Pochin's Share Discussion Threads

[balcony] 03/8/2005 12:43

Forensic-yes i would think news soon.

[forensic] 03/8/2005 10:19

No idea why still going up. Something seems to be in the offing. Surely an announcement due shortly.

[balcony] 01/8/2005 10:30

Any idea why these have moved up over the last few days?25% in july.

[sleepy] 21/2/2005 13:31

topvest - any longterm investor in Pochins must be patient.

Look on the bright side - this thread had its first anniversary on 20 January last and since then participation has increased by 50%! (If you dont mind me asking, what other shares are you interested in?)

The commentary with the numbers was pretty skimpy - perhaps if they had told shareholders more there might be more interest.

[topvest] 19/2/2005 09:29

Results yesterday looked ok. Looks like things are going ok. Not much interest on here though!

[topvest] 02/2/2005 20:41

Yes, quite a jump. Wonder why?

[forensic] 02/2/2005 11:56

New all time high reached today.

[forensic] 02/12/2004 07:57

The Autumn edition of the Pochin Post newsletter makes good reading

[sleepy] 29/11/2004 18:03

I believe the reference below should read 34,100 sq. metres (presumably on Pochin owned land at Midpoint 18)



THE PERFECT PRESCRIPTION - NOV 3 2004

By Richard Ault, MIDDLEWICH CHRONICLE



DOZENS of jobs are to be created after a multi-million pound deal was signed with a pharmaceutical giant.

Wincanton is to help to build and design a huge warehouse at Mid Point 18 in Middlewich after it secured the 10-year partnership with pharmaceutical company GlaxoS-mithKline (GSK).

GSK, which makes Beechams products, says the distribution centre will create a 'significant' amount of jobs.

Wincanton project manager John Bradley, who lives in Cuddington, said he is delighted to oversee a development so close to home.

'I think it's great that a blue-chip company like GSK is coming to Middlewich,' he said.

'It brings prestige to the town and it will initially create 50 to 60 jobs, but it will be a growing enterprise.

'It also strengthens Wincanton's position in the area. I have been with Wincanton for six years and it is unique for me to get a big contract in my own back yard. Normally I will be overseeing projects in other parts of the country so it is really nice to see such a big contract developed so close to home.'

Mr Bradley added: 'Now the challenge is to get it all ready in 12 months. Work has already started and planning permission is in place, but there is an awful lot to do.'

The news has been welcomed in the community, but town leaders believe the company should be asked to contribute to the creation of Middlewich's much-needed bypass before planning permission is approved to offset any impact on the town's already under-pressure road network.

Congleton borough and Middlewich town councillor Alison Roylance-White said: 'It is good news and the new jobs are very welcome, particularly as it gives us a wider variety of new jobs.

'But it will add to the congestion and I think the company should be made to contribute toward the cost of the proposed bypass.'

The deal comes days after nearby ERF was awarded a £1.1 billion deal from the Ministry of Defence which has safeguarded 120 jobs and created dozens, and is further proof that big business sees Middlewich as a viable base for its operations.

Wincanton is a leading provider of supply chain solutions, and will help GSK to meet its supply and storage needs.

That includes delivering products to customers, utilising existing trucks and helping to design storage facilities.

The partnership will see the companies erect a building to serve the north of England and Wales and which will operate on a similar basis to GSK's distribution hub in Brockworth, Gloucestershire.

A company spokesman said: 'A significant number of job opportunities are to be created in Middlewich following the announcement of a contract between GlaxoSmithKline (GSK) and supply chain company Wincanton.

'To support the future growth of GSK's consumer and nutritional healthcare business, the design and operation of a new 34,100mauto-mated distribution centre is to be developed in Middlewich.

'The 10-year contract builds on Wincanton's existing long-term relationship with GSK.'

Brian Kennedy, GSK customer services director, said: 'The new distribution centre will replicate the successful Brockworth operation.

'By opening a base in the North we can accommodate future growth.'

Jeff Anderson, managing director of manufacturing at Wincanton, said: 'We are pleased to have been awarded the Middlewich contract, as it underlines our continuing investment in automation as a business and reinforces Wincanton's market leading position.

'We look forward to building a significant team at the Middlewich site.'

The need for the bypass will be further highlighted by the development. Councillors believe businesses coming into the town should help contribute to the bypass, which will remove heavy traffic travelling between Middlewich and Sandbach from Lewin Street. The route would take traffic to the Holmes Chapel Road roundabout where it meets the B5309 and along Pochin Way. It would then go south, merging again with Booth Lane after the Cledford Lane junction.

Currently all businesses coming to Midpoint 18 are expected to pay a contribution to the fund, but some councillors have expressed reservations about this policy.

[forensic] 17/11/2004 17:50

Unfortunately, I could not make the AGM.

The results for the year ended 31 May 2004 were a bit disappointing with regard to growth in the net asset value (+3.5%). However, I think one of the key illuminating statements in the Accounts is contained on page 5. This relates to a 5 year strategic review to 31 May 2008.

"In financial terms, the objective is defined as average annual growth of 15% in profits and shareholders' funds during this period. Although we have not met the target in this first year, principally due to adverse market conditions in the trenchless technology business, we remain committed to achieving it over the full five year period."

Ignoring compounding, a 15% annual average growth rate equates to 75% over the five year period. With compounding, this jumps to 101%.

From an investment point of view, I believe that the share price will increase in line with the percentage increase in the NAV over the long term, as it has done historically.

I would be very happy indeed if the share price increases by 75% over a five year period. Growth of 15% pa -v- 5% gross in the bank.

If their targets are met, then the current share price of 205p to buy, could look very cheap in the medium term (and hopefully in the short term as well when the next interims are announced).

[sleepy] 08/11/2004 11:13

Forensic - were you at the AGM? How do Pochins look to you at the moment?

