Autoclenz Share Discussion Threads

[deswalker] 29/3/2011 21:55

Arthur,

By the time it's amortised all the Other Intangibles at the rate of £1.07 mill per annum it will have cash of about the half the market cap. From then on the adjusted eps will be actual eps and it will be on a PE of less than four with 50% net cash.

As for the business it seems very robust to me. Cars will always need valeting and moving around and it doesn't seem to be the type of business where the dealers employ full time staff themselves. Equally the dealers aren't going to let anyone do the job for risk of damage.

There can't be many shares around that have generated circa 150% of the current market cap in free cash over the last five years and are still going as good as ever. That's an average of 30% of the current market cap in free cash on average for the last five years.

What don't you like ?

Des

[arthur_lame_stocks] 29/3/2011 20:20

Hi Des

I'm not convinced about this one, I don't like the business or the balance sheet much, but I could be wrong again.

[deswalker] 29/3/2011 09:28

Seems a shame to break the seven month silence here but bloody hell, a tick up on a share I actually own !! Quick, somebody take a photo.

Is that you David ?

Liked the results expecially the cash generation and they should be net cash by the end of the year. Another one on a historical EV / EBITDA below three with a positive outlook statement.

The only buyers this past year have been me and the ISIS Helium Special Sits fund who own 20.34%. Too much to hope that they might be thinking of making a bid ?

[deswalker] 19/8/2010 11:23

Fair point about the buybacks. I recall him doing that with Torday & Carlisle (which for some inexplicable reason I never bought).

Also a fair point about the tiddlers. The trouble I have is that they often just look so much cheaper on the numbers than even those shares with a market cap 5 times higher that I can't help myself. The biggest risk is usually the register and in quite a few cases that has prevented me from buying. Not here though.

Nice idea on the Aberforth Split Cap and unfortunately I see that people have already piled in on the back of your post. Nonetheless the current uncertain environment feels like a place to spot mispricings in that sector particularly for those like me for whom divis are more tax efficient than Gains. You're ahead of the curve again :o)

[stemis] 18/8/2010 22:06

I'm not so keen to buy the little tiddlers these days as they are dreadful to get out of. The James Leek connection is the interest here and I guess he'll be looking to do the same as E Woods with an eventual sale. I can't for the life of me think who'd buy it though.

I'm a bit surprised they reinstated the dividend. Share buybacks to concentrate the upside for holders is more his style.

Very cheap, but that's the market at the moment.

[deswalker] 18/8/2010 19:57

SteMiS,

I'm surprised you don't own this having read your reports about the stock over the last couple of years. It was you who first alerted me to the company.

There has been plenty of stock around these last few weeks. Maybe the seller knows something I don't but I've taken several slugs off him at below 40p.

Des

[stemis] 18/8/2010 15:22

I'm watching it, but I don't hold. In the past there just hasn't been the shares around to buy!

[wmcht] 17/8/2010 12:09

I think its just you and me

[deswalker] 17/8/2010 11:10

I've bought quite a lot of these over the last few weeks. Anyone else watching ?

[wmcht] 25/3/2010 10:32

This looks quite positive to me. On course to nil debt and paying dividends.

[royalt] 24/9/2009 08:20

Well its good...But there just doesnt seem to be much interest in the stock.

[mongrels1] 23/9/2009 18:15

Results are tomorrow (wednesday) I think.

[pejaten] 23/9/2009 12:42

results are out on Friday

[royalt] 23/9/2009 12:34

Somethings got these puppies going again...

[gozo] 22/5/2009 22:32

Trustman - have a look at AKR if you fancy some light reading over the b/holiday.

It's just started making a profit and is off the radar of most at the mo.

G

[gozo] 22/5/2009 22:25

no worries trustman - It was James Leek's involvent here that encouraged me to buy in.

The used car market, particularly at auctions has been good over the last few months with dealers struggling to get quality s/hand to sell on.

i would imagine the fleets who are disposing having been prepping their cars to the max in order to try and get top dollar - can only be good for ACZ

Will also be interesting to see how he grows the React cleaning side of the business. i can see this being a real money spinner. With what looks like an increasingly disfunctional society I can see a fast response cleaning company doing v well. It may not be glamorous but who cares!

