focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
All in all, very impressive Presentation. Some points to take away:
Very impressive Gross margins now being achieved in the Glazing Division, 40% during 2024. "Glazing division Gross Margins improved from 3.6% in 2022 to 28.7% in 2023 (and reaching 40% in 2024)" and "Further improvement in Gross Margins expected from continuing operational improvements."
"Major BT nomination still expected in H1 and further Glazing PDLC wins expected" They also mentioned that there was a possibility of a further large nomination win in H1.....
"Lifetime sales value of all nominated business now is £53m which supports the expected growth to 2026 and beyond. So additional nomination wins will only enhance this, and I suggest lead to a positive re-rate of forecasts
"Two major PDLC wins announced for Glazing division – lifetime sales value £18.6m – with more to come"
I was also impressed by Mark Perrins and how he presented. Seemed on the ball to me.
FY23 results show a much-improved financial performance with sales of £10.8m (FY22 £10.2m, +6%) and adj. EBITDA of £0.1m (vs a £2.2m LBTDA FY22a), in line with our expectations. This is the direct result of management action on productivity, pricing, quality and service. FY24e will, as expected, be a transition year given the lead times on new contract awards, but the business is in excellent shape to return to growth from FY25 onwards. Our forecasts show sales doubling over the next 3 years with recent nominations and a building pipeline of opportunities providing strong visibility on this growth. After the two recent new nominations in Glazing, which in aggregate bring £18.6m of revenue, the total lifetime sales value of all nominations held by the company is now £52.7m (over 5x FY23 sales). Management remain confident in converting in the near term (1H24) at least one significant opportunity in the renamed Battery Technologies division (previously EV) with a meaningful pipeline beyond that. In what is a well-managed succession plan, CEO Richard Barton will become Deputy Chair and hand over the reins in June to current group MD Mark Perrins. We think the current share price substantially undervalues the value creation potential with an inflexion point in growth in sight. No changes to forecasts or recommendation. BUY, TP 75p.
All reads very positive. High visibility of future revenue makes this a very solid investment.......
"Strong momentum already demonstrated in 2024 with two significant new wins announced in the emerging "smart" glass market, in which Strip Tinning benefits from first mover advantage, with sales growth coming in 2025 once serial production commences."
"The Company anticipates securing further major programmes across its Battery Technologies and Glazing product lines throughout 2024, with a significant new Cell Contact System win for the Battery Technologies division expected in H1 2024, with sales from volume ramp up anticipated in Q4 2025. "
There are many reasons why people are buying, read back earlier chat and RNS releases:
Director Buys and participation in Placing which raised £5.1M in January.
Reasons for fund raise: "The Company does however need new capital to invest in its EV division so that it can seize the opportunities that are within sight, including the Company's first high-volume serial EV nomination which is anticipated in the first half of FY2024. "
Read back previous RNS releases, look how many sales nominations they have been awarded recently.
Market Cap : £7.1M and of that, £5.1M was raised in the placing.
A lot of sales nominations recently, a lot to look forward to......
A couple of Warren Buffet quotes for today:
"The investor of today does not profit from yesterday’s growth."
"The stock market is a device for transferring money from the impatient to the patient"
More good volume today. Seller will be out soon, and then this will really rocket.
Looking forward to the Investor Presentation on Wednesday, be great if we got news of the Cell Contact System Win before then...... The total lifetime sales value of all nominations held by the Company is now £52.7 million. Soon to be more :0)
Yet more great news. When will the market wake up?
Further major win in fast-growing "smart" glass segment, with an expected lifetime value of £12.3m
Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist connection systems to the automotive sector, is pleased to announce the receipt of a further record Glazing nomination, from a leading European automotive Tier 1 systems manufacturer.
The glazing panels will be supplied to one of the premier German car OEMs and will be deployed across a new EV vehicle range.
Under the terms of the nomination, supply will start in Q3 2026 and run until 2031, with forecasted annual sales value peaking at £2.8 million and an expected lifetime value of £12.3 million, which increases by 46% the total lifetime sales value of Strip Tinning's Connectors nominations, from £26.8 million to £39.1 million[1]. The total lifetime sales value of all nominations held by the Company is now £52.7 million.
Looking forward to this announcement:
" The Company does however need new capital to invest in its EV division so that it can seize the opportunities that are within sight, including the Company's first high-volume serial EV nomination which is anticipated in the first half of FY2024. "
From RNS 20th December 2023.
"The Company has invested approximately £5.0 million in the EV division over the last three years, and the division now has a strong platform for sustained growth centred around a focussed strategy, growing customer base, and an expanding opportunity pipeline. The Company does however need new capital to invest in its EV division so that it can seize the opportunities that are within sight, The Company has invested approximately £5.0 million in the EV division over the last three years, and the division now has a strong platform for sustained growth centred around a focussed strategy, growing customer base, and an expanding opportunity pipeline. The Company does however need new capital to invest in its EV division so that it can seize the opportunities that are within sight, including the Company's first high-volume serial EV nomination which is anticipated in the first half of FY2024. "
Big buy today based on what the MMs were asking for this morning 36.1p. I think someone is accumulating. There is also a seller but hoping they will dry up soon.
The signs are looking good. 56% growth in order book already achieved this year. ;0)
Https://striptinning.madeinthemidlands.com/news/uk-manufacturer-plans-to-triple-the-business-by-2028-a-conversation-with-strip-tinning-automotive
"Looking ahead, Strip Tinning’s vision is firmly anchored in ambitious growth targets, which hinges on two key pillars: advancements in high-tech connectors for roofing glass and the market for battery sensing products in EVs. As they navigate through the complexities of growth, and with a 56% growth in their order book already achieved this year, the challenge of talent acquisition looms large – but they are certainly ready!"