Hayward Tyl Share Discussion Threads

[littlebro2] 04/1/2016 16:21

Unfortunately had to sell some of these recently through circumstance. Still on board though and hopeful of a strong year.

HNY all.

[rivaldo] 04/1/2016 12:40

Looking strong - hopefully set for new highs.

Happy New Year to all here.

[rivaldo] 27/12/2015 10:21

Nice mention in today's Mail on Sunday - HAYT was one of their winning predictions for 2015, but today's article concludes "the best is yet to come":



"Hayward Tyler is an engineering group that specialises in top-of-the-range electric motors and pumps, used in situations where failure is not an option.

Last January, the shares were 78p. Today they are 92.5p and supporters believe the stock should rise to more than 120p over the coming 12 months.

About 70 per cent of the group’s customers are in the energy and nuclear sectors around the world, including in America, China and India. A Centre of Excellence is opening next year in Luton, Bedfordshire, to improve design and manufacture and double capacity.

The company also recently acquired Peter Brotherhood, a business whose products complement its own.

Brokers expect profits to increase by 15 per cent to £5.1 million in the year to March 2016 and by 33 per cent to £6.8 million the following year, as the Luton site comes on stream and Peter Brotherhood is integrated into the business.

Midas verdict: Hayward Tyler shares have done well but the best is yet to come. Hold."

[rivaldo] 22/12/2015 11:49

HAYT were featured in Finncap's monthly investment round-up in November - note the increased forecast of 10p EPS next year:



"Hayward Tyler plans to improve Brotherhood

Specialist pumps and motors supplier Hayward Tyler has widened its product range and boosted its earnings per share by acquiring the business of Peter Brotherhood, which became part of Siemens after it acquired Dresser Rand. Peter
Brotherhood was a non-core asset and it makes steam turbines, gas compressors and CHP units, with an installed base of 1,500 units in total.

Hayward Tyler is paying $15m (£9.87m) for the acquisition, which is similar to net assets. In 2014, Peter Brotherhood made an underlying operating profit of $3.2m on revenues of $46.7m. Operating margins could be improved to 10% in
the coming years. There is also scope to cross-sell to the two customer bases.

The deal is funded by debt so pro forma net debt is expected to be £22.6m at the end of March 2016. There is potential to sell and lease back the acquired company’s 11.5 acre Peterborough site for around £6m.

The deal is forecast to enhance earnings by 14% to 10p a share in 2016-17 – the first financial year following the acquisition. That puts the shares on ten times prospective 2016-17 earnings.

Hayward Tyler holds a strong market position and it continues to prosper even though oil and gas markets are difficult. The construction of new test beds, which is part of the investment in the facilities at Luton, has just started and the project should be completed by July 2016.

Capacity should double and working capital requirements will be lower."

[rhomboid] 18/12/2015 09:15

I think Oryx are taking up some of the North Atlantic stake as they've just dipped below 20%, edited to add that I misread the RNS !

[rivaldo] 18/12/2015 07:08

RNS - good to see Oryx continuing to buy. They now have 11.06m shares, up from 9.66m in October, so quite an increase, perhaps partly or all from the placing:

[rivaldo] 11/12/2015 11:02

Nice - Cantor's today initiate coverage on HAYT with a Buy and a 120p target:

[rivaldo] 07/12/2015 08:41

Reading up on HAYT's nuclear side, there are truly staggering opportunities and figures involved in decommissioning:

- Western Europe has 150 plants to decommission by 2030
- the UK sites alone will cost £70 billion plus to decommission
- the NDA's current year expenditure is £2.91 billion

[rivaldo] 04/12/2015 08:48

Big article in yesterday's Shares Magazine points to HAYT's opportunities in the nuclear sector, particularly as HAYT are involved in both the new build and decommissioning aspects of new and old facilities:

Extract:

"NUCLEAR IS CENTRAL to the UK’s energy policy over the years ahead because of its ability to provide solid base load power into the grid and help the country meet carbon emission targets.

Britain’s conservative-led Government pulled out all the stops during the visit of Chinese communist party chief Xi Jinping to get spades in the ground on a proposed nuclear plant at Hinkley. Enlisting Chinese financial firepower to get the estimated £18 billion project off the ground, as well as the offer of generous financial incentives, highlights the desperate state of the UK’s energy situation.

All but one of the UK’s 16 nuclear facilities across nine sites are due to shut down by 2023. Together, those plants generated around one-fifth of the energy consumed in the UK in 2014.

