||EPS - Basic
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Real-Time news about Glisten (London Stock Exchange): 0 recent articles
|nurdin: Looks like value here is being recognised....PE of under 4,highly cash generative,legacy isssues now burried and trading is going well.Reckon GLI share price will recover much of the ground it has lost in last 12 months ....120p looks on the cards over the next few months imo....more if the general market condition improve.|
|nurdin: Not many stocks left now with PEs in the 3-4 region...apart from Glisten.The accounting faux pas at Halo Foods and the subsequent profits warning has left a slightly bitter taste in the mouth of investors but the issues there have all been resolved now and GLI look to be back on track.They reported their unuadited results for the year just gone recently which showed profits of around £3.5m and earnings of around 18p. Hardly a disaster for a company capitalised at only £11m !
Fully audited results are due next couple of weeks which will confirm the figures already reported.
GLI has some excellent brand names,is operating in a 'must have' niche of the food market and looks to be growing their market share, judging by their recent trading statement.
Consensus forecast for the current year is for a profit of over £4m and earnins of over 20p,putting the stock on a PE of under 4!
Either GLI will be rerated after they announce their fully audited results...or they will be snapped up imo.Either way I can see significantl upside in the share price from here...|
|billbyrne: Should be a nice share price reaction to todays solid trading statement
in my opinion. Up 20% in first 7 weeks, impressive.|
|hughlss: it's the nature of this share janganman - expect another quiet 5 months until the next results - with perhaps the occasional news of an aquisition to propel the share price even higher.
It can be quite boring getting rich.
|cockneyrebel: Anyone looked at ZTR here?
A similar company to Glisten on half the PE apparently.
Zetar was listed in January as a cash shell but backed by the investment team who put together the Augean waste deal last year. The intention was to find acquisitions in the food sector and it was headed by Ian Blackburn who was for many years the boss of Perkins Foods in its restructuring exercise. Today, just two months later, Zetar has announced its first acquisition.
The company is paying £32 million for one of the UK's leading independent confectionary businesses Kinnerton. This company generated turnover of £42 million and an operating profit of £3.5 million for the year to 30th April 2004 and as we are fast approaching this year end, it is widely expected to have improved this year. Indeed, an earn out is payable for the current year should earnings before interest hit £4.55 million this year and £5.45 million for the coming year. Management is hoping to pay out the full deferred consideration.
Funding for the deal will come from a £10 million equity raise at 200p per share and the balance by debt. Kinnerton has a strong balance sheet with net assets of around £19 million and cash balances are high although this partially reflects the seasonal nature of the business as we approach Easter.
This is an excellent start for a group that is looking to expand in the food space with quality acquisition purchases. At the placing price, and assuming the company hits its targets, the business will trade on around 6x earnings whereas others in the sector like Glisten trade on 18x. We assume they will move to 12x prospective in the near term for a share price of 400p. The stock has jumped by 60p in morning trade to 292p where they remain good value.
|hughlss: I like popcorn. I like chocolate coated raisins.
Peanuts? I can take 'em or leave 'em.
The share price went up nicely today.
Funny, isn't it? There's nothing else to say about this company.
Hope it carries on being boring.
My wife thinks I'M boring.
Perhaps it's because I've got Glisten shares.
Boring getting rich, isn't it?
|hughlss: Two days of sharply rising share price with no trades (well very little) must mean one of two things - either mm's short of stock and need a few sellers, or there's news about to break.
There's no such thing as a 'dead cert' when it comes to shares - Glisten, however, is the closest you can get. There's years of strong growth ahead before it reaches maturity, I'm sure we'll see plenty of acquisitions as well as organic growth. I missed the last AGM; I'll be there at the next one to meet the management, but so far they're doing a splendid job.|
|hughlss: hi cootuk,
I'm going to stick my neck out here by saying that I don't believe the share price is going to drop any further, and that if you are waiting until 1.20p before buying back in - then it'll be in vain. This isn't a typical volatile high-tech. share with a share price bearing no relation to fundamentals. This is just a set-back which was inevitable considering the sharp rise. I was into Inter Link Foods from early on and sold out at a good profit - only to see the share price carry on up. Glisten should follow suit, and I'd only think about lightening my holding when it comes close to being a 'fully matured' company with less potential for organic growth and acquisional growth. I could be totally wrong (and often have been!)- but I think it's a tad risky being out of such a heaven sent opportunity. Chances like this one only come along once in a while.
best wishes whatever investment decisions you make.|
|whitehall55: Long Post
Hi everyone (And Babolat...Sold your PDR?) I just joined your ranks today after monitoring this share for some time. The article in Share Weekly finally persuaded me to enter the fray! This fairly new site is now subscription only so the article is reproduced below. I know this site well and know it to be VERY well informed and make their choices by seeking out good businesses rather than punt at get-rich-quick choices. However, because of this their portfolio has left the opposition MILES behind! So here I am a Glisten shareholder! and here is the article.
From www.everyinvestor.co.uk (The Share Weekly)
Over the years investors have learned to be wary of businesses that grow by acquisition. It lends itself to accounting tricks that flatter the reported profits and can be a way of boosting salaries and perks for management while achieving little or nothing for shareholders. But there are exceptions to every rule. The highly acquisitive Hanson Trust, under the leadership of Lord Hanson and Gordon White, was one of the best-performing shares in the history of the London stock market. I will be surprised if Glisten achieves success on quite that scale, but as a strongly managed business in the fragmented food industry it has a considerable opportunity to grow both organically and by making well-judged acquisitions.
