Styles & Wood Share Discussion Threads

[lefrene] 20/9/2016 09:48

I'm looking for a turnover circa £130 million for the year. Their margins have improved and cash now exceeds debts. There are only a tad over 7 million shares in issue so price moves are going to be in clunky steps. For those who love charts 400p looks like a point to bounce off. I guess the short term money is looking for another home, but why didn't they sell yesterday?

If they do hit £130m at their almost 10% margin, the figures could look like. £13 m gross less £7m admin (doubled up from the past 6 months), leaving a £6m profit before tax etc. Perhaps too broad a brush, and there is still £3.3m debt to pay down, but still very healthy spread over just 7 million shares. It's now a very competent and well run business, it deserves a better rating.

[andy mack] 20/9/2016 09:24

Near 5% down on 11k shares traded? Seems a bit strong

[cfro] 19/9/2016 18:16

I've penciled in 50p eps too smallcapinvestor, but a little bit of guesswork at this early stage yet.

[smallcapinvestor1] 19/9/2016 18:14

I think they could make 50p eps next year. So the shares could be 500p comfortably.

[cfro] 19/9/2016 18:12

We know that this share can be an extremely volatile share at times and, imo, today was typical of a 'sell on news' day.

As pointed out above most of the biggy contracts have only just been announced so will show up in future results. The full results should be very telling.

But that isn't detracting from the fact that today's Interims i thought were very good.

[duncan doughnut] 19/9/2016 18:10

Just home from work to see the share price still down.

I'm not surprised really, I think the average bod can't contemplate such an imbalance in earnings between first and second halves. But it's the same every year, go back through the past results. With first half earnings up over 3p that should equate to a lot more on the second half.

10p-15p on last years earnings or more in total? Forecasts were for earnings to be flat more or less.

[martinthebrave] 19/9/2016 17:28

Joined you guys today. Forward forecast EPS looks more than a tad light IMO. I have been sat watching these go up for too long. Good luck to all holders!!

[sharestobuy] 19/9/2016 16:16

Definately a buying opportunity

[lefrene] 19/9/2016 16:12

I take a similar view sharestobuy. Turnover looks to rise significantly over the next year, and they have lifted gross margins to 9.9%, while the debt is no longer a crippling burden. Also the quality and reliability of business has improved, this business looks like it will continue to grow steadily, and the management have learnt caution following the last bust.

[ali47fish] 19/9/2016 16:11

so is this a buying opportunity? sharestobuy

[sharestobuy] 19/9/2016 15:11

I'm not worried at all about the interim results today as it may not have beaten market expectations however most of these big contracts have only just been announced. The next interims will be different and will more than likely blow the market away

[brando69] 19/9/2016 13:23

love the way this bounced off previous resistance this morning...

if i'm honest i was expecting results later this week and would have liked to have sold a few before the news just to hedge as am mighty overweight in STY but at same time don't have any jitters holding.

[graham1ty] 19/9/2016 13:20

I agree Lefrene. They have been hanging on there for a breakthrough for years, losing a small amount of money each year. Is also a JV so have no idea what the other partner is doing. It is a distraction surely.

[brando69] 19/9/2016 12:48

I do work for a uk contract publishers who have a spin off in dubai which has been transformational for them.

[lefrene] 19/9/2016 12:47

Graham1TY, I don't understand what an outfit based in the NW of the UK is doing with a perennially loss making operation in Dubai. It looks like an unnecessary risky place to do business, indeed it just consumes money. At best it can only be a gamble on hoping to win a big contract at some future point, and then one will be up against dealing with the usual 'commission' takers in those parts.

[brando69] 19/9/2016 11:49

Dubai looks like a gem in the rough

[graham1ty] 19/9/2016 11:14

Only just read the statement properly. They seem to be tackling the position in Dubai. Another £0.4m loss but they refer to changing the way it operates. The Dubai operation has always looked an anomaly, even though they say there will be work pre Expo and World Cup. At present it looks like a loss making distraction....

[qs99] 19/9/2016 09:09

OK H2 weighting has risk IMO, and its last statement about "deferred" revenue backs 2017/8 was less than clear IMO, maybe that didn't help, but personally happy to continue to hold on the back of an "in line" statement as it is IMO cheap enough!

[smallcapinvestor1] 19/9/2016 08:44

Travelling and arriving.It was obvious really.

[bahiflyer] 19/9/2016 08:35

Short term retail profit seekers got spooked.
They should do more research and understand the company as has been said for H2 weighting.

[tallprawn] 19/9/2016 08:26

Nice little top-up opportunity that... MM's mugged a few for some easy shares on the cheap.

[brando69] 19/9/2016 08:24

Will be back to 500 in no time

[panic investor] 19/9/2016 08:24

Market expected out perform

[interceptor2] 19/9/2016 08:23

Reaction does seem rather harsh to a good set of interim result, with the normal H2 weighting and the recent large contract win to kick in 2017.