Chemring Share Discussion Threads

[apad] 18/1/2011 08:38

Order book = Good.
Organic Growth Statement = Good.
EPS fall = Bad.
Increase in Borrowings = Bad.
Story:
Acquisitions using debt need to be proven to contribute in 2012. Would like to see consolidation and efficiency rather than acquisitions next year.
Hold.

apad

[parttime] 18/1/2011 07:54

Results out. (Snippets below)

Chairmans statement.

Peter Hickson, Chemring Group Chairman, commented:

"These results show another year of strong performance with revenue up 18% to GBP597 million. Two thirds of our growth was organic, which is very encouraging. The Group's underlying earnings per share grew to 246p a substantial increase. Our current order book of GBP902 million, our solid balance sheet and our proven strategy for growth provide clear visibility of the prospects for 2011 and should provide the foundation for further growth in the future."






From 'Prospects'

'...Our closing order book increased substantially to GBP803 million and, since the year end, it has increased further to GBP902 million. This strong order book, our solid balance sheet and our proven strategy provide clear visibility of the prospects for 2011 and should provide the foundation for further growth in the future.'

Notes: Increase to gearing

Appears theres to be a 5 for 1 sharesplit.

From results: In 2010, our revenues from Middle East and Far East customers grew by over 60% and we believe that future growth in these regions should be substantial.

[apad] 13/1/2011 18:44

Monty: £32 6 days before results.
How did the calculator go?
Anyone with metrics they are looking for?
249 EPS forecast?
apad

[parttime] 05/1/2011 20:22

New contract awarded and Invesco raise holding from 18

[montyville2] 04/1/2011 19:08

Thanks CC I will put that in my crude calculator to set my target share price It was 3150p and it will be very interesting to see if your figures change that.

In any case a great rise today!

[cravencottage] 04/1/2011 17:42

Montyville2

Just checked out the latest figures for you..

Edison investments have forecast 245p EPS ( 119ptp) for 2010 and 308p EPS for 2011 ( 151ptp)

Growing at > 20% on a forward PE of 9.8 this is hardly expensive for a growth stock..

Nice bounce today in anticpation of a good set of numbers in a few weeks time..

Onwards and upwards

CC

[montyville2] 23/12/2010 18:13

Latest trading statement commented profits in line with expectations. Anyone any idea what these are expected to be? Half year 42.3m, with second half supposedly better, so would 90-95 be acheivable?

garteful for any guidance...

[apad] 21/12/2010 12:59

s...
Checked their website and found only one job vacancy. Suggests battened hatches.
However PER of 14 dropping to 12 against forecast EPS - looks cheap for an international boys' toys company.
Borrowings about 24% of turnover are not onerous.
Hence the jump I guess - been off the radar, so to speak.
4 years of EPS growth and not too much debt gives it a (nearly) Gold rating in my portfolio. Gold companies - 4 years EPS growth and no debt - are always bought on share price weakness.
Happy to hold now, until the debt comes down - hate debt:-)
apad

[simon42] 21/12/2010 12:44

3000p the barrier to beat. It does look oversold and there is exposure to government cuts but I feel CHG doesn't seem too worried about it with the UK accounting for only 15% of turnover and also they feel the cuts won't hit them hard.

[apad] 21/12/2010 12:40

Pretty much oversold too.

I'm assuming that the cuts will not affect consumables too much.

Increased my holding on that basis.

Any views?

apad

[simon42] 21/12/2010 11:26

Results 18th January. Maybe a rally between now and then?

[nellie1973] 03/12/2010 14:56

Broker upgrade today

[silverfern] 25/11/2010 11:31

I bought back in on back of the update - they look pretty good to me, and the forecast revenue also shows growth prospects going forward.

[balcony] 22/10/2010 20:17

Boadicea-Hold

[apad] 16/9/2010 13:40

High debt due to acquisitions.
Cash flow to pay off debt in the rest of the year is the key to share price improvement.

[cambium] 16/9/2010 08:21

Chemring Group (LON:CHG) said that trading for the four month period to the end of August 2010 continued to strengthen, with revenue in the period increasing by 23% to £176 million from £143 million in the same period last year.

[silverfern] 16/9/2010 07:21

On course to match last year's eps (199p )and will move this company from growth to just being a very well managed affair delivering a high return of profit. Meaning I dont know where this will go from here, but 2% overall dividend (70p+) likely and a current p/e of 15. A major acquisition might be needed but they have 2x ebitda debt. DOn't hold anymore, pity!, but continue to watch with interest

[silverfern] 16/8/2010 12:33

I sold on results but not quickly enough! A bit of hubris from the outgoing Chairman, referring to the £36 share price and where does it go? They need to show the market that they have a resilient income stream as money gets reigned in from their main customers. In a way of course their previous success now works against them; it's wait and see imho

[pollen8] 13/8/2010 10:12

Dire drop in price in recent weeks. Good profits, strong order book. Are defence cuts the only reason? They are a global company and I do not notice too much peace in this world.

[apad] 13/7/2010 10:10

Steady small buying at £30.
Anyone have a view on its position if there is consolidation in the defence supply industries?

[chingman] 25/6/2010 18:37

Interesting CHG note on Stockopedia -

[wjccghcc] 24/6/2010 15:28

you mean 2010 low?

Sold all mine post results at 32 quid. It looks like govt spending cuts will affect them more than they originally thought. Although this year's results should be okay, organic growth next year will be tough.

[cambium] 24/6/2010 14:29

new all time low :o(

[silverfern] 01/6/2010 07:52

From Janaury 2010: Completion, which is anticipated within ninety days, is conditional upon, inter alia, US regulatory and ADG shareholder approvals.\" so I am assuming there was no financial exposure here that would not be covered.

[pollen8] 23/4/2010 17:11

I rate this share & will look long term.