Alumasc Share Discussion Threads

[rcturner2] 05/2/2020 09:17

This is the most likely reason for the share price increase in recent months:

"The triennial pension deficit valuation at 31 March 2019 was significantly lower at GBP22.4m (2016: GBP33.0 million). Company deficit reduction funding has been reduced to GBP2.3 million pa from GBP3.2 million pa, effective 1 January 2020 as part of a 7-year recovery plan."

So over the last 3 years the pension deficit has dropped from £33m to £22m. They have reduced their annual pension payments from £3.2m to £2.3m, so will be £900k better off each year and it seems to me highly likely that in 3 years time they will be able to report a similar improvement in the deficit position.

[rcturner2] 04/2/2020 08:26

lol behave

[basem1] 04/2/2020 07:30

Nothing to see here I would be wary of a profits warning at some point later this year

[iasike] 23/1/2020 17:13

RCT, That's the problem, could well be, but just recently had a similar thing happen with CRL, their price went up before results, but results disappointed a bit and price fell back. I was thinking then someone new something we didn't, but obviously not.

[rcturner2] 23/1/2020 14:30

I think something must have leaked, cannot see this rise purely on optimism.

[iasike] 23/1/2020 14:01

RCT, they were pretty optimistic of making savings, so possibly people believe that will be the case. Anyone know what their forecasts are?

[deanowls] 22/1/2020 11:32

4th feb I believe.

[rcturner2] 22/1/2020 10:14

This is up 20% in the last few weeks.

Heading into the interim results due shortly.

Interesting.

[chrisdgb] 12/11/2019 12:38

Lots of people seem to be selling...??

[tim1478] 24/10/2019 11:43

Agreed. Should do well when economy more settled.

[rcturner2] 24/10/2019 10:25

Positive AGM statement released today.

[pvb] 05/9/2019 22:58

RNS Results:

[rcturner2] 05/9/2019 08:44

Decent finals released today.

[rcturner2] 30/7/2019 10:03

The cash payment to a pension deficit is no different from the cash payment (interest) that has to be made to service debt. What is important is the size of the deficit relative to the company's balance sheet and the required payments.

[the diddymen] 29/7/2019 16:54

The worst aspect of any pensions deficit is the cash contribution to fill the hole. This is cash that would otherwise be used to invest in the business or pay out as dividends.

The share price drift over the last year will start to undermine confidence in the ability to sustain the dividend. The antidote would be a storming set of 2019 results, but we already know that they will be soft from the profits warning. A difficult time, but is it temporary or structural?

TD

[deanowls] 18/7/2019 16:39

Such as living a long life.

[rcturner2] 18/7/2019 08:29

The pension deficit is £15m. At a worst case scenario, this has to be considered a liability (similar to a debt) that has to be paid at some point. So the balance sheet is carrying £15m of additional debt if you view it like this. Since they have to make payments against the pension deficit that is like paying the interest on the debt.

However to an extent the pension deficit is an accounting figure, not a real liability as it tends to go towards an extreme figure to cover all potential liabilities that are unlikely to occur. In general pensioners will die at their average life expectancy whereas the deficit covers a more extreme outcome.

[dasty1] 17/7/2019 22:07

I’ve been watching this share, and news, with interest. No holding, but tempted at this price. But the pension issue puzzles me. Can anyone set out clearly what the issue is here? I’m struggling to work out whether it is an issue to be concerned about...

[the diddymen] 17/6/2019 08:08

A cursory glance at the graph suggests a trend which ends with a profits warning. Others in the construction supply sector appear to be quite buoyant and this may end up begging a question or two.

[rcturner2] 30/5/2019 09:02

Nice price rise over the last week or so.

[pvb] 20/5/2019 22:49

...sometimes a precursor to going down the tubes...

[davebowler] 26/4/2019 08:37

Moving to AIM.

[rcturner2] 16/4/2019 17:28

Market is clearly pessimistic, time will tell when we see the final results.