Mountfield Share Discussion Threads

[jakleeds] 10/6/2016 11:46

I think there will be an update at the agm, as it's earlier this year than it has been previously.

I'd be surprised if they made an announcement before then, but you never know given they've committed to keeping the market more informed.

[mikeh30] 10/6/2016 11:45

Depends when they win/want to announce new contracts.Completion of the £5.5m city contract is the trigger for me for them to start other projects.

[cyberbub] 10/6/2016 11:39

Are people expecting a trading statement at the end of June again like last year, or does the AGM statement essentially fulfil that role until the next results in early Sept?

[cyberbub] 10/6/2016 11:11

I thought there had to be a delayed sell in the system, to allow all that buying at 1.8p... there it is, 500k...

[jakleeds] 10/6/2016 10:09

The February 2016 update is worth another read at this point in time.

Mountfield Group plc

08 February 2016

MOUNTFIELD GROUP PLC

Trading Statement

2015 was one of the most important for Mountfield Group Plc ("the Group") since it was listed in 2008, with Connaught Access Flooring Limited ("CAF") taking a major step forward in its development and reputation by winning its largest ever contract and the year-end seeing the successful completion of restructuring of Mountfield Group Limited ("MBG"), leaving it in a position where it can now achieve sustainable profitability in 2016.

Connaught

The continued success of Connaught was an important feature of the Group's performance in 2015 with the most notable achievement being the winning of a large contract to supply and install flooring to a major City HQ office building, one of the largest flooring contracts placed during 2015. The contract continues into 2016 and is expected to lead to Connaught further widening its customer base as it sets itself as a market leader in their field.

Connaught is developing its range of services that it offers into other fit out packages, such as whitewall partitioning and external cladding, both in the UK and in mainland Europe.

Another very encouraging feature of the year for Connaught has been the success of its newly created Special Works Division which has been set up to provide a professional service in completing smaller flooring contracts that Connaught had not previously pursued. In its first year of operation the Division's turnover was circa GBP2m and the Board expects this to increase further in 2016.

MBG

During the year it was decided that the Company would re-focus its operational activities with the most important change being that it would no longer undertake high risk fixed-price contracts. As a result of this of this re-focus it has been able to reduce monthly overhead by circa 40%.

The completion and settlement of the last two fixed-price legacy projects, which commenced in 2013 and 2014, negatively affected what would have otherwise been a profitable year.

The substantial improvement in the underlying business in 2015, after excluding those legacy projects gives the Board confidence that the business will be profitable going forward.

Outlook

Overall, the year was an important one for the Group and the Board is confident that the steps it has taken will result in significantly increased profitability.

The Board is confident that 2016 will see Connaught take advantage of its reputation and standing it has created in the commercial flooring market to expand its business into related areas of fit-out work on significant contracts both here and in Mainland Europe.

The forward order book for the year is in line with target with turnover of GBP2m already secured. The outlook is for the year is extremely good and the Company expects to participate in some of the large fit-out contracts that are scheduled to go to tender during the year.

Similarly, the Board believes that MBG will once again become a significant contributor of profits within the Group following the reduction in its overhead and the changing of its work profile within which it has currently secured turnover of GBP2m.

Strategy

Whilst work in the data-centre sector remains a central part of the Group's activities the Board has decided that in addition it should concentrate on fit-out work and areas allied to it whilst also continuing to offer refurbishment and fabric repair services.

This strategy is being supported with the search for acquisitions that will help strengthen the group's position in these markets and initial discussions with potential targets have already taken place.

The Board is currently engaged on two projects - firstly the formal cancellation of the Loan Notes that appears in the Group's balance sheet and then the future re-branding of the Group.

[annonymous2] 10/6/2016 09:58

Thanks cyberbub.

I misread the rns's. Not too expensive...yet

[cyberbub] 10/6/2016 09:50

The point is that the company would have made £900K without the legacy contracts drag, which is now over.And given the heavy hints at more contracts upcoming, perhaps this year it can make £1.5M at least? On a p/e of 10 that would be 6p share price.The founders have also given a heavy hint about their intention (and incentive with the converted loan shares) to sell the company in due course for *over* £20M... which is *over* 8p... a profit of £2M and growing fast is all that would be needed to sell for say £25M...NAI

[mikeh30] 10/6/2016 09:36

Thanks for the honest response.I'm looking towards the next trading statement and the completion of the £5.5m city contract as this has taken up a lot of their time. Once this has been completed (any day now) it will free them up to announce new contracts hinted at.CAF are gaining real momentum in their field and I am expecting another £5m contract/group of contracts soon. Also expecting contracts from MBG with their successfully altered strategy

[annonymous2] 10/6/2016 09:29

mike

I'm trying to grasp why the sudden excitement after the figures. I expect profits to jump but the market cap is already close to 5 million so what are people expecting the next numbers to be.

[annonymous2] 10/6/2016 09:25

Thought if they make £500k next time round which is a fair guess. PER of around 10
is 5 mil market cap or around 2p, not sure where 3p comes from just yet ?

[mikeh30] 10/6/2016 09:25

Hate trader on Twitter: ""Out of Mogp now, late Rns converting loan notes""Sold a bit too early did we anon?

[mikeh30] 10/6/2016 09:22

Starting to look like 2013 chart

[annonymous2] 10/6/2016 09:21

someuwin

3p or £8 mil cap, it's just made £177k, have you got forcasts for this year and next or have you just plucked that figure out of the sky ?

[someuwin] 10/6/2016 09:19

Peeps starting to realise how cheap this is.

[jakleeds] 10/6/2016 09:11

Can sell 300k shares easily for 1.65p

Can only buy a max of 50k at 1.8p at the moment

[jakleeds] 10/6/2016 08:52

And not long before contract announcements here, as well as confirmation at the AGM that the loan notes have been converted into "owners shares"...

CAF is already involved in negotiations of large scale flooring contracts and MBG is trading profitably since the restructuring of its business.

[mikeh30] 10/6/2016 08:49

Yep agree. STY style chart coming. Also as a response to a post this morning:"The Group is financed from the cash it generates from its operations"

[jakleeds] 10/6/2016 08:48

Might be worth giving a nod about MOGP on the STY thread ...

[lauders] 10/6/2016 08:47

STY may be having an effect here today. Contract wins there & hence in the sector ;-)

[jakleeds] 10/6/2016 08:38

Yep I agree. Nearly £900k operating profit excluding the legacy stuff, which is now done and dusted.

That drop below a penny a couple of months ago was such a gift...

[someuwin] 10/6/2016 08:36

Worth 3p even on existing business imo.

[mikeh30] 10/6/2016 08:35

225000 buys on isdx

[mikeh30] 10/6/2016 08:34

It's just a natural rerate at the moment IMO. Just looking for another couple of bumper contract wins now to push us over 3p