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Real-Time news about Pkl Hldgs. (London Stock Exchange): 0 recent articles
|guru11: Aleman / bletherer - true comments -
On the face of it the company does look good value.
But I am concerned that turnover was up 33%, and cost of sales were up 67%, and as Aleman pointed out - it would have been better to have repeated what actually was management expections for those who are not aware of forecasts.
Another concern is the recent share price graph - could this be a buying oportunity or should we be expecting further falls? The next set of results will be one to watch with interest.|
|bletherer: jhan66 - How do you assess danger from the banks? They have recently agreed new revolving credit facilities and a loan so appears they are on board at the moment. Presumably they will only be a problem if the issues raised last October prove more intractable than we are currently given to believe and the company cannot return to positive cash flow? But I thought the interims were reasonably reassuring on that point - they gave the impression that the problems are being addressed and did not contain any new unpleasant surprises. I admit though I would have preferred it if they'd said something about why they had a sharp rise in debtors for the period (this was why they turned cash flow negative despite making a small operating profit), and whether that is a temporary issue. Incidentally I did also check with the company to see whether they had any comment on the recent sharp fall in share price. They played a fairly straight bat, simply stating they would be obliged to make a statement if for any reason they think they are heading +/- 10% beyond current market expectations. In the absence of such a statement I assume we are still looking at an eps of 5+ for this year - which should be a bad year, if the problems in the first half do prove to be temporary. The company also pointed out that a lot of the fall had been on low volume, which I took as a hint they do not see anything too significant in it.|
|jhan66: trying very hard not to buy this share.
drifting share price + negative current assets has been a bad mix for me in the past.
If there's no danger from the Banks I'll be happy to buy for future prospects|
|m.t.glass: With PKL's business being unavoidably lumpy - major international events and catastrophes interspersed with lengthy periods of expensive/extensive tendering - and large stocks of equipment on standby - and having seen their share price take a nasty kicking earlier this year - I can't help wondering if their bankers might be happier if the company gets bought out by some bigger group as a bolt-on?
Rentokil perhaps? (Though they're a bit preoccupied with takeover rumours of their own at the moment). Anyone care to name other (smaller or likelier) contenders?|
|diogenesj: Interesting that the IC gives yet another reason for the drop, which it describes as a profit warning: 'while healthcare is a big growth market for PKL, its orders have shifted from outright sales toward long-term rental contracts. Though this should lead to higher margins and better earnings visibility, it will have an impact on profit estimates'.
If there was a profit warning in those results, it was so carefully coded that it escaped me. However, Arbuthnot have in fact cut their forecasts quite substantially, and they now are:
2005 ptp 5.00m eps 9.40p div 3.70p
2006 ptp 6.00m eps 11.10p div 4.20
That is a reduction of 14.5% in eps for the current year, and 11.5% for next year.
Because the shares have fallen some 19% from their peak, they may still be regarded as good value if the new forecasts can be believed. However, I think the 'profit warning' and the way it was conveyed leave a rather unpleasant taste. The sudden drop in the share price show that some substantial holders knew what was up. The two or three different interpretations of the reasons for the drop quoted in posts above show that the management attempted a cover-up and succeeded in frightening the market instead.|
|alter ego: share price falling back ahead of tomorrow's prelims - anyone heard anything?|
Pkl share price data is direct from the London Stock Exchange