Avingtrans Share Discussion Threads

[rhomboid] 29/9/2016 11:38

Hi Pavey
Most of their holdings are in Sipps iirc so tax is simpler! My guess is they'll not tender any unless they have a yacht or holiday home in mind.

I'm not tendering any either as I'm keen on the nuclear opportunity going forward.

[pavey ark] 29/9/2016 10:58

Strange situation developing here regarding the tender offer.
With the price where it is I don't see it being pitched at 200p and 210p would seem more likely but I expect the exact details will be shaped by the tax position of the management and institutional holders.
I wonder if management would take up their entitlement at these levels ?
Do they see it as a good chance to cash in half their holdings or do they want to increase their share ?

[emso] 29/9/2016 07:49

Avg keeps pulling these out of the bag, I imagine more coming their way when Hinckley deal is signed. What a great tip yesterday!

[penpont] 28/9/2016 21:38

ST has a target price of 230p:

'I have no hesitation repeating my buy advice. My target price of 230p is bang in line with Avingtrans’ net asset value per share. Buy.'

[toffeeman] 28/9/2016 13:27

Tip of death :)

[tromso1] 28/9/2016 12:03

Just tipped in the IC -

[davebowler] 27/9/2016 10:01

Finncap;
Underlying FY results were broadly as expected, with the continuing operations comprised of the Energy and Medical (E&M) division post the £65.0m disposal of its aerospace business. The group is expected to return £28m to shareholders shortly. Outlook prospects are encouraging having recently had some strong new contract wins (e.g. EDF, Bruker and Rapiscan). The Sellafield contract will start to kick in through 2018. The underlying oil and gas market remains in the doldrums but will likely provide a recovery story in due course. We still see upside to the shares, and our price target of 215p indicates a post-tender-offer EV/EBITDA of 10x for 2018. Our rating remains a Buy.

[dgwinterbottom] 27/9/2016 09:27

2vdm - Sorry no idea on that one as stated in the Annual Report just announced "tender offer details to be advised soon" It will be interesting to see what the take up is, if the future looks rosy take up may be somewhat low!

[2vdm] 27/9/2016 09:12

DGW, any idea what the offer is or how it works please? do we get offered stock like a scrip issue?

[dgwinterbottom] 27/9/2016 08:54

Hi all - Results out today and also notification of a new broker!!

[dgwinterbottom] 15/9/2016 13:59

Roger - Its always possible but even so they are in a good position for life extension equipment as well. Re the return of cash to shareholders it will be interesting to see how many people actually take up the offer!!

[rogerrail] 15/9/2016 11:33

DG

Looking forward to them, its been a long time since we had any news on the return of cash to shareholders. I am also wondering whether the BOD have been holding back on potential acquisitions pending the HPC announcement.

[dgwinterbottom] 15/9/2016 10:27

Roger - many thanks for that, an interesting thought, going off previous years I reckon results will be published either last week of this month or first week of next month!

[rogerrail] 15/9/2016 10:17

Metalcraft should be boosted by todays news on HPC

Metalcraft currently has supplier certification from both Areva and Rolls-Royce who will be large participants in the project. Areva's reactor business was bought by EDF, RR has already been awarded £160m in preferred bidder contracts .

[rhomboid] 10/8/2016 18:14

Nigel Wray has been topping up of late;



...as have I but not to the extent of requiring an RNS

[hyperboreus] 04/8/2016 13:46

No broker forecasts Davros24 & not prepared to put out the article DGW but the salient paragraph for me is as follows:

'To put this into some perspective, after stripping out net cash from the current market value of £52.8m, the company’s energy and medical division is in effect being valued at only 17p a share, or £4.8m, hardly an exacting valuation given that analyst David Buxton at brokerage finnCap expects this business to make pre-tax profit of £300,000 on revenues of £24.3m in the 12 months to end May 2017, rising to pre-tax profits of £1.4m on revenues of £31.1m the following year when the Sellafield contract really kicks in. This means that the medical business is in effect being priced on little over three times profits. I would also point out once you strip out the cash pile, the retained businesses have a net asset value of around 60p a share, so are in effect being valued on less than 30 per cent of book value.'

[dgwinterbottom] 04/8/2016 08:14

Any chance of the article being reposted here please!

[davros24] 04/8/2016 07:58

Thanks - was there mention of broker forecasts for business left over?

[tromso1] 03/8/2016 12:40

Tipped by Simon Thompson today-

[dgwinterbottom] 27/7/2016 15:01

Roger - perhaps they are busy with their calculators working out the value of their forthcoming buy back :-)

[rogerrail] 25/7/2016 21:48

Gone a bit quiet, have the bod left for a long holiday?

[briangeeee] 16/7/2016 09:56

Interesting article about the issues associated with the disposal of nuclear waste, and how sometimes it's possible to try to think too much about a problem!

[pldazzle] 01/7/2016 23:18

Dozey - These B-share type schemes have been stamped on by our friend Mr Osborne and are no longer tax-efficient: anything paid to PIs under such schemes would be taxable as income. Instead, the current vogue is for the NOMAD or broker to buy in shares under a tender offer. The company then buys the shares back from the NOMAD. A bit more complicated but at last it preserves the tax-efficiency. BQE, as EezyMunny mentioned, is a classic example.

For illustration, let's assume there are 28m shares in issue fully diluted. The company could invite shareholders to tender up to, say, 45% of their shares (= 12.6m shares max) at 220p/share. (These percentages and prices could of course be varied.) On this scenario and on a full take-up there would remain 15.4m shares, representing the ongoing business plus a war chest of around £20m cash. In practice the take-up would be slightly less, and the remaining shares and cash slightly more.

In the case of BQE, and I assume this is typical, there was no formal facility for shareholders to tender a larger proportion of their holdings than the specified maximum percentage. But those in the lucky position of holding their shares through a nominee were able to pick up the slack where other shareholders under the same nominee didn't take up the offer.

[dgwinterbottom] 01/7/2016 22:46

"Just got confused about this tender offer." indeed sammarcwhite, so am I!!

However looking to the future and having attended the recent shareholders meeting to approve the decision to sell the Aerospace Division, I see great possibilities focusing on the E&M division especially in Nuclear, there are certain things within the sector not as yet generally known that will be of great significance to AVG.