Tomkins Plc Share Discussion Threads

[deanforester] 08/1/2010 18:27

FTalphaville says there are rumours of two PE firms sniffing around, with 30% premium as a possible take-over price.



NH
Tomkins
BE
Aha!
BE
rumours of a bid have been doing the rounds for weeks and weeks
BE
have you finally managed to put some meat on the bone?
NH
meat on the bone. RAW. excellent
NH
I think so
NH
what I am hearing is this
NH
two private equity groups are weighing a bid for the company
BE
!
BE
Tomkins would be a big mouthful for PE
BE
market cap of £1.8bn
BE
and then the debt
BE
actually the debt is not too bad – expected to have come in at $450m at the end of the 2009
NH
I agree it would be a mouthful
NH
but apparently they have got financing
NH
it is there
NH
if they want it
BE
who are these bidders then?
NH
well, the people who have been looking
NH
are TPG and another company called Onyx
NH
TPG being Texas Pacific
NH
and BofA Merrill would provide the finance
BE
any indications of price?
NH
not really
NH
but one imagines they would have to offer the standard 30% premium from here
NH
if not a little bit more

and it goes on further. Too much to post here with Broker comments.

[betman] 08/1/2010 12:29

looking more and more as there is some corporate activity going on. Previously it hung around the 250 -300p level so that could provide ressitence again

[deanforester] 16/12/2009 17:16

Whether it is JP Morgan, rumours or just the Christmas feeling, the sudden move upwards is very welcome.

[betman] 16/12/2009 10:07

Well, yet again FT mentions recent bid speculation. Or else just good broker upgrade and recovery in the US. Price highest since end 2007 is good news what ever the reason. Also rising volume as well which is very positive

[betman] 10/9/2009 12:58

Story in the FT about a potential break up bid
Anyone seen the article or other references

[wad collector] 17/8/2009 12:37

From the Mail,sim story in Independent


Company: Tomkins
Event: Interim Results
Pretax loss: £69.6m, +89%
Dividend: 3 cents (1.8p)
One-year share price performance: +25%


The engineer Tomkins has suffered badly at the hands of the collapsing US automotive market.

But there are now signs it may have entered recovery mode.

The interims reveal that sales volumes were down sharply.

But in June and July the rate of decline slowed markedly and analysts predict that business will continue to improve.

The loss before tax included £74m of restructuring costs and another £20m of impairments.

Leaving them to one side for a moment, and appears the underlying performance was actually a lot better than the City had been predicting.

The dividend, which is paid in US cents, has been severely pruned back to 3.5 cents a share from 11.02 cents.

But this is again is in line with forecasts and allows the metal basher to make a full-year payout of 10 cents - which is what it promised investors.

Yet all this and more is factored into the share price, which has almost doubled since hitting a year low in November.

Tomkins is now valued at heady 37 times this year's earnings. This is just too expensive, even if 2009 proves the low point in the cycle.

Verdict: Too dear



I shall continue to hold.

[deanforester] 13/8/2009 10:44

Obviously something is screwed up in ADVFN's RNS system. The Placing RNS at 0600 on 13/08/09 is nothing to do with TOMK, and they have not picked up the interim results RNS.

That you can see at

1. KEY POINTS

* Sales were $2,002.3 million (H1 2008: $2,927.0 million)
* Adjusted operating profit(1) was $82.3 million (H1 2008: $242.7 million(2))
* Adjusted operating profit of ongoing segments was $89.8 million (H1 2008: $240.6 million(2))
* Loss before tax was $114.9 million (H1 2008: profit of $61.3 million(2))
* Operating cash flow(3) was $14.6 million (H1 2008: $90.4 million)
* Net debt was $515.9 million (H1 2008: $702.8 million, FY 2008: $476.4 million)
* New $450 million forward-start committed borrowing facility completed, maturing in May 2012
* Adjusted diluted earnings per share(4) were 2.99 cents (H1 2008: 16.84 cents(2))
* Diluted loss per share(5) was 14.07 cents (H1 2008: earnings of 0.42 cents per share)
* Interim dividend of 3.5 cents per share (H1 2008: 11.02 cents)
* Restructuring initiatives on track to achieve cost savings of $150 million per annum by end of 2011
* H1 2009 headcount reduction of 3,900
* Acquisition of Hydrolink to complement Gates Engineering & Services

(1) Operating profit before restructuring initiatives, impairments and the amortisation of intangible assets arising on acquisitions.

(2) Restated to reflect the adoption of an amendment to IFRS 2 'Share-based Payment' (see note 1 to the accompanying financial statements).

(3) Operating cash flow is cash generated from operations less net capital expenditure.

(4) Adjusted earnings per share is based on earnings from continuing operations before items excluded in arriving at adjusted operating profit and related tax effects.

(5) From continuing operations.

The interim dividend for 2009 of 3.5 cents per share will be paid on 19 November 2009 to shareholders on the register on 16 October 2009. Shareholders with registered addresses in the UK and the Republic of Ireland will receive their dividends in Sterling, unless they choose to receive them in US dollars. All other shareholders will receive their dividends in US dollars. Any currency elections need to be received by our registrars, Equiniti, no later than 29 October 2009. The exchange rate that will be used to calculate the dividend amount payable in Sterling will be determined by reference to the forward exchange rate achieved by the Group on or around 5 November 2009 for settlement on the dividend payment date. This rate will be published on the Group's website on the following day.

