Turbo Power Systems Share Discussion Threads

[le mass du pap] 23/2/2015 20:02

Standard practice to issue an RNS when a share rises or falls sharply by a significant amount. The RNS is supposed to tell the market of any known reason, or no reason, why the price may have moved so much. Obviously there was a leak here as usual and someone, probably within the company or associated with it, or even Lincoln, started buying up the shares knowing it was ripe for a pump and dump as the company would be forced to issue this vague news which would lead to the herd boarding the bandwagon. Ching-ching! I would bet my house they have sold up now, leaving the mug punters stranded at 0.6p and above.

There really is nothing to get too excited about here at the moment. Just the possibility they will sell the company, but why and for how much? As a loss maker with debts I'd guess about 0.5p max, but more likely 0.4p or the VWAP for the last 12 months which will be around 0.3 to 0.4p and that still values it at over £20m!

Aimho

[purchmeisner] 23/2/2015 19:33

I can't decide what they meant by "in view of the recent share price movement" ...I think they would have been prompted to release an RNS to explain the share price movement. So do they mean "regarding the recent share price movement we are conducting a strategic review and potentially selling the company (hence the rise)" OR do they mean "because of the recent share price movement we are conducting etc" ?What do others think?

[purchmeisner] 23/2/2015 19:22

I agree, there's clearly something positive happening here and the share price has held up well considering Friday's rise

[speedysimon1] 23/2/2015 18:30

Just have a feeling with the company that they will deliver something extra ordinary. I'm still getting my head as to why they rushed out that RNS last Friday. The timing just didn't make any sense and on the back of a significant price rise that day.

Not adding up in my opinion which is why I'm happy to hold.

[aries2000] 23/2/2015 10:17

This guys are deal makers

[aries2000] 23/2/2015 10:16

Check the website out:)
hxxp://www.lincolninternational.com/industries/energy-and-power/

[aries2000] 23/2/2015 10:14

Lincoln International LLP

Lincoln International has developed a leading M&A advisory practice in the Energy & Power space. The firm's market-leading reputation for achieving superior client outcomes is built upon its significant sector expertise, transaction experience and extensive industry relationships. Lincoln International’s history of successfully positioning Energy & Power components, equipment and services businesses to drive competitive sale processes has repeatedly resulted in compelling outcomes for its clients, translating into a high level of repeat business and client references. Lincoln International’s significant transaction experience and industry expertise and relationships, built on its unmatched track record of successful transactions and client outcomes, have made it a leader in middle market Energy & Power M&A advisory.

[aries2000] 23/2/2015 10:06

Those selling tps will regret it later.

[aries2000] 23/2/2015 10:05

watch out for buys

[johnwalsham] 23/2/2015 09:53

Sell now and wait for further drop to be bottomed out then re but not now

[le mass du pap] 23/2/2015 09:32

The company's actual wording suggests it's something they are going to do, not doing, as a result of the strategic review. As for UKPN contract, you're making the connection there. Obviously you are looking at things from a very favourable angle, but is it just wishful thinking? Another way to look at it is the comapany is "critically dependent" on it's parent company for funding and they've now decided to let it go.... so the board have had to go hunting for someone to buy it, anyone, to safeguard jobs etc. It's loss making and non-core to VSE. A strategic review is usually only held when something needs to be done. Aimho.

[cliveas] 23/2/2015 09:20

Why are you completely ignoring the UK power networks contract of significant value which turned around the companies cost cutting strategy?

Buys turning this around and lets see where it settles.

The companies actual wording is below you are quoting a journalist.

In view of the recent share price movement, TPS, the innovative high-speed electrical machines and power electronic systems provider, announces that the Board are conducting a strategic review of the Company's business and as part of this review are looking at a potential sale of the Company.

We will have to agree to disagree.

It may well retrace it may not.Not long to full year results but they sourced working capital in december to meet increased customer demand?

