Alumasc Share Discussion Threads

[pojscott] 13/9/2010 14:08

The Diddymen; well over your £1.14 did you sell???

[pojscott] 13/9/2010 14:03

Well its up again, someone knows something we dont???

[the diddymen] 11/9/2010 17:49

I have waded through the report again and I remain unimpressed by its lack of clarity.

I extract the section on dividends:

Dividends
In view of the group's rising order books, strong strategic
positioning and a further resilient cash flow performance in the year, the Board has proposed an unchanged final dividend of 6.75 pence per share, to be paid on 29 October 2010 to shareholders on the register on 1 October 2010. This will give an unchanged total dividend for the year of 10.0 pence per share.

They have provided a justification for maintaining the dividend, but sustaining it is clearly under review. In the last two years they have squeezed 3.9m out of working capital (2010 £2.2m). That is unlikely to recur, and unless there is a planned reduction in the pension defecit funding, then they really are reliant on 'the rising order books...'.

They have achieved significant savings from their fixed costs (why had they not done it previously?), but where have those savings come from and will it impact on their ability to deliver premium products.

Another observation is that they do appear to have some good businesses, but it is not clear where the dross is, and why are they not putting these businesses out of their misery.

They seem to be in complete hock to their dividend. I am not sure that is the most comfortable place to be. Instinctively £1.14 seems a good price to sell at!

[pojscott] 10/9/2010 12:31

Nice lift over last couple days--now firmly in profit with a great div.

[the diddymen] 09/9/2010 14:52

I will have to re-read the results (only skimmed first time) but I felt that there was a touch of crossed fingers in the results. My own view is that the strategy is flawed, vis they want premium products, but do not want to pay for the overhead; they are ambitious, but want the ambition without the pain. You will never achieve unless you take calculated risks, and the current board are too concerned about personal risk.

I know a number of investors who were in Lloyds for the dividend. Retrospectively, they wish that they had not been. I would apply the same rule here.

TD

[gopher] 09/9/2010 13:10

Diddyman - I agree - there are people in here for the dividend but paying uncovered dividends is a short term measure when management expect a strong rebound in profits. I dont get that feel here,

[gelp] 09/9/2010 09:35

I'm in for the dividend

[nextlink] 09/9/2010 08:49

Respectable results, Dividend held and Debt reduced, a hold

· Group revenues of £93.0m (2008/09: £109.1m)

· Underlying* PBT of £4.1m (2008/09: £5.2m)

· Underlying* EPS of 7.9p (2008/09: 10.0p)

· Reported PBT of £3.4m (2008/09: £1.8m)

· Basic EPS of 6.2p (2008/09: 2.9p)

· Strong cash flow performance - net debt reduced by £1m to £9.3m, gearing 33%

· Substantially reduced pension deficit† (2010 valuation: £11.4m; March 2007/8 valuation: £28.5m)

· Dividend maintained at 10p per share

[the diddymen] 09/9/2010 08:10

Gopher, I do not think that this business will ever surprise. They have never recovered from their disasterous Benjamin Priest acquisition in the late 90's. I have not put a slide rule over the results, but I suspect a poor 2011 will put a question mark over their divdend, which is the only sustainance of the current share price.

TD

[gopher] 07/9/2010 10:24

Results due thursday. There has been little share price activity in the run up so no reason to expect surprises.

[wjccghcc] 26/7/2010 14:29

If they're in line with the Q3 IMS, they may not issue one. A lot of companies don't.

[the diddymen] 26/7/2010 13:57

26/07 and still no pre-close statement (Last year 10/07). Are they agonising over the words?

[the diddymen] 08/7/2010 12:35

Pre Close trading statement must be imminent. I cannot see there being much good news. Alu need to be careful on cost savings because generally these come out of overheads, and if you are going to add value you need overhead. That could be a problem with Levolux, who are the main profit generator, but with overhead costs.

TD

[pojscott] 25/6/2010 10:25

Another share price lift today but no news.--Anyone know anything?

[pojscott] 11/6/2010 12:37

A bit of a lift--thats nice.

[pojscott] 11/6/2010 08:50

Down a bit Thursday--not much news-if any- and share price seems to drift lower rather than higher. But very nice div!

[nextlink] 08/6/2010 14:00

Nice dividend and cost saving over the last year should be
helping share price going forward.

[pojscott] 08/6/2010 13:46

Very little-if any -news on this stock. Anyone got any info ?

[soft t] 29/4/2010 14:48

p e 5+ is this really correct?

[pojscott] 26/4/2010 18:18

Pleasant indeed-but no news?

[rathkum] 22/4/2010 18:44

With the overall markets weak this is a pleasant surprise.

[pojscott] 22/4/2010 17:00

Stock going up--anyone have any news ?

[pojscott] 16/4/2010 13:41

Such a big spread on this stock!

[pojscott] 08/4/2010 15:54

Another nice jump but no news???

[pojscott] 06/4/2010 16:45

Bit of a bounce today?