The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Zoo Digitals update.
Yes, the company is totally different but we have a story to tell also...jmo
Nearly 90% more sales. 17.5% higher than second half 21.
The tone of the update is refreshingly positive .
Up we go .......I hope...
Certainly a serial investor.
I agree wholeheartedly with your post Wigwammer. All the same i have many times felt like Cherryhiller. The wording and balance of updates could be improved.
Regarding directors purchases, there are times when a vote of confidence is required, in Carclos case I don’t think its required they have already done their bit. So, I hope there is not RNS in the morning unless it's other than a board member. Jmo
Says on website mid Oct.
It would have been nice to have a trading statement at or before the AGM.
Tomorrow I guess!!!
Schroders comes to the rescue again....
Reduced both holdings in the past month (s).
Happy buy kicking myself.
Other holding quite large , sold none of of those....
Well this time around the banking agreement isn't as critical as a few years ago.
Might have been an opportunity to say hello and were doing ok etc.
We should see a good rise in net profit next time as the price increases will be feeding through. I though it was unlucky for the company that these issues came around at this moment in its recovery. What will also help is the reduction in raw material stocks as the supply chain problems ease. Please with the £13m ebitda though...jmo
Hi Beza,
New banking arrangements expected to be finalised by July 31 22. As per annual report.
Anybody expecting an RNS tomorrow?
Zoo are doing very well indeed. The $100m in revenues is well achievable in the coming year . jmo
The update is great for sure. But hey, sales are still miniscule, this is why in my opinion, the shares have fallen.
We need to add products using the cash we have before its gone!
That last cash call looks inspirational on reflection.
JMO.
Yes, exactly Beza.
Even so Wigwammer the deficit at the uear end should be well lower. Fill Yr update April: " In addition, the Group balance sheet has strengthened considerably throughout the course of the year, in part driven by a reduction in the IAS 19 pension deficit."
Plus we should get a further update in the coming results.
Jmo
The elimination of the deficit would also free up circa 2million for a dividend . (The amount we pay annually less tax plus deficit interest saving)1.5p would leave some for further investment. Pie in the sky at the moment I suppose but we are moving in the right direction. Imo.
You only have to look at Franks Doorenboschs bio on Carclo's website to see why he is the person for this job.
Wigwammer (on lse) has stated supply issues are indemic. The company said in their interim report they were taking action in this regard having invested an additional 3million on raw materials to ensure a supply at that time. But its not only supply chain issues he is appointed for. He is looking at ways we can improve our operations and make the company more efficient so that we an take on the extra business the company believes is there for the taking.
It's funny that folks tend to highlight what they think as negative and miss the underlying fact staring them in the face, Carclo is a real turnaround growth story. That fact will be reflected in the share price at some point for sure. Jmo
We have previously been given a "heads up" RNS stating the date of publication.
Chrissie
You will find that info on the companies website. Comparing the balance sheet with the company then and now is not like for like. CARCLO is now a totally different company. With totally different management.
On another point it's interesting that each day this week delayed trades , which if you check times and spreads at the time they look very much like buys. Tuesday 200k, Wednesday 100k, Thursday 2 x 200k and today 350k. All published after trading closed. Someone is definitely mopping up the sells.
The revenue growth, in line profits and margin pressure were all flagged in the half way report.
The considerable strengthening of the balance sheet despite the increase in net
debt Is brilliant and gives us a clue to the reduction in the pension deficit.
The Framework contract "extended prove out" (delay) was mentioned when I asked how it was progressing at the last “investor meet the company” presentation. To be honest I was a little disappointed when I read it but that should be all ok now considering the UK side of it is in production.
The new global contract with an existing customer is a huge positive in my opinion. As is the 17 new (additional) product lines the 5 new significant accounts in the Czech Republic, USA, India and China.
Order intake in the Aero division improved significantly during the second half and especially in the final quarter. And looks like continuing as the business is being developed further.
Finally demand remains strong despite the headwinds in China and India and the problems from the war which most if not all companies are feeling.
A good update imo. Pity the share price doesn't reflect it.
Wow indeed Warren,
Yes the company faces the same issues as others, Covid in Asia, War in Europe , supply and inflation issues the world over.
Net debt increased and likely to increase further with planned expansion. The company is winning orders and large ones at that.
And the pension deficit has plummeted with the companies balance sheet a lot stronger.
I would like to write further but have a train to catch.....the often talked about 're rating is now certainly on the cards. Jmo