||EPS - Basic
||Market Cap (m)
|Automobiles & Parts
Real-Time news about Wagon (London Stock Exchange): 0 recent articles
|exile: At this price I think it is definately worth a punt..I have punted it! albeit at higher than present share price but well below the RI price..fingers crossed.|
|deanroberthunt: exile...don't look at the share price, look at the fully diluted MCAP...£16.5m|
|trygve: Well thats good that there are no suprises in the IMS
Wagon Interim Management Statement
RNS Number : 5586B
18 August 2008
18 August 2008
Interim Management Statement & Property Disposal Completion
Wagon plc, the European automotive components group, announces the following Interim
Management Statement relating to the period since 1
Following the refinancing initiatives announced on 4 June 2008, the Rights Issue and
Revised Debt facilities have completed, as
previously announced. In addition, we are pleased to announce that the Property Disposal, as
detailed in the Prospectus dated 5 June 2008
("the Prospectus"), has completed today. The consideration for the Property Disposal is
approximately EUR34.5 million (before expenses) and
the Company intends to use approximately EUR30 million of the proceeds to reduce the Revised
Debt Facilities to approximately EUR125
Trading since the Preliminary Statement has remained broadly in line with the Board*s
expectations. The Board remains alert to the potential
for margin pressures from raw material price volatility and the increasing economic
uncertainty affecting market volumes.
As a result of the refinancing initiatives, there has been a significant improvement in
the financial position of the company since 31
Terms used in the Prospectus shall have the same meaning when used in this announcement
unless the content otherwise requires.
Jn von Heyden, Chief Executive, said: "The completion of the Property Disposal, brings to
a conclusion the refinancing initiatives
announced on 4 June 2008, and enables us to confidently pursue our growth strategy."
- Ends -
For further information, please contact:
0121 329 4030
Jn von Heyden, Chief Executive
Richard Cotton, Finance Director
020 7357 9477
About Wagon plc
* Wagon plc is one of the leading suppliers of roll-formed solutions, body in white
structures, closure mechanisms, and comfort
systems to the automotive industry, operating in 22 plants across 10 countries.
* The group delivers collaborative engineering and manufacturing expertise to
automotive OEM's and other automotive Tier 1
suppliers, focused on technology, innovation and operational excellence.
* Wagon's share price is quoted in the Financial Times, and on its web site:
This information is provided by RNS
The company news service from the London Stock Exchange|
|kwtrader: Can anybody give there best case and worst case if I take up the rights issues. Is the share price going to full further once the extra shares are diluted back into the market or are we going to see a retrace.
Why are we having a rights issue is it to raise funds or some other underhand tactic? Peoples opinions would be appreciated.|
|exile: If you are long via a CFD you get the rights to 10 shares for every 1 you hold in your account. If you are short via CFD's what happens??? simple question but I can't get my head around it.With the share price below the rights it is confusing.|
Wagon to brush aside protest by investors over its rights issue
By Michael Kavanagh
Published: June 30 2008 03:00 | Last updated: June 30 2008 03:00
Wagon is expected to sweep aside criticism from small retail investors at its annual meeting today over its 10-for-one rights issue and to push ahead with its refinancing plan.
The car parts maker has seen its share price fall from 263p to less than 4p over two years. The rights issue announcement on June 4 prompted a fall that day from 14½p to 6p.
Wilbur Ross, the US leveraged buy-out specialist dubbed the King of Bankruptcy, is underwriting the issue, priced at 4p. Mr Ross holds 15 per cent of Wagon's stock.
The company, which supplies components for Ford, Peugeot, Citroen, Renault, Fiat, Audi and Mercedes Benz, has also attracted the interest of Philip Falcone, the US hedge fund manager nicknamed Midas of Misery, who has a 10 per cent stake through Harbinger Capital Partners.
Another US hedge fund, Contrarian Capital Managment, also has 15 per cent of Wagon.
Wagon needs the £49m of new equity from the rights issue to provide capital to back contract wins with Honeywell, Porsche and Iveco, the truck group.
News of the rights issue coincided with results that saw pre-tax losses fall from £99m to £1.9m in the year to March following new contract wins. However, financing costs rose from £11m to £13.3m as net debt rose to £107m. The company has renegotiated 155m (£122m) of banking facilities.
Adrian Howard-Jones, a long-term investor in Wagon, has criticised the company for, in effect, forcing a dilution of smaller shareholders' interests.
He says the 10-for-one ratio goes far beyond the norm. With his stock worth £1,400, he needs to spend a further £14,000 to maintain his stake.
