Enfis Group Share Discussion Threads

[husbod] 02/12/2010 11:22

My broker tells me there are now 2 mms on ths stock. Is that the definitive buy signal!

[chrisdgb] 02/12/2010 09:24

nice to see more volume being worked through last night...

[chrisdgb] 01/12/2010 15:05

Yes agree with your comments, he clearly is not a guy to sit there a draw a fat pay cheque for the rest of his life, I expect some decent action in the next 12 - 24 months..

[husbod] 01/12/2010 14:34

Thanks for the profile Chris - strategy stated to be organic growth and acquisitions but the implicit end game with this guy on the Board is to create a company that will in turn be acquired.

And there is of course a certain non-exec director who is well versed in pulling off good acquisitions with another Welsh company further east.

Could be a very interesting time ahead so have topped up this morning whilst also averaging down.

[chrisdgb] 01/12/2010 08:16

Wales Online coverage:

SWANSEA-based lighting technology company Enfis has announced plans to acquire LED firm PhotonStar in a £5.1m deal.

The company intends to finance the deal with a placing of 5m new shares and is looking to raise a further £2m with the placing of a further 19.79m shares. These placings will need to be approved by a meeting of shareholders on December 23.

While Enfis' LED technology is used in demanding sectors such as film and television production, medical lighting and ultra-violet curing applications, PhotonStar specialises in residential and commercial lighting.

Following the acquisition the enlarged company would be readmitted to AIM.

Explaining the rationale behind the deal Enfis' board said: "The Directors have examined a number of corporate opportunities over the last nine months and believe that PhotonStar presents an exciting prospect for existing Shareholders.

"The Directors believe that PhotonStar's LED, lighting fixture and light engine business is growing strongly. Following the Acquisition, the Enlarged Group will be re-admitted to AIM. The increased size of the Enlarged Group will provide the PhotonStar business with a higher profile and will give the Enlarged Group greater access to capital, to facilitate further organic and potential acquisitive growth."

PhotonStar was founded in 2007 by James McKenzie and Majd Zoorob. The company has been focussed on increasing the efficiency of LED lighting and reducing its cost. It has 11 patent applications for its technology.

The firm is based in Romsey near Southampton. Its most recent results show that in the six months to September 30 the company had a turnover of £1.456m and made an operating loss of £85,000.

The lighting market is currently in transition, with older technologies being replaced by new forms of lighting such as LED. It is estimated that by 2015 LED lamps and models will account for 50% of all lighting.

While there are some big players entering the market, such as Phillips and Osram, Enfis believes that there is room for many smaller players to operate successfully.

Under the proposed acquisition the founders of PhotonStar will join the board of Enfis – between them the two men will hold just over 31% of the enlarged company's shares. Dr James McKenzie will become the company's new chief executive officer, while Enfis' current CEO will become chief financial officer of the enlarged company.

The Enfis board said that following the completion of the deal the initial focus would be to integrate the PhotonStar businesses within the enlarged group.

Beyond that the board said it would be seeking to pursue both organic growth and potentially, acquisitions. It said that such acquisitions could include established lighting fixture manufacturers transitioning their businesses to LED lighting and key suppliers offering capacity expansion.

[chrisdgb] 01/12/2010 06:48

I am excited by this guy's track record, I used to be a shareholder in Bookham, Renishaw a fantastic business as well:

Dr James Mckenzie – CEO

James studied Physics and Computing and then went to Brunel University where he worked on optics for his Ph.D. He joined Bookham Technology when the company was in its very early stages and was involved, as a member of the management team, in Bookham's fast growth phase leading up to its IPO in 2000. During this period he was responsible for product engineering before moving on to become Director of Marketing.

In 2001 James joined Teem Photonics as VP of Business Development & Marketing developing the companies growth strategies, exiting the company following a successful fund raising round in 2003. James joined Mesophotonics in March 2003 as CEO and successfully raised £5.5m in 2003, developing 2 business units one in LEDs and the other in Analytical BioChemistry. In 2007 the Analytical part of the business was bought by D3 backed by Renishaw. The LED business unit was sold to Luxtaltek, a Tiawanese LED manufacturer.

James left Mesophotonics in 2007 to set up PhotonStar LED Ltd bringing a wealth of semiconductor and optoelectronic packaging experience to the company. James is a member of the Institute of Physics, is a Chartered Engineer and a Member of the Institute of Directors.

[battlebus] 30/11/2010 17:21

Can only see this as very positive. I believe the two companies can work well together and any increase in the size of the company is a great benefit. Now we know why the shares fell to around the 10p placing. The name change is also positive. It won't take too much more turnover to see us posting a decent profit. Chris i believe Christmas has come early.Pugugly you needn't worry anymore we have the funds and a perfect growth strategy. It may take 18/24 months but we should see a decent increase in the shareprice. Happy to hold for future returns.

