Asfare Share Discussion Threads

[andysand] 03/9/2006 21:30

I know what you mean. I have been investing/trading a similar amount of time and it does seem harder to find these gems than it was.

According to sharescope, we should see 82% growth this year in EPS and 29% the following yesr.

Cash flow is good and came in at 15p per share. Always an exellent sign. Last year's growth in earnings was a nice 52% per share so this would seem to be one of those rare gems indeed.

The directors hold a fair chunk of the company but way below a controlling stake. It also has a yield which the institutions like......probably because it supports the cash flow. As we know, not all earings are created equal!

All in all, I am VERY happy to have found this and I will probably accumulate over the next month or so.

Andy

[andysand] 31/8/2006 13:02

Considering their position in homeland security, we will certainly see a re-rating once these are noticed! P/E of 5? Silly! With this growth and this market segment, we could easily quadruple from here.

Andy

[andysand] 30/8/2006 18:33

It's good to be different, it means you beat the crowd:)

Andy

[egoi] 30/8/2006 13:37

Andy stunned - someone else interested - welcome aboard!!
I think your timeframe might be optimistic, but this should be a real good steady gainer over time. I bought STT and VTS two or three years ago, steady but superb performers. Hoping for similar here.

[andysand] 30/8/2006 11:48

I am having to work quite hard now to find shares that I consider are worth buying.

After exhaustive research, I am happy to have found this one! I bought £5000 worth this morning and I am looking forward to substantial gains over the next 6 months to a year.

Andy

[egoi] 13/8/2006 12:15

This share is no use to short term punters - or shorters (too nice results for them) - some days doesn't even trade, (and no use to long term players who lose patience easily either!) but hidden away amongst their product range of gantries, ladders, hose-reels and the like is a global product leader.

Recently acquired Todd Research have available two new products that can detect explosives in hand luggage:
Fropm the website:
'TR VETOCH, a handheld device which will alarm for flammable liquids

TR DETECTOR 7 DETEX, an X-ray conveyor unit, which is the world's only hand baggage unit that can detect explosives to the approved EDS standard':

EDS stands for Explosive Detection Systems is part of an internationally agreed set of security standards and is adopted by Chinese, US Homeland,and EU (including of course UK) authorities amongst many others.

Given recent airport security upgrades this is potentially very significant indeed.

As it is Asfare has a lot more going for it.

Asfare has three divisions and a market cap at 82.5p of just over 4 million. Last eps came in at 7p and over the last tweve months two of the three divisions have been acquired.At this price there are also 670,000 warrants outstanding and a small number of options relating to the Todd acquisition.

The organic company provides equipment such as gantries,ladders etc to such as the London fire brigade, recently acquired Collins Youldon manufactures hose reels, cable drums and related products supplying both the fire and the vehicle tanker industries. It provides the company access to European markets.

To the chase then:
Last results showed:
Turnover has increased by 25% to £4.905 million (2005: £3.925 million)
• Profit Before Tax has risen to £358,000 (2005: £109,000)
• Basic Earnings Per Share of 7.0p (2005: 2.8p)
• Earnings Per Share adjusted for goodwill amortisation 10.6p (2005: 6.3p)
• Cash generated from operations £774,000 (2005: £487,000)
• Proposed dividend of 2 pence per share
• Net asset value increased to 80 pence per share (2005: 71 pence).

Since then, the last acquisition - Collins Youldon, looks for all the world as though it was cheap:
consideration is £912,000'. In the year ended 30th June 2005 Collins Youldon reported turnover of £2,752,000 with adjusted pre-tax profit of £320,000. In the Management Accounts for the 10 month period to the 30th April 2006 the turnover was £2,412,000 with an adjusted pre-tax profit of £285,000.'

