Digitron has opened a news sales office in the US...
"Digitron to target high growth in mobile and wireless temperature and pressure measurement industries"http://www.digitron.co.uk/news.aspxInternationalisation strategy:
US sales office opens -Digitron, the provider of handheld and wireless instruments and systems for the food retail, food manufacturing, HVAC and healthcare industries, is re-positioning its business to target high growth areas in the handheld and wireless temperature and pressure measurement industries.Under a new management team, led by Neill Ricketts, Managing Director of Digitron and parent division Elektron Ventures, the 40-year-old company is strategically re-positioning its business to provide bespoke handheld and wireless monitoring solutions. At the same time it is rationalising and redeveloping its range of handheld temperature and pressure measuring instruments to reflect a new generation of customer needs. The company is also fast-tracking its internationalisation strategy with the opening of a staffed US sales office in Thousand Palms, California. The move leverages parent company Elektron PLC’s routes to market in the region. Global sales are being driven by Peter Needham who has been appointed Business Development Manager with responsibility for growing the bespoke handheld and wireless solutions business. Peter joins the management team from a major distributor of wireless communication systems and previously spent 10 years in global thermal system sales. The Digitron handheld product range is being redesigned and manufactured in the UK and is aimed at achieving a market-leading position in quality, reliability, functionality and value. It will be launched in September 2010. The development of the DigiTrak Kyros wireless sensor network system has recently been completed and a significant installation secured at the Dubai Marina hotel in Dubai for the real-time temperature monitoring of over 250 fridges and freezers.Neill Ricketts, Managing Director of Digitron and Elektron Ventures commented: “Elektron has identified the high growth potential for Digitron and has engaged a focused and dynamic management team to deliver the new strategy for the development of bespoke handheld and high value wireless solutions based on our own technologies.“We are currently developing bespoke temperature and pressure instruments for a number of existing and new customers, and wireless monitoring solutions for several large and blue chip organisations. We are in the final stages of discussion with some market leading names in the restaurant, hospitality and retail sectors for the installation of the new DigiTrak Kyros temperature monitoring system across multiple sites and should be in a position to announce new contracts shortly.”Digitron is part of the Elektron Ventures division of Elektron plc.
Thursday 9 September 2010
Saturday 4 September 2010
Acquisition of Hartest PLC.
Acquisition of Hartest Holdings. (to be updated)
"On 30 July 2010, Elektron announced the terms of a mandatory cash offer for the entire issued and to be issued ordinary share capital of Hartest not already owned by Elektron (the "Offer") at an offer price of 90 pence in cash (the "Offer Price") for each Hartest Share (the "Announcement").
Since the Announcement, the board of Hartest has agreed to recommend the Offer at the Offer Price for the reasons set out in the letter from the Chairman of Hartest at Part 1 of the Offer Document. "
The offer for Hartest.
Elektron's offer values Hartest PLC at about £8.3 million. However its believed by the time the deal is finalised on the 12th September HTH could have over £1 million cash on deposit plus the sale of their freehold property the sale been recently concluded. The sale proceeds amounted to a little over £700,000. Taking away cash could reduce the actual cost for Hartest to approx £6.6 million. Hartest has no net debt and will be highly cash generative.
Hartest could well add £1 million to our pre tax profits in the current year and thereafter between £2 million to £3 million pre tax in the short to medium term. I expect Hartest will grow its turnover faster under Elektron's control, they will use each others sales network and distributors to ramp up sales.
Combined group forecast turnover and profits.
The acquisition of Hartest is significant for Elektron. The enlarged group will probably have turnover of circa £50 million for the current year and I estimate pre tax profits of about £5million. For next year I estimate turnover of circa £75 million and pre tax profits of about £8 million.
Such is the significance of the Hartest acquisition Elektron has been shortlisted as Aim transaction of the year see 5 below:-http://www.aim-awards.co.uk/2010/awar.php#6.
AIM Transaction of the Year"The winner of this new award will be a company that has been transformed by a single financial or commercial transaction during the period under review. This is necessarily a wide ranging award, given to recognise a significant achievement by a company in transforming itself, literally at a stroke, and thereby creating significant shareholder value. "
5. AIM Transaction of the Year Sponsored by Zeus Capita
1. Bellzone Mining pl
2. Elektron plc
3. Petra Diamonds Ltd
4. Norman Broadbent plc
"On 30 July 2010, Elektron announced the terms of a mandatory cash offer for the entire issued and to be issued ordinary share capital of Hartest not already owned by Elektron (the "Offer") at an offer price of 90 pence in cash (the "Offer Price") for each Hartest Share (the "Announcement").
