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.
Wednesday 12 August 2009
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.
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