Share Name Share Symbol Market Type Share ISIN Share Description
600 Group LSE:SIXH London Ordinary Share GB0008121641 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 14.25p 13.50p 15.00p 14.375p 14.25p 14.25p 0 14:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 47.0 3.2 2.0 7.2 16.10

600 Group Share Discussion Threads

Showing 1826 to 1848 of 1850 messages
Chat Pages: 74  73  72  71  70  69  68  67  66  65  64  63  Older
DateSubjectAuthorDiscuss
27/9/2017
11:23
Hi Kazoom, thanks for your excellent overview of the debt situation. My own feeling is that the large - and to me, very surprsiing - increase in the order book, has left them having to finance a working capital increase that would have left them close to their headroom if financed solely by debt. You'd still expect, on the figures given, that cash flow should be quite positive, once the adjustment upwards in working capital haas stabilised.
cjohn
25/9/2017
20:38
Yes gearing remains high and I think we have to conclude that they are very cash constrained at this time (why else the issue of new shares?) Last year, taking aside the £2m they received on sale of the Letchworth property they actually had negative cashflow of c. £0.5m. This was particularly due to a £2.8m adverse movement in working capital (the £1.4m increase in inventories can be put down to growth, but why the £1.2m decrease in payables?) During the last year they swapped out some Loans with Santander (one due to be repaid by November this year and the other by 2019) with facilities from HSBC : totalling £4.95m including £1.6m trade financing facility, £0.3 mortgage on their last freehold payable by 2020 - I cannot immediately see what the other £3m relates to. At the year end they had "headroom" within their (overall) facilities of £3.2m. This compares with the c. £1m (presuming the net amount) raised through the placing. I would guess from this that they did not have an option to raise new debt, or perhaps even that their assumption (from the R&A) that "It is expected that the short term facilities in place at the year-end will be extended on similar terms." maybe did not prove to be true and their borrowing facilities are reduced. Conclusions? Well to be honest I'm not totally sure, but I have more questions now about the liquidity risk to the business than I had really taken into account when I most recently held the shares. I'd really want to have a close look for any clarity in the December interims before considering reinvesting. Also for me this heightens the risk that they prematurely crystalise the pensions surplus in order to release a small amount of cash, whereas with a 'bit of patience' (alright, maybe the patience of Job) there could be the opportunity to unlock a substantial cash return at some point in the future. The bull case would of course be that the increase in trading and strong order book will unlock sufficient cash-flow to self finance future growth. I they have done their sums right by "only" raising £1m in the recent placing, then this should come to pass. For now though, whilst my recent sell at c. 16p was somewhat opportunistic I find myself quite comfortable to watch from the sidelines for the moment.
kazoom
25/9/2017
19:04
The balance sheet remains quite highly geared. Borrowings at 30 April 2017 included £7.87 million of 8.5% convertible notes to which are attached warrants for new shares at 20p. These are repayable in Feb 2020. We need not only increased profits in these next 3 years but also good cash flow. I continue to be hopeful.
varies
25/9/2017
10:34
Hi rburtn, the UK pension fund is in surplus and there have been no payments made to the funds for many years. So they've been on holiday for years already. Hi My Retirement Funds, obviously profitability is being absorbed by working capital increases and capex. This has been the pattern at SIXH since it returned to profitability a couple of years ago. I couldn't agree with you more re debt. They should have raised more. Unless there'd been a collapse in trading, they would have have been able to do this. Clearly, there hasn't been such a collapse. We awat the results for any enlightenment. Pretty unsatisfactory.
cjohn
21/9/2017
12:03
I agree with MyRF entirely. This is a Financial Engineering outfit masquerading as a Mechanical Engineer - and we all should know who the winners are in that scenario. If the pension fund is in surplus, why was a pension holiday not taken and the proceeds used instead of the capital raising. I shall be interested to see who subscribed and what their reason might be - certainly I don't expect their interests as shareholders to be served.
rburtn
21/9/2017
11:12
It should be funding an expanding order book from its profits and increased help from its main bankers, first and foremost invoice discounting facilities and if it's really pushed, short term loans.It's just recieved a huge wodge of cash so we the he'll does it need to turn to it's last resort it's equity base and raise more at a nasty and painful discount.Something does not smell at all right here and I think serious investors really need to be now taking a close look at the top and asking themselves what an earth the problems could be here and why is there such gaping ravine of credibility that's clearly so starkly ,missing.
my retirement fund
21/9/2017
10:14
Expanding sales means expanding working capital. They are already carrying a heavy load of debt; hence new shares. Not good. in itself! However, a 60% increase in machine tolsl order book and 36% in lasers is pretty impressive!! Pension fund: still 100% funded on a technical provisions basis..... What I want to hear is 120% funded on a full buy-out basis. Then I'd give a decent probability to the optimistic over-view of the pension situation champioined by Kazoom. Overall this is good news, inspite of the irritating dilution.
cjohn
20/9/2017
21:10
Agreed. It should read we "regret" to announce.
coolen
20/9/2017
13:20
How can they be 'pleased' to announce that they have just undermined the share price by selling shares at 13p, which right now are being offloaded onto the market for anything the buyers can get above 13p.
