This company must be doing something right - its been around 130 years.
The fix here is obvious - cost cutting and a drive to diversify the sales. This latest move to cut a very highly paid CEO is welcome - and while it creates uncertainty it is the right thing to do for shareholder value in the medium term.
The value now is bottoming - 60p share price is a multiple of 10x operating profits - trading at fair value for now.
Investec have increased their price target to 98p. Certainly seem to have made huge progress over the last year - but you cannot get away from the fact that they have one very large customer (25% of sales) so there will always be some volatility in the sales.
Agree the overhang has gone. These guys have a two-pronged plan - either grow revenues to get profits up, or cut costs. If they manage either then this will turn out OK. If they manage both then there is very good potential here in my view
Don't believe anything you read in the papers. These guys announce intentions to buy and sell assets and nothing ever happens. It is a stalling tactic to run ARMS into its financing deadlines and go bust.
The only thing that can save this company is to get a refinancing done and get on with business. Otherwise shares will go to zero.
This company has been up for sale since last summer when it became clear it could not refinance its debt pile.
Why are these guys making a conditional possible bid at 41p from a BVI shell company with no proper advisor and having not even picked the phone up to the company ?
Feels like a desperate attempt to try and derail a sensible refinancing plan. Shareholders should back the only deal on the table at 25p - and if ACE want to bid at 41p then everyone will be very happy.
Revenue growth and margin progression were both notable features of H115 results, confirming that recovery is underway. Changes to the business model have been made with greater local alignment within new sales regions ongoing. Management is aiming to deliver sustainable growth with ambitious FY18 targets. Depending on progress here, Volex may start to be seen as a value, rather than recovery, play.
This is a major turnaround from a year ago - the company is growing again, generating cash and has a low level of debt. The negatives are obviously the worse macro economic outlook, but even so, this stock does appear to have been hit too hard.
Lucan - we all remember that 3-wheeled reliant robin - driven by disabled drivers. You are dead right - we have a board lacking the skills to manage or communicate. This can and will drop a lot further.
Looking at all the press on Samin Tan and Borneo, the credit approval process at this bank must be a complete joke. They lent $1bn to a nobody company mining 2 million tonnes of coal a year - thats >5x revenues!!! Presumably there were ten/perhaps hundreds of loans of this type issued - taking big fees in the process - paying large bonuses, only for it all to come crashing down later on. This bank looks like it is heading the same way as the big UK banks - we all see the revenue fall and the costs go up as the bad loans come back to bite. This one will crater......
This company stopped growing organically about 2 years ago. The margins have peaked and the operating cash flow is back to 2010 levels (as orders fall so do customer advances). Then add on top an expensive acquisition and a high level of debt.........
Any cracks will show in the half year results - this is trading at 16x EBIT and could easily derate significantly.
UK listed engineers beating expectations - asian manufacturing on the up again stimulated by western consumer demand. Hopefully this performance with be repeated by other UK listed engineers such as volex