Simon Pepper, another investor in Wagon, said: "Smaller investors appear to have been disadvantaged. For institutional investors to take up the rights is small beans. But small investors appear to be poorly treated."
Nevertheless, Mr Pepper, who recently bought 250,000 Wagon shares at 14½p, doubled his holding on Friday when the shares fell below 4p, in the hope of a long-term recovery in Wagon shares.
Mr Howard-Jones has taken his complaints to the Financial Services Authority and the UK Listings Authority.
The rights issue, handled by Hoare Govett, required the approval of the Takeover Panel as it could leave Mr Ross's companies with majority control of Wagon.
Wagon said this weekend: "We understand the frustrations held by shareholders concerning the value of shares to date. But it's absolutely the right way forward for the company."
It said the issue would end the uncertainty over the company's finances, which was the reason for the falling share price.
Copyright The Financial Times Limited 2008|
|bench2: Hybrid , pref will return close to 14% per annum but only limited upside in share price if Wagon perceived to be out of danger. In better markets could trade up to 70p to give a 10.4% yield. So mainly a high yield play. Ords are like a warrant , will be much more liquid post RI and could be a possible ten bagger from 4p to 40p , but with Ross calling the shots probably no ord divs to conserve cash and pay down expensive bank debt. Hope this helps.|
|hectorp: Absolutely so Aleman. Little relationship , the current share price and the forecast.
I suppose the debt is whats holding it down still.|
|hectorp: There are many great value stocks starting to appear, eg WAGN now, though I have to admit to taking profits in the 40p region and thus flat now and TW.,
have a look also at such as DSG, GFI MPI MAY - I have another 20 in the list I'm still working on. ALL are at least 50% lower than last summer. Many are 60-70% down. BUt they are all close watch, not quite dipping the toe in yet.
No doubt there are MANY more.
Look at CFU ( eg up 10% today) Ceramic fuel cells , yet another distrassed share price in recovery mode now.
THen there are the great yielders eg DDC.|
|yoda5442: an interesting read, see below
WAGON PLC* WAGN CP 24p MC £27.4m BUY
Interim results slightly ahead - FY08 broadly unchanged Andrew Douglas +44 20 7678 6908 Wagon has reported 1H08 results slightly ahead of our PBT/EPS expectations. Sales on continuing businesses were up 3% at £323.6m, whilst EBIT of £12.0m was slightly below our forecasts, but showed an £6.2m yoy improvement from volume increases and restructuring benefits (the latter was £4.9m). Normalised 1H08 PBT/EPS of £5.4m/3.3p was ahead of our expectations (£5.0m/3.16p) and showed good growth on the previous year. We highlight that there was a net £5.5m of (bona
fide) exceptional interest charges, relating to one-off arrangement fees and interest swaps etc taken during the period. The group reported net debt of £86.5m at the interim stage, however we caution that £36.5m has been taken off Balance Sheet, through its new invoice discounting facility. That said, the combined/overall net debt figure (excluding Preference Shares) of £123m was better that we had expected (£130m). We have reduced our year-end net debt forecast to £88.4m and we expect that there will be further on-Balance Sheet debt reduction and the possibility of sale-and-lease backs to reduce the debt further.
Overall year-end net debt is forecast to be c£125m (improved from £131.8m), and the group has c£120m of available debt facilities. DPS of 1.25p was announced. The restructuring plan continues as expected, with £15m of cost savings still expected to come through, skewed towards 2H08. Revenues at new plants in Italy, Spain and China continue to improve (ahead of expectations), group order intake is slightly ahead of last year, and whilst FY volumes are expected to be stable in Europe, there appears to be positive news coming out of the French OEMs - who still account for c55% of group turnover. Significant business wins with new, non-French OEMs have also been achieved. There is an in-line outlook statement for volumes at the start of
2H08 and also with respect to the management expectations for the full-year outcome. We are keeping our FY PTP unchanged at £14.0m, however EPS moves from 8.78p to 8.63p, due to a higher number of fully diluted shares in issue. We retain our BUY recommendation, moving our 12-month target price from 94p to 72p (based on an FY08 annualised EV/EBITDA of 3.3x - in line with Valeo, still a big discount to other sector peers). The Wagon share price is too cheap (shares trading on a FY08 annualised PER of 2.1x, EV/EBITDA of 1.7x) and on the back of these results, we would expect a significant positive move in the shares going forward.|
Wagon share price data is direct from the London Stock Exchange