Since the Announcement, the board of Hartest has agreed to recommend the Offer at the Offer Price for the reasons set out in the letter from the Chairman of Hartest at Part 1 of the Offer Document. "
The offer for Hartest.
Elektron's offer values Hartest PLC at about £8.3 million. However its believed by the time the deal is finalised on the 12th September HTH could have over £1 million cash on deposit plus the sale of their freehold property the sale been recently concluded. The sale proceeds amounted to a little over £700,000. Taking away cash could reduce the actual cost for Hartest to approx £6.6 million. Hartest has no net debt and will be highly cash generative.
Hartest could well add £1 million to our pre tax profits in the current year and thereafter between £2 million to £3 million pre tax in the short to medium term. I expect Hartest will grow its turnover faster under Elektron's control, they will use each others sales network and distributors to ramp up sales.
Combined group forecast turnover and profits.
The acquisition of Hartest is significant for Elektron. The enlarged group will probably have turnover of circa £50 million for the current year and I estimate pre tax profits of about £5million. For next year I estimate turnover of circa £75 million and pre tax profits of about £8 million.
Such is the significance of the Hartest acquisition Elektron has been shortlisted as Aim transaction of the year see 5 below:-http://www.aim-awards.co.uk/2010/awar.php#6.
AIM Transaction of the Year"The winner of this new award will be a company that has been transformed by a single financial or commercial transaction during the period under review. This is necessarily a wide ranging award, given to recognise a significant achievement by a company in transforming itself, literally at a stroke, and thereby creating significant shareholder value. "
5. AIM Transaction of the Year Sponsored by Zeus Capita
1. Bellzone Mining pl
2. Elektron plc
3. Petra Diamonds Ltd
4. Norman Broadbent plc
Trading update & Upgrade in broker forecasts.
Trading update and broker forecasts (to be updated further).
05 July 2010
Elektron Plc
Trading Update
As Elektron Plc ("Elektron" or the "Group"), the AIM quoted technology based company, approaches the end of its first half, it announces a trading update.
Pre-tax profits for the half year to 31 July 2010 are expected to be significantly ahead of management's previous expectations.
The Board continues to be cautious about the second half because of global economic events. However, the order book remains strong and the Board believes that the Group will perform better than management's previous expectations for the current year.
Elektron expects to release its interim results on 16 September 2010.
Broker Forecasts.
Brokers upgrade pre tax profit £900,000 but state there will be a small tax charge and exceptional items. EPS current year forecast increase to 4.1p. (basic).
Finncap increase price target from 30p to 40p.
05 July 2010
Elektron Plc
Trading Update
As Elektron Plc ("Elektron" or the "Group"), the AIM quoted technology based company, approaches the end of its first half, it announces a trading update.
Pre-tax profits for the half year to 31 July 2010 are expected to be significantly ahead of management's previous expectations.
The Board continues to be cautious about the second half because of global economic events. However, the order book remains strong and the Board believes that the Group will perform better than management's previous expectations for the current year.
Elektron expects to release its interim results on 16 September 2010.
Broker Forecasts.
Brokers upgrade pre tax profit £900,000 but state there will be a small tax charge and exceptional items. EPS current year forecast increase to 4.1p. (basic).
Finncap increase price target from 30p to 40p.
Elektron PLC results to 31 Jan 2010
Elektron results to 31st Jan 2010 in brief (to be updated in due course)
Highlights:
Turnover £29,882 (35,644)
Operating profits excluding discontinued operations goodwill exceptional operations £1,763 (£1,0002)
Very strong second half: EBIT of £1.5 million (2009: £0.3 million)
Dividend 0.5p (0.46p) to be paid on 17th August, scrip divi alternative
Outlook
Current sales and EBIT are well ahead of management expectations. Orders for the year to date are currently running at 148% of last year with the current Group order book standing at £8.1 million, 76% up on this time last year. It should however be borne in mind that prior year comparatives were especially weak and that it will be harder to sustain such dramatic percentage increases as the year progresses.
