Elektron came out with a trading statement today.
As I stated in my footnote to the brokers forecasts the most profitable subsidiaries doing very nicely indeed.
At the moment the ECD division contrbutes 60% of group turnover the other divisions split 20% hard metal components , 20% from instruments.
Looking a little further ahead I am expecting the instruments operations to not only catch up on ECDs profitability but to be the most profitable business overall. The reason being some of the instruments are high value products and therefore margins will be better.
The company stated they were confident of long term growth in profits and dividends.
Wednesday 19 August 2009
Tuesday 18 August 2009
Total Carbide launch.
Total Carbide launch new identity and new product line together with a £1.8 million investment programme.
http://www.totalcarbide.com/media/TotalCarbidelaunchOE2009FINAL.pdf
Neill Rickets indicates the subsidiary has already had success in new business in the last 3 months.
The company has developed a new Nickel Chrome alloy for the oil and gas industry.
http://www.totalcarbide.com/media/TotalCarbidelaunchOE2009FINAL.pdf
Neill Rickets indicates the subsidiary has already had success in new business in the last 3 months.
The company has developed a new Nickel Chrome alloy for the oil and gas industry.
Institutional Presentations.
Elektron are to have a number of City Institutional Presentations, Sept/Oct 2009
http://www.cityinsights.co.uk/default.aspx
http://www.cityinsights.co.uk/default.aspx
Wednesday 12 August 2009
Highlights of 2009 Broker note. (millions)
Sales 2009a £35.64 2010e £28.45 2011e £36.30 2012e 41.50
PTP 09a 1.71 10e 0.01 11e 3.00 12e 5.22
eps pence 09a 2.27 10e 0.01 11e 3.50 12e 4.58
Div pence 09a 0.45p 10e 46p 11e 50p 12e 60p.
Margins 09a 34% 10e 38% 11e 40% 12e 42%
Cash on deposit. 09a £834,000 10e £347,000 11e £2,858,000 12e £5,903,000
Net (debt) cash 09a (3.263) 10e (4,250) 11e (1,739) 12e 1.306.
The company will be ungeared in 2012. The dividend cover will be over 7 times in 2012. I think the company could be paying a far higher dividend and will be pressing the company to do so nearer the time. Bear in mind the company will be ungeared in the same time scale if they meet brokers forecasts.
The brokers regard the strategy off offshoring and investment in IP offers significant returns in the long term. The brokers have forecast that the ECD division will be making pre tax profits of £1 million in fy10 and the other divisions a small loss. However the brokers have indicated that as a conseqence of most of the exceptionals already been taken to the profit and loss account any uplift in sales should enhance current year performance. Having said that the most profitable part of the group being ECD, and the economies starting now to see growth, the brokers forecasts could get beaten on a full years trading. Surprising news today both France and Germany seem to have come out of recession and resumed growth.
Sales 2009a £35.64 2010e £28.45 2011e £36.30 2012e 41.50
PTP 09a 1.71 10e 0.01 11e 3.00 12e 5.22
eps pence 09a 2.27 10e 0.01 11e 3.50 12e 4.58
Div pence 09a 0.45p 10e 46p 11e 50p 12e 60p.
Margins 09a 34% 10e 38% 11e 40% 12e 42%
Cash on deposit. 09a £834,000 10e £347,000 11e £2,858,000 12e £5,903,000
Net (debt) cash 09a (3.263) 10e (4,250) 11e (1,739) 12e 1.306.
The company will be ungeared in 2012. The dividend cover will be over 7 times in 2012. I think the company could be paying a far higher dividend and will be pressing the company to do so nearer the time. Bear in mind the company will be ungeared in the same time scale if they meet brokers forecasts.
