Bateman Litwin Share Discussion Threads

[simon gordon] 06/5/2009 17:45

Oriel Securities - 28/4/09:

2009 to June
T/O - $754
PBT - $35.1 loss
EPS: 1.9p loss

2010 to June
T/O - $794
PBT - $18m profit
EPS - 9.9p
DPS - 1.6p

2011 to June
T/O - $837M
PBT - $25.6m
EPS - 14.2p
DPS - 2.3p

Financial performance held back by legacy

The financial position of the Group has been affected by deteriorating markets
and the legacy issues. The recent results for H1 FY2009 included reported revenue of US$342.0m, down from US$444.3m the year earlier as Advanced Technology, Delta T and parts of the Energy division were hit by lower investment and delayed projects. Underlying profits showed Bateman just about broke even in H1 with normalised EBITDA of US$3.4m (vs US$24.6m) and normalised diluted EPS of 0.8 cents (15.0 cents). The reported numbers were hit by legacy issues. There were pre-tax exceptional charges of US$34.5m which included a provision for a Delta-T legacy project, Delta-T goodwill impairment charge, a provision for a European waste to energy project and a hedging loss. The reported loss after tax was US$28.8m versus US$22.0m profit in H1 FY2008. Hopefully, a line has now been drawn under the past issues and future results will reflect the underlying business performance.

The normalised profits were consistent with our forecasts for the full year. The cash generation reflected business performance and no dividend was declared
for the half year (compared to 3.5 cents in H1 FY2008) as Bateman focuses on conserving cash. Cash generation in H1 was held back by underlying performance but also an adverse US$55m movement in working capital. The net cash at the end of the period was US$55.7m, down from US$113.4m six months earlier. Excluding deposits against guarantees, 'free cash' at end 2008 was US$50.3m, down from US$69.8m at June 2008.

As long as the business environment does not deteriorate further, the cash should be sufficient to enable the Group to build on the current platform. The
positive news is that the backlog remains strong and, at end 2008 was c.US$1.0bn (vs US$1.3bn at end June 2008), or equivalent to 1.5x annualised H1 FY2009 revenues. This should form the platform from which progress can be delivered and encouragingly, Bateman secured over US$100m of new contracts after the end of the period: a MOU worth US$36.8m was signed with Vale to provide a copper solvent extraction and electrowinning plant in Chile; a €60m EPC contract for the provision of infrastructure for an industrial plant in Nalanda, India; and Delta T won 2 new contracts.

Our forecasts are summarised on p.2 and are little changed from earlier expectations except they recognise the return of 11.6m shares from the Swains and assume that this will take place at the end of the financial year. We currently expect a (normalised) loss of US$3.5m (3 cents per share) in FY 2009 but forecast a recovery next year and adjusted earnings of US$15.8m (EPS 15 cents). We expect the net cash position to stay close to H1 FY2009 levels during H2 (dependent on working capital movements) and then forecast the recovery will increase cash generation. The non-availability of additional banking facilities may be an ongoing impediment to the Group's development.

[golla] 08/4/2009 12:05

Looks a good recovery play to me.

[latifs100] 27/3/2009 10:52

any ideas on cash and debt levels... tia

[mirshahik] 24/3/2009 19:41

I read somewhere that the majority share holder is pushing for delisting from AIM.

[jcscumbria] 24/3/2009 19:02

I think mirshahik probably summed it up correctly. Why would anybody want to invest in a company that has been so badly managed, with no apparent signs of things improving ?

[broshm] 20/3/2009 18:06

anyone any ideas ?
this share has lost 30% the past couple of months with turnover of a few £1000
pounds , to me they were more buys than sells !!! why down ?
what happened to ' my word is my bond ' ??
This pattern has been repeated with many of the shares I follow .
What would happen if a meaningfull buy or sell happened ?

[pelleeds1980] 03/3/2009 09:34

Anyone following this?

[richie111] 19/2/2009 22:42

Sandbank: thanks for the tips
bad education you are right!

[mirshahik] 16/2/2009 16:47

The debt is not the problem. The issue is management or lack of it.

[surfer2] 13/2/2009 20:09

61 cash flow to 47 debt, that doesnt seem too exposed if they pay off say 5-10 million a yr ? seems covered with all the contracts booked?

[broshm] 13/2/2009 17:22

Short term creditors are growing ,what is short term these days ?

[mirshahik] 10/2/2009 13:02

"Cash flow from financing activities was US$61.1 million (2006/07: US$1.2 million). The significant enlargement primarily reflects an
increase in long-term borrowings to US$47.4 million to support acquisitions, as well as an inflow from proceeds of a share issuance. "

[surfer2] 09/2/2009 19:41

how much debt do they have?

[surfer2] 09/2/2009 13:46

mkt cap 20 million turnover excess 400 million...? havnt looked in here in a long time.. whats up with Delta T

[broshm] 06/2/2009 20:08

Why all the nonsense chat ?

What about the share price ?

What is going on ? I have some shares I monitor which show large price fluctuations with no trades ?

[symphonie des grauen] 06/2/2009 08:32

the term 'left-wing' and the word 'liberal' do not belong in the same sentence. In fact the term 'left-wing liberal' is an oxymoron. Socialists believe in the power of The State while Liberals believe in the liberty and freedoms of the person against the power of The State.

[sandbank] 06/2/2009 08:28

RICHIE: Couple of tips for you:-

There's no need for an apostrophe in "guy's" - "guys" is the correct form here.

"Dropped back today to 15 then back up again , it has some resistance". The comma is used incorrectly here. You should have used a colon or a full stop.

"What they they do, is in a market.." : The comma here is in the wrong place. In fact there is no need for it at all.

You must have been educated under a Labour government by left-wing liberal teachers who have no grasp at all of English grammar.
...But I sure as hell envy you your youth!

[richie111] 19/12/2008 21:52

Hi all
Been holding for a few of months, maybe guy's not to be too quick to write this one off!!
Dropped back today to 15 then back up again , it has some resistance
What they do, is in a market that has problems, but that market will recover and very quickly, so will BNLN. Ride the waves in and out you can sill make money and hold long term. IMHO
Regards all

[barnetpeter] 19/12/2008 12:01

Another profit warning ....first of many. Fortunately I could not resist the 100% profit so am out.

[qs9] 10/11/2008 11:22

Looking strong again....

[jabba3] 09/11/2008 20:06

also bp take a look at sam, and wnl the later one a gamble but rxp went up 600% in 2 weeks and feel wnl could do the same

[supermum] 09/11/2008 14:00

looking at the chart (hard on small caps I know) there is a window opening at 50p and closing again at 71p. Normally if the lower end of the window is breached the price will rise to about 50% of the gap, if the trend is to continue it may pull back to that bottom (50p) before attempting to move up above the top (71) a close above that could be seen to be quite bullish.
imho and nag and dyor!

SM