Centurion Ele Share Discussion Threads

[2clueless] 11/4/2007 15:43

It is a very good announcement.
The time it takes to get the revenue is normal for the industry due to safety / functional approvals etc.
They will need to tool-up certain parts to install into Hondas and realise the product through production, and with a patent in place there's some protection there too.
At this stage (even without revenue) it's a vote of confidence from one of the best-run automotive companies in Europe. The shares are somewhat undervalued already based on exisiting contract announcements (even if not on a P/E basis) so the price should rise steadily on this, and other future, news. (we're still waiting for the "unnamed luxury carmaker" details, as well as others)
We all know that there is a good future for these systems, and the RNS says it can be used in - and out of - the car, making it a lifestyle product (it's being rolled out on CR-V first as well which is a "lifestyle" vehicle). I don't see what's not to like about this RNS.

I wouldn't say 30p by the end of the day (!) but maybe 30p+ will be easily reachable on the next contract win, building steadily on the confidence this one brings.

[lord santafe] 11/4/2007 13:24

oh I see, I never read the RNS probarly right through. It just sounded good so I put 2,000 in hoping for the price to gradually increase throughout the day.

[badday] 11/4/2007 13:19

LS, it's only an 'optional extra', with no immidiate income. Effictively they're saying 'we might get the oportunity to sell a few extra units next year'. What makes that a buy?

[lord santafe] 11/4/2007 13:12

Why is no one buying when we have had such a great announcement?.

[lord santafe] 11/4/2007 10:04

Centurion Electronic Centurion wins deal with Honda to supply in-car entertainment system


LONDON (AFX) - Centurion Electronics PLC said it has won a contract to
supply its in-car entertainment (ICE) system as an option for Honda Access
Europe NV.
The company said the system will be launched across Europe, with the initial
supply being offered as an option on the new Honda CR-V. The production of the
new modular ICE system will start in the fourth-quarter of 2007, it added.
The maker of automotive entertainment systems said it expects the
developments to be reflected in its trading performance in the financial year
ending September 2008 onwards.
No financial details were disclosed.
[e-mail]
ash/bsd

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[lord santafe] 11/4/2007 08:07

contract win - 30p easy today.

[partridge2] 08/3/2007 21:46

Your not in this mess as well quotes. Your not gonna have not a bean left if you carry on at this rate. Would just be the icing on the cake if guru and Terrance were here too lols!

[quotes_4_u] 08/3/2007 17:21

mitchy.

Just like Dvs i'm afraid, we have to learn the hard way, contracts
dont seem to mean anything in this business, just keep raising hopes
and promises and most importantly more money and then a few months
down the line the reality comes in the way of more losses.

Maybe these 2 companies are connected because they are both as bad
as each other.

[mitchy] 08/3/2007 16:54

Slightly confusing report.On the one hand an unexpected loss and on the other positive news on contracts.


Centurion Electronics says unlikely to post profits for yr to Sept 30 2007


LONDON (AFX) - Centurion Electronics PLC said it is unlikely to move into
profitability in the year to Sept 30 with sales to largest customer, Toyota
Motor Europe, being significantly below its original forecasts.
The company said it has reached an agreement with a principal shareholder,
Ravensworth, for advance of an additional 1 mln stg to cover the expected cash
shortfall from the reduced level of sales and to fund some of the expected
growth from new contracts.
The maker of automotive infotainment systems said it is in the process of
finalising two new Global OEM contracts, which they expect to be able to
announce in full next month.
The company added it sees significant improvement in performance in 2008 as
it is on target with the launch of the new Premium ICE system, which is expected
to contribute to its performance in fiscal 2008.
[e-mail]
tsk/tc

COPYRIGHT

Copyright AFX News Limited 2007. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by
framing or similar means, is expressly prohibited without the prior written
consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News
Limited

[25cent] 08/3/2007 13:16

Whats this in old money? i make it 1/4 of 1 pence prior to the 50/1 share consilidation ?
Scrip i have to say you had this one right all the way,good luck with C.C though you may well need it.

[still waiting] 08/3/2007 12:57

Another DVS at the mercy of the car manufacturer..

[scripophilist] 08/3/2007 12:57

Oh dear, still unable to reach profitability. Looks like even the OEM side is not worth saving now.

