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Travis Perkins Share Discussion Threads
Showing 776 to 798 of 800 messages
|Update from Panmure Gordon:
Imv, update is not so bad. They say there's a lot of competition on the plumbing/heating side - we already knew that. Should be comfort in that they are taking action. Concern might be whether we are at the start of a general downturn?
Not holding any TPK, but have been looking with a view to buying.
7% Cheaper than yesterday and possibly on its way back to the post referendum low?
I'm staying on the sidelines for now.
Difficult decision for holders, whether to take a hit now and watch for a possible lower entry point. Good luck.|
|Sorry, write off. Viz. 66% of the closure and re-organisation costs does not have an adverse effect on cash.|
|What is "w/o"? Ta.|
|2/3rds of w/o is non cash.|
|Buttoning down the hatches. Prudent management.|
|Looks pretty cheap at these levels, Divi twice covered. Bought some.|
|The rally started yesterday on the back on positive interims from Persimmon group, reporting that UK new build housing market has not suffered post Brexit, in fact it's bouyant, this is being perceived as positive news for TP given how dependent they are on UK housing market.
See this a delayed post Brexit rally, news from TP in Sept will confirm or deny the positive effect....|
|Is something brewing?|
|Brazil e/r was 2.5 to £1 a few years ago.
To then cry about an e/r of 4.5 would be odd, even if it is off 10% in a month.
The same is true will all currencies to be honest other than the USD.
the £ was silly strong until Brexit and so the fall should not be an issue per se.
Rates are have just gone from over valued to reasonable.|
|I would imagine (hope) that they were planning ahead fixing costs with fixing medium term prices in their contracts and insuring against currency swings with ffx contracts. They should know what their overheads will be at least 3 to 6 months ahead.|
|Hi Jeffian, it's not about 'turnover' as TP are a UK based company, its where they buy their products from, eg timber from Brazil bought in Dollars, plumbing fixings from Germany in Euros, all of these goods will be more expensive in the future, so either you pass the increased cost onto the customer or take a hit to the profit line.
Then if there is a downturn in trade, you have less sales and more expensive goods. This is why the market has priced the share lower and why it's not rebounding like many other shares.|
|Excellent results. Should see a steady recovery from here methinks.|
|Yes, Jonny, but my point is that it doesn't seem to be a significant part of their turnover. The post I was commenting on said that TPK were "vulnerable to a downturn as they buy goods in dollars and Euros" and I asked that poster to justify that comment.|
|Hi Jeffian, the quote you posted up states "purchases forward contracts for approximately 90% of its committed requirements six months forward based on the firm placement of forward stock purchases" ie it's hedged for the next six months, after that new purchases will be made at the new lower exchange rate which will be c12% more expensive. (based on the rate at the moment)
This c12% extra cost either comes from profit or through raising prices.|
|"TP are more vulnerable to a downturn as they buy goods in dollars and Euros"
Really? Could you put some figures on that? Looking at the 2015 annual report, currency barely rates a mention and doesn't feature in the "Risks and Uncertainties" section. In the financial review it says -
"The Group settles its currency denominated purchases using a combination of currency purchased at spot rates and currency bought in advance on forward contracts. It purchases forward contracts for approximately 90% of its committed requirements six months forward based on the firm placement of forward stock purchases. At 31 December 2015 the nominal value of currency forward contracts, all of which were $US denominated, was $72m (2014: $75m)."
They turned over £6bn last year, so $72m doesn't suggest they have significant exposure to goods bought in foreign currencies. What was your comment based on?|
|I guess they will put up prices? If they can trim costs and adapt to subdued demand for next year or so then they should pull through OK.|
|I think UK only companies are being knocked back on the expectation of a recession and deteriorating exchange rate. TP are more vulnerable to a downturn as they buy goods in dollars and Euros and are dependent on housing market.|
|Can't see why this won't rebound further to be honest. UK left exchange rate mechanism in 1994 and there followed a benign lengthy period of prolonged economic improvement, not same with Brexit exactly, but the flexibility of UK business should enable a successful outcome. Now is the time to get a cushy civil service job in new trade dept. !|
|Taking another look.|
|All divisions going gang busters I hear. DYOR though.|
|So much for waiting for sub 1750p.|