The brokers regard the strategy off offshoring and investment in IP offers significant returns in the long term. The brokers have forecast that the ECD division will be making pre tax profits of £1 million in fy10 and the other divisions a small loss. However the brokers have indicated that as a conseqence of most of the exceptionals already been taken to the profit and loss account any uplift in sales should enhance current year performance. Having said that the most profitable part of the group being ECD, and the economies starting now to see growth, the brokers forecasts could get beaten on a full years trading. Surprising news today both France and Germany seem to have come out of recession and resumed growth.
Broker forecasts July 2009
The link to the broker forecasts is here...
http://www.mediafire.com/?ixymltywvjj
This thread will be updated later showing the highlights and my own comments on the outlook.
http://www.mediafire.com/?ixymltywvjj
This thread will be updated later showing the highlights and my own comments on the outlook.
Tuesday 11 August 2009
Elektron's 2009 AGM.
A brief summary of EKT's AGM is as follows.
At the start of the meeting the company indicated they could answer no questions on their recent acquistion news. This is not unusual they are governed by FSA rules.
Various shareholders placed a number of questions to the board of directors.
Firstly one shareholder questioned the auditors fee of about £170,000 as being on the high side. The FD Chris Leigh indicated one of the reasons for this was some of Elektron's operating companies were abroad. There were other minor figures questioned in the accounts.
Another question was concern that the Howle subsidiary was not performing when EKT had previously stated the subsidiary would benefit through new products to the oil and gas sector. The new director of Howle answered the question and indicated the oil and gas sector had reduced their orders however he seemed confident things would improve once the oil and gas sector picked up. He also commented on Howle's new website the subsidiary to be renamed Total Carbide. This is their new Total Carbide website... http://www.totalcarbide.com/
I put a number of questions to the board. First I asked the directors about their new product development and whether they could give me an example of some of their new products. Unfortunately due to confidentiality agreements with their customers it was not possible to provide details albeit the company indicated there would be new product announcements before the year end.
My next question was whether they company were happy with their top team they had in place and whether or not there would be further appointments. The company has taken on a number of key staff on lately with excellent credentials. Keith Daley indicated the company were happy with the team they had in place however they still had in mind more appointments in due course. Details of new director appointments are here.. http://www.totalcarbide.com/media/HowleTitmanDirectorAppointmentsJuly2009.pdf
The company had indicated previously they hoped to achieve a turnover of circa £100 million per year and I asked whether or not they were still on track in the medium term. It was confirmed they were.
My last question was with regard to the brokers dividend forecast for the next few years. I stated to the company they had paid on average a dividend cover of about 4 to 5 times the last few years. I thought over 7 times cover for 2012 was too high. One shareholder interupted my question indicating he would rather see the company reinvest rather than paying higher dividends. Keith Daley indicated the board had every intention of enhancing shareholder value apart from any dividends.
The meeting ended.
At the start of the meeting the company indicated they could answer no questions on their recent acquistion news. This is not unusual they are governed by FSA rules.
Various shareholders placed a number of questions to the board of directors.
Firstly one shareholder questioned the auditors fee of about £170,000 as being on the high side. The FD Chris Leigh indicated one of the reasons for this was some of Elektron's operating companies were abroad. There were other minor figures questioned in the accounts.
Another question was concern that the Howle subsidiary was not performing when EKT had previously stated the subsidiary would benefit through new products to the oil and gas sector. The new director of Howle answered the question and indicated the oil and gas sector had reduced their orders however he seemed confident things would improve once the oil and gas sector picked up. He also commented on Howle's new website the subsidiary to be renamed Total Carbide. This is their new Total Carbide website... http://www.totalcarbide.com/
I put a number of questions to the board. First I asked the directors about their new product development and whether they could give me an example of some of their new products. Unfortunately due to confidentiality agreements with their customers it was not possible to provide details albeit the company indicated there would be new product announcements before the year end.