[cgod] 28/2/2007 13:54

Whats going on now down 21% here we go again.

[2clueless] 27/2/2007 10:21

Yep, you got it.

I agree with you about the business and the OEM / Import Centre profits. However your model is based on a 100% (or at least 80%+) fitment at Import Centre whereas these are customer options.
Unlike traditional ICE, there really is a good off the shelf alternative in a portable system plugged into the cigar lighter. Whereas to get traditional ICE the option cost would have been, say £200 - this is about the same as an aftermarket system (from eg. Road Radio) with RSE, the option cost is closer to £1000 compared to £200 for a decent portable DVD player (the portable can also be used in the hotel, in the caravan, on the boat, etc etc and is likely to have a larger screen).
For my money, the future for OEM RSE is in large expensive vehicles where a £1200 factory option for RSE is easily affordable by the target buyer of that vehicle.
I think this business is still very speculative and based on decent turnover (and resonable profit) in 2-3 years from now - but with the pace of technology, will DVD and fixed screens still be a popular thing, or will we be streaming video, games & other added content onto wireless handheld devices onto a scroll-out screen by then?

[rpaco] 26/2/2007 16:35

Ah Ha! If you are who I think then Adrian Newey has not yet fulfilled his true potential and you are not quick enough.(but redly bullish) And you work for Sir Humphrey!

Anyway re CUC if you look at the extent of the product to be supplied then with your OEM knowledge, you must appreciate how much more work there is to do on a daily basis. Also this must constitute a major percentage of CUC turnover form November onwards. SO I dont think it will make CUC's fortune, at least not unless they can keep it going long enough to diminish their fixed costs to an acceptable level whilst still delivering the annual price reduction. SO I would be much happier for them if they had announced a major aftermarket order. There is no doubt that their turnover will multiply many times but their variable costs will increase dramatically as well, margin will be slim. Look at another company we both know whose margins delined drastically as the aftermarket/import centre work was replaced by OEM contracts.

[2clueless] 26/2/2007 12:25

not rbc but on the right lines.
Now, I know rbc and have lots of knowledge about cuc - who could i be?
now i have my pvt email working again, i'll mail you sometime

[rpaco] 25/2/2007 11:37

2clueless.
To answer your question no I am not holding, fortunately I got out when it dropped to 98p, but I miss many of the things about and some of the good guys I dealt and worked with in the industry so keep an eye on it.
Was DVS Toad originally?
Now you have me wondering who the hell you are, knowing me ah ha, but not knowing you..obviously to many with whom I worked over the last 20years (yes it really is that long now) my nom de thingy is a givaway. So please email me unless you are rbc, in which case you would anyway out of preversity (as he would call it)

[mitchy] 21/2/2007 07:04

rpaco and 2clueless - good points both.The amount of margin is everything,as you rightly say and it was a real concern of mine.However in CUC's case I decided the ongoing overall debt reduction shows me,at least,that they are making money.I'm expecting increased profits as people carrier type vehicles,which are becoming more fasionable,continue to grow in sales.

The recent falls in share price do not make sense to me as they fly in the face of the news coming out of them.In my opinion CUC seem to have turned a corner over the last twelve months so i'm content to hold with an intention to add.

Good Luck.

[2clueless] 19/2/2007 16:15

Hi RPACO
You're right about the margins, however for this type of new technology the margins are a bit higher for a while because the carmakers don't have a lot of alternative suppliers for the same thing. Then as the cost of the technology reduces, so do the margins until eventually, these systems will become "commodity parts" and the carmakers will specify what specs they want and buy the best value one at, as you say 3-5% net. I think this is beginning to happen, as indicated by the Toyota Cost Management Award (in other words, "Huge cost reduction" award). I guess CUC have come under pressure to bring their costs down in line with what competitors are quoting for basically the same stuff, so they offer a huge cost reduction to keep the business and get a cost-saving reward thrown in. Pity the RNS doesn't have any details about volume or margin, but i suspect these will be very low.
CUC are (IMHO) the best positioned of the non-Tier 1 OEM suppliers (Delphi, Bosch, Visteon etc) to gain from OEM contracts (compared to DVS or Armour), but whether these will ever be profitable enough to show any shareholder return, who knows?
If my tone sounds familiar, its because we used to work together.
Enjoy your retirement. Do you still hold these?