Debts.Co.Uk Share Discussion Threads

[fusebox] 02/9/2005 12:53

statement from Deltron ...

2 September 2005
DELTRON ELECTRONICS plc
("Deltron" or "the Company")




NEW CHAIRMAN

Deltron Electronics plc (LSE : DET), the specialist European electromechanical solutions provider, announces today that, Paul Gourmand, Deltron's non-Executive Chairman, proposes to retire from the Board on 6th October 2005 following twelve years of service.

David Potter will join the Board of Deltron as a non-executive Director on the 1st October and will take over as non-Executive Chairman on the 6th October. David, aged 61, is currently a non-executive director of Solar Integrated Technologies, where he is Chairman, New Media Spark, InfoCandy and Noble Group. His previous non-executive experience has included Board positions with Numerica Group Plc and Thomas Cook.

David began his career in investment banking when he joined Credit Suisse First Boston where he worked from 1969-81. He then joined Samuel Montagu, where he was Managing Director of Capital Markets, from 1981-85 and later joined its parent Midland Bank (now HSBC) where he was Managing Director Global Corporate Banking, from 1985-89. In 1990 David joined Guinness Mahon as Group CEO and after eight years became Deputy Chairman of Investec Bank (U.K.) Ltd following its acquisition of Guinness Mahon.

Commenting on this announcement, Christopher Sawyer, Chief Executive Officer of Deltron, said: On behalf of the Board at Deltron, I would like to thank Paul for his outstanding and loyal contribution to the Company over the past twelve years. Paul has steered Deltron since before the IPO and has been a tremendous asset to the business. At the same time I would like to welcome David to Deltron and look forward to working with him throughout the coming years."



"Paul has steered Deltron since before the IPO and has been a tremendous asset to the business. "

He has also seen the share price plummet to an all time low !!!

[fusebox] 31/8/2005 15:55

Shareholders and posters seem to have exited now.

I was very bearish on this stock. The company overpaying for acquisitions and spending too much cash. Net debt is rising quite quickly. Moreover there is an awfull lot of goodwill in the balance sheet. Any earnings are hardly covered depending whivh way you do the calculatins.

Investors would have been far better jumping into EKT. They still are.

The charts bear this out too....

Deltron 2 year chart>>>






Elektron 2 year chart>>>

[fusebox] 17/6/2005 22:10

Still crumbling as i predicted months ago now.

EKT has far better fundamentals ie...eps is far better compared to its market cap. Marging are far higher at EKT. Deltron is debted and EKT net cash.

Investors in Det should have switched months ago...its not too late cos EKT will be re rated upwards soon as its undervalued.

[fusebox] 09/6/2005 20:19

On a comparable basis EPS is far worse at Deltron and debt is on the increase again at Deltron.

As for EKT they are now ungeared with cash building!

[fusebox] 09/6/2005 20:13

This was predicted im afraid and Deltron now hits a low.

[lord butterstock] 20/5/2005 22:22

In it goes....

[lord butterstock] 20/5/2005 22:13

Another nomination for my bin Fusey?

Go through the proper channels...LOL!!!!!!!!

[fusebox] 20/5/2005 22:10

Emergency exit>>>>

[fusebox] 19/5/2005 08:45

Further markdown yesterday and all support now gone!

[fusebox] 17/5/2005 12:19

Deltron has now reached a 2 year low and what worse we are waiting for EKT to report.

EKT are forecast to report fantastic results soon.

[fusebox] 06/5/2005 17:42

Not lookin very good now its on a downward trend.

EKT results are out on the 27th May and Deltron will look very sick indeed when the results are out.

The fundamentals are far far better at EKT.

I predict EKT will be ungeared with cash building.

Margins again the highest in the sector.

[fusebox] 23/4/2005 19:47

A hold in the IC mag but in my book a hold is a sell!

Pe ratio far to high on true earnigs.

[fusebox] 21/4/2005 12:46

No reason to stay in the company now it looks like the share is going back down to its low.

I indicvated a while back that the profits were totaly coloured by goodill etc.

Taking into account all those factors...profits were in fact poor.

The share price is overpriced on growth prospects. Far higher geared than EKT and lower margins.

Will the rampers listen...no!

Sadly they will have to learn the hard way.

[fusebox] 19/4/2005 16:47

Losing ground again .

The statement was uninspiring. They claim profits are well ahead but all this was expected. However it depends how you look at the eps.

If you take into account profits after goodwill they arent that good.

Moreover the company is now stating things are looking flat in the UK. Little wonder Det is dropping rapidly from its high.

If you look at the bigger picture they have no done very well over the longer term.

[stevm] 22/2/2005 15:18

Looks like taking a breather today and will hopefully surpass the highs of the past few days tomorrow.

[johnroger] 21/2/2005 16:07

Big gains over the past two days.There must be more to this than the IC tip.

[dyfiman] 18/2/2005 16:05

So short it, Fusebox. You are so funny.
END

[fusebox] 18/2/2005 15:54

On a 2 year basis Deltron has put on 50% from a low though.

However in the same period EKT almost 1,000%.

Go back further and Deltron is far worse.

[fusebox] 18/2/2005 15:49

Do these charts make you larf !


If you look at the charts overall for EKT and DET...Deltron's not performing that well at all.

I expect the gap to widen going forward. DET to decrease its rating and EKT to increase.


On a 2 year basis Elektron has already outperformed Deltron share price but i expect the gap to widen.

Deltron 2 year chart>>>



Elektron 2 year chart>>>

[dyfiman] 18/2/2005 14:51

Fusebox, if you are so sure of ELH then short it!! And leave DET alone. It's a lovely little share.
You do make me larf.

