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As we suspected - share price decline has nothing to do with profits decline. Nice tick up in sales in a difficult climate, double digit increase in profits, and most importantly the move to the new site has been completed. This should offer such good improvements in efficiency and flexible capacity. They took on a lot of debt to pay for it, but that has come down impressively. This time next year they may be back to net cash.
If the share price does not rebound today markets really are irrational!
Amor,
I had meant to reply to your post yesterday, but Truro did an excellent job. The fact is SRT are very stretched with our sales effort - $1.4b pipeline, which has approximately doubled in the last year. We don't need to go cold calling, There was an article in the Times which someone posted on here a few weeks ago which suggested SRT could help stop the boats crossing the channel. I'm not exactly sure that the journalist knew what he was talking about, (I hope no one on here is a journalist - not my favourite profession) but you'd think someone in Government would have read that and checked the story out.
Hi Monty, not questioning your logic or analysis, just the predicted range. In the last year the share price has been as low as 26 & high as 63. It's a volatile share price. as it gets bigger and has more stable income this should reduce, though the nature of their project work is such that timing of invoices/milestones can have a significant effect on annual figures.
Extrader,
Thanks for such a detailed report of your opinions from the AGM. The 140m mentioned is work in progress (projects) - orders SRT already have. I think the 3 projects which Simon expects to land soon (& in the time I've been involved with the company he has begun to realise how long Government organisations take to make decisions) were worth around 380m (not checked exact figure) and a further 1b+ of real live detailed projects in negotiation. So lots of future earnings.
I think the board would be happy with the attendance - they like to have a ratio of about 1:3 senior manager to shareholder to allow good networking over lunch.
And (I'm probably guilty of this too) but Simon would give you a good verbal slapping if he heard you talking about SRT in the third person. You're a shareholder - it's your company - so talk about it in the first person!
Hope So - I'm coming with a friend who's also a share holder. we're both in our 70s (I like to think I don't look it and am only just there.) I'm tall and used to be blonde. My friend is more average height and usually bespectacled.
Gwm, you seem to rely on charts to assess a company's future. In the long term there should be a good correlation between share price and earnings per share - the more profitable a company become the higher the share price goes. Diageo keeps growing profits. There are are occasional blips like during Covid, but generally the profits keep going up, so the share price should not keep going down.
I suspect his (or her) reasoning is that simple.
Hi Truro,
Yes I've noticed we fen get a short boost from webcasts, today is was a few hours only.
I can't be bothered to check back at the webcast but I think Simon said he wouldn't be there at the AGM. That would explain the webcast/AGM proximity but not coincidence.
Hoping to make the AGM (it's an early start for me, and sure we'll learn a bit more there.
On fundamentals it has been overvalued for years, but presumably the reason was it was a growth business and earnings would soon catch up with the valuation. I'm not surprised that it's correcting itself at some time, but a bit surprised now with the new HQ coming along - which is going to reduce coast. increase capacity, and efficiency. I'm ready yo add, but would like to see this long term down trend reverse a bit first.
Monty I don't really want to get into an argument about something fairly trivial, but you said:
"This will be range bound between 52p to 58p for a year or maybe more"
I said the share price was more volatile than that and it would trade outside that range over the year. The sp is now 47.5 - way outside your predicted range and you are claiming to be more right than me. You've not gone to the Putin/Trump/Johnson school of truth have you?
let's all see what Simon has to say on Friday
We just seem to be in a silly market where whatever the update says, the sp goes down. I thought it was a good update - whenever a company is taking in more in orders than they are making, it means the business is growing. Assuming they've got their pricing right & the clients pay, that means profits go up.
We're in a world where every nation is increasing its defence spend CHG will benefit from that.
We're getting a bit off ITM, but it's all pert of energy transition, and it's a fascinating time.
Harry, you raise some interesting points (without mentioning disposal of spent Lithium Ion batteries.) So many unnecessary motors are added to cars these days - a lot of things can be operated manually rather than via a motor and I don't really need some robot telling me I've just swerved when I see a huge pot hole ahead.
Another problem with battery cars is their weight. Heavier cars = greater tyre, brake & road wear, and more particulates being produced (that was one of the big arguments against diesel that it produced more particulates than petrol.) And out London Mayor only seems interested in what comes out of an exhaust pipe. We have to consider the full life of cars. No idea how long battery powered cars last. Presumably the batteries can be changed, so it should be a long time.
what I have not heard anyone mention yet about the weight issue is parking capacity? This country has serious parking problems in most city and town centres. They built multi storey car parks to create greater capacity, but these will have been designed to take the load of a full set of petrol cars. If battery cars are twice as heavy, the capacity of these car parks will have to be halved.