Chieftain Share Discussion Threads

[cockneyrebel] 13/8/2007 17:19

I added 2.5K today to go with a few in the wife's pension, good results and looks cheap with the orders they have lined up imo.

CR

[diogenesj] 13/8/2007 15:51

Nice results, added a few today.

[deadly] 13/8/2007 11:24

Tiny volume this a.m. considering the results and market. Once volume picks up and results are digested they should start to progress nicely in the coming weeks at least.

[veryniceperson] 13/8/2007 11:13

1 or 2 doubters, don't forget the £3 million in the bank. And as pj states an announcement shortly. A firm hold I believe.

[philjeans] 13/8/2007 09:22

Fair comment about the exceptional credit. But this is a business powering away, who always seem to pull something else out of the hat!

"we hope to make an announcement about BAE and MOD contracts shortly".

'Nuff said.

[felix99] 13/8/2007 08:35

JUST READ THE OUTFITTing PARAGRAPH AND translate it into English from stock exchange speak - all you need to know

[wjccghcc] 13/8/2007 08:33

Yes it includes the exceptional profit. Still, even on an adjusted basis they should be well on course to beat the FY forecast of 13.6p.

[westcountryboy] 13/8/2007 08:29

20p FY a bit high? (for non exceptionals). Note there is 237k of exceptionals in the H1 profit. But I agree a solid hold.

[penpont] 13/8/2007 08:28

On the face of it the results look good, but does the 8.25p eps include the exceptional gain on profits of 237k? If so the eps rise isn't as spectacular as it seems. They don't seem to have stated an adjusted eps number as such.

Still, the divi increase gives confidence for the future and it will be interesting to see what analysts have to say and whether upgrades are forthcoming.

[philjeans] 13/8/2007 08:13

EPS 8.25p in H1 07 (5.76p 06) and I can see them up to 20p for full year.

So forecast P/E is only 10 this year, falling to perhaps 7 in 08.

That's too low for this cracking business with superb prospects - should hit 250p by the autumn.

[veryniceperson] 13/8/2007 08:04

Excellent interim results ahead of expectations.

INTERIM RESULTS 2007

Chieftain Group plc ("Chieftain" or the "Group"), the engineering services
group, is pleased to announce its interim results for the six months to 30 June
2007.

Highlights

* Turnover increased at #21.6 million (2006: #16.9 million) - up 28%

* Pre-tax profits improved to 1.05 million (2006: #732,000) - up 43%

- Exceptional non-cash gain arising from acquisition of Kevin Lloyd Ltd
#237,000
- Profit before tax and exceptional gains #810,000 (2006: #732,000)

* Basic earnings per share of 8.25p (2006: 5.76p) - up 43%

* Interim dividend per share raised to 2.5p (2006: 2.0p) - up 25%

* Order book increased to #60 million (2006: #55 million)

* Significant cash balances, despite ongoing investment and internal acquisition
funding

Engineering

* Solid overall performance, supported by strong growth in Manpower Services

* Well positioned for further growth

Outfitting

* Marine business underpinned by long term Astute submarine contracts

* Potential growth opportunities arising from Government's new M.O.D spend
commitment



Bill Taylor, Chief Executive of Chieftain, said: "Notwithstanding the
considerable progress we have already made, this is an exciting time for
Chieftain. The engineering business has moved into the second phase of its
strategic development and we are tendering for large non-term projects. We are
also expanding the scope of manpower services in both the Engineering and Marine
Outfitting sectors. There is clear visibility in the order book for marine
outfitting with the Astute programme and other opportunities in the defence
sector are also being pursued.


"The Board believes that the Group is now well positioned to deliver solid
results year on year with the potential for considerable upside from other
opportunities, based on our core skills and sectors".


For further information, please contact:

Chieftain Group plc Tel: [phone]
Bill Taylor, Chief Executive www.chieftaingroup.co.uk
Stan Elliott, Finance Director

Brewin Dolphin Investment Banking Tel: [phone]
Andrew Emmott

Rawlings Financial PR Limited Tel: [phone]
Catriona Valentine
Keeley Clarke


CHAIRMAN'S STATEMENT

It gives me great pleasure to report another impressive result for Chieftain and
one which demonstrates the ongoing success of our strategy to expand both
organically and by suitable acquisition.

