Bateman Litwin Share Discussion Threads

[mirshahik] 17/4/2008 17:37

company profit of £ 25m for 2007/2008 yet now valued at £ 130m and back orders of over $ 1b.

[mirshahik] 17/4/2008 15:08

Half year was 20 Cents and they guided in line.

[simon gordon] 17/4/2008 15:06

Who is the broker who has forecast 20?

[mirshahik] 17/4/2008 14:50

EPS of 20, therefore PE of 6.75 based on share price of 135?

[mirshahik] 17/4/2008 14:19

I make the PE now 6.75!

[surfer2] 17/4/2008 12:01

Is that large shareholder adding with a view to take this private does anyone think?
whats the point of a float if institutions wont or cant buy due to 1 huge controlling stake ? any comments ?

[stegrego] 12/4/2008 11:40

Delta T is the worlds 2nd biggest builder of Ethanol plants....

say no more

[simon gordon] 07/4/2008 08:14

Times - 7/4/08:

Skyrocketing corn prices hit ethanol

The continuing surge in the price of corn, which is punishing households with higher food prices, is cutting the profits of American ethanol producers and playing havoc with an industry that was blamed for causing the grain shortage.

The price of a bushel of corn soared above $6 on the Chicago Mercantile Exchange last week, pushed higher by news that American farmers were planting less corn.

Farmers planted a record 94 million acres of corn last year but the US Department of Agriculture forecasts only 86 million acres this year as farmers switch from corn to soya bean, another crop that is generating record profits.

Expensive corn is hurting the livestock industry, which in turn will raise the price of meat, Rich Feltes, senior vice-president of commodity research for MF Global, said. "Hog producers are liquidating sows, the farmers are operating in the red," he said.

The skyrocketing cost of corn is rebounding on the ethanol industry, which is taking an ever larger proportion of the US corn harvest to manufacture road fuel.

Last week Renova, an AIM-listed ethanol manufacturer, confirmed that it was struggling to secure finance for a 21 million-gallon plant in Idaho, and last month Pacific Ethanol, a Californian producer, disclosed big quarterly losses, cost overruns and bank loan defaults as the cost of corn hit its margins.

"Financial markets have been spooked [by the present price of corn]," Christopher Thomas, the chairman of Renova, said. "Two years ago the cost of corn was $2 a bushel; now it has reached $6. As the feedstock goes up, your margin is squeezed."

Mr Feltes said that ethanol had turned an agricultural commodity into a fuel. "It's all about the shortage of land created by a rapid ramp-up of ethanol," he said.

[simon gordon] 02/4/2008 20:03

Interims - 12/07

~Current Assets - 536.1m

~Current Liabilities - 549.9m

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Interims - 12/06

~Current Assets - 277.8m

~Current Liabilities - 204.5m

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Delta-T added turnover = 171.3m

BNLN don't show the profit on this.

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Delta-T deal cost:

$45m cash and 11.8m shares.

[azalea] 01/4/2008 14:40

26/3. Employees Benefit Trust sold 1.4m (12.9%) shares @ 217p! Smart, or, in the know?

[mirshahik] 31/3/2008 15:37

Well this has been an interesting day. Can't say the stock market is dull, can you?

[mirshahik] 31/3/2008 11:31

10% drop on 19,000 shares traded!

[drewz] 30/3/2008 20:54

Bizarre price action in this one.

[mirshahik] 27/3/2008 15:14

FT:

Bateman Litwin berates share fall

By David Blackwell

Published: March 27 2008 02:00 | Last updated: March 27 2008 02:00

Shares in Bateman Litwin fell more than 20 per cent in spite of the engineering contractor's interim revenues and pre-tax profits more than doubling.

Shuki Raz, chief executive, described the results as the best yet from the company and added that the market reaction to news that contracts in the ethanol industry would be harder to come by was "a little overdone".

The company designs and builds facilities for the oil and gas, power, chemical and renewable energy sectors. The latest results include a four-month contribution from Delta-T, the US builder of biofuel processing plants acquired in July for $45m (£22.5m) in cash and 11.8m new shares.

A legal dispute with the vendors over alleged misrepresentation of Delta-T's liabilities and profitability is not expected to be concluded until later this year. However, the company is expecting the 11.8m shares issued conditionally on the acquisition's performance last year to be returned and cancelled.

