Cabot Energy Share Discussion Threads

[gerty36] 31/10/2003 13:31

L2 3 v 1 wins have been pushing this all day bless em

[thumbtwiddle] 31/10/2003 13:29

Just finsihed scanning through the news. Looks ok.

[gerty36] 31/10/2003 13:29

These have a 2 hr delay showing sizeable trades, all of the trades going through today bar a small few are buys.
You have to ask yourself what would further +ve press do for the price come Monday?

[gerty36] 31/10/2003 13:25

I would not at all be surprised to see this top 30p now in the short term, with the above news regarding refinancing etc.. but aimho

[jmulhall] 31/10/2003 13:16

These are tipped in paper today as a buy....considering the rise today is it still worth getting into....

[gerty36] 31/10/2003 13:08

Carbo PLC
31 October 2003

Press Release
31 October 2003


Refinancing of Carbo and Continued Restructuring of the Group

Carbo PLC, the Manchester based industrial abrasives manufacturer and
distributor, has today announced that it has reached an 'in principle' agreement
with a UK asset based lender, subject to legal documentation, to provide new
lending facilities to its largest subsidiary in Germany. In addition, the
Company intends to launch a rights issue to all shareholders to raise up to €2
million at a price of 14p per share. This rights issue will be underwritten to
a level of €1.8 million. The funds raised from the lender and through the
rights issue will be used to complete the rationalisation of the Group. The
Company has also today released its interim results, which are the subject of a
separate announcement.

The refinancing will comprise new debt and equity. The Group's financing
company will provide debt of up to €14 million in the form of working capital
facilities and term loans secured on fixed assets. A number of investors, with
an specialist knowledge of the industry in which the Group operates, have
shown their confidence in the Board's plan for the future by committing, subject
to legal documentation, to underwrite a rights issue up to €1.8 million, which
will, nevertheless, be open to all shareholders.

Last year fifteen investors, including employees, strategic abrasive market
investors and the Chairman, Lord Hodgson, invested £3.185 million in Carbo PLC.
This was by way of a loan structured to be converted into ordinary shares at
the rate of 21.25p for each 10p ordinary share. The Board is pleased to
announce that, as part of the refinancing, more than 75 percent of the bond
holders are committed to convert their bond holdings into equity. The Board is
delighted with this show of confidence by the convertible bond holders and other
investors.

The funds raised will be used to complete the rationalisation of the Group.
This includes projects in both Germany and the UK. In Germany, the projects
include the completion of the already announced head count reduction programme
which aims to save €2.8 million in the first full year; the introduction of a
new IT system and the consolidation of the product range by eliminating
duplicates. This will dramatically reduce the number of manufactured products
and facilitate the streamlining of the sales and administration functions. In
the UK, the entire operation based in Trafford Park is to be relocated to a
smaller area of the current site with the balance of the land being released to
the freeholder.

The management of the Group will also be reorganised along functional reporting
lines - manufacturing, conversion/distribution and export sales. This compares
to the current geographical arrangement which causes duplication, overlap and
waste. Ultimately, this will place the responsibility for both Bonded and
Coated manufacturing in Germany and Italy under one manager. The Coated
conversion businesses and marketing subsidiaries will be made the responsibility
of another dedicated manager. Finally, export sales and marketing (sales made
to non-Carbo owned overseas companies) will be the responsibility of a third
manager. The main board will also be strengthened in the near future by the
appointment of an additional Non-Executive Director, Stephen Knight.

The results of these measures will ensure that all products will be manufactured
in the lowest cost area of the Group; that wholly owned Coated conversion/
distribution businesses will provide a full service product range to customers
rather than just Carbo manufactured products; and that export sales and
marketing will maximise Carbo's opportunities elsewhere in the world.

Lord Hodgson, Group Chairman, commented 'Since the new Board took control of the
Group last year, we have been implementing a phased restructuring plan. The
restructuring of our operations in Italy and the UK is now substantially
complete. The remaining area is the German operation and we now have the
finance with which to complete this task. We are particularly pleased by the
show of confidence by those who, as part of the refinancing, are committed to
underwrite the rights issue and to convert their bonds to equity. I also value
the broad commercial experience that Stephen Knight will bring to the company
when his appointment to the Board is formally confirmed. The Group now looks
forward to delivering improved results after five years of losses. '

Carbo PLC has subsidiaries across Europe in Germany, Belgium, Norway, Italy,
Portugal and France. Manufacturing units are located in Germany, Italy and the
UK. Carbo supplies high quality abrasive products throughout the world under
various brand names including Carborundum, Carbo-Schroeder and BMA. They are
used in a wide variety of industries including automotive, aerospace, metal
work, furniture, cutlery, valves, power tools, hand tools and tobacco
production. The Group also owns Anglo Abrasives Limited, one of the largest
distributors of abrasive products in the UK, with branches located throughout
the country.

