Lincat Group Share Discussion Threads

[thorpematt] 23/3/2011 21:59

Nice one - well done to all holders. Sadly another UK manufacturer gobled up but that's the way of it I guess...

Interesting combination in fact. Integration of predominantly light duty equipment from LCT blended with heavier duty/ more costly stuff from Middleby's existing brands. (Much of which isn't THAT commonplace in the UK)

[ibrahim1962] 23/3/2011 11:04

Recommendation on Lincat..

[gengulphus] 23/3/2011 09:44

Can't say that I'm thrilled with the bid. Sure, it's a nice boost financially, but this is one of the steadier performers in my portfolio and I would have been happy to continue holding it for many years to come... Compared with that, the takeover premium of around 40% seems like a second prize!

Still, it looks pretty close to a done deal, so I suppose I'll have to be content with that. At least it's a pretty good second prize as second prizes go!

Gengulphus

[wjccghcc] 23/3/2011 09:23

A bid was always the exit strategy here. Unfortunately I took profits on half of mine at 750p. C'est la vie.

Well done and thank you to management.

[westcountryboy] 23/3/2011 09:00

Yes well done to all holders. I am not actually holding at the moment but am still pleased as it is yet another a vindication of a value smallcap strategy which keeps me and many others doing nicely overall.

[davidosh] 23/3/2011 08:56

Not many of us left here. I will certainly accept that offer and well done to the management here. They steered us well through the hard times and the divis and special divis kept us very warm. Now we have the the fully baked cake coming out of their ovens ! There will still be excellent growth from here but as small company investors we generally need a few of these situations to keep us going so the exit is very acceptable and no doubt good for the founders and family members too.

[rockafella2] 07/1/2011 11:44

New note -

[saint or sinner?] 01/11/2010 07:06

Updated header.

[albcamus] 31/10/2010 23:15

Many thanks Thorpematt.

[thorpematt] 28/10/2010 10:53

From Lincat's latest newsletter: (Hopefully not too confidential!)

"...Despite sharp increases in the cost of materials and components, we have again achieved manufacturing efficiencies which allow us to restrict price increases to a very low level. The average increase across all products is just 2.3%. Almost half of all product lines have no increase in price.

You might wonder how we can achieve this in such difficult economic circumstances. Well, firstly, we manufacture practically the entire range here in the UK, which means we are not greatly exposed to fluctuations in exchange rates. Secondly, we continue to invest in our manufacturing process to achieve greater efficiencies. An example, during the past 12 months, has been the £550,000 investment in a laser cutting machine..."

[wjccghcc] 08/10/2010 10:14

Thanks for the update.

[thorpematt] 08/10/2010 09:41

From this point in the year onwards, most major competitors will begin to announce price increases to its distributors in the UK. Last 3-4 years have seen often significant rises. (Weak sterling plus high demand from China are the excuses.

Early indications are are approx. 5%

I'll keep you posted.
In the meantime:

[thorpematt] 14/8/2010 10:50

Going back to one of my previous posts, here's the link for signing uo to the newsletter. Which is very imformative and IMO is one of the better targeted and written newsletters in the industry.



Regarding results, I have the same views as prior really. I reckon LCT has done well to see growth this year. They are clearly doing a lot of things right and I suspect that in 5 years time they will have a much larger MC. BUT it's the economic outlook that is concerning.

The core Lincat products are as I say, very good value and thus may do well. Particularly in export if the pound weakens.

Where IMC products are concerned there are 2 groups IMO.
1. Bar equipment -relates to pubs, refurbished front of house etc.
2. Essentials and food prep. such as potato peelers and waste disposers (these are more non-discretionary).

When I weigh it all up the summary is a simple one:

Good company, well-lead with good long term prospects, doing well in a tough environment. Trouble is the last part really. But then again so it is for a lot of stocks...

[nellie1973] 13/8/2010 16:52

Tipped in press-BUY

[baz147] 12/8/2010 19:08

Good Results, shown by todays 50p increase.

Sales+6%
Profit+30%
EPS+30%
Dividend+8%

Looks like this could be one to watch...

[wjccghcc] 12/8/2010 16:13

Impressive results and the outlook is more optimistic than it usually is with LCT. Topped up at 550p first thing.

[chingman] 12/8/2010 16:06

Latest LCT note on Stockopedia -

[thorpematt] 12/7/2010 11:46

David, I can't answer that one EXACTLY.

BUT What I can say is that the last couple of years have seen some quite hefty increases to pricing structure for the sector generally. The "excuse" has usually been commodity price rises and the weakness of the £ vs euro.

Bare in mind that most of LCT's competitors are foreign. Many of the UK arms of these companies (Electrolux for e.g) will manufacture in Europe and distribute thro' a UK arm. The UK arm will have to purchase in £s.

LCT will buy raw materials in, but costs for manufacturing are UK influenced.

I suspect the whole sector will need to compete on flat pricing for this year at least. LCT arguably has LESS un-certainty than most (due to the above). Thus I think they can be more confident in budgeting for this "brave new world".

Note: A big fall in Euro COULD see prices DECREASE for competitors - as they get to buy finished products in cheaper (somehow I doubt that prices will be cut but it's worth a mention).

LCT has undertaken some rationalisation of brands and therefore costs savings. I get the feeling they are pleased (not worried) to announce no hikes. I also get the feeling that costs are under control.

I think that anyone in this sector that sees growth this year will be doing very well indeed. If LCT report growth in this climate then mid to long term we have a real flyer.

LCT was listed in IC a few weeks ago as a potential small cap growth company – and I think that's very fair. The question is: is that the growth continuing now.

[wjccghcc] 09/7/2010 11:21

Not talking to yourself. Thanks for all the info.

Agreed they're not going to set the world alight but on an EV/FCF of 5 and with a yield of nearly 6%, I'm happy to hold and add on dips.

[davidosh] 09/7/2010 11:20

Thorpematt....that does of course suggest there is no ability to increase prices in line with costs although it may help increase sales. What have been the previous levels of annual price increases?

[thorpematt] 09/7/2010 11:02

Dosen't look like this is common knowledge it's in the monthly newsletter but I can't find it on their website:

Lincat have announced no price rises to their dealers until Jan 2011 at least.

Not sure if you can subscribe to the monthly newsletter or not?...

Not sure if I'm talking to myself... or not?...

[thorpematt] 04/7/2010 01:26

Wite up in this weeks IC - very positive.

Looks like most here are long termers. I am unlikely to invest - not liquid enough. But I'll give you my views (for what they're worth).

I like most of their recent appliance updates - particularly the new water boiler (uniquely enables a flter change without the need for tools) this is a stand out product at a very competitive price point.

Most of the competition (with 1 notable exception) is Eurozone and therefore imported. Hence currency exchange could be key for pricing against some of the larger players.

The company competes against some pretty big players but it seems well run and the marketing has stepped up a notch of late.

Since many of Lincat's products are lower cost they may do OK in these tricky times. I however am a little sceptical on sector for the forseeable...

[davidosh] 20/5/2010 18:12

This is a good steady company and a steady as she goes AGM statement today...