||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Solid State Share Discussion Threads
Showing 176 to 199 of 200 messages
|Thanks from me too - though I question the dividend predictions, on the grounds they've paid 12p 2015 & 2016, with no rise in the interims. May be saving it for the Final. They can certainly afford a raise - cover is substantial. But may prefer to use cash for acquisitions.|
|Many thanks GHF, that makes much more sense|
SOLI's results were well flagged and I'm surprised that they dropped by 11% on the opening bell simply by motioning that they had incurred a higher tax rate in H1...a factor that impacts full year earnings by only (-2%) as noted in the update below, where essentially the tax rate increases from 8% to 10% over the full year.
PJ mentioned that Stock-o-pedia has earnings forecasts of 42p for 2017. This figure didn't ring true with me, so I also checked Stocko & confirm that PJ is correct.
However, WH Ireland - who are the house broker - have certainly not issued guidance in this area. I had previously posted their forecasts prior to this morning's results indicating 36.5p EPS for 2017 & 37.7p EPS for 2018...so absolutely no idea how Stocko came up with this other figure???
If you care to check back with my posts earlier in the year you'll see that in April 2016 WH Ireland had 36.0p pencilled in.
Anyway, WH Ireland provided the following update on the effect of the increased tax rate (when the share price was 450p) indicating that SOLI's underlying forecasts were unchanged:-
"H1 results are compatible with our core FY17E expectations: we leave revenue, EBITDA and PBT unchanged. However, noting a blended H1 tax rate of circa 15%, higher than our 8% FY assumption and reflecting a reduction in R&D tax credits in the period cf FY15, we move our FY17E tax rate assumption to 10%. This has the impact of a modest reduction in EPS from 36.5p to 35.6p (-2.4%). We leave all FY18E expectations unchanged.
We continue to be impressed by SOLIs underlying progress in building a larger niche electronics business serving core markets such as Military, Subsea, Water, Rail and Security....reflected in both increased operating margins and also the forecast 5-year CAGR in EPS through FY17 of 19%. The rating of 12.6x current year earnings coupled with a 3% yield makes the shares looks attractive at current levels."
I've updated the figures in the header to reflect previous earnings and the following forecasts.
Forecasts (WH Ireland - 22.11.2016)
•31/03/17 - 35.6p - £3.3m PBT (Div 13p)
•31/03/18 - 37.7p - £3.5m PBT (Div 13.5p)
SOLI remain one of my core holdings.
Hope this assists.
|Think they state that less 2nd half weighting this year. Couldn't understand the fall this morning for what is a company with high quality earnings so have just topped up (although strangely ADVFN marking it as a sell.)|
|Ta; difficult to assess due to MoJ contract payout & also the latest acquisition. Last year c.47p annual, thanks to MoJ payout which was substantial, and this latest Half Year shows a 10% increase over that (overall higher) Half Year from 2015. But how much of that is offset by getting no MoJ payout, and how much made up for by the acquisition, I don't know.
Put another way - they're 10% higher than the last Half Year, and the previous year did c.34p annualised without the MoJ payout, so if I had to stick my neck out I'd say c.40p EPS, in which case you're right. But the difference could easily be the acquisition alone.
Any which way, yes - slightly second-half weighted.|
|Stckopedia have 42p eps,|
|It was just a top up. Got two 500 chunks at 399.3p and 410p. Placed a further order at 400p but wasn't fulfilled.|
|@PJ - what forecasts have you got?|
|Completely unable to get any size here, you must have got in just ahead of me!|
|Are Results normally H2 weighted here? Looks like they have a lot to do to hit forecasts after a brief glance|
|Yes so am I. So added a few on the drop.|
|Perfectly happy with this morning's RNS. Revenue & post-tax falls both easily explained; margin rise also explained & for similar reasons. Divi still more than 4x covered. Sounds like more acquisitions ahead, which would ordinarily make me nervous, but SOLI have a very good record there.
Is well worth a read, beyond the headlines.|
|They really do toss it around - yet despite decent volume (eg 9k at 389, 5k at 399 earlier) they still often have a massive spread (400/435 atm).|
|How many stops did that try and hit?|
|As a parent of special needs children (now adults!) some sort of tagging device would be a godsend.
No doubt I will now be imprisoned for abusing some human rights act.|
|By the excellent Richard Beddard in Money Week - 5 IHT avoiding stocks
5. Solid State (SOLI)
Market cap: £25m
Debt-adjusted p/e: 9
Electronics manufacturer and distributor Solid State has put its shareholders through the emotional wringer. Two years ago the company announced that it was part of a consortium that had been awarded (by its standards) a massive contract with the Ministry of Justice (MoJ) to develop electronic tags for convicted law-breakers. The dream began to turn into a nightmare late last year, as the contract was first delayed, and then terminated when the MoJ decided to use an off-the-peg solution instead.
However, while long-term shareholders would have experienced exuberance as the share price took off, and dismay as it later crashed, for any investors considering buying shares now, it’s as though the nightmare never happened. Solid State received a one-off payment to settle the contract, which it immediately spent on Creasefield, a manufacturer of battery packs. Although Creasefield made a small loss in the year to March 2016, Solid State expects it to return to profit this year, helped by co-operation in design, engineering and sales with its existing successful battery business.
The battery business is part of Steatite, the manufacturing arm of Solid State. The company also distributes electronic components through Solid State Supplies. Both businesses are in good shape due to decisions taken well over a decade ago.
While many manufacturers of electronic equipment chose to relocate their operations in China and other low-cost economies in the 2000s, Solid State chose to specialise instead, focusing on high-value rugged computers, batteries, radios and components especially designed for use in the field. Because of exacting specifications, and the regulations required to handle dangerous materials and sensitive information, it’s preferable and sometimes necessary to manufacture this equipment in the UK.
As far as tagging goes, Solid State retains the intellectual property it developed and it is working out what to do with it. But even if the company never makes a profit from tagging, business as usual is no bad thing.|
|Not forgetting debt-free & growing.|
|Positive update this morning. The MoJ episode now fully behind them.
Been nice to have clearer definition of profitability this morning via the RNS - "consistent with market expectations" -however WH Ireland have obliged with an update that indicates FY PBT of £3.3m (EPS 36.5p) on revenue of £44.5m.
So on a PER of 12 & offering a 3% yield.
Strong hold for me.
|Nice t/s, including:
"The Board is pleased to announce that both acquisitions made in the 2015/2016 financial year are substantially integrated, performing well in their own markets and demonstrating synergy benefits with the other divisions in the Group. "|
|News coming maybe, so they drop the price for no reason???|
|Certainly choppy lately!|
|Quietly does it.........|
|You're not alone, I'm a very happy holder|
|Lol @tiswas, fair point. At least you've proved I'm not the only one on this thread.. :)|