I'm afraid my suspicious mind wondered why it was so cheap. The current numbers above don't point to growth certainly, but neither a depressed order book. only time will tell but the company seem in upbeat mood. At the AGM last month the Chairman said:

'Tim Wightman, Chairman of Asfare, commented: 'I have been greatly encouraged by recent events at Asfare. Our results to the financial year ended 31 March 2006 provided evidence of a strong second half of trading and the momentum has continued into the current financial year with the announcement of two significant orders and the key acquisition of the Collins Youldon business. This increase in orders and expansion of the business provide the Board with growing confidence in the outlook of the business.'

Since then another five year contract win has been announced.

Of course as with any four million market cap business there must be question marks and risks. I have chosen to ignore the adjusted higher eps of 10.6p which discounts options etc which are exerciseable above the current shareprice and in my view make that figure too optimistic. Also thee are slightly more intangibles than I would like on the balance sheet, but the company has a property fully bought valued at over 1 million which helps underpin the market cap.

Also a note in the accounts caught my eye, re the Todd acquisition, the amount of which is uncertain at this stage (performance dependent):
There is a potential further £2,080,000 of contingent
consideration. This has not been included in goodwill as the Board considers that the outcome of this can not be reliably measured at this time." I rather think that should be included in calculations.

That said, the company does appear to have an interesting niche as well s potentially strong growth from the Todd division, and with historic eps of 7p the p/e is below 12.

However Digital Look have forecasts of 17.6p and 22.6p for the next two years and an arguably very likeable peg of 0.11. Even if these targets are wildly missed, say 10p and 15p, the shares look very promising and I have been accumulating and humbly recommend them for your further research!

The chart points only to a long term buy and hold strategy and does not excite, this company has not, and is unlikely to, spike quickly, but for the patient investor well worth a look imho and well deserving of a new thread.

www.asfare.com
www.toddresearch.co.uk
www.collinsyouldon.com

[maestro.] 06/3/2006 11:00

TICK UP SHORTLY

[maestro.] 06/3/2006 10:55

WELL WORTH A GOOD PUNT IMHO
Asfare Group Asfare sees significant improvement in FY after return to profit in H2
LONDON (AFX) - Asfare Group PLC said it has seen a return to profit in the
second half, which will significantly improve its profitability for the full
year to March 31, 2006.
The company, which supplies products and services to the emergency services
market, said its recovery is due to increased orders and clarification of the
fire industry's procurement policy.
Asfare said it is reviewing a number of potential acquisitions within
homeland security and added that it continues to recommend a dividend payment
for the year to March 2006.

[e-mail]
ks/ra

[liarspoker] 23/1/2006 14:52

If earnings keep increasing then this may look like a cheap share to buy into.

Price today 83.5p mid ( 23.01.2006 ).

[m5artin] 22/6/2004 08:49

Results out tomorrow

[m5artin] 27/4/2004 11:26

AS Fire has a long history of supplying Fire Ladders to the U.K. Fire Service. It supplies all 62 U.K. Fire Authorities, all 30 major U.K. commercial airports and approximately two thirds of the regional police
authorities.

[m5artin] 03/3/2004 08:52

Up again today on just a very small trade !!

[m5artin] 02/3/2004 15:29

Info and discussion on ..

[m5artin] 02/3/2004 15:24

Aberdeen Growth Opps VCT PLC
05 February 2004

Aberdeen Growth Opportunities VCT PLC

Investment activity

During the year to 30 November 2003, ten new private equity investments were
made at a total cost of £1,260,969. Since the period end, one further new
investment totalling £56,250 has been made.
/.../

Asfare plc (*) - (December 2003) - £56,250. Based in Southampton, Asfare is a
manufacturer and distributor of safety equipment.

[m5artin] 02/3/2004 15:19

Moving Up The Ladder


Hampshire company AS Fire & Rescue Equipment Limited, the UK's leading manufacturer of ladders and main supplier to fire brigades, airports and police forces, has just floated on the Alternative Investment Market (AIM) under the name Asfare Group.
The company raised £2.4m in a placing of 2.4m shares at £1.00 per share.
The Reporting Accountant role was provided by Grant Thornton partner Darryl Whitehead and Corporate Finance Manager, Mark Minchella.