[forensic] 27/5/2004 17:26

The Sentinel - 21 May 2004 - LINK ROAD TO 500 NEW JOBS

Hundreds of jobs will be created when a new link road opens in Crewe. Work on the Crewe Green Link Road is set to be completed by the autumn - and developers have submitted wide-ranging plans for major employment sites on either side of the road.

The plans have now gone before Crewe and Nantwich Borough Council for the development of 40 acres of woodland into offices, industrial workspaces, warehouses and car showrooms.

Analysts believe more than 500 jobs could be created by such a proposal.

Developers Pochin hope to secure outline permission as soon as possible so work can get underway.

The £4m road is part of a vital new network designed to ease congestion on South Cheshire's traffic-clogged roads.

It will eventually link up with the A500 Shavington bypass, which opened last May, and effectively create an "outer-bypass" around Crewe, freeing up the town's roads, including the hectic A534 Nantwich Road which at present is the main route for traffic through the town.

The new road network is seen by community and council leaders as opening up the way for a jobs boom in South Cheshire.

The Shavington bypass has already opened 300 acres of development land - expected to create in excess of 3,000 new jobs.

[sleepy] 26/4/2004 19:30

£12 million house?

[sleepy] 20/2/2004 18:33

Thanks for the suggestion of Bellway - I will take a look at it.

I expect that the Pochin results will be out next week. I'm hoping for a further increase in the dividend.

[forensic] 10/2/2004 09:35

I am in a similar position - there is very little value in most smaller companies at the moment, following the substantial re-rating that has occurred in the last year. Whereas you could pick up shares at PE's of 5 and 6, the same companies are now trading at PE's of 10. With interest rates heading up, a safe real return from deposits is looking attractive with a low inflation rate.

One of the only sectors where there is value is housebuilders. I like Bellway (BWY) where their medium term growth aspiration is to build 8,500 new homes compared with 6,278 in the last financial year. They already sell on a cheap PE, and even if the PE remains the same there is growth of 35% in the pipeline if their growth aspirations are achieved.

[sleepy] 09/2/2004 11:43

Congratulations - You must have made many hundred percent on your investment!

I invest in a very small number of small companies and am finding it hard to find value at present. Have very few holdings at present but have held onto Pochins.

I would be very interested to know what other shares you like?

Sleepy

[forensic] 04/2/2004 19:22

Yes I have been a long term shareholder in Pochins and have Annual Accounts back to 1986. The shares have been a very profitable investment.

If the compound growth rate in net asset value continues at 12.3% per annum, then in 5 years time the NAV would have increased by over 78% (and the share price likewise if it goes up in line).

[sleepy] 02/2/2004 19:11

Thanks for the above. Fine exposition of the positive case for the shares.

Solid company though, perhaps, not very exciting(a good thing?). I'm a shareholder and often wonder what progress the company may make over the next few years.

Have you been a longterm Pochin shareholder? Would be interested to know what other companies you have shares in? Also where you got your 1986 Pochin info?

Sleepy

[forensic] 20/1/2004 14:39

The merits of Pochins was brought into the public eye last year by an article in the Financial Times by John Lee where he added Pochins to his FT Portfolio. John Lee is a shrewd and very successful private investor and has been a long-term shareholder in Pochins.

Pochins activities comprise building and civil engineering contracting, property letting and development, specialist plant hire, specialist directional drilling subcontracts, concrete block manufacture and housebuilder (a new activity this year).

Over the years Pochins has an enviable record of significant growth in profits, net asset value and dividends. Share capital has remained unchanged with no dilutive share option schemes or other issues of share capital (apart from a 19 for 1 bonus issue to existing shareholders in 1995). The Accounts for 1986 showed a net asset value of £6.231 million for the group. The latest Accounts for the year ended 31 May 2003 show a net asset value of £44.789 million. The compound growth rate over this 17 year period equates to 12.3% per annum. All of this growth has come from retained profits and property revaluation surpluses.

A similar calculation for the annual dividend growth rate between 1986 and 2003 produces a compound growth rate of over 13.7% per annum. This it what I (and Mr Lee) would call a blue chip share.

Some key points about Pochins:

(1) It owns Midpoint 18 in Middlewich which is a major mixed-use development which will eventually total 350 acres.

(2) It operates the biggest fleet of concrete pumping machines in the UK.

(3) Net asset value per share at 31 May 2003 was £2.15 per share.

(4) The Board has signalled a more progressive dividend policy. The 2003 Report stated: "This increase reflects the board's intention to adopt a more progressive dividend policy providing it is justified by trading performance and underpinned by a prudent level of dividend cover."

(5) Rental income from properties was over £3 million in 2003.

(6) It had a secured order book for the construction division for the current year of £42 million as at September 2003.

(7) In recent years a growing number of property joint ventures have been entered into which are contributing to growth.

In relation to prospects the Chairman states in the 2003 Report:

"We have a healthy order book and, with further benefits from reorganisation anticipated, I am confident that the current year will add to our continuing success, especially if some of the possible development sales we are currently negotiating are finalised and completed in the year."

The next set of results are the interims and are due to be announced in February.

[brugha] 28/7/2003 13:32

If we are there, isn't much trading?

[balcony] 28/7/2003 10:05

are we about to see a bid here,this share never moves like this

[derek wild] 16/3/2000 11:09

ADVFN NewsWire (11:03) - Pochin's has agreed to sell its wholly-owned subsidiary, Poplar 2000, an off-motorway services business, to Granada Hospitality, for £8.6m, subject to shareholder approval at an extraordinary general meeting on April 3.

Pochin's, whose half-yearly turnover went up from £19.8m to £24.6m, with profits up 11pc from £1.3m to £1.5m, will now focus on its core construction and development activities.


dw