My next question was whether they company were happy with their top team they had in place and whether or not there would be further appointments. The company has taken on a number of key staff on lately with excellent credentials. Keith Daley indicated the company were happy with the team they had in place however they still had in mind more appointments in due course. Details of new director appointments are here.. http://www.totalcarbide.com/media/HowleTitmanDirectorAppointmentsJuly2009.pdf
The company had indicated previously they hoped to achieve a turnover of circa £100 million per year and I asked whether or not they were still on track in the medium term. It was confirmed they were.
My last question was with regard to the brokers dividend forecast for the next few years. I stated to the company they had paid on average a dividend cover of about 4 to 5 times the last few years. I thought over 7 times cover for 2012 was too high. One shareholder interupted my question indicating he would rather see the company reinvest rather than paying higher dividends. Keith Daley indicated the board had every intention of enhancing shareholder value apart from any dividends.
The meeting ended.
Saturday 27 June 2009
Elektron results year end Jan 2009
Elektron results came out June.
http://www.elektronplc.com/news/news-11-06-09.html
"Key Points:
Sales £35.6 million (2008: £34.9 million)
Operating profit before exceptional items slightly ahead of guidance at £1.1 million (2008: £2.1 million)
Exceptional charges previously announced of £3.2 million (2008: £1.0 million); cost base substantially reduced
Proposed final dividend up 2.2% to 0.46p per share; scrip issue alternative
Cash of £0.8m (2008: £2.0 million) "
A growth in the dividend shows confidence in the company.
For the last few years the company has been concentrating on cost cutting although that will continue the company is moving forward with more capital spend on Inovation...
"The major focus in the current year will be on Innovation. Elektron has started to implement an Innovation Project, drawing on talent already available within the Group, with a view to achieving substantial growth and greatly enhancing shareholder value. The Group is budgeting £1.4 million in technical spend in the current financial year and we are determined that as much of this as possible will be used to develop new products for growing markets rather than simply maintaining the existing product range."
http://www.elektronplc.com/news/news-11-06-09.html
"Key Points:
Sales £35.6 million (2008: £34.9 million)
Operating profit before exceptional items slightly ahead of guidance at £1.1 million (2008: £2.1 million)
Exceptional charges previously announced of £3.2 million (2008: £1.0 million); cost base substantially reduced
Proposed final dividend up 2.2% to 0.46p per share; scrip issue alternative
Cash of £0.8m (2008: £2.0 million) "
A growth in the dividend shows confidence in the company.
For the last few years the company has been concentrating on cost cutting although that will continue the company is moving forward with more capital spend on Inovation...
"The major focus in the current year will be on Innovation. Elektron has started to implement an Innovation Project, drawing on talent already available within the Group, with a view to achieving substantial growth and greatly enhancing shareholder value. The Group is budgeting £1.4 million in technical spend in the current financial year and we are determined that as much of this as possible will be used to develop new products for growing markets rather than simply maintaining the existing product range."
Tuesday 17 February 2009
Stakebuilding in Elektron.
Most of the big holders and directors been stakebuilding in Elektron PLC the last 12 months...
Latest update:-
8th July 2008 Keith Roy director buys 5,000
9th July Keith Daley buys 200,000
23rd July Keith Roy buys 100,000
4th Aug KD buys 100,000
6th Oct KD buys 150,000
13th KR buys 25,000
15th Oct Andrew Perloff buys 525,000
20th Oct KR & KD buys 500,000
24th Oct John Kinder buys 100,000
24th Nov Keith Daley buys 100,000
17th Feb 2009 Keith Daley buys 2,000,000
Total 3,850,000
Latest update:-
8th July 2008 Keith Roy director buys 5,000
9th July Keith Daley buys 200,000
23rd July Keith Roy buys 100,000
4th Aug KD buys 100,000
6th Oct KD buys 150,000
13th KR buys 25,000
15th Oct Andrew Perloff buys 525,000
20th Oct KR & KD buys 500,000
24th Oct John Kinder buys 100,000
24th Nov Keith Daley buys 100,000
17th Feb 2009 Keith Daley buys 2,000,000
Total 3,850,000
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