Highlights:
Turnover £29,882 (35,644)
Operating profits excluding discontinued operations goodwill exceptional operations £1,763 (£1,0002)
Very strong second half: EBIT of £1.5 million (2009: £0.3 million)
Dividend 0.5p (0.46p) to be paid on 17th August, scrip divi alternative
Outlook
Current sales and EBIT are well ahead of management expectations. Orders for the year to date are currently running at 148% of last year with the current Group order book standing at £8.1 million, 76% up on this time last year. It should however be borne in mind that prior year comparatives were especially weak and that it will be harder to sustain such dramatic percentage increases as the year progresses.
Saturday 10 April 2010
Trading update & Upgrade in broker forecasts.
Trading Update 8th April.
Elektron updated the market on year ended Jan 2010 trading and gave an indication of current trading.
Key points:
a. Due to increased order intake in the final weeks of the financial year the company has seen a signicant increase in profitability pre exceptional costs.
b. Availabe for sale financial assets will have increased £800,000 due to a revaluation.
c. "Elektron is pleased to report that the upward order trend has continued in the first two months of the current financial year giving the Board added confidence in at least meeting market expectations for 2010/11. Queensgate, the nanomeasurement specialist which is part of Elektron Ventures, is performing particularly well."
Finncap Brokers Upgrade:
Key Points:
a. Finncap have upgraded turnover from £29.6 million to £30.3 million and increased EBITDA to £2.8 million. EPS has been upgraded from 1.17 to 1.85 basic eps.
b. Price target increased to 25p from 15p. Finncap indicated the likely hood of further upgrades.
Comments:
Turnover and profits started to bounce back from last Summer onwards and the company finished the year very strong. It looks to me like the strong finish to the latter half of the year has continued on an upward trend into the current year. We are already looking for £3 million pre tax profits on the current year I think they will be comfortably exceeded. As turnover rises more profits fall to the bottom line with rising margins.
Finncap our brokers have already upgraded our forecasts a number of times last year I think they will have to again on the current years forecast earnings.
The brokers have indicated excellent trading in the technology division. That group comprises Bulgin, Arcolectric, Sifam. The bulgin subsidiary is a highly profitable business now investors should not underestimate the increase in trading on profits. What caught me out was the increase in business from Queensgate Instruments that operation is capable of good profits going forward.
The share price has increased over 140% from its low point the last 3 months and with the market cap still under £16 million at the current mid price of 18.25p the share price could double again well before the end of the year. The current multiple is far too low at present on prospects.
Elektron updated the market on year ended Jan 2010 trading and gave an indication of current trading.
Key points:
a. Due to increased order intake in the final weeks of the financial year the company has seen a signicant increase in profitability pre exceptional costs.
b. Availabe for sale financial assets will have increased £800,000 due to a revaluation.
c. "Elektron is pleased to report that the upward order trend has continued in the first two months of the current financial year giving the Board added confidence in at least meeting market expectations for 2010/11. Queensgate, the nanomeasurement specialist which is part of Elektron Ventures, is performing particularly well."
Finncap Brokers Upgrade:
Key Points:
a. Finncap have upgraded turnover from £29.6 million to £30.3 million and increased EBITDA to £2.8 million. EPS has been upgraded from 1.17 to 1.85 basic eps.
b. Price target increased to 25p from 15p. Finncap indicated the likely hood of further upgrades.
Comments:
Turnover and profits started to bounce back from last Summer onwards and the company finished the year very strong. It looks to me like the strong finish to the latter half of the year has continued on an upward trend into the current year. We are already looking for £3 million pre tax profits on the current year I think they will be comfortably exceeded. As turnover rises more profits fall to the bottom line with rising margins.
Finncap our brokers have already upgraded our forecasts a number of times last year I think they will have to again on the current years forecast earnings.
The brokers have indicated excellent trading in the technology division. That group comprises Bulgin, Arcolectric, Sifam. The bulgin subsidiary is a highly profitable business now investors should not underestimate the increase in trading on profits. What caught me out was the increase in business from Queensgate Instruments that operation is capable of good profits going forward.
The share price has increased over 140% from its low point the last 3 months and with the market cap still under £16 million at the current mid price of 18.25p the share price could double again well before the end of the year. The current multiple is far too low at present on prospects.
Tuesday 16 February 2010
Director change sets Elektron's sights ever higher.
