Elektron issued a trading statement on the 12th January and
http://www.elektronplc.com/news/Trading_update_12-01-10.html
Key points :-
a. Significant upturn in orders. December had a daily order intake of 175k per day a record for that month and a 74% increase on the prior year comparable figure.
b. The company indicates profit will significantly exceed broker forecasts.
c. There is to be divisonal reorganisation, the number of divisions reduced from 3 to 2 the two new divisions being Elektron Technology and Elektron Ventures.
d. "The purpose of the reorganisation is to focus the Group and its management on the highest growth opportunities.
ET is currently concentrating on opportunities within the global connector market (estimated $35 billion sales in 2009). Each EV business unit will be managed for growth and where growth is not available, consideration will be given to disposal of the relevant business unit."
e. "The Board announces that it has signed a non binding letter of intent to enter into an irrevocable undertaking to accept an offer, when made, by Delta Controls Limited for all of the issued, and to be issued, share capital of Hartest Holdings plc at a price of 69p per share. There can be no certainty that Delta will make an offer or that any offer made will be successful. However in the event that an offer is successful Elektron expects to receive proceeds of approximately £1.37 million representing a profit on original cost of £0.01m and a profit on last reported carrying value of £0.90m. "
Sunday, 14 February 2010
Wednesday, 13 January 2010
Elektron vacancies point to rapid organic growth.
Elektron PLC has recently been recruiting key staff in both the UK and China as they seek to drive rapid organic growth.
Left click to enlarge picture.
Divisional Managing Director will assist in driving growth forward in the Technology subsidiaries.
"The division will operate a videoconferincing system for board meetings.
The division is placing particular emphasis on the Asia Pacific region which represents 44% of its addressable market but only 14% of existing sales."
Left click to enlarge picture.
One of the vacancies was a divisional finance director for their Technology division in China the subsidiaries comprise Bulgin/Arcolectric/Sifam.
In their job advert the company state they seek to double sales in this division within the next 3 years.
The Technology division is the most profitable part of the company and accounts for about 74% group of turnover. Should the company achieve their sales growth targets the brokers forecasts will be beaten by a wide margin.
Left click to enlarge picture.
Divisional Managing Director will assist in driving growth forward in the Technology subsidiaries."The division will operate a videoconferincing system for board meetings.
The division is placing particular emphasis on the Asia Pacific region which represents 44% of its addressable market but only 14% of existing sales."
Left click to enlarge picture.
One of the vacancies was a divisional finance director for their Technology division in China the subsidiaries comprise Bulgin/Arcolectric/Sifam.
In their job advert the company state they seek to double sales in this division within the next 3 years.
The Technology division is the most profitable part of the company and accounts for about 74% group of turnover. Should the company achieve their sales growth targets the brokers forecasts will be beaten by a wide margin.
Wednesday, 19 August 2009
Elektron trading statement.
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.
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.
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.
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