Turnover for the six months to December rose from $197.6m to $444.3m. Pre-tax profits, which benefited from a hedging gain on a Saudi contract, increased from $10.8m to $25.3m.

The company said demand for its traditional services remained strong. However, second-half trading was "being affected by the current instability in capital markets", with a likely reduction in new contract awards at Delta-T. Nevertheless, the group's order backlog was 33 per cent ahead at $1.27bn.

Earnings per share rose from 11 to 21.4 cents and the interim dividend is increased from 2.3 cents to 3.5 cents.

The shares, which were 180p on flotation on Aim less than two years ago, closed down 54p at 178p.

Mr Raz, who will be replaced by David Lamont in June, said the company was still planning to move to the full list later this year to broaden the investor base and increase liquidity.

[mirshahik] 26/3/2008 14:38

Sure, that's why PE is 11 and not 20.

[mirshahik] 26/3/2008 13:44

Masurenguy, it is good compared to other companies in the same sector. Most have PE of 17 or more!

[simon gordon] 26/3/2008 13:43

'The Group will focus on driving forward operational efficiencies and leveraging synergies between the Divisions. Whilst demand for the Group's services in our traditional markets remains strong, trading in the second half is being affected by the current instability in capital markets with a likely reduction in new contract awards at Delta-T. By contrast, the continuing strength in the Euro relative to the US dollar means that the hedging gains recognised in the first half are likely to persist for the full year. As a result, the Board anticipates that net income for the full year will be broadly in line with current market expectations.'

Chairman

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Can one trust that the problems at Delta-T are due to Capital Markets?

I don't think so! Based on the data I came across last year. This data has proven to be a correct read and BNLN have been goosed.

I think the IC are wrong in stating BNLN as a Buy.

I think there is a 50/50 chance that BNLN will warn on profits.
Either '08 could be cut or 09' reduced.

Either way, you are buying a company in which the CEO has been fired for the Delta-T deal, yet no other Board members have resigned. They approved the deal, at a minimum the Chairman should also be fired!

I note Batmeman Engineering have had problems in India.

Are the two listed Batemans' really quality outfits?

Is BNLN a can of worms - with the rot at the top?

Will the new CEO have to kitchen sink the Finals?

Could BNLN test recent lows?

What are the catalysts to get the shares moving steadily up?

Cheap shares, get cheaper!

[masurenguy] 26/3/2008 13:40

A PE of 11 is not particularly indicative of good value in this market climate when there are several FTSE 100 companies that are well below 10 !

[mirshahik] 26/3/2008 13:18

IC:

TIP UPDATE
Buy

The share price fall has left many scratching their heads, although it did take place amidst thin trading volumes. But Bateman's fundamentals remain solid and Delta-T is already contributing strongly. So, even though the shares are down on our buy tip (197p, 11 Jan 2008), trading on forward PE ratio of just 11, we reiterate that advice. Buy.

[olivercromwell] 26/3/2008 11:11

fingers crossed Kentz don't make the same mistakes as Bateman L. They've obviously bought badly and its cost them big style. Stick to what you know it seems.

[simon gordon] 26/3/2008 10:38

Nice one Steg!

[stegrego] 26/3/2008 10:33

What the directors perhaps should have said in this report:


Our existing business is going well with both revenue and profits up over 30%. This is despite having margin pressures due to tendering at lower margins to gain footholds in new territories.

However, it appears we have dropped a large one in the purchase of Delta T, which is now effectively the worlds 2nd largest builder of things that people no longer want nor can afford. We expect Delta T revenue from ethanol plants to be minimal going forward and for existing contracts to either be cancelled, put on hold or become loss making.

Despite it being a turkey before we bought it and with the picture for ethanol looking dodgy before the purchase went through, the acquisition went ahead. We have decided to pump in $30 million dollars to feed the turkey to such proportions that it will probably be able to feed a small 3rd world country upon its demise.

We are however going to waste much time and effort on pursuing the vendors of the business we should never have bought and will probably take our eye off the rest of the company, thus making the good bit of our business underperform.

In fact we are now reliant on forex rates staying in our favour in order for us to meet market expectations.

In summation, it is likely that we are going to throw good money after bad trying to support a business that operates in an unsustainable area in a country that is fast going down the pan.

If we had only stuck to our core business then our share price would be near double that of today.