[mike24] 13/8/2009 08:23

chart lookin good, and a big thxs to tomk for helping our local
charity in difficult times,

[feedthegoat] 30/4/2009 11:18

is something going on here as expecting a pull back at 170

[deswalker] 02/4/2009 15:08

Relatively good news on US car sales yesterday.

Oh, and it's very cheap :-)

[betman] 02/4/2009 14:53

Anything happened on these today ? big rise

[iangill] 02/3/2009 08:54

Dividends for 2008 and future dividend policy


In these difficult economic conditions, the Board considers that it is important
to strike a balance between preserving balance sheet strength and providing a
return to shareholders. Accordingly, the Board has decided to propose a final
dividend for 2008 of 2.00 cents per share, making a total dividend for the year
of 13.02 cents. For 2009, the Board has decided to target a total dividend of
around 10.00 cents per share, subject to the prevailing conditions and market
outlook. It is currently anticipated that future dividend payments will continue
to be split with approximately one third of the dividend to be declared and paid
at the interim stage and two thirds at the full year. Looking forward, the Board
will seek to resume its progressive dividend policy from this rebased level as
soon as results and market conditions allow.


Subject to approval by shareholders at the Annual General Meeting on 1 June
2009, the final dividend will be paid on 10 June 2009 to ordinary shareholders
on the register as at the close of business on 8 May 2009.

[deswalker] 25/2/2009 08:49

very good results. can't ask any more of management. if we ever see a return to something like before then these will fly. cashflow, reduction of debt and restucturings have been excellent.

[iwillbe] 23/2/2009 13:19

can't seem to find out when the results are going to be given.

[huwrayhenry] 20/2/2009 11:52

this has got to p/w next week.
a stonking short.

[handycam] 05/1/2009 11:08

Put something back? LR has no quality control, otherwise they would outsell Toyota.

[mike24] 28/12/2008 09:39

an engineering firm in the midlands on the blink
has received a life saving order from norway thanks to weak £
1-1euro won't stay this low for long
why don't tomk exploit this area of small firms who don't
have export know how, as for auto industry BCA are shifting fleet
loads of fuel guzzling low mileage Touareg's through auctions,
LR/JAG need to shift stocks now at heavy discounts through showrooms
via goverment aid, otherwise punters will sit back and wait for
bankrupt stock, auto/residentual prop must have easy finance,
& good deals to put a floor under falling prices, you need to create a small
dose of inflation to defeat deflation,

edit30/12
gm touched 11% rise as attractive financing deals on cars gave a much needed lifeline from 0.9% over 5yrs,plus lowering credit scores to consumers,GM blamed meltdown on customers inability to obtain finance,
someone tell grabber brown what is needed
city geezers/newspaper economists could ditch their beemers/merc's
and put something back buying LR/JAG's and then buy tomk shares for a free ride
edit
26/1 Alan Sugar our small & medium sized businesses are the backbone of the economy we the buying public have a duty to buy british to keep people in jobs

as for japanese reliability go through Auto-Mart and work out which 4x4's being sold approaching specific milage, gearboxes failing at 90k and engines around 110k, germans have woken up to the fact they can save a fortune buying a car
in uk, kitzbuhel,austria just down the road from porsche design centre,
the RangeRover sports is best selling 4x4 outstripping
all other non-german makes put together.

ask the Ph4 how much the rover mg sports cars were flogged off for
was it 2k each shipped to spain sold for 10k????????????

[binladin] 06/10/2008 10:55

God has told me the markets will crash today.

[iangill] 02/7/2008 10:54

Short term market panic, car and home sales in US down and looking to get worse.
Would expect TOMK to be a survivor and to be stronger when recovery starts, would like to pick up more of these but not sure now the best time, will wait 6 months to see if any recovery in the US. Anything under 140p looks like a bargain to me.

[wad collector] 02/7/2008 09:40

Another lemon in my portfolio looking at the chart.

[wad collector] 25/4/2008 08:21

Yes ,good post.Hope it's not all true!

[dassera] 22/4/2008 20:30

Nice post, TB.

Have you copied it to the FT as this ought to be more widely disseminated?

D

[true_brit] 21/4/2008 17:57

Have any of you shareholders clocked into what Newlands and co are doing at Tomkins – taking it to the USA to get the heat off them in the UK and enable them to slash the dividend (and may be even reward themselves better).

Step 1:
Say you are 60% based in the USA (so what!!)
Step 2:
Redenominate pound shares into dollars (why?)
Step 3:
Pay dividends in dollars (more reliable for American shareholders!!)
Step 4:
Schmooze the investors by saying you will keep headquarters in UK (smelly – having sold the Putney HO for a vast profit and made a number of the staff redundant!!)
Step 5:
Open a new head office in ski centre Denver (disguise it as near Gates operations and conveniently lucky the CEO prefers to spend lots of his time already in USA and fortunate too that the FD lives there!!)
Step 6:
ok chaps now that we are an American company lets look at comparable US companies' dividend yields – (wow – much lower/if pay at all!!)
Step 7:
Say hello to the institutions in US and conveniently the 14% in Toronto (all mates fortunately!)
Step 8:
Hey presto – sorry UK boys – need to conform – have to half the dividend! (it's ok the Americans don't mind)
Step 9:
Good job – deserves more directors' pay! (ho ho!)
Step 10:
NEXT – why not look at comparable remuneration..(good idea David)
Step 11:
repeat steps 9 and 10 (recurring).

Why not retain your £ dividend by voting against resolution 16 before/on 1 May.