[le mass du pap] 23/2/2015 09:04

hxxp://www.thejournal.co.uk/business/business-news/gateshead-firm-turbo-power-systems-8688279

"Directors at Gateshead-based power solutions company Turbo Power Systems have announced they are considering putting the firm up for sale."

cliveas, this says they are "considering putting the firm up for sale", not that they have been approached etc. So the process hasn't even started yet and there's no guarantees it will succeed. Then you need to ask why sell now? Is it because of this line below and now VSE think enoughs enough?

"In results for the third quarter, ended September 30, the firm said it was set to report widening year-on-year operating losses for 2014, despite a pick-up in performance during the three-month period."

No doubt the company will be worth more than the 0.25p it was prior to the hike last week, but not much more, even if they can sell it. But it looks like Friday was a bit of a pump and now we see the dump. Unfortunately many are locked in at much higher prices. Always the same.

[johnwalsham] 23/2/2015 08:31

Just like I said

[johnwalsham] 22/2/2015 20:40

Red day tomorrow dnt think for one minute another rise of over 100% if you do think that you are mad

[speedysimon1] 22/2/2015 19:20

Uk power network spend £500m a year on lv and medium electrical distribution every year. They supply over a 1/4 of the uk power so for me this is a deal made in heaven for TPS.

So what's to say that they won't buy TPS technology which maybe why they have put the for sale board up, an offer they couldn't refuse. Now that the design has gone into manufacture I would not rule out that they will want to expand this across their network. How much this is worth is anyone's guess but I read somewhere that with our technology it reduces ukpn distribution upgrade by 2 yrs.

[cliveas] 22/2/2015 17:39

I also disagree with your comment the the company are looking for a buyer.

It states a potential sale of the company

So they could have been approached but as it looks a rushed RNS I would say we don't yet know.

Lots of info to come early March so not long to wait in the scheme of things unless the sale develops.

ATB

[cliveas] 22/2/2015 17:32

That why I posted the article.The contract is of significant value so much so they reversed their cost cutting and started to recruit and increase capital expenditure.

We should get some idea in the results which I think will confirm growth in income Q4 with company in profit or near breakeven.

How much is significant I don't know but we don't have long to wait.

ATB

[le mass du pap] 22/2/2015 12:57

'Revenues decreased 18% to £7.46m in the first half of this year, compared to last year’s £9.07m, and operating losses widened before other operating income by 42%, to £2.04m.'


Good article, old but still interesting. Its the above extract that worries me though. Is a company with decreasing revenues and increasing losses really worth the current value? At 0.6p its just under £20m with £10.5m debt, so say £30m. Thats a lot for a loss maker with debts in a niche market. I doubt anyone would be bidding over the odds for it. So maybe people shouldnt get too carried away here. Fridays jump was a gift really. TPS are looking for a buyer, not the other way round, so what does that tell you? And no guarantees they'll find one. Results due soon which will bring it back down to earth I suspect. Aimho, etc...

[cliveas] 22/2/2015 08:53

Article :

Innovative electronics manufacturer Turbo Power Systems is powering ahead with plans to swell its ranks after securing contracts in new renewable energy markets.

The Gateshead-based firm designs and manufactures motors, generators and electronics for a range of sectors, including transport, defence and industrial, as well as emerging renewables customers.

In a stock exchange announcement to shareholders the firm announced new contract wins with UK Power Networks, a firm which had already enlisted Turbo Power Systems to supply a ground-breaking new design of electrical energy controller.

The controller is to be used for trials on the electricity distribution networks in the London and Brighton areas, and represents the company’s first contract in the low carbon initiatives market.

The company has now announced a further order from UKPN for the prototype units to be used in the trails, as well as a $3.4m order from Bombardier for auxiliary power units – deals which will now see jobs created at the Gateshead headquarters.

Charles Rendell, chief finance officer for Turbo Power Systems, said: “We’re very pleased to have secured contracts with the UK Power Network - it’s very good news in that it takes us into a whole new market.

“We can’t talk about how much the contract is worth for commercial reasons but it is significant. If you look to the future, where energy distribution is going, it’s renewables.”

