Chamberlin Share Discussion Threads

[this_is_me] 22/2/2024 09:25

While it is difficult to argue about selling a bit of the company for more than the mkt. cap., it is the part of the company that has been making money and the bit they are keeping has been loosing money.

Petrel Ltd

2323 revenue: £ 3.829 million operating profit £606,000

Petrel's operating performance has improved markedly in the last two financial years and the Board expects this to continue in the 2024 financial year. Having delivered two consecutive years of record operating profit, Petrel is on track to improve again this year. Having changed the management team in 2022, the Board has supported the addition to the sales force of a European Business Development Manager and an Eastern European Agent to drive the strategy of increasing export sales from around 20-25% to 35-40% of total sales by 2026. Petrel continues to improve its offering through enhancing existing product ranges and providing lighting design services that give customers tailor-made lighting solutions that exactly meet their requirements and needs in an energy efficient and cost-effective way.

During 2023, Petrel has invested in two new machines that will enhance productive capacity and deliver cost-saving efficiencies. In the first half of the current financial year, Petrel has introduced upgrades to its product range, including a self-test emergency option for the popular 7 series. With expectations of double-digit revenue growth again in 2024 at operating margins that have consistently been around 16% for the last 2 years, the Board believes that Petrel is well placed to contribute a materially enhanced operating profit in 2024.

[rivaldo] 22/2/2024 08:38

Encouraging to see the sale of Petrel completed quickly as per today's RNS. This is a transformational deal.

£2.75m is now coming into CMH's coffers, with a further £0.25m deferred consideration.

The pension deficit is reduced to a paltry £0.4m.

On top of the £3m sale proceeds, CMH's liabilities will also be reduced by a further £2.6m, and the results to 31st May will look good with a £2m exceptional profit.

Per the interims, with RDC improving its operating profit by 43% year on year and CHC looking better for this H2 onwards, the core business is in good and improving shape.

A £2.8m m/cap gives a very decent risk/reward imo given the turnaround being achieved.

[rivaldo] 21/2/2024 12:14

Well well.....Petrel has been sold for £3m - more than the entire m/cap first thing today.

H1 results look to show continued solid progress too, with optimism about prospects for growth in this H2 (which should be grounded in fact as we're already almost halfway through H2).

I'm off to read through the two RNS's properly over lunch....

[hastings] 01/2/2024 11:15

I see, you're looking at PAT.

[hastings] 01/2/2024 11:14

From what I can see, Cavendish has £0.5m in for adj PBT for full year 2024, where does the higher figure come from? Is there another broker note?

[z1co] 01/2/2024 10:24

Looking forward to the interim results towards the end of this month:

The Board is anticipating a further increase in revenue of between 15% and 20% and profit after tax of between GBP0.8 million and GBP1.0 million in FY24. The Group has the installed capacity to grow organically to an estimated GBP45-50 million in revenue

[jellypbean] 27/1/2024 22:23

Rivaldo. Petrel specifically made LED luminaires for use in harsh and hazardous conditions. I believe that these fall under the category 'special purpose lamps', which do not yet fall under the fluorescent lighting ban (will be 3-5 years).

So no forced replacement of old lighting yet AFAICS.

[rivaldo] 26/1/2024 10:27

Commentary from LPA in their results yesterday:

"The legislation across the EU banning the sale of fluorescent tubes from September 2023 is a strong positive for us, driving much interest in our LED alternative"

This of course is directly relevant to Petrel:

[rivaldo] 17/1/2024 12:42

Miton UK Microcap Trust have been buying - they now own 8.15% with 14.6m shares.

Looks like they've been buying in the open market as they crossed the 8% threshold on Monday:

[rivaldo] 12/1/2024 12:37

Cheers - I assume they took the 7.5m shares in the placing. Hopefully they're new long-term shareholders:

[z1co] 11/1/2024 22:39

Raglan Securities Ltd Dublin , Ireland have a holding of 7,500,000 shares or 4.18%.

[rivaldo] 10/1/2024 22:37

After taking their further shares in the placing First Equity were due to be at 29m shares per the placing RNS, so they've actually bought a further 1m shares on top to get to their current 30m shareholding.

[z1co] 10/1/2024 18:12

Bit of good news at last

William Black of First Equity Limited as Investment Manager of Armstrong Investments Limited has increased stake in company to 16.727% from 13.057%.

[z1co] 10/1/2024 09:27

Thanks for posting the note

[rivaldo] 10/1/2024 09:17

Cavendish have an updated note out today, reiterating their forecasts of £24m revenues, £1.4m EBITDA and 0.5p EPS this year to 31st May.

Extracts:

"Update.

The statement confirms the Board’s confidence in continued growth across its divisions over the medium term. For the current year, the statement reiterates previous guidance of full-year revenue growth of between 15% and 20%, and profit after tax of between £0.8m and £1.0m.

- Strategy. In the short term, strategy will focus on growth and achieving operational improvements across its businesses as the group’s turnaround continues.

- Petrel. At Petrel, the focus is to increase marketing to drive an increase in export sales to maintain the 18% growth achieved in the last financial year.

- Foundry division. In the Foundry division, both businesses are looking to enter new sub-sectors to drive revenue. CHC is investing in Spheroidal Graphite iron, a market estimated to represent approximately 70% of the total cast iron market representing a significant market opportunity. RDC is investing in the development of steel production, which is a more specialist and higher-margin sector of the castings market.

- Limited need for additional capital investment. Overall, the group has installed capacity to facilitate growth to revenue of c.£45m-50m with limited need for additional capital investment."

[z1co] 09/1/2024 11:50

Excellent order book for 2024 and the following years:

Since the year-end, the Group has continued to perform well. CHC has won a number of new long-term contracts, including, as announced on 22 June 2023, one with a leading European automotive industry components supplier. These contracts in aggregate are estimated to be worth a total of EUR14 million of revenue over their lifetime with production starting in Summer 2024. Furthermore, the Company had a record order intake in November 2023, with RDC winning new blue chip customer contracts with J.C. Bamford Excavators (JCB), Nissan, Volvo, Tekmar and Steel Dynamics.

[red army] 09/1/2024 11:42

Well at least this an opportunity for investors to buy in at a similar price to directors/institutions.

[rivaldo] 09/1/2024 10:08

I too couldn't resist topping up around the placing price. Given the trading outlook disclosed further down the RNS which some may have missed it's hopefully a chance to get in at the very bottom (though of course this has been said before....!).

[jellypbean] 09/1/2024 09:42

Thisisme. Worth remembering that there is a 30% dilution here, so the new shares will actually be worth 25% less than the pre-diluted share.

Hence 2p is about right based on the value the market was ascribing to the sheres prior to the announcement.

Edit: ignore this. I've thought about it some more.

[this_is_me] 09/1/2024 09:24

There has already been huge volume so there must be both large buying and large selling.

[my retirement fund] 09/1/2024 09:11

I couldn't resist a punt. 2.029p via AJ Bell. Could take years to see any value here and very high risk.

[z1co] 09/1/2024 09:00

Interim results next month will be significantly better than last year and could be the catalyst to drive the shares back above 3p again.

[z1co] 09/1/2024 08:51

Currently it's 2.038p to buy and 2.001p to sell

[z1co] 09/1/2024 08:25

This_is_me

These trades at sub 2.10p are all BUYS

[z1co] 09/1/2024 08:22

Bought a few more at sub 2.10p.

Agreed about 2.50p would have good but that's markets for you.

Share price will recover in 2024 on strong and profitable trading.