Member Info for rivaldo

Good to see PEG still launching new products - and incorporating AI too :o))

Https://news.railbusinessdaily.com/petards-rail-launches-technology-to-prevent-trap-and-drag-incidents/

"Petards Rail launches technology to prevent trap and drag incidents

November 7, 2023

Petards Rail has launched its PTeye solution, an innovative technology designed to support in the prevention of Platform Train Interface (PTI) incidents.

A new development in passenger safety, the PTeye system incorporates the latest in AI-ready technology and digital (IP) technology matched to the harsh environment of rolling stock applications. Its purpose is to prevent trap and drag incidents before train dispatch and, as a secondary safety measure, to detect drag.

The PTeye boasts an adaptable pod design that has been bespoke engineered for seamless integration with both new and old rolling stock. The versatile solution can be implemented as a standalone system or incorporated as a module into existing Petards Rail on-train camera/monitor technology.

Designed as an edge-capable device, the PTeye solution minimises impact on bandwidth and system load. This optimisation ensures long-term reliability and performance and is one of the many future-proof functionalities offered by the system.

Petards Rail designs and delivers train technology to help companies within the rail industry maximise passenger safety, optimise train performance and meet ever increasing passenger and industry demands. Its technology includes forward facing and rear facing cameras, track debris cameras, an on-train camera/monitor system, Automatic Selective Door Operation, interior cameras and pantograph surveillance cameras. In addition, the company offers supporting services and a back-office software, eyeTrain Connect.

etc"

Cavendish's new note today forecasts for this year to May'24:

- £24m revenues, up from £20.7m

- £1.3m positive EBITDA, up from negative £0.1m

- 0.6p EPS, up from -0.8p

They summarise:

"CHC turnaround.

Whilst RDC and Petrel continue to perform well, it is the turnaround at CHC which has been, and will be, central to improving overall group performance. In the 2023 financial year, CHC achieved a 48% reduction in losses that helped the Foundry division to reduce losses to £0.2m from £0.5m and – excluding a £0.2m bad debt charge – the Foundry division achieved break-even.

The strategic plan for the turnaround focuses on diversification away from the automotive sector and the addition of new business to utilise the spare capacity at both the casting and machining facility.

In November 2023, the group won a 10-year contract in the heavy plant sector which is expected to generate EUR7.1m over the life of the contract and should commence production in Q4 2024. In June 2023, the company won a contract worth EUR7.3m over 8 years for turbo charger bearing housing castings, with production expected to commence in July 2024. Production has already commenced on new casting orders valued at £1.2m across the construction, cast iron radiator and commercial vehicle markets and the machining facility has added c.£1.0m of additional revenue, which will result in improved utilisation.

Overall, the strong order book at CHC is expected to result in 2024 CHC revenue growth of between 15% and 20%. CHC is also developing a capability to produce ductile iron products, which is a larger market with buoyant demand and limited capacity."

I note that the properties have now definitively been sold per the listings page - hopefully at the full £1.635m price:

Https://www.fennwright.co.uk/property/2-4-clough-road-severalls-industrial-park-colchester-essex-co4/?address_keyword=colchester&commercial_property_type&radius&tenure_type&minimum_floor_area&maximum_floor_area&department=commercial&units&permalink=66692

The prelims to 31st May released this afternoon show a welcome return to form and a very promising outlook for CMH, which now has a mere £2.9m m/cap.

The underlying operating loss for the year was reduced to a mere £0.4m before a one-off bad debt, but having made a £0.3m such loss in H1 this means H2 saw a loss of just £0.1m.

Further, every division is now operating well and improving fast. So much so that the Chairman is now able to say:

"The Board is anticipating a further increase in revenue of between 15% and 20% and profit after tax of between £0.8m and £1.0m in FY24".

Not bad for a £2.75m m/cap. And given that CMH are now on the last day of the next H1 reporting period, the bullish sentiments expressed should be reflected in a further improvement for this H1'24.

CMH aren't out of the woods yet reading to the end of the report, as working capital remains tight and there are still pension contributions to pay, though these look manageable as trading improves.

But the tone of the report and prospects going forward are undoubtedly positive:

"the improvements and building blocks that have been hard fought over the last two years have put the Group into the position where the strategic goal of returning to operational profitability is expected to be delivered in the 2024 financial year"

"I am pleased to report significant operational improvements across the Group for the year ended 31 May 2023. The Group is well positioned to continue its journey to a full recovery and expects to return to a more sustainable level of profitability"

"Whilst having delivered incrementally modest improvements to operating performance in the last two years, the Board firmly believes that all of the Group's businesses will make further progress in 2024 and that Chamberlin will deliver the step change in performance we have been working towards"

After the close there was a huge 300,607 share buy reported at 842p followed by a number of other trades at 842p or thereabouts, including an 84k and a 37k.

