Sondrel (holdings) Share Discussion Threads

[battlebus2] 03/3/2011 18:57

Strange couple of trades changing hands at 25p. 400k each. A bargain for the buyer.

[battlebus2] 21/2/2011 21:23

He may have moved on. I'm happy to hold long term even though this has taken longer to reach my target of 40p. Not bothered by pension deficits or intangibles as long as the cash generated continues to rise as per last accounts up 80% to 3.37 million. Shares maybe held back to see if the government cuts have any effect. AGM and trading update was on the 11th of March last year so not long till we see how they are shaping up.

[puku] 21/2/2011 17:05

Hi topvest - I agree "handsomely". Cant understand current share price at 30p. Previous eps 3.9 p and CR says forecast 5.6 but lets say 5 p gives PE 6. Chairman talked about "improved level of momentum" , orders up 22% with £3.96 from new customers. Bought twice and tempted again. Interesting CR hasnt visited for a while ?

[topvest] 20/2/2011 14:24

The pension deficit is a concern, but the accounting for it looks quite prudent and is largely caused by the movement down in the discount rate from 5.6% to 5%. This has a big impact on valuation of the liabilities. If they had gone for a more standard discount rate of 5.4-5.5% then things would look quite a bit better! Intangibles are irrelevant; yes they may have paid a little too much on one acquisition but that's history. Overall, I think this is a quality outfit, and we should be handsomely rewarded for buying shares anywhere in 20-40p range over the medium term.

[wheresthevalue2] 19/2/2011 21:19

Hi all

1) Does anyone have a concern with the pension liability (having gone up around 100% to 3.8m in 2010)

2) A more general question around intangibles. Do the write offs in the last two years indicate too high a price was paid in the first place? Also, does it matter to the health of the company and in what way?

Thanks in advance

[envirovision] 30/12/2010 09:36

Yes must confess they seem excellent value, I have taken some.

[topvest] 29/12/2010 17:13

Net debt at year-end further reduced by GBP2.12m to GBP7.84m (2009: GBP9.96m).

[cockneyrebel] 29/12/2010 16:49

5.6p forecast for this year.

CR

[envirovision] 29/12/2010 16:47

Just happened upon snd. Gearing seems not to have come down. What do you think they can do eps and turnover wise for 2011 chaps?

[topvest] 29/12/2010 16:05

Just a few sells. I've got enough of these, but a good opportunity for someone.

[choppa] 29/12/2010 15:34

Bit of a tumble in the last hour?

[cockneyrebel] 14/12/2010 17:46

Bit of a tick up today

CR

[sharetips] 09/12/2010 15:42

see www.brokerlink.co.uk for report - share
price target 43.25p!!

[battlebus] 06/12/2010 07:37

More director buying on that dip, 80k at 28.18p

[battlebus] 03/12/2010 18:11

Yes very true CR will be well above 40p given time.

[cockneyrebel] 03/12/2010 11:27

Creeping back up - looks like sanity returning.

A PE of under 5 for a fast growing software co looks too cheap imo.

CR

[topvest] 30/11/2010 19:47

Looks like profit taking today as they opened positively.

[topvest] 30/11/2010 19:46

Very good results and cash generation. Underlines what a quality business this is and debt will be down to a very modest level of £5m in a year or two. Very pleased to hold these medium term. Scope for the dividend to continue to increase as the debt comes down.

[cockneyrebel] 30/11/2010 18:42

I think it depends how the co and the brokers calculate their earnings yoyoy. It's often the reason for discrepencies in broker forecasts. Also I'm not sure that Charles Stanley haven't tweaked their numbers up on the day of the t/s (Nov 5th) so if the co was ahead and the forecasts then got tweaked then the broker has just gon a bit over the top. I don't have a record of what the forecasts were at the time but I think they were just short of 4p for the year.

CR

[yoyoy] 30/11/2010 16:52

In the trading statemt the co said "the Group has continued to trade well with
revenues and profitability expected to be above market expectations"

Expectations were eps of 4.13p (Charles Stanley 5 Nov)

Announced
"Basic earnings per share of 0.6p (2009: loss per share of 2.7p).

-- *Adjusted basic earnings per share of 3.9p (2009: 4.0p). "

I find their Trading statement unusual

[cockneyrebel] 30/11/2010 13:18

Sanderson Group PLC (SND)
November 30 2010


The software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland announced encouraging Preliminary Results for the year ended 30th September 2010 with improving cash generation, a reduction in net debt and growing order book.

[cockneyrebel] 30/11/2010 10:41

It's had a good run tho cestnous - a couple of traders skimming out perhaps - might be an opportunity for some, might even be able to buy inside the spread I suspect with it that wide.

A fwd PE of 5 and a 2% yield just looks rather cheap imo and with that cash generation.

With that sort of debt reduction the interest charges should fall £150k+ this year imo - that should add nearly 10% to the profit after tax alone in the coming year.

CR

[cestnous] 30/11/2010 08:54

..........so the price falls - typical!
Well I won't be selling at the mo.

[battlebus] 30/11/2010 07:46

Yes the cash generation should leave them debt free soon and thus totally undervalued.

[cockneyrebel] 30/11/2010 07:34

Those results are a huge improvement over last year - sunning cash generation of £3.4m from a £13m co.

Puts them on a PE for this year of 5.5, debt plummeting and loads of cash rolling in.

Very cheap for a software co imo.

CR