Today Elektron appointed Malcolm Argent CBE as a non executive....
http://www.elektronplc.com/news/director_16-02-10.html
Malcolm has had a distinguished career with BT and other appointments have included Deputy Chairman of the Civil Aviation Authority (1995-8) and member of the boards of Westminster Healthcare Holdings PLC (1992-9) and Clerical Medical Investment Group Ltd (1994-2001).
Elektron appear to be setting their sights high appointing directors from Blue Chip companies to this rapidly growing Aim company.
Keith Daley, Chairman commented:
'We are delighted that Malcolm has agreed to join the Elektron board and I am sure that Shareholders will join me in welcoming his appointment at this exciting time for the Company. We are continuing to look for an additional non-executive director to further strengthen the board'.
I can't wait to hear who the next non executive will be.
http://www.elektronplc.com/news/director_16-02-10.html
Malcolm has had a distinguished career with BT and other appointments have included Deputy Chairman of the Civil Aviation Authority (1995-8) and member of the boards of Westminster Healthcare Holdings PLC (1992-9) and Clerical Medical Investment Group Ltd (1994-2001).
Elektron appear to be setting their sights high appointing directors from Blue Chip companies to this rapidly growing Aim company.
Keith Daley, Chairman commented:
'We are delighted that Malcolm has agreed to join the Elektron board and I am sure that Shareholders will join me in welcoming his appointment at this exciting time for the Company. We are continuing to look for an additional non-executive director to further strengthen the board'.
I can't wait to hear who the next non executive will be.
Monday 15 February 2010
Broker upgrade and outlook.
Finncap upgraded Elektron's forecasts when they issues a trading statement on 12th January.
They believe recent strong trading will flow through into the first quarter of FY11e. One of the reasons for that is because Elektron mainy manufacture to order, therefore any orders placed in December/January will see profitability flow through to next years figures. Moreover Elektron win one off orders and its likely these will be hinted at to brokers.
The main changes to forecasts on turnover and eps are:-
Year end Jan 2010...
Turnover increased from £28.45m to £29.60 a forecast increase of 4%
EBIT adj from 0.020 to 1.20p a 500% upgrade.
EPS adj 0.01 to 1.15p
The brokers have indicated that Elektron's competitors are on a pe ratio of 13 times earnings and have therefore pencilled in a price target of 15p for Elektron. It has to be said however those forecasts are based on year end Jan 2010 figures and in my view the current share price is undervalued on the current earnings forecasts for Year end Jan 2011 and 2012.
Finncap have left Year end Jan 2011 and year end Jan 2012 unchanged.
Forecasts for Jan 2011 are eps of 3.40p and Jan 2012 of 4.45p
However with current trading appearing to be significantly up on last year, I feel Finncap will have to upgrade 2011 and 2012 forecasts in due course. This is what Elektron said in their recent trading statement..." In December average daily order intake exceeded £175k per day which was a record for that month, representing a 74% increase on the prior year comparable figure."
Further evidence that things are picking up recently, Premier Farnell and Electromponents have indicated good trading of late more so in the far east, the US and China, which are growing strongly.
I am expecting a further pre close statement in due course. At that stage I expect further upgrades to 2010/2011 turnover, profitabiluty and eps.
However if we follow Finncap's methadology on EKT's competitors being placed on a multiple of 13 times earnings on 2011 eps of 3.40p that would equate to a target share price of 44.2p and for Jan year end 2012 on an eps of 4.45p would equate to a target price of 57.85p.
I think however, Elektron should be on a rating of at least 15 times earnings I base that on a strong balance sheet with low gearing, and rapid rise in eps the next 2 years with better prospects than Finncap have indicated.
Finncaps 9th July 2009 cash forecasts show :-
£0,347,000 cash for Jan year end 2010
£2,858,000 cash for Jan year end 2011
£5,908,000cash for Jan year end 2012.
Taking into account trading at year end being significantly higher than broker forecasts, I suspect the cash position will be far better than Finncap have forecast. Moreover interest charges should be lower as Elektron payed a scrip divi, which was accepted by over 50% of shareholders. This will have resulted in further cash savings.
When the company came out with their trading statement in Jan the company also announced a possible sale of their stake in Hartest. Should the Delta offer be accepted on the 22nd February 2010 Elektron will receive proceeds of approx £1.3 million.
