||EPS - Basic
||Market Cap (m)
|Household Goods & Home Construction
Real-Time news about Qualceram (London Stock Exchange): 0 recent articles
|lbo: Privatise Qualceram
BATHWARE company Qualceram Shires returned to the black last year. It turned in pre-tax profits of 3.9m in 2006 as against a loss of 5.1m in 2005.
Despite last year's profit recovery, the fact remains that Qualceram's shares have been an absolute dog since the company first listed on the Stock Exchange a decade ago. Floated at IR150p (1.90) in April 1997, the shares traded at 2.06 last week.
Indeed, 12 months ago you could have bought the shares for just 1.28.
Even after the recent recovery in the share price, Qualceram is still a Stock Exchange minnow with a capitalisation of just 45m. If this is the best the group can manage after 10 years as a quoted company, then it should be taken private.
Qualceram had operating (pre-interest) profits of 4.1m last year. When you add the company's debts of 19.9bn and a pension deficit of 5.2bn, the total enterprise value is 70m. At over 17 times operating profits this would, on the face of it, make a take-private prohibitively expensive. Look again.
Three executive directors, chief executive John O'Loughlin, sales and marketing director John Byrne and technical director Tom Byrne between them own almost 42 per cent of the shares. This would knock over 18m off the cost of buying out the outside shareholders. Throw in the proceeds of the likely sale of the group's 11-acre site in the Arklow Waterfront Development Zone, and the net cost of any take-private shrinks to a very doable 30m or less.|
Agreed. As you say, we are talking about an EPS of only 4 for this year, even at 150p the share price would still leave it at only 6.88 for 03 and 6 for 04 - looks a bargain at sub £1 to me and even if the price doubled up to £2 it's still at only at a forward PE of 8 for 04.
Looked at the charts for this and MACD/RSI (a bit skewed due to thin volumes) + 50/200 day MA all looking very bullish to me with my favourite indicator "A Golden Cross" formation in June at @75p. In fact if you run the Candlesticks for the last 12 months you can almost see a mirror image of the fall from around £1.50 for the last year in the recent run upwards and the present "Cup" being formed.
Roll on September.....|
Qualceram Shires share price data is direct from the London Stock Exchange