kibes
20/9/2017
09:07
Placings at a discount to the market price are always annoying for existing shareholders and this placing follows, of course, the sale of its shares in PPIX at what seemed a poor price, c.£1.5 million. Being an optimist I like to think that this cash is needed to finance the substantial expansion of the order book reported today and that we shall see a good rise in profits next year. There is also the suggestion of some action over the pension fund surplus, a topic well-covered in recent posts here.
varies
07/9/2017
08:05
Daily Mirror
buywell3
06/9/2017
13:42
Cjohn interesting thought, any precedents?🤔
rhomboid
06/9/2017
11:48
The right to manage their pension funds....
cjohn
04/9/2017
18:04
What else have SIXH got to sell next ?
buywell3
04/9/2017
11:06
I'm back from holiday and many thanks to Kazoom for your posting re your idea of percentage possiblities of realising the pension surplus. Thanks also to Rhomboid for the examples of other companies with pension déficits disguising value. I will take a look at the companies you mention . (As it happens, I already have a decent-sized holding in MLIN, which a few onths ago was ridiculously cheap.) Buywell makes an interesting point speculating about whether debt levels at SIXH led to an over-hasty sale of the PPIX shares What's clear is that SIXH's debt levels are high and need to be brought down further. The reason I bought in - in and around 10p - is the clear pattern of increased tangible shareholders' equity over the last few trading periods. I think this shareholders' equity will continue to increase. However will profitabiity produce free cash flow?. To do this, working capital must be controlled. And capex must finally be reduced - after several years of restructuring. I think it's more likely than not. So I remain a holder here. All the best
cjohn
01/9/2017
16:53
Does anyone know when the AGMis? On their website, all it says is September - I've emailed, but had no reply. Pretty poor investor relations.....
garbetklb
01/9/2017
10:58
I am a little confused about the numbers. I thought that SIXH held about 22 million PPIX shares. If they sold these for £1.5m, then this represents a price of only 6.8p. Looking back at the August 2014 transaction, SIXH exchanged 4.9m of its own shares for 22m PPIX shares. At that time the market price of SIXH shares was about 22.5p making the value of 4.9m SIXH shares £1.1m. For these SIXH received 22m PPIX shares at a premium price of 5p (v 2.875P in the market). So SIXH exchanged a holding that has fallen in value for one that has risen. I hold both SIXH and PPIX and, like others here, am disappointed with the terms of this sale. I suspect that PPIX may want to raise new funds soon for its ambitious R&D programme and that SIXH did not want to be called upon to contribute.
varies
01/9/2017
10:04
This company has a history of disposing of assets in a questionable fashion, we should not be surprised - but then, the acquisition of PPIX could be said to be somewhat the same. All I do know is that the shareholders have precious little to show for it.
rburtn
01/9/2017
08:49
Don't think so Kazoom. If you employed a reputable commercial broker or broking firm ti sell this lot giving them say a 3 month window and allowing them to take a generous commission say 1.5% of anything over a 10p hurdle and 2.5 over 15p and had they done that earlier in the year, say between May and August. Then I am quite sure the company would be sitting on a return of between 1.5M to 2M.
my retirement fund
01/9/2017
08:22
SIXH took 7.25p for their ProPhotonix shares ... they traded at 20p earlier in 2017 Many here have made much of the SIXH stake in that company Now SIXH have sold it for a £1M profit to pay down debt To me that says SIXH view debt as a problem that needs urgent attention Why? Watch Prophotonix Ltd (LSE:PPIR) Share Price Alert 7.250 Today's low: 7.250 Sell PPIR 9.750 Today's high: 7.250 Buy PPIR Last trade:8.500 Change: 0.250 (3.03%) Volume:43,701,291 Delayed price:14:51:05 Summary News Discussion Chart... Analysis... Latest trades Time Price Volume Value 14:51:05 7.25 153,198 11,107 11:03:15 7.25 1,531,982 111,069 10:44:37 7.25 4,993,492 362,028 10:37:51 7.25 14,980,476 1,086,085 10:36:42 7.25 14,000,000 1,015,000 10:36:18 7.25 22,042,143 1,598,055
buywell3
31/8/2017
18:56
Harsh MRF and not very realistic imho - I think the volume of shares they had we equivalent to two or more YEARS of normal trade volumes. Even it were possible to drip them out, it would have taken an age and probably in fact trashed the share price.
kazoom
31/8/2017
17:55
It seems very poor management from them that the did not instruct a broker to sell what they could into the open market. Im quite sure they would have gotten between £500K and 1M extra ontop of what they got in the end.I say poor management, perhaps totaly insane may be a better choice of words for such monumental ineptitude !!!
my retirement fund
31/8/2017
15:58
I'm out on the spike up, it seemed an overreact to what is a neutral bit of news to me, a near cash investment turning into cash isn't worth turning down a 15% profit in a week, put it into more CAR, another pension plan with biz attached reporting next week. Back on watching mode
rhomboid
Chat Pages: 74  73  72  71  70  69  68  67  66  65  64  63  Older
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