Pip, pip!!
END

[fusebox] 18/2/2005 14:11

Not at all ive created many bearish threads and they are v much used by me and others.

TFC has not recovered since i sold out at 95p...price now 56p almost 50% drop!

I said get out of UTF at 90p lost about 30% since...did lose half.

Toad i said get out at 13p...invstors lost another 30% min.

The same with MPS i said get out at 20p...investors have lost over 60%

The same with BPRG investors have lost 50% from its highs.

The list goes on...ELH is a dead duck despite the rise of late...

A loss making company. Punters gamble only.

[dyfiman] 18/2/2005 14:03

WARNING TO DET holders........ short-trouser-boy Fusebox was across on the ELH board yesterday spreading doom and gloom. Pretending to be an expert. This morning the stock recovered 8%. He hasn't posted again. This pattern has been repeated for many months across ADVFN. When proved wrong he just scarpers off as swiftly as he arrives to do the same curious (psychotic)elsewhere. Have a laugh while it lasts. He'll drift off with a red face when he realises that this share isn't going to drop because his 'experise' (sic) tells him it will. If he was so right he'd have opened up a mega short. Of course, he hasn't. So treat it as drivel.
Best of luck to you DET holders.
END

[fusebox] 18/2/2005 13:25

The problem is DET are still paying over the top for aquisitions.

The latest aquisition is an example...they paid approx £2 mill for a company set to make 200k.

EKT paid about £1.7 million for a company that has provided in millions of negative goodwill, stock, plant and tooling and more as well in profits to date.

In just over 12 months EKT aquistion has paid for itself twice over.

More bad news for DET...profits are higher at EKT and Elektron only quarter of market cap of DET.

Margins are higher as well at EKT...42% and Deltron only 32%

Turnover growth at DET looks sick compared to turnover growth at EKT at over 100% at the interims.

All in all DET is overvalued and EKT undervalued.

[johnroger] 18/2/2005 13:13

Investors Chronicle

18 February 2005

DELTRON ELECTRONICS (DET)


80p - Electronics - Improving market conditions have helped underpin the recent resurgence at Deltron. But the turnaround at the electromechanical solutions provider has as much to do with strong management as it does with good products. One of the keys to its success has been expansion across Europe, meaning that Deltron is not dependent on any one country, customer or supplier. It also enables the company to compete for pan-European contracts. "We're at the stage now where we're big enough to be important," says chief executive Christopher Sawyer. "But we're also small enough to duck and dive."

This means that Deltron is an attractive pan-European business and, boosted by good levels of operational gearing, its profits should continue to grow disproportionately to sales for the time being. Although the current climate remains demanding, conditions are stable, and the company is making the most of reduced volatility. Fertile markets include the automotive industry, and the instr- umentation and medical sectors. "The shift from high-volume, low-margin to higher skilled areas will help underpin growth," says Mr Sawyer.

One issue that Deltron has to contend with is inventory correction. This has affected levels of activity, but the company has been winning more smaller orders on a regular basis. And, with its order book representing nearly two and a half months' sales, Deltron appears to be coping well in today's market. The key now is to build on last year's performance, and fulfil targets of 3 to 5 per cent organic growth, while continuing its acquisition strategy.

"Admittedly, we completed deals at the wrong price a few years ago," says Mr Sawyer. "But they have laid the foundations for our wide customer base." During 2001, Deltron spent £13.9m on six acquisitions, and the combination of paying over the odds and tough market conditions took their toll. Now, though, the company is in a much stronger position and, having raised £6.4m in October 2003, it is ready to add to last year's acquisition of component distributor Quiller Holdings. "We now have the money to invest in our own growth, without depending on the market," says Mr Sawyer.

The £3.2m acquisition of Quiller is expected to be earnings-enhancing this year and will strengthen Deltron's position in the UK. Quiller brought with it a number of new UK franchises, including additional products for the aviation and security markets. Its sales totalled £4.2m last year, with profits of £246,000.

Having strengthened its position in Europe, Deltron is now concentrating on improving organic growth. After years of contracting markets, the company now intends to take advantage of an expanding sector and of last year's solid performance - when profits rocketed on the back of the company's good operational gearing.

Because of its size, there is a real risk/ reward correlation with Deltron. So, even though market conditions are not as volatile as they have been, investors have been wary when it comes to investing in this industry. But the company is well-positioned in an improving market - albeit improving slowly - and, for investors who have lowered their previously high expectations of returns in this sector, Deltron looks like a good bet. What's more, any reduction in interest rates should help to stimulate demand and further boost growth at the company. Buy.




--------------------------------------------------------------------------------
Ord price: 80p Market value: £33m
Touch: 78-82p 12-month High: 91p Low: 64p
Dividend yield: 2.8% PE ratio: 13
Net asset value: 46p Net debt: 38%




--------------------------------------------------------------------------------
Year to Turnover Pre-tax Earnings Dividend
30 Sep (£m) profit (£m) per share (p) per share (p)

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

2002 65.5 -0.60 -2.36 1.75
2003 64.0 -1.52 -4.77 1.75
2004 65.7 1.14 1.48 1.87
2005* 73.0 3.50 5.80 2.00
2006* 75.0 4.10 6.40 2.20
% change +3 +17 +10 +10

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

*Evolution estimates
Market makers: 5
Normal market size: 1,000
Last IC view: 5 Nov, 2004

BULL POINTS
Pan-European marketplace

Reduced market volatility

Good levels of operational gearing

Yet to benefit from Quiller acquisition

BEAR POINTS
Inventory correction is affecting company's products

Patchy track record