For further information please contact:

Lars Nyqvist, Chief Executive, CARBO PLC Tel: [phone]

or

Stuart Dootson, Finance Director, CARBO PLC Tel: [phone]



This information is provided by RNS
The company news service from the London Stock Exchange

[gerty36] 31/10/2003 13:05

Carbo PLC
31 October 2003











Press Release
31 October 2003



Carbo Announces Its Interims



Today Carbo plc, the Manchester-based industrial abrasives manufacturer and
distributor, announced its interim results for the half-year ended 31 July 2003.
Turnover for the half-year to 31 July 2003 was £29.4 million with losses
before interest and tax of £1.4 million compared to a turnover of £27.1 million
and losses of £5.2 million (prior to exceptionals) for the half year to 31 July
2002. No dividend is payable. The Company is in the process of finalising a
refinancing package to underpin the recent improvements in its performance which
is the subject of another announcement.



Following the insolvency of its heavily loss making UK subsidiary last year, the
Group has continued to consolidate its activities and win back lost market
share. Indeed, like for like activity has risen almost nine percent compared to
the same period last year, achieved in acknowledged difficult market conditions.



The availability of working capital remains tight due to poor inventory and
receivables management and shortened credit terms from suppliers. However, the
Board has initiated a program of working capital reduction which has already
yielded €1.5m in its first eight weeks and improvements in supplier terms are
also expected.



Commenting on the results Group Chairman, Lord Hodgson, said, 'Although the
results for the half year are disappointing, the Group is weathering the storm.
Our market share is growing again and, as our customers' confidence returns, we
intend to increase it further. However, more work is required to drive down
operating costs and increase manufacturing efficiency. To achieve this we are
assembling a refinancing package and negotiations for this are almost complete.
This package will increase the availability of working capital, and with it the
Board hopes to deliver a significant turnaround in Carbo's performance in the
next six months.'

Carbo plc has subsidiaries across Europe in Germany, Belgium, Norway, Italy,
Portugal and France. Manufacturing units are located in Germany, Italy and the
UK. Carbo supplies high quality abrasive products throughout the world under
various brand names including Carborundum, Carbo-Schroeder and BMA. They are
used in a wide variety of industries including automotive, aerospace, metal
work, furniture, cutlery, valves, power tools, hand tools and tobacco
production. The Group also owns Anglo Abrasives Limited, one of the largest
distributors of abrasive products in the UK, with branches located throughout
the country.

Notes for Editors

The Interims are attached



For further information please contact

Lars Nyqvist, Chief Executive, CARBO PLC Tel: [phone]

or

Stuart Dootson, Finance Director, CARBO PLC Tel: [phone]











INTERIM RESULTS FOR THE SIX MONTHS ENDED 31ST JULY, 2003

CHAIRMAN'S STATEMENT



Dear Shareholder



I am pleased to be able to present the results covering the six months which
ended on 31 July 2003.



Overall, these results, though improving, are still not satisfactory. The loss
from continuing operations for the period is £2 million below the loss incurred
in the first six months of the prior year - but we are still making losses. Not
all of this results from factors within our control and the continuing economic
slowdown in Germany, our key market, is inevitably having an effect.



Carbo plc At the Group level it is comforting to note that sales levels have
been maintained and cash flow from operations increased. But the further losses
have had a serious impact on the level of shareholder funds. Further, working
capital remains tight - too tight to permit the efficient organisation of the
Group's production. 'Hand to mouth' has remained the order of the day and this
has had an adverse effect on profit margins.