Specialist rescue ladders are complex in their design and manufacture due to stringent health & safety requirements" says Asfare Chief Executive David Chisnall. The same level of diligence and quality is applied to the production of all our product range which include roller shutter doors, ladder gantry demount systems, equipment carriers and a range of brackets to secure equipment into fire appliance lockers which are manufactured in the USA by the Performance Advantage Company.

Asfare is already marketing its products outside the UK such as in the Commonwealth countries of Australia, New Zealand and Malaysia. The Company already has some of its products manufactured under licence in the USA and South Africa.

"The money which has been raised will be used to expand into related product and market areas" states David Chisnall. " The Company already provides equipment to the Navy and other areas of the defence industry. We're going to expand a stable and profitable business. The Group's presence on the AIM market will lead to more visibility for overseas customers and help future acquisitions."

Grant Thornton's Darryl Whitehead is delighted to have been involved in this flotation: "Our Solent office is well placed to help companies which are interested in floating on the London Stock Exchange. It has a fully resourced capital markets team which can help groom companies for AIM or full listing. Solent partner Linda Naylor has been nominated adviser to 5 AIM listed companies and the Grant Thornton Solent team has been reporting accountant/auditor to 33 AIM listed companies."

For further information contact: Joan Radley, Sales and Marketing Manager, Grant Thornton Solent on T: 01489 864216 [e-mail]

[m5artin] 02/3/2004 15:17

First published on Monday 23 February 2004:
Asfare takes a step in the right direction
by Business Editor Ron Wain

A HAMPSHIRE company that makes life-saving equipment for the 999 services is on the expansion trail after floating on AIM - the junior stock market.

AS Fire & Rescue Equipment, a leading manufacturer of specialist rescue ladders and a main supplier to fire brigades, police forces, utility companies and airports, raised £2.4m in a placing of 2,400,000 shares at 100p a share.

The company, which floated under the name Asfare Group, also makes roller shutter doors, ladder gantry demount systems, equipment carriers and a range of brackets to secure equipment into fire appliance lockers.

Asfare chief executive David Chisnall above, said: "The money raised will be used to expand into related product and market areas.

"The company already provides equipment to the Royal Navy and other areas of the defence industry. We're going to expand a stable and profitable business. The group's presence on the AIM market will lead to more visibility for overseas customers and help future acquisitions."

As previously reported by Business South, Asfare has a 50-strong workforce based at a leased factory at Commercial Road in Totton, near Southampton.

The company, with a multi-million-pound turnover, has gone from strength to strength since AS Fire and Rescue Equipment was set up in 1978.

Business adviser Grant Thornton was involved in the key floatation.

One of its partners, Darryl Whitehead, and corporate finance manager Mark Minchella, both based at its Solent office, played significant roles.

Darryl said the office has a fully resourced capital markets team that can help groom companies for AIM or full listing.

[m5artin] 02/3/2004 15:09

Climbed up a rung today appearing on the percentage leaders table.

Asfare Group plc the UK's leading manufacturer of ladders for the rescue services, today is admitted to trading on the AIM market(12 December 2003)

Placing Statistics
Placing Price 100p
Number of new Ordinary Shares being issued pursuant of the Placing 2,400,000
Number of Warrants in issue following the Placing 670,000
Percentage of enlarged issued share capital being placed 57.1%
Number of Ordinary Shares in issue on Admission 4,200,000
Gross proceeds of the Placing £2.4m
Market capitalisation of the Company at the Placing Price on Admission £4.2m


The Placing of £2.4 million, which is all new money, has attracted high levels
of interest resulting in seven institutions subscribing for shares.

David Chisnall, Chief Executive of Asfare Group plc, said: "The Placing has been
extremely successful and the Company now has a high quality institutional
shareholder base. The Company has a long history, healthy customer base and
leading market position in the UK which we are now looking to expand overseas.
The feedback has been very positive and we look forward to taking the Company to
the next phase of development."