600 Share Discussion Threads

[riddlerone] 27/1/2017 15:31

Nice RNS,to sell that size holding at a Premium to the share price bodes well from this level.I currently hold PPIX as well so could be significant to both

[callumross] 27/1/2017 15:20

From Disruptive Capital's website;

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We exploit dislocations in markets and unlock value from complex situations using a Get Rich and Stay Rich strategy. This strategy has given rise to returns over 23 years of 28% p.a. Net IRR"

[callumross] 27/1/2017 15:03

Britains last remaining quoted machine tool manufacturer - it was always going to be coveted at some point. Was there not a bid attempt a few years back at over 20p if I recollect?

[balcony] 27/1/2017 14:59

Interesting,.But i was unable to buy online

[callumross] 27/1/2017 14:59

Looks like the company is in play again. Cannot buy a single share online unfortunately.

[cjohn] 09/1/2017 11:50

Yes, as I said, debt moved up a bit.

as a result of working capital changes and the increase in sterling value of dollar denominated debt. Let's see if they can generate some positive cash flow in this half..

Tangible gearing is much higher than the figures you quote, but then it's only recently that they've actually moved back into positive tangible equity.

[cjohn] 07/12/2016 10:04

Ok half year results. Underlying profitabiiy -ie discounting changes in pension assets and other pension accounting features - was quite strong at 0.75m sterling. However, as expected, the increased order book and timing of payments meant higher working capital (and lower payables), so debt inched up further.

Assets - discounting the pension fun- were up: profitability and the translation of US dollar assets into sterling.

Overall, not bad for SIXH. The 30% increase in order book over last year is encouraging.

[rburtn] 06/12/2016 09:19

When did this company ever produce a return on the retained profit? It's high time the directors gave the shareholders the profits so that they can make better use of them. I expect it's only a matter of time before the leaders of sixh have taught those of ppix how to use capital from shareholders and chip away at it at the the same time.

[cjohn] 24/10/2016 16:50

Hi Prop Joe, yes, they both get to the same place. Either way it's accounted for, it's a good acquisition, albeit minor.

[rburtn] 24/10/2016 07:59

Don't we know it Buywell, for ten years, several hundred employees have worked diligently away all to have done nothing more than consume the company - heads ought to roll. Why not?

[buywell3] 24/10/2016 01:24

The chart shows this stock is a long term under-performer


free stock charts from uk.advfn.com


Short term the red line might get a visit

Long term the blues look to be in charge


Very poor


free stock charts from uk.advfn.com

[prop_joe] 20/10/2016 10:40

Hi CJohn, I think that the accounting treatment you outline is how it would be treated under UKGAAP but that under IFRS (which SIXH is required to use) negative goodwill is credited immediately to the P&L. I am relying on my increasingly hazy memory of the different GAAPs so might be wrong.

Of course both treatments get to the same answer in the end it is just a question of timing, and the most important thing is that it looks a very nice acquisition.
Regards

[cjohn] 20/10/2016 10:02

Hi Prop Joe, my understanding is that the negative goodwill will be added to the balancs sheet - reducing intangible assets - but then amortised in tranches over a period of years, generating a "profit" each time through the P abd L . This is the mirror image of what normally happens after aqcuisitions, of course.

[fillipe] 17/10/2016 11:28

Level 2. Looks like mm's are "paying over" to attract some stock.

Ask also now moved up to 11.75p after being prior bought at full.


Seems there is a good feeling now for SIXH and may be looking attractive to other than we few.

f

[prop_joe] 17/10/2016 11:15

The negative goodwill should be recognised in the profit and loss statement giving an instant gain. Unlikely to be a significant amount and will probably be shown as an exceptional gain but every little helps.

[fillipe] 17/10/2016 11:05

At this rate it'll be on today's leader-board!

f

[cjohn] 17/10/2016 10:17

I'm amazed that the two acqusitions they've already made actually seem to be turning out positively.

This third and latest acquisiton will generate negative goodwill: ie they've paid less for the company than the assets are worth. Brilliant! albeit small scale.

[fillipe] 17/10/2016 10:02

SIXH on the wanted list.

f

[fillipe] 17/10/2016 08:38

Very positive sounding RNS today.



f

[cjohn] 11/10/2016 12:33

There are two of us then.

I should add to my last post that the convertible debt is convertible at a Price of 20p from memory. So perhaps my remarks re convertibility were too optimistic.

Still a cautious buy, with any change in very negative sentiment likely to see a re-rating.

[fillipe] 06/10/2016 17:11

Me too.

f

[cjohn] 05/10/2016 10:53

The pension fund has been in surplus for some years on the standard accounting basis. However, because the assets and liabilities are so large, it makes sense for the company to take the most conservative valuation stance - the technical provisions basis. The pesnion fund is now in surplus on this basis too.


The running of the pension fund is at arm's length to the running of the company. The pension fund only impacts if payments are needed from the company to reduce a pesnion fund déficit. This is not the case whth SIXH, and is highly unlikely to be the case - only in distressed macro-economic circumstances that the pension administrators became convinced were likely to continue for many years.

The company performance itself has improved, but remains mediocre. Significant debt has been taken on to restructure and make acquisitions. So far, the acqusitions seem a positive step, to my amazement.

Much of the debt is convertible and so the company is not in jeopardy for liquidity or solvency reasons at the moment, but they do need to start getting the debt down. They have been generating a few millions in postive operaionall cash flow over the last couple of years, so debt should come down, if they have at last finished the company structural rearrangements.

I take a very cautiously positive reading of the recent results and have been a buyer here at single figures.

[rburtn] 03/10/2016 22:11

That,s a new one, pension fund in surplus - liability for shareholders. It rather confirms m y view that the winner in Sixh is somehow doing it from a pension fund, not engineering.

[cjohn] 03/10/2016 11:16

SIXH own 26% + of Prophotonix and will have to write up the balance sheet value of their shares.

An encouraging AGM update. Trading satisfactory and a pension surplus on the most rigorous tehcnical provisions basis. (That having been said, to off-load the pensions provision to an insurance provider, they would have to pay a Premium even over the technical provisions value.