||EPS - Basic
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Avingtrans Share Discussion Threads
Showing 2576 to 2597 of 2600 messages
|"It’s not difficult to see why, given that the company’s share price is trading 30 per cent below pro-forma book value of 270p a share, even though I estimate that Avingtrans retains net cash of £26.1m, a sum worth 143p a share, after accounting for transactions costs on the disposal and working capital movements. This means that we are effectively getting £10.1m, or 55p a share, of fixed assets in the price for free, in addition to £4.6m of current assets. That’s anomalous....."
I don't yet see where Simon T gets his 'pro-forma' book value of 270p from. NAV at 31/05/16 was £64.8m. Subtract £19.4m for cancelled shares, leaving £43.4m or 236p (18.318m shares).|
|Possibly there is some unknown news out there, the sudden rise is a bit suspicious! But I think the shares have been undervalued given the potential of the nuclear contract so it may be that the share price is just playing catch up.
The results will look quite different following the sale of Sigma and subsequent return of capital. The business, market cap and assets will be smaller so the various valuation ratios will be greatly impacted and the performance effect magnified. It may be that everything looks much healthier. But then again...
I'm not planning on selling as I am in this one for the long term.|
|Roger, I agree the 15p rise today implies something is going on behind the scenes together with the delay on Interim Results perhaps all will be revealed on the day|
|still skeptical, to me share price is rising too strongly on no news.
pure speculation , but one consideration is whether directors are planning an MBO with the help of Nigel Wray, collectively they must be holding > 35% of shares?|
|That makes close to a 30% rise since late Jan and no sign of pausing for breath either...|
|Of all Simon Thompsons tips, the Bargain Portfolio is the most influential imo. 1 of this years selections went up 33% in the morning of release.
Saying that, it's well known the company is looking for suitable acquisitions so it's only a matter of time before they announce another.|
|Roger - I too was beginning to think the same, the run up appeared to have been very high and continued for quite a while beyond the IC article.|
|Indeed, I thought it was rather interesting that it is two weeks later than last year. May be nothing in it of course but as you say the future could be very interesting.|
|Thanks for the heads up, I wonder if the delay is related to any acquisition they're undertaking? I'm intrigued by what their next move will be.|
|Having expected the Interim Results being announced today I contacted the CFO and was advised Interims will be announced on 28th February.|
|Profit takers moving in today!!|
|Thanks for the info. No clear info on price, but prior to any costs incurred, it looks (from the administrator's report) likely that they've bought the assets for somewhere in the £100-200k range. Clearly there will be some additional subsequent restructuring costs. It's a very trivial purchase in terms of the total cash they need to deploy.|
|Actually Whiteley Read looks a better fit with PRES, I imagine JH at PRES will have given it the once over.|
Maybe they stumbled over WR whilst doing due diligence in South Yorkshire :-)|
|A little further background
|Thx Roger, interesting comment attached
"The assets bring much needed additional capacity to meet our future growth plans. We have immediate contracts in place to fill the factory with overspill from existing operations, and real potential to develop additional
business in both current and new markets. We will continue serve the market under the Whiteley Read name and I’m excited by the prospect of working to drive the company forward/into better times.”
I still think there's a fit here with PRES though....|
|I am surprised there was no RNS to cover this purchase back in December :
|Clearly the IC tip today has driven the price up. This is all out there, nothing Simon T hasn't written up before. Potted as I don't want to breach any copyright.
(AVG), a maker of critical components and services to energy, medical and industrial sectors, is a classic Benjamin Graham value play, and one where the investment risk looks weighted firmly to the upside.
The board’s investment strategy is to acquire assets, restructure them to improve efficiency, and then sell them on to release the hidden value in the balance sheet. Importantly, the directors have been rather successful....
Under the leadership of chief executive Steve McQuillan, finance director Stephen King and chairman Roger McDowell, who between them own almost 10 per cent of the shares...
It’s not difficult to see why, given that the company’s share price is trading 30 per cent below pro-forma book value of 270p a share, even though I estimate that Avingtrans retains net cash of £26.1m, a sum worth 143p a share, after accounting for transactions costs on the disposal and working capital movements. This means that we are effectively getting £10.1m, or 55p a share, of fixed assets in the price for free, in addition to £4.6m of current assets. That’s anomalous.....
For example, Avingtrans’ energy and medical division diversified into the materials technology market last year, winning a three-year contract worth £3.5m to provide composite components for airport scanners with Rapiscan, a leading security screening provider based in California. Avingtrans is providing key components for Rapiscan’s new and groundbreaking airport scanner, the RTT110 (real time tomography), the first scanner to successfully pass the European Civil Aviation Conference’s (ECAC) Standard 3 threat detection test for baggage-borne explosive risks – a standard that will become compulsory....
In addition, Avingtrans’ Stainless Metalcraft subsidiary signed a framework agreement worth £1m a year with Bruker BioSpin AG, a Switzerland-based market leader in analytical magnetic resonance instruments, to produce high integrity cryostat components for Bruker’s nuclear magnetic resonance systems (NMR). NMR spectroscopy complements other structural and analytical techniques, such as X-ray, crystallography and mass spectrometry, and can be used alongside MRI-related technology to provide multidimensional images and spatially resolved information. The division also signed a 10-year agreement worth £9m to produce high integrity cryostat components for NMR....
I would also flag up that Metalcraft has a lucrative 10-year contract with Sellafield, worth £47m, to provide waste storage containers for the Cumbrian nuclear power station. Phase one of the project is worth between £5m and £8m over a two- to three-year period and covers the set-up and development of a production facility for nuclear waste storage containers. During the second phase,.....
It was a landmark contract for Metalcraft and Avingtrans’ directors rightly describe the potential in nuclear decommissioning as “a cracking opportunity”. I wholeheartedly agree because the first tranche of the contract represents just 10 per cent of the potential business at Sellafield and the nuclear power station will need more than 40,000 of these waste containers over the next 20 to 30 years, according to chairman Roger McDowell. Furthermore...
True, with the company’s highly profitable aerospace division sold, Avingtrans’ profits will be modest in the current financial year to the end of May 2017 before the full benefits of the aforementioned contract wins kick in. This explains why analyst David Buxton at FinnCap believes that pre-tax profit can rise more than sixfold to £1.3m on revenue of £31m in the 12 months to the end of May 2018. But the real opportunity here is to scale up the retained businesses through earnings-accretive acquisitions and repeat the success enjoyed in scaling up the aerospace division. And that’s simply not being priced in.
Strip out net funds of 143p a share and the shares are effectively being valued on six times forward earnings.....|
|Hence why it's currently cash-rich|
|There was a tender offer for 50% of the shares at £2 (£28m) - the takeup though was less than the full 50% so only £19.4m was returned.|
|Has this co. actually returned any capital to shareholders, I was in earlier last year, sold out the sale of Sigma, but was expecting the price to re-state the reduction in capital when the distribution or offer terms were accepted by shareholders!|
|I see the share price is up`15p at the mo is this all on the back of the IC article?|