform for sustained growth that is not without predatory onlookers. TP is evolving organically and has also made several excellent additions at very low p/e values in technology and support services. It has also extended capabilities into ultra high-precision engineering at Dukinfield which opens up additional aerospace and nuclear work. With high-tech engineering, mission-critical IP and expertise in confined space atmospheric control, the company has put itself in a very sweet spot for all manner of specialist work. Looking strong.

Ironically, everything is being perceived as negative - even the procurement of a suitable rig will trigger a rise at this stage. As MP constantly explains, the bigger picture is increasingly favorable as the oil is both present and pressurised. Modern technology will certainly increase the integrity of well bores which has been a historic Achilles heel. Combined with flexible tracking, once these initial hiccoughs are passed Zenith will be in a sweet spot to exploit all the info it has accumulated on field architecture. The extended patience has been extreme but so has the learning curve that will reward the effort. Nothing of substance is ever gained without disappointment and persistence........keep going MP, youre not a guy to be beaten!

Fair comments Zeb. I don't think they anticipated the volume of erroneous field info hence the 'prudent' choice of rig. As Zardab gives up its problems and difficulties, MP is having to think on-his-feet. Z-21 has the oil, has the pressure, but is effectively plugged. The guy has the local experience to overcome each obstacle as it presents but investors in o+g are short-termers on the whole at this stage; buying and baling on a whim. Rig power must have been an increasing issue and I'm sure MP will have been sounding out sources beforehand. If that's the case then its better to bite the bullet and get one on site asap which is how i read the RNS. Yep, its going to cost, but oil revenue is at a high and a successful result on Z-21 will transform sentiment. Pay accordingly/offer a speed-onsite bonus/whatever - lets get this gusher on stream asap.

Yep - have done - hence my post. Dont get your point?

Where have Zenith ever mentioned the 'lack of a suitable rig?' - as I read it they have identified one, are negotiating to hire it, and will inform the market when it is on site.

ZEN need a 150-ton rig - The RNS clearly indicates they have identified a suitable one [see 'THE' below]: Zenith confirms that it is currently in negotiations for the contracting of a ZJ-30 150-ton workover rig to complete the Z-21 workover. An update will be provided when the rig has been mobilised to the well location. ...... The update clearly states that a further RNS will be issued 'WHEN' the rig is on-site at Z-21. ...... I can't see what else ZEN can say to qualify that this is a near-term event with an RNS possible at any time. Yes, its been a long slog, but every day brings news of more field knowledge. The oil is there, Zardab is reluctant to give it up, but it will...eventually, and the share will rate that accordingly as optimism and oil starts to gush IMO.

I like the latest RNS on several fronts. Firstly, Micropore technology extends the range of products and services that TP can offer to a receptive and growing audience. Secondly, it complements a lot of TP IP in having applications across a whole new range of growth sectors eg emergency services and orbital/exploratory space/aerospace. This co-operation shows that management are vigilantly looking at new opportunities. The tie-up may well have evolved from the extensive due-diligence that TP is currently employing in the acquistion-search. Its hefty cash-pile and growing competence in must-have applications gives TP real clout in complementary moves like this. I have extolled the virtues of TP for a couple of years and the share price has risen on the back of increased confidence and competence in management. The corner has been turned and TP is undoubtedly on an upward trajectory as its multiple skills now bear fruit. Strong on all counts IMO with a lot more to come with divis instated probably 2019/2020.

TP are breaking barriers in all trading areas now. Good, secure contracts backed by almost �25m in hard cash is a compelling combination for increased growth. Excellent proven management team with prudent approach and strong due diligence ensures good value in acquisition strategy. I like the determined approach of 'only securing new operational assets if they are immediately earnings enhancing' Sound policy.

The 7m buy was well-timed. Great progress on all fronts and wads of cash in the bank. Looks better every month. This has to be one of the strongest sub �100m stocks going through 2018 into 2019. Nice secure contracts opening new doors with Government and blue-chips ensuring payment and cashflow visibility.

Well worth looking at the finals section headed Acquisitions, investments and disposals. These give a real indicator of the probability for strong organic growth as CAPEX from 2017 gives results in 2018. Combined with new and extended contracts and capabilities plus a �24m cas-pile and prudent management looks a resilient combination.

TP Group has spent the past 18months consolidating and streamlining its business. The legacy high R&D costs are now gone and investment in SOTA facilities eg Dukinfield https://connect.f4n.namrc.co.uk/profiles/tpg-engineering-ltd-dukinfield have opened new doors for extending the excellent long-term partnerships with blue chips. TP has significant mission-critical long term contracts with the MoD which are pretty well ring-fenced due to their nature. The maiden nuclear contract with GE and overseas submarine work bodes well for expansion as does any resurgence in oil and gas (where pressure vessel fabrication and testing was a significant contributor) The group has integrated the Portsmouth and Dukinfield capabilities to minimise outsourcing and introduced a single management structure. With an excellent recent history of keenly priced earnings enhancing add-ones and �24m cash on the hip for acquisitions the future looks bright. The finals were excellent if you look at CAPEX last year that will drive growth and one-offs that won't recur. Lots of good prospects with no over-promising leaves lots of room for pleasant surprises and near-term upgrades. Solid progress from a competent management focused on performance and due diligence.

'One-offs'