My own Cash balance forecasts taking account of uptake in orders at year end and payment of scrip dividend are as follows ;-
For year end Jan 2010.
Previous profit forecasts EBIDTA adj 0.78 million. Upgraded to £.1.02 = an increase of 340k
Estimated saving on scrip dividend of say 200k plus an estimated savings on interest charges of say 50k = 250k
Previously Finns forecast cash balances for Jan year end 2010 £0.347,000 add on above savings of 737,000 = Cash balances at year end 2009 = £1,084,000
For Jan year end 2011 Finns had cash balances of £2,858,000. Add on 737k = £3.585,000. However should the HTH stake sale go through EKT will receive a further £1.3 million less tax which could equate to cash at year end of approx £4,485,000
Finns had cash balances of £5,903,000 for year Jan year end 2012 taking account of the above would equate to approx £7,640,000
They believe recent strong trading will flow through into the first quarter of FY11e. One of the reasons for that is because Elektron mainy manufacture to order, therefore any orders placed in December/January will see profitability flow through to next years figures. Moreover Elektron win one off orders and its likely these will be hinted at to brokers.
The main changes to forecasts on turnover and eps are:-
Year end Jan 2010...
Turnover increased from £28.45m to £29.60 a forecast increase of 4%
EBIT adj from 0.020 to 1.20p a 500% upgrade.
EPS adj 0.01 to 1.15p
The brokers have indicated that Elektron's competitors are on a pe ratio of 13 times earnings and have therefore pencilled in a price target of 15p for Elektron. It has to be said however those forecasts are based on year end Jan 2010 figures and in my view the current share price is undervalued on the current earnings forecasts for Year end Jan 2011 and 2012.
Finncap have left Year end Jan 2011 and year end Jan 2012 unchanged.
Forecasts for Jan 2011 are eps of 3.40p and Jan 2012 of 4.45p
However with current trading appearing to be significantly up on last year, I feel Finncap will have to upgrade 2011 and 2012 forecasts in due course. This is what Elektron said in their recent trading statement..." In December average daily order intake exceeded £175k per day which was a record for that month, representing a 74% increase on the prior year comparable figure."
Further evidence that things are picking up recently, Premier Farnell and Electromponents have indicated good trading of late more so in the far east, the US and China, which are growing strongly.
I am expecting a further pre close statement in due course. At that stage I expect further upgrades to 2010/2011 turnover, profitabiluty and eps.
However if we follow Finncap's methadology on EKT's competitors being placed on a multiple of 13 times earnings on 2011 eps of 3.40p that would equate to a target share price of 44.2p and for Jan year end 2012 on an eps of 4.45p would equate to a target price of 57.85p.
I think however, Elektron should be on a rating of at least 15 times earnings I base that on a strong balance sheet with low gearing, and rapid rise in eps the next 2 years with better prospects than Finncap have indicated.
Finncaps 9th July 2009 cash forecasts show :-
£0,347,000 cash for Jan year end 2010
£2,858,000 cash for Jan year end 2011
£5,908,000cash for Jan year end 2012.
Taking into account trading at year end being significantly higher than broker forecasts, I suspect the cash position will be far better than Finncap have forecast. Moreover interest charges should be lower as Elektron payed a scrip divi, which was accepted by over 50% of shareholders. This will have resulted in further cash savings.
When the company came out with their trading statement in Jan the company also announced a possible sale of their stake in Hartest. Should the Delta offer be accepted on the 22nd February 2010 Elektron will receive proceeds of approx £1.3 million.
My own Cash balance forecasts taking account of uptake in orders at year end and payment of scrip dividend are as follows ;-
For year end Jan 2010.
Previous profit forecasts EBIDTA adj 0.78 million. Upgraded to £.1.02 = an increase of 340k
Estimated saving on scrip dividend of say 200k plus an estimated savings on interest charges of say 50k = 250k
Previously Finns forecast cash balances for Jan year end 2010 £0.347,000 add on above savings of 737,000 = Cash balances at year end 2009 = £1,084,000
For Jan year end 2011 Finns had cash balances of £2,858,000. Add on 737k = £3.585,000. However should the HTH stake sale go through EKT will receive a further £1.3 million less tax which could equate to cash at year end of approx £4,485,000
Finns had cash balances of £5,903,000 for year Jan year end 2012 taking account of the above would equate to approx £7,640,000
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