RESULTS

Turnover in six months to 30 June 2007 rose to #21.6 million (2006: #16.9m) - an
increase of over 28%. Profit before tax and exceptional items exceeded budget
rising to #810,000 compared with #732,000 in the corresponding period last year.
In addition, an exceptional non-cash gain of #237,000 resulting from the
acquisition of Kevin Lloyd Ltd improved profits further, giving a pre-tax profit
of #1,047,000 (2006: #732,000).

This increase in profits was particularly pleasing as it was achieved during a
challenging period of rapid sales growth with the integration of our recent
acquisitions Kevin Lloyd Ltd and Bringover.

The Group continued to enjoy a robust cash position with a #3 million positive
balance at the end of the reporting period. This is a notable achievement,
considering such a rapid increase in turnover combined with the internal funding
of the recent acquisitions. The Group's bank overdraft facility of #1.5 million
was not used at any time during the period under review.

Earnings in the first half of 2007 were 8.25p per share compared with 5.76p per
share in 2006.

DIVIDEND

The Board is again demonstrating its confidence in the continued and increasing
profitability of the Group by maintaining its progressive dividend policy and
declaring an interim dividend of 2.5p per ordinary share (2006: 2.0p). This
represents a 25% increase on the corresponding interim dividend in 2006.

OPERATING REVIEW

The Group operates in three main business sectors - Engineering, Marine
Outfitting and Environmental Services. The order book value at the end of June
2007 increased to #60 million from #55 million at the same time last year.

Engineering

The Engineering sector of the business has seen major expansion following our
decision in 2005 to enter into engineering services providing a range of
services to 'blue chip' process and power plant operators. We continued to
service a range of long term maintenance contracts during 2007 which underpins
this division of the Company. In addition to the regular work we are benefiting
this year from additional work occasioned from major overhauls during process
plant 'shut-downs'.

The two Tyneside fabrication facilities operated by R. Blackett Charlton Ltd, a
wholly owned subsidiary of the Group, are performing well. The pipe fabrication
facility level of activity has increased from the beginning of the year
following receipt of new contracts but still has some surplus capacity. The
general fabrication shops are currently working at full capacity following
receipt of orders for large scale industrial dampers for power plants which is
now being developed as one of our specialist products.

The Manpower Supply business has expanded significantly in the past three years
fuelled by client preference to outsource their labour requirements both in the
UK and in Northern Europe. We anticipate this trend to continue and have
strengthened our management team to expand further within this sector of our
business.

We have now consolidated into this sector of the Group the two recent
acquisitions of Bringover and Kevin Lloyd Ltd. Whilst it is early days we are
very pleased with the integration of these two businesses into the Group and the
cooperation of the employees we have inherited. We are confident of a net
contribution from each company to the bottom line in this their first full year
of trading.

Environmental Services

This is now a relatively small division of the Group operating from bases in
Newcastle and Belfast. As previously reported we have experienced a reduction in
demand for the services we offer and have consequently reduced our cost base. We
do however wish to maintain this division providing it contributes positively to
Group results.

Outfitting

Marine Outfitting continues to be a core business for the group. As last year,
the focus in the first half has been on the long term contracts for work on the
Astute class of submarine. This is a competitive market, but we continue to seek
opportunities in the defence and oil and gas sectors. In particular, we are
working very closely with BAE Systems on future projects for the M.O.D. and hope
to make an announcement about these in the near future. With our office in
Barrow-in-Furness as a base, we are also expanding the provision of Manpower
Supply into the North West and Marine Outfitting in particular.

OUTLOOK

The industrial market place in which we operate offers opportunities for the
Group to expand further by both organic growth and acquisition. Our success in
the latter, and given our robust cash position, has encouraged the Board to seek
other acquisition opportunities.

Notwithstanding the considerable progress we have already made, this is an
exciting time for Chieftain. The Engineering business has moved into the second
phase of its strategic development and we are tendering for large non-term
projects. We are also expanding the scope of Manpower Supply in both the
Engineering and Marine Outfitting sectors. There is clear visibility in the
order book for Marine Outfitting with the Astute programme and other
opportunities in the defence sector are also being pursued.

The Board believes that the Group is now well positioned to deliver solid
results year on year with the potential for considerable upside from other
opportunities based on our core skills and sectors.

We have a first class executive board and management team and I am sure all
shareholders would join me in congratulating them on their achievements and wish
them continued success in the future.

P Wardle
Chairman 13 August 2007

[philjeans] 13/8/2007 08:00

Great results with t/o, margins and profit all well up.