Turning to the individual country operations:



a) Italy. BMA has now been refinanced. Sales and production efficiencies
are starting to rise as the company's reputation in the market place begins to
return. There is no reason why this company should not now be able to earn a
decent return.



b) United Kingdom. The Razor and Rubber manufacturing operation in
Manchester has responded well to increased management focus. Output is up and,
though small, the operation is nicely profitable. Anglo, our distribution
business, has closed further three depots and made other cost reductions. Again,
as our market reputation has begun to improve sales have stabilised. We
therefore anticipate a return to profitability in the next few months.



c) Germany. Last year our focus was on eliminating the losses in the UK.
Now our focus has to be on reorganising the German operations. We have begun to
implement a new management structure based on business units in place of the
previous hierarchal structure more appropriate to an earlier age and an old
fashioned manufacturing company. Given the restrictions of Germany's labour laws
all this has taken time to achieve. But at last we are on our way.



Finance. We are in the process of finalising a refinancing package, the details
of which will be described in a separate document.



People

As announced earlier to the Stock Exchange, Klaus Kopnick has resigned as a
director. Klaus has devoted a major part of his life to Carbo. I would like to
take this opportunity to thank him for his commitment and contribution.



As ever the Board remains grateful to all of the Group who have worked
tirelessly to help improve its fortunes.



Outlook. As before, the completion of the refinancing is a key priority. Once
that is done the new management team, the new operational structure and the new
approach will begin to show results.





Lord Hodgson

Chairman

31st October, 2003







Carbo PLC


Group profit and loss account (unaudited) 6 months ended Year ended
Notes 31st July 31st January
2003 2002 2003
£'000 £'000 £'000


Sales

Continuing activities 29,429 27,065 53,211
Discontinued activities
- 2,879 2,879
1 29,429 29,944 56,090


Costs and overheads (30,870) (33,400) (63,625)
Continuing and discontinued activities (30,870) (33,065) (63,029)
Exceptional operating items - (335) (596)


Operating loss (1,441) (3,456) (7,535)
Continuing activities (1,441) (1,562) (5,641)
Discontinued activities - (1,894) (1,894)
Loss on disposal of business - (1,251) (1,317)
Loss on disposal of Chesterfield site - (508) (508)
Loss before interest and taxation (1,441) (5,215) (9,360)


Bank debt forgiven - 5,529 5,529
Interest payable and similar charges (547) (237) (657)
Profit/(loss) on ordinary activities before taxation (1,988) 77 (4,488)


Taxation on ordinary activities (163) (111) 167
Loss on ordinary activities after taxation (2,151) (34) (4,321)


Dividends -cumulative preference shares (14) (11) (25)
Loss for the period (2,165) (45) (4,346)
Loss per ordinary share

- basic and diluted (27.4p) (0.06p) (54.9p)

Dividends per ordinary share - - -










Carbo PLC


Group balance sheet (unaudited) 31st July 31st July 31st January
2003 2002 2003

Notes £'000 £'000 £'000
Fixed assets
Intangible assets 141 243 145
Tangible assets 19,001 17,404 18,073
Investments 31 32 34

19,173 17,679 18,252
Current assets
Stocks 10,915 12,942 11,099
Debtors 10,013 11,885 8,813
Cash 770 268 386

21,698 25,095 20,298

Creditors due within one year (18,888) (17,613) (16,273)

Net current assets 2,810 7,482 4,025

Total assets less current liabilities 21,983 25,161 2,277

Creditors due after one year
Convertible debt (3,185) (3,185) (3,185)
Bank loans and other creditors (2,243) (1,345) (1,743)


Provisions for liabilities and charges (16,357) (14,800) (15,475)


Net assets 198 5,831 1,874


Capital and reserves

Called up share capital 20,135 20,135 20,135
Share premium account 290 290 290
Profit and loss account 4 (20,227) (14,594) (18,551)



Shareholders' funds (inc non-equity interests) 198 5,831 1,874








Carbo PLC


Group cash flow statement (unaudited) 6 months ended Year ended
31st July 31st January
2003 2002 2003
Notes £'000 £'000 £'000


Net cash flow from operating activities 497 150 1,390

Return on investments and servicing of finance

- net interest paid (416) (745) (1,165)

Taxation 46 (421) (722)


Capital expenditure and financial investment

- purchase of tangible assets (240) (402) (812)

- sale of tangible assets - 3,413 3,364

- Chesterfield site deposit repaid - (2,750) (2,750)


Acquisitions and disposals
- - (145)
- acquisition of business

- net overdraft eliminated on disposal of - - 688
business


Cash (outflow)/inflow before financing (113) (755) (152)

Financing

- loan repayments (277) (3,178) (3,581)