[trustman] 20/5/2009 23:19

Thanks gozo....good to know the size of James Leek's holding

[gozo] 20/5/2009 22:03

for those interested, article from the motley fool.

Autoclenz
Autoclenz (LSE: ACZ) describes itself as the UK's leading provider of outsourced vehicle valeting and specialist cleaning services. Like a lot of small companies, it's seen it share price crucified by the bear market, dropping from 130p at the start of 2007 to only 25p. It's now a real stock market minnow, valued at only £2.6 million. That's despite a turnover in 2008 of £28.0 million.

Of course, for a company whose major customers are car dealerships and rental companies, you might expect that its low market capitalisation reflects a business in considerable difficulty. You'd be wrong. Sales in 2008 were up by 3.5% and although operating profit fell, it was still a creditable £1.2 million (before goodwill and share option charges). That resulted in a bank borrowing being slashed from £3.8 million to £2.7 million; well within its facilities.

This leaves Autoclenz on a meagre price earnings ratio of 2.9 (although admittedly on a zero tax charge). That hardly seems expensive, even in the small cap market.

It's a valuation that's attracted the attention of turnaround specialist James Leek. Leek was responsible for the break up and disposal of E Wood PLC (formerly Torday & Carlisle PLC), delivering spectacular gains for shareholders by a combination of share buybacks and ultimately the sale of the Group.

He's been buying heavily into Autoclenz and in January 2009 was appointed Chairman of the Company.

Again there are no brokers' forecasts for Autoclenz. However in their latest results Leek observed:

"During 2009 we are budgeting to continue this [debt] reduction and would like to see net debt at or below £2 million. There is a strong determination from everyone at Autoclenz that, despite the worst recession since the post-war years, we should strive to at least maintain our profitability at or above the 2008 level."

If Leek can deliver on these objectives, the share price should rebound strongly. A share price of 50p, double the current level, seems well within reach. The company holds its annual general meeting on 21 May so we should soon find out how things are going. However Leek doesn't seem to have been put off by what he's found or by current trading, upping his stake to 9.1% last week.

Small companies like Volvere and Autoclenz are often poorly research and followed. Most institutions are unable to invest enough money in them to be worth their while. For private investors that presents a golden opportunity to beat the market, although the risks are high.

[trustman] 20/5/2009 21:58

Stemis.....if you read the final results you will see that the incoming Chairman has bought himself an 8% stake.I cant see whether the 2 subsequent director dealing RNS indicate further additions....they wont open.However as I said in my earlier postMr Leek has an excellent record of increasing his share stake AND seeing the company buy back its share capital for the benefit of remaing shareholders.With any luck this could run and run.....lets see what they announce tomorrow at the AGM.BTW I own some shares,no ramp intended, DYOR.

[luchan] 20/5/2009 12:36

Chaps,

tipped in motleyfool today and reading the last set of results the share price is overdue a ride north. PE of 3, AGM tomorrow should be very interesting, I bought a few today at 28p. edit: a good piece of timing it seems..

luchan.

[trustman] 11/2/2009 21:10

I know this is a bear market but company states pre tax on track for £800k and mkt cap is £1.6m.

Company has borrowings but James Leek did a great job at E.Wood and he has an 8% stake here.On ratings like this he will surely buy shares in when he can, which helped enhance returns in a big way at E.Wood(previously Torday & Carlisle).Just bought some myself, no ramp intended.

[barn owl] 28/1/2009 14:33

Sentiment changing here with a possible green shoot tick-up.
Good luck all.

[masurenguy] 01/8/2008 08:24

Don't think that Simon Knott will be a happy bunny with virtually a 40% drop since he added a further 323,000 shares at circa 49p just over 5 weeks ago !

[barn owl] 04/4/2008 14:21

I'm in today for a long-term punt, hopefully with a decent held dividend for the future. Tough times ahead no doubt, but with the right recovery plan in place looks a decent punt. Stop/loss of 30p now in place!
Good luck all.