No debt; £3M cash and sounding very positive for future.

Storming buy.

[veryniceperson] 03/8/2007 13:37

Still ticking up nicely on relatively small volume, with the results out Tuesday week this could be a good sign.

[shanklin] 26/7/2007 06:53

So hopefully some work will filter through to CFT?

[santangello] 25/7/2007 21:11

Spotted this following on from Jeffs info:

Defence giant BAE Systems has entered into a joint venture deal with shipbuilder VT Group to help the British government build new warships.

The JV will comprise both firms surface warship building units and each of BAE Systems' and VT's 50% stakes in their existing surface warship through-life support tie-up, Fleet Support Ltd.

The partnership will be the UK Government's strategic partner for the design, build and support of future warships, said BAE in a statement this afternoon.

Interconditional upon the creation of the JV, BAE intends to sell its current 50% shareholding in Flagship Training Ltd to VT for up to £75m, with £65m payable in cash.

The news comes as the UK government today unveiled plans to build two new aircraft carriers for the Royal Navy worth £3.9bn.

According to the MoD, the new 65,000 tonne ships will enter service between 2014-16.

----------------------------------------------------------------------------------------------------------------------------

Also

Rolls-Royce cruises forward after securing a £1bn submarine support contract from the Ministry of Defence.

--------------------------------------------------------------------------------------------------------------------------

And:

News that Rolls-Royce has signed a 10-year submarine support contract with the UK Ministry of Defence worth £1bn sent shares in the aero-engine giant north Wednesday.

[santangello] 25/7/2007 20:28

Coincidental announcement me thinks......

Perhaps a pre-requisit before announcement of contract wins.....

[jeff h] 25/7/2007 20:22

BAe and VT agreed to merge their shipbuilding interests

[santangello] 25/7/2007 16:50

@Gengulpus, appreciated gen...I was applying the optomistic in me in guessing the trades seemed to match the sells and the buy looking at the prices qouted, but as you point out, at times through the day, they could have related to either.

Only good pointer being I may have called it right on good news on the orders round the corner lol.

Nice close to the day, considering the market tail off in general today.

[philjeans] 25/7/2007 16:00

Looks as if good news about to break..........

[gengulphus] 25/7/2007 10:17

SANTANGELLO,

The T trades aren't revealed to be either buys or sells - like all other trades, they are guessed to be buys or sells. The guessing method is very simple - it basically just depends on whether the trade price is closer to the bid or the offer when the trade is reported. This method frequently makes mistakes, for various reasons: sometimes trades actually happen on the "wrong" side of the spread, sometimes trades are reported late and the bid andoffer prices have moved since the trade actually occurred, sometimes a trade intrinsically cannot be classified as a "buy" or "sell" at all, etc. (To explain that last one: every trade is really both a buy and a sell - one person or organisation sells the shares, another buys. What the trade classification is trying to do is guess what the non market maker in the trade is doing - if a market maker sells to a non market maker, it's a "buy"; if a non market maker sells to a market maker, it's a "sell". But sometimes trades occur between two market makers or between two non market makers, and such trades simply cannot be classified as either "buys" or "sells".)

Anyway, because a T trade is one that has been worked over a period of time and the bid and offer prices might have moved during that period, the guesswork is particularly unreliable for T trades. Looking at yesterday's trades, for example, the T trade's price of 199p was closer to the offer at the time the trade was reported, when the spread was 195p/202p, and so it was guessed to be a "buy". But at the times that earlier trades were reported, the spread was 199p/205p or 198p/205p - i.e. earlier in the day, a trade at 199p would have been a fairly clear "sell". Since we don't actually know when the trading for the T trade took place, it could be either a "buy" or a "sell" - we simply cannot tell.

Gengulphus

[santangello] 24/7/2007 22:50

Interesting to see the T trade revealed close to the bell as a buy...the T trade trend over the recent week or so has been a sell revealed close to the bell.

M.O.D announcement soon perhaps ?

[jeff h] 16/7/2007 08:50

A couple of warship articles from The Times...may finally see the aircraft carriers be given the go ahead this week.

[santangello] 19/6/2007 21:56

Support level found ?

[veryniceperson] 12/6/2007 13:38

Would be nice to see a trading statement anytime soon. Still very quiet on here.

[londoner06] 15/5/2007 17:03

Forming a nice resistance around this level, this looks to be heading to 230.
Every time I think of selling it is moving up. Very happy to be holding here.
It is very quite here as well.