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russell ductile castings
dawes lane, s****horpe north lincolnshire, dn15 6uw
tel: 01724 862152
fax: 01724 280461
email:enquiries@ russellductile.co.uk
date - 9.6.2023
dear customer / supplier,
2024 will see further change at rdc as we work along the five-year plan and one of the major ones will be the removal of all shutdowns at the foundry.
this habitual/foundry legacy of the weeklong shutdown process is no longer required, we may have sectional shutdowns of the foundry, but we will be well organised to make sure production and finishing does not halt at all.
our order book is healthy, and we have a responsibility to our customer / supplier base that we keep your orders active and to the quoted lead times, my plan is to make your trading with rdc as seamless and as stressless as possible.
communication from rdc will improve as we move along, making changes to the internal office and sales team, it is imperative rdc as a team keep you, our partners up to date with all activity.
we have increased our maintenance team with specialist fitters and electricians to make rdc sharper, pro•active and more efficient, our number one aim is to make sure we continue to produce, reduce risk and give you a built-in confidence that we can deliver our promises.
i will communicate as and when i feel the need to share rdc news with the market, i am extremely confident about our new financial year (june being our first month) i will make a point of visiting or being visited by our customer base as i want to know what you want from us, we are up for the challenge, and we welcome change for the better.
i hope you are pleased with the shut down decision but if you have questions, let me know.
yours sincerely
steve shore
rdc managing director
I can see both sides of the argument. I agree they are being opportunistic and there isn’t a guarantee that they’ll capitalise on the situation. It isn’t great that a competitor has gone bust, but they went under due to the pension deficit, covid affecting production and energy costs. Fortunately, for us, we’re on top of all 3.
It did cross my mind that TB may have subscribed to the placing to lower his average. Quite possibly that could be the case, as we do that as investors. However, even if he did lower his average to say 4p, given his track record, I’d say he’s in CMH for more than a 10/20% return. He’s the kind of guy that wants 3/4/5 x return, if not more.
It’ll be interesting to see how this plays out over the next 1-2 years. Personally, I’d rather be in than out.
GL
We’re coming back from near total wipeout. Placings/fund raises are inevitable.
We are technically profitable yes, which is a positive factor given the last few years, but the profit is minuscule. It provides an equally minuscule amount of working capital.
You mention spin. I’ve been invested for circa 2 years. I’m can’t speak for what happened before that, but I think the company/board/RNSs have been pretty transparent in the last 2 years.
The company hasn’t sold us a dream. They’ve been honest about the situation. And as investors we understand the high risk high reward at play
Thanks for providing that info. I was wondering which company had gone into administration.
Looking at the available information, the placing isn't to keep the lights on, it's to take advantage of an opportunity that has presented itself.
Ultimately, we have raised funds by selling property and placings. We are reducing the pension, all parts of the business are profitable and existing IIs and TB have shown continued support by taking part in the placings.
Yes, there has been chatter on LinkedIn from new members of the team but do you know what, I'd rather have a bit of positivity flowing around than nothing at all.
We are profitable, pension deficit is reducing, energy costs are hedged, continued support from IIs and TB, full order books, low shares in issue so room to move, new staff with positive mindsets, and the company are proactive in taking advantage of situations that present themselves.
Nothing is guaranteed but the above factors are enough to convince me that things are moving in the right direction as opposed to going the way of BAS.
Lost access to my other account.
Some very good points made. I definitely see this placing and update as a positive.
It’s only a small raise at an acceptable discount. The placing was taken by IIs and TB so that’s definitely a positive.
All heads of business now operating profitably and we’re taking advantage of competitors downfall.
Still not a lot of shares in issue in the grand scheme.