EPIC Company Share Price Market Cap £m PER Dividend Yield% 12-Month hi-lo Company Report
GLI Glisten 175.5 15.5 21.14 n/a 92.5-175.5 --
Although still relatively tiny, with 2003 sales of £15.9m, the team at the top of Glisten has the experience to run a much larger business. Non-executive chairman, Jeremy Hamer, is also chairman of Inter Link Foods, another small but acquisitive food company with an excellent record of growth and value-adding acquisitions in its five years as a quoted company. Chief executive, Paul Simmonds, with an 8 per cent shareholding, has a formidable track record. Among his previous jobs in a 25-year food industry career include running Hibernian Foods with sales of £180m and Glambia, a food company with £250m of sales. Finance director Robert Davies was formerly at another large food business, Uniq.
Another strength of the group when it comes to doing deals is a supportive base of institutional shareholders. There is a string of institutions in the list of largest shareholders including such well-respected names as Artemis and New Star. This is vital because it gives the group placing power, the ability to raise funds by selling new shares to its supportive big shareholders. They have just shown their worth by helping the group to raise £700,000 by placing 424,000 new shares at 165p, a tight discount to the latest market price.
Buying Glisten was the new company's first deal
The company now known as Glisten started life as a private company with heavyweight management but no business. Its first deal was to buy a niche confectionery business called Glisten, take its name and use the acquisition as the background for a flotation/ fund-raising on Aim. The float took place in early June and the shares were issued at 80p, since when they have more than doubled, helped by rising in investor enthusiasm for Aim-quoted companies.
The acquired business, Glisten, is a niche supplier of confectionery products to a broad range of customers. Simmonds says these are in five sectors including major multiples like Tesco where the group supplies the biggest- selling line of sweets sold in bags. The group's speciality is coated products, whether coated with chocolate or sugar. Other customers range from Harrods to Costco and include manufacturing businesses like Richmond Icecream, for whom Glisten supplies coatings, and food service businesses like Whitbread to whom the group supplies ice cream toppings.
Simmonds says the Glisten business was in good condition before they bought it with £1m recently spent on a new packing plant. However the group spent a further £1.5m upgrading the facilities, brought in some 50 new customers and intensified the focus on innovative new products such as Snowballs that carry higher margins. Simmonds says the acquisition was possible because the second-generation owners no longer had an involvement in the running of the business.
UK and Scandinavian rights to Sunmaid brand
Another attractive asset was the rights to the Sunmaid confectionery brand in Scandinavia and the UK. There are plans to launch five new products under the Sunmaid banner into what should be receptive markets. The Scandinavians rank even ahead of the UK as the biggest world-wide consumers per head of confectionery.
Glisten is on a strong growth path with profits rising from £1.17m in 2001-2 to last year's £1.36m with £1.57m forecast for the current year and £1.7m next. Reported earnings per share for 2002-3, the first year under the new management team, showed earnings per share rising 23 per cent to 11.9p and strong cash generation.
Fiscal Year Proj Turnover £m Pretax Profit Change % EPS Change % DPS Change
2003 15.6 1.05 NA 10.36 NA 0 NA
2004 * 16.62 1.45 38.1% 11.7 12.9% 0 NA
2005 * 18.26 1.66 14.5% 13.16 12.5% 0 NA
EPS - Earnings per Share
DPS - Dividend per Share
But the real opportunity for shareholders comes from the scope for acquisitions. Three giant concerns, Mars, Nestle and Cadbury Schweppes dominate the confectionery industry with around 75 per cent of the market between them. But that still leaves 25 per cent in much more fragmented hands and Glisten with ample room to grow from its present minuscule 0.3 per cent market share.
Just made first acquisition for £1.1m
The group recently announced its first acquisition since the flotation. It spent just under £1.1m in total including costs to buy Sunya, a manufacturer of chocolate confectionery such as 'foiled' and 'netted' chocolate balls and seasonal products. The acquired business had sales last year of £1.8m. Production is being moved to Glisten's Blackburn site through December to cut costs while the group will also benefit from the customer connections enjoyed by its new parent. Simmonds says that the acquisition will be earnings-enhancing in the second half of the year to 30 June 2004.
It is obvious that there will be more and larger deals to come. The fund-raising referred to above took place after the latest acquisition and means that the group has already rebuilt its firepower. The initial emphasis will be on confectionery to gain synergy benefits from the deals. But, in the medium to longer term, the group will not confine itself to sweets. The aim is to look at any niche areas of the food market where the group can add value. Glisten also claims not to be at the mercy of the major multiples with their margin-crushing buying power. In the latest full year around 33 per cent of sales went to the big multiples with the other two thirds going to a wide range of customers including export markets.
The attraction of Glisten is that the business is tiny in relation to where it might be going. Furthermore investors can be sure that management, who are themselves significant shareholders, will be careful to do deals that really do add value. The shares look an attractive investment that could produce substantial returns over time.
So here's to another PDR!
Gan canny oot there!
The Angel of the North (In disguise as Whitehall55)|
|hughlss: Just to add a little perspective to the share price, I noticed, in Shares Magazine yesterday that they are rated no more than a 'hold' at present. Glisten lost out in the bidding for Fox's - a set-back in acquisition plans. The article maintained that the share price hike has left the share fully valued, and high enough until acquisition news comes through and/or the dividends start to roll.
So, rampers and day-traders, I'm afraid to say this isn't the company or its' 'forum' for you. There are plenty of more volatile shares and mugs that will welcome your attention. For the more astute and traditional investor you could do no better than stay committed to Glisten - the best is yet to come, just a little patience required, but we're backing a winner here which must rate amongst the very best of the AIM stock.|
Glisten share price data is direct from the London Stock Exchange