David Hancill, the firm’s chief operating officer, said: “The partnership with UKPN is one we very much hope to continue. The group we are contracted with is running the South East power network but there are, I believe, another five similar countries based around the country.

“We aren’t in discussions with them yet, but we will be hot on their heels once we have this product ready.”

The stock exchange announcement included financial results for the first two quarters of 2014, as well as a comparison between the first half of 2013 and 2014.

Revenues decreased 18% to £7.46m in the first half of this year, compared to last year’s £9.07m, and operating losses widened before other operating income by 42%, to £2.04m.

However, work has picked up over the course 2014 on the back of new contract wins, resulting in sales growing by 26% in the second quarter to £4.16m, compared to £3.30m in Q1. Gross profit also grew by 70% to £0.82m in the period and the operating loss was narrowed to £0.71m.

Last year, as part of a review of the business, the firm also closed its manufacturing base in London and moved that operation to Gateshead, essentially making the North East its headquarters.

The move led to some redundancies, accounting for the firm’s 23% reduction in headcount to 126, compared to the 163 employed by the firm in the first half of 2013. However, relocating the manufacturing division in the North East led to 15 North East people taking on roles in the Gateshead facility.

Mr Rendell said: “This is one of the exciting things about these contracts. We are looking for new engineers in the area, and this area has the skills base for that. We moved manufacturing from London so we can build on Gateshead and we are looking to recruit still.

“I think the number will grow significantly as we bring new lines into production. The business is getting new contracts and moving forward in line with our strategy. The new markets we are entering are part of the way forward and that’s a good news story for us.”

[cliveas] 22/2/2015 08:46

Turning Point :

For me was the winning of the manufacturing contract with UK power networks and the potential roll out to the full national grid.

See article to follow in next post it was at this time the company reversed its policy of cost cutting and started to recruit and expand its budget!

TPS, the innovative high-speed electrical machines and power electronic systems provider, is pleased to announce that it has been selected by UK Power Networks to supply production units for the Company's ground-breaking new design of electrical energy controller for trials on the electricity distribution networks in the London and Brighton areas. This contract follows the award of the design contract earlier in the year.

The project is part of UK Power Networks Flexible Urban Networks Low Voltage (FUN-LV) project and will trial the innovative use of power electronics devices on low voltage distribution networks. It is a Low Carbon Network Fund (LCNF) Tier 2 project that was awarded by the Office of the Gas and Electricity Markets (Ofgem). More information about UK Power Networks innovation projects can be found at ukpowernetworks.co.uk/innovation

TPS's excellence in manufacture of innovative designs and ability to implement new ideas is reinforced by UK Power Networks award of the units manufacturing to the Company. These units will be manufactured during 2014 and 2015.

Carlos Neves, Chief Executive Officer, said:

"The award of the manufacturing contract is part of TPS's drive to become the reference standard in this market. The Company has already demonstrated this leadership with the award of the design phase and we are pleased that UK Power Networks acknowledges TPS's manufacturing excellence as well. Turbo Power Systems' new design of electrical energy controller optimises the use of existing network capacity to accommodate increased loadings for renewable energy generation, whilst additionally supporting the addition of new homes and offices within the capacity of installed networks."

[manutd99] 21/2/2015 19:07

Lots of buying again on Monday I'm guessing as huge percentage rise would have got noticed.

[cliveas] 21/2/2015 07:52

Yep I still think bombardier have yet to award the contract for the power units for crossrail.65 trains I believe 72% British jobs/contracts.

Hmmm

[speedysimon1] 21/2/2015 07:45

Definitely a strong link with bombardier and they can well afford Power. So I likes what I'm hearing.

Now why was that RNS rushed out on Friday.

[kammi1] 21/2/2015 07:27

Cliveas, you may well be right .Hope they get a good price if not keep turning this company around. These shares have been in my bottom draw for a few years, always believed they would come good. Lets see what they do next week.