Years of under-investment and delays on energy infrastructure projects mean
progress on the Hinkley Point C facility is now a national imperative. Another two projects of roughly the same size as Hinkley would be needed merely to replace the nuclear capacity expected to go offline in the next decade.

Planned investment in nuclear plants at Hinkley and elsewhere should provide
investment opportunities in the years ahead."

[glyn10] 02/12/2015 17:43

I hope so, good luck all !

[rivaldo] 02/12/2015 15:59

Looks like HAYT's placing presentations went well. New highs coming?

[littlebro2] 24/11/2015 07:12

Ah....ok, I'll have a look. Can't see it st the mo, just got a mail notification.

Thanks

[rivaldo] 24/11/2015 06:51

It's all explained in the RNS, re approving the placing etc. Just scroll down!

[littlebro2] 24/11/2015 06:44

Notice of EGM. What's this going to be about?

[rivaldo] 20/11/2015 10:50

Moving well now - perhaps new highs coming.

Brief interview with the CEO here - not much new except to say that there are "new institutional investors" in the oversubscribed placing and that the PB acquisition has been well received:

[rivaldo] 20/11/2015 07:44

Good to see the Naked Trader is in HAYT and is optimistic:



"Long-termer Hayward announced a fund raising today at a healthy 90p, more to come and remain patient here".

[rivaldo] 19/11/2015 14:12

Cheers dave. An encouraging second RNS just out on the completed placing too:

- the placing was oversubscribed
- Harwood Capital are subscribing for a further £1.7m of shares, taking their stake to over 20%. Quite a vote of confidence
- a non-exec is buying almost £1.3m of shares, taking his stake to 4.2m shares, or 7.6%

[davebowler] 19/11/2015 13:21

Finncap;
The group has raised £8.4m via a placing to reduce debt and invest in the enlarged business, following the recent well received acquisition of Peter Brotherhood (PB). While the placing reduces EPS by 12.3% in 2017, it remains level with our forecast before the acquisition. The placing valuation is attractive on a P/E of 10.2x and an EV/EBITDA of 5.5x in 2017. Our 113p target price offers significant upside. We expect further commercial progress, having gained some important new customers recently.

[rivaldo] 19/11/2015 10:14

HAYT have just been tipped by Andrew Hore (editor of AIM Journal):



Conclusion:

"if the company achieves its current year forecast then it will be trading on ten times prospective 2015-16 earnings. This is before any benefit shows through from the Peter Brotherhood acquisition.

Even after an expected rise in the tax charge back to 28%, the shares are trading on less than nine times forecast 2016-17 earnings.

The uncertainty in the oil and gas sector will be a negative factor but it is not that important when it comes to achieving the current forecasts thanks to the recurring revenues from the aftermarket. Hayward Tyler has a strong reputation and customer base and it remains an attractive long-term stock".

[cerrito] 19/11/2015 07:49

A good deal for HAYT and a great deal for JM Finn
The gross proceeds are £8.4m and the net proceeds approx £8m which means that net HAYT are raising the funds at 85.7p which is still a good price, even though the new shares get the dividend..
Appreciate that there are some legal expenses involved but the bulk of the £400k which will for JM Finn in a deal that is not underwritten.
I am writing this on the basis that the £99k fee referred to right at the bottom was due to the m & a; that is how it reads though not quite sure why it is mentioned here.

[rivaldo] 19/11/2015 07:19

Pleasing news this morning - an £8.4m fundraising at absolutely no discount to the 90p market price.

And savings should arise from the repayment of the £5m debt, which will enhance slightly diluted earnings. Plus HAYT gets to receive its full grant.

I note that HAYT have also reiterated their positive outlook too:

[rivaldo] 18/11/2015 14:19

Confirmation in today's speech that the UK is to replace coal-fired with a "new wave" of gas-fired and nuclear power stations:

[rivaldo] 18/11/2015 09:31

Britain's revised energy policy, to be announced today, centres on gas-fired and nuclear power stations - which is very good news for HAYT.

Loads of big contracts to be won:



"New gas and nuclear plants to see off coal

Britain needs a new generation of gas-fired and nuclear power stations, the energy secretary will say today as a leading think-tank warns of the growing threat of blackouts.

In her first major speech on energy policy, Amber Rudd will say that the new power stations will replace dirty coal-fuelled plants. New nuclear power plants at Wylfa in Wales and Moorside, near Sellafield in Cumbria, are expected to provide up to 30 per cent of low-carbon electricity bv the 2030s and create 30,000 jobs, she will say.

etc"

[technocat] 13/11/2015 19:10

I wonder............if any of the £10bn worth of orders from India that Mr Cameron has just announced will come HAYT's way?