Should make for an interesting opening tomorrow!

RNWH announced in this week's results they'd won South West Water as a new client.

Pennon Group, who own South West Water, have just announced they're to spend an additional £100m on improving water infrastructure in the next two years, making a total of £850m.....

Https://www.dailymail.co.uk/money/markets/article-12804253/Pennon-Group-spend-100m-planned-infrastructure.html?ns_mchannel=rss&ns_campaign=1490&ito=1490#

And there's a further £2.8 billion to be spent from 2025-2030.

Also, RNWH's J Browne have embarked on a 7-month project water mains contract for Affinity Water around Stansted:

Https://www.bishopsstortfordindependent.co.uk/news/chapel-hill-closure-as-affinity-water-works-continue-9340808/

The IC say Buy in a new article, these being the main points:

"Renew Holdings (RNWH) chief executive Paul Scott said the 10 percent increase in organic revenue and 18 per cent gain in operating profit delivered during difficult market conditions provided “evidence of the resilience in the [business] model that I’ve talked about for years”

“We’re actually seeing clients talk very confidently about increased focus and spending,”Scott said."

"Renew has increased its headcount by around 10 per cent over the course of the year, as past acquisitions have provided the opportunity to expand into new areas – Scott cites winning South West Water as a client as an example. An operating cash inflow of £55mn meant net cash (excluding leases) increased by £15.5mn to £35.7mn, despite the company paying £14.6mn for the remaining half of the Enisca water business that it did not already own."

"results have been steadily impressive – as witnessed in the doubling of its earnings per share over the past five years."

"Berenberg analysts upgraded their earnings forecasts by 5 per cent for this financial year and 9 per cent for next,citing “confidence in Renew’s ability to deliver through-the-cycle resilience”. With the company also having the firepower to do more deals – it has bought TIS Cumbria, a small nuclear specialist, for £4.9mn since the year-end – other upgrades could follow. We maintain our buy position."

Nice summary on Master Investor overnight:

Https://masterinvestor.co.uk/equities/small-cap-catch-up-maritime-winners-and-luxury-flicks/?mc_cid=c746a43100&mc_eid=db9f9bbaf2

Mark Slater notes that he's been buying into TIG as a new position in his Fund in this new interview - listen from around 6 minutes in:

Https://www.youtube.com/watch?v=ZXVDGBL1nm8&ab_channel=interactiveinvestor

Berenberg have today raised their target price to 1000p (from 950p) - and the share price is now starting to respond to the terrific results:

Https://www.sharesmagazine.co.uk/news/market/1701163632036167200/london-broker-ratings-goldman-starts-mg-at-buy-citi-hikes-bm

Today's prelims see the 63.5p EPS well ahead of the 60p-61p EPS forecast by Shore Capital and Numis.

They're also ahead of the forecasts for this coming year, so there must surely be upgrades in the works. There's still plenty of share price upside to the prior broker targets of 950p or thereabouts.

Above all, the tone of the outlook is extremely bullish. Every division is performing well, and the prospects in areas like water, flood defence, rail, 5G, highways, nuclear etc are all enormous going forward for years to come.

Plus with a £30m+ and rising cash pile there's the likelihood of firther earnings-enhancing acquisitions, where there's:

"a healthy pipeline of opportunities including complementary bolt-on acquisitions as well as larger, more complex opportunities that will grow our geographical reach and service capability in a similar way to that achieved by our recent strategic acquisitions"

You couldn't have a better outlook than this:

"Outlook - outstanding FY23 gives further confidence in the year ahead"

"To this end, the structural growth drivers in our end markets have never been more attractive and we remain uniquely positioned to seize both organic and acquisitive growth opportunities. Our trading momentum has continued into the new financial year, and we are excited by the significant opportunities across the Group".

Great to see AmcoGiffen yesterday win part of a £61.5m contract for rail electrification in Scotland - electrification is going to be huge across the UK over the next few years and there are many and larger such contracts to be won:

Https://www.railadvent.co.uk/2023/11/network-rail-gives-contracts-for-work-on-east-kilbride-enhancement-project.html

"Over the next two years, they will each play a role in delivering 22.4 single track kilometres of electrified railway as part of the Scottish Government's plans to decarbonise passenger services across Scotland's Railway."

Having done a bit of additional Googling, I suspect a better wording is...another important framework contract win, this one for RNWH subsidiary Envolve announced earlier in the week as part of a £3 billion award by South West Water for the next 6 years at minimum....as this is likely one part of an overall £2.8 billion framework AFAICS.

Another huge - £3 billion! - framework contract win, this one announced earlier in the week by RNWH subsidiary Envolve for South West Water for the next 6 years at minimum....

Https://www.envolve-infrastructure.co.uk/updates/south-west-water/

"The Network Plus Envolve Joint Venture Awarded Strategic Delivery Partner Appointment on South West Water Ltd £3bn AMP8 Engineering Tier 1 Delivery Framework.

Date Posted: 20.11.2023

We are delighted to announce Network Plus Services Limited and Envolve Infrastructure have been awarded the Lot 4 Infrastructure Water and Wastewater AMP8 Framework with South West Water Ltd.

The framework will be awarded via a formal 50:50 JV founded on the collaborative model we have established working closely together on the Bristol Water Network Maintenance Framework since 2019.

The Joint Venture will provide South West Water with a tried and tested delivery model, combining two of the most respected water specialists within the sector. It is on this basis that we have secured the Eastern Super Team element of the Framework covering all of Devon, Bournemouth and Bristol which expands on our strengths and reinforces our commitment to the South West.

The framework will run for an initial 6-year period with a further 5-year extension option potentially taking our partnership through to 2035.

This success is testament to the sector leading collaboration and innovation we have demonstrated since the launch of the current framework with Bristol Water"

"Jamie Prichard, Managing Director for Envolve Infrastructure and the Framework Director for the Joint Venture:

“This award represents a significant success for Envolve Infrastructure and acknowledges the success of our proven collaboration with Network Plus. We will jointly bring our sector leading performance, and the benefit of our Intelligent Partnership developed within Bristol Water, into the South West region. I am extremely proud of the Network Plus Envolve JV which will support South West Water on their AMP 8 aspirations”

Cheers TaltBong, nice post and thx for the info on your chart with MB. Mangement here have done an excellent job since they came in, and I have every confidence that the current share price is good value and that they intend to grow the company seriously from here.

Great to see Dowgate Capital buying and increasing to 11.2% too.

Headed up by the CFO - encouraging news and hopefully another sign that SABER commercialisation is going well:

hTtps://www.enteq.com/news-media/2023/11/enteq-technologies-opens-aberdeen-office-to-support-global-rss-growthstrategy/

hTtps://drillingcontractor.org/enteq-technologies-opens-aberdeen-office-to-support-global-rss-growth-strategy-67316

hTtps://www.linkedin.com/posts/drilling-contractor-magazine_enteq-technologies-opens-aberdeen-office-activity-7133110765347078145-vvvQ

Good write-up from Investors Champion:

Https://www.investorschampion.com/channel/blog/amp/an-exciting-new-fast-growing-arrival-on-aim

Shepley Engineers are working with Berkeley Group and National Grid on a large scheme to transform UK’s biggest Victorian gasworks cluster into a 2,100-home neighbourhood:

Https://www.bdonline.co.uk/news/rshp-to-transform-uks-biggest-victorian-gasworks-cluster-into-2100-home-neighbourhood/5125956.article

Shore.s new target price is 80p and Allenby Capital's is 75p, both reduced slightly due prinarily to the weak shekel but showing substantial upside against the current 36p share price.

Both Shore and Allenby are now forecasting 4.2c EPS this year, i.e 3.39p EPS, so a P/E of 10.6.

They both forecast just over $8m net cash, i.e 7.4p per share, so the ex-cash P/E is only 8.4.

Next year's forecasts are both now around 4.3c EPS having been pared slightly mainly due to the currency fluctuations.

The tone of today's RNS and the 3.25c EPS already achieved to Q3 suggests to me that this year's forecasts may be beaten, especially since the shekel has recovered quite nicely since late October against the dollar. Still, better to underpromise and overdeliver.

A very reassuring Q3 update, especially given the now £28m m/cap:

- EPS up 9% to 3.25c, i.e around 2.7p, with the strong Q4 still to come

- the cash pile now up to $6.4m

- Q4 is going well due to increased Govt spending in both Antennas and MTI Summit

- demand and trading is overall unaffected by the war, as are internal infrastructure, imports/exports or the 40% of the workforce outside Israel

- global demand for military antennas is strong

- Mottech is solid with a promising pipeline, whilst Summit is now profitable and has a strong pipeline

I susppct that Shore's forecast of 4.2c EPS now stands a good chance of being beaten given the 3.25c EPS to date.

And the 3.2c forecast dividend is now around a 9% yield at the current share price.