Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Pendragon's atest management statement doesn't mention shareholders!
Bill Berman, Chief Executive of Pendragon PLC, commented:
"I am delighted to report a very strong performance in the first quarter, which builds on the momentum we generated last year from the progress with our strategic and operational initiatives. We continued to trade strongly in UK Motor, across both new and used markets, and our performance shows the benefits of the strategy we have been pursuing in recent years. It is really encouraging to see all of the Group's divisions in growth, particularly when considering the ongoing challenges in the external operating environment. We are seeing improving signs in the production and supply of new cars and we are focused on continuing to deliver for our customers and OEM partners in the months ahead."
If I remember correctly 5 trades on the day after the webinar (2 of which were small top ups by me!) and ending down on the day. Yesterday 39 trades including some reasonably large ones and up 9% on the day. Next week should be interesting.
Whilst webinar didn't give any new information (not allowed) it did show the confidence of management. The figures that hit me were that 40,000 tons a year (c $20m sales) throughput was achievable by the end of this year (2023) but once a smelter is in place on site could expand production 40 times!! Current market cap of £12m surely is too low but do need a massive uplift just to get positive here!
Overall financial performance for the fourth quarter of FY22 was slightly ahead of the Board's expectations, with a strong underlying trading performance more than offsetting higher operating and interest cost pressures. Trading during the quarter was underpinned by strong volume growth in new cars, with the Group delivering like-for-like volume growth of 4.6%, and outperforming the retail new car market growth of 1.0%. Used car volumes also grew by 5.2% on a like-for-like basis in Q4, a notable improvement on the declines seen in the third quarter.
As a result of this performance, FY22 Group underlying profit before tax is expected to be approximately £57m (FY21: £83.0m), slightly ahead of market expectations1.
The Group continued to improve its financial position during FY22, with adjusted net debt of approximately £23m (FY22: £49.7m) as at 31 December 2022.
Significantly ahead of original schedule!! A first for Ironveld
"Excellent progress continues to be made on the refurbishment and start up of the Rustenburg smelter. As announced on 17 October 2022, first production was anticipated in Q1 2023 but Ironveld can now confirm that the first of the smelter's three planned operational furnaces is expected to be in operation within the coming weeks, significantly ahead of the original schedule.
Given the challenging market conditions and uncertain economic outlook, Hedin confirms that it does not intend to make an offer for Pendragon.
The new owner -Hedin will not issue shares to buy Pendragon they will pay cash. Any dividend paid by Pendragon and agreed by Hedin would reduce the price paid for the shares.
I am hopeful that Pendragon's board will have been able to negotiate an increase in the bid price - perhaps to 32p in order to discourage anyone else from making a bid.
If Hedin or one of their concert party pay more than 29p then the offer will have to be at or higher than the price paid.
From Sunday Telegraph:
The board of one of Britain’s biggest car dealers is poised to back a takeover by a Swedish automotive tycoon in a £400m take-private deal.
City sources said that members of Pendragon’s board have indicated to Anders Hedin that they will recommend shareholders approve his 29p-a-share approach.
The board’s recommendation could be announced as early as Monday ahead of a “put up or shut up” deadline.
With executives this weekend putting the final touches to the deal, sources cautioned that a short extension to the deadline may be required before the directors’ approval is confirmed. The takeover would then need to be backed by Pendragon's shareholders.
Separate City sources said that the deal with Hedin Group could yet be gatecrashed. There is speculation that Constellation Automotive, the group behind Webuyanycar and Cinch, could launch a rival bid.
Constellation Automotive is led by chairman Avril Palmer-Baunack, who previously led the board of Stobart. The Hampshire-based company has been at the forefront of the consolidation within the UK’s fragmented car dealership market.
It acquired listed car dealer Marshall a year ago and has taken a 20pc stake in Lookers, another of the UK's listed dealerships.
Although a swoop on Pendragon, which operates under the Evans Halshaw, Stratstone and CarStore brands, would attract the interest of competition regulators, such a deal would only leave Constellation with around 20pc of the UK car dealership market, sources added.
Pendragon and Lookers held talks over a potential merger in May 2020. Discussions ended without an agreement.
A rival bid would likely have to be in the region of 35p-a-share, the price at which Hedin has previously indicated it would be willing to sell its current 27.5pc stake in Pendragon.
Hedin is thought to believe Pendragon can be run significantly more efficiently. It is eyeing savings by cutting out unnecessary costs. It is likely to bring in its own management team to run the business, City sources said.
Should a counter-bid not emerge, it remains to be seen whether Hedin will bring back Trevor Finn, who transformed Pendragon into one of Britain’s biggest car dealers during his 30-year stint with the company.
Mr Finn quit Pendragon in 2018 amid reports of a boardroom row. His successor, Mark Herbert lasted just three months before stepping down. Insiders claimed there had been a “difference of priorities”.
Pendragon, Hedin Group, and Constellation Automotive declined to comment.
Up to 3 more weeks - surely an extension until 9th December gives them time to finalise the paper work - though lawyers and accountants have been known to take longer than you expect especially if they are paid by the hour! Would hope they don't need all 3 weeks
Extension until 9th December - Nearly there!!