[chrisdgb] 30/11/2010 16:15

Decent volume going through this afternoon....

[daicaprice] 30/11/2010 12:24

Hopefully some more MM's will come onboard and we may get the spread narrowed.

DC

[chrisdgb] 30/11/2010 12:18

Disappointed to see such a muted reaction...the future's bright..!!

[pugugly] 30/11/2010 09:31

chrisdgb> Experience and age - I have lost too much money by using the same rose tinted glasses as most analysts. It may be that this deal is transformational - I hope for your sake it is. Only time will tell.

[chrisdgb] 30/11/2010 09:20

The placing clears any funding worries you previously had as well, will be nice to see some decent press coverage..

[chrisdgb] 30/11/2010 08:26

You always seem to see the negative..!! As far as I am concerned this looks a great deal/placing, we have been wanting scale to this business and it is clear from the wording that this is just the start....seek further deals..

[pugugly] 30/11/2010 07:35

Placing to raise £1.6 million net at a cost of some £400,000 not unexpected but merger with PhotonStar looks rather expensive. £5.1 million for a loss making company and some 250% of last year's turnover. OK turnover is growing and last 6 month annualised could indicate somewhre in the region of £3 million, however subject to order lead times my initial take is that orders could be slowing at PhotonStar.

Initial reaction negative. Also nothing in the rns to indicate current profitability or loss of Enfis.

Very much a takeover of Enfis by the founders of PhotonStar who will hold some 30% of the shares in the merged company - Good deal for them ? Only if they can get the combined group into profit.

% of fully
Number of % of issued diluted
Ordinary Shares Number of share capital share
on Admission Enfis Options at Admission* capital*


James McKenzie 14,143,463 2,259,710 16.45% 17.69%
Majd Zoorob 10,626,389 1,985,456 12.36% 13.60%

[thrgef] 30/11/2010 07:31

I expected us to be taken over and not a reverse takeover of somebody else....Interesting.

[chrisdgb] 30/11/2010 06:09

'demand poised to explode' sounds good, nice spot and let us hope our Welsh baby can deliver the Christmas presents this year...!

[pugugly] 28/11/2010 18:05

Now back down to the August level. Seems very unloved - Cash flow guess anyone ?

[daithedeath] 26/11/2010 22:12

Discovery Science channel 524 on about Al Raha development in Abu Dhabi I wonder if the hotel lighting gets a mention

[battlebus] 26/11/2010 18:10

We live in hope with the chance of news in time for Christmas cheer!

[chrisdgb] 26/11/2010 09:10

Re -reading the interims, I think H2 could be looking pretty good, will be nice to see some more contract type deals announced before we get takenover at.....25-30p..?????

[chrisdgb] 25/11/2010 09:10

We could do with some news here to stop the drift....anybody heard anything recently..???

Nice picture on page 13 today in the FT of the Abu Dhabi hotel..

[chrisdgb] 18/11/2010 09:13

Nice to see a little buying here yesterday, let us hope it can carry on..

[chrisdgb] 15/11/2010 08:14

Thanks for the article....I also saw the Grand Prix and it was good to see the hotel still looking so good...with reference contracts like this, we should continue to see the improvement in trading....

Also makes it a more interesting takeover candidate...

[rivaldo] 14/11/2010 14:29

Just watching the Grand Prix - ENF's blue lighting looks absolutely superb again. A great advert/PR coup for the company which is repeated every year!

ENF were featured here a couple of days ago:



"The 16th annual Asian Games starts today in Guangzhou, with 9,704 athletes set to compete in 42 different sports.

And when the basketball players walk out onto the court at the NBA stadium, it will be under lights supplied by Swansea-based specialist the Enfis Group.

The firm, which is run from the Technium 2 building in Swansea's SA1 development, secured the contract to supply LED arrays and drivers for the NBA Stadium in Guangzhou.

The project involved the supply of more than 900 high-power LED light engines.

The finished product was designed to light the outside of the stadium with powerful consistent white light, as well as complex patterns of subtle colourchanging effects from remote lighting columns up to 45m away from the building.

Enfis chief executive officer Ceri Jones said: "Enfis is very pleased to be chosen as a key partner in this prestigious project.

"As a result, Enfis lighting technology will be showcased to the whole of Asia during the November games, and the project should act as a lighting flagship for Enfis and its partners."

Enfis has an office in Shanghai, and worked with the Qinghua University Department of Architecture in Beijing to create the striking lighting effect.

However, the contract in China comes at a time when Enfis is tightening its belt and looking to make £200,000 in cost reductions after recording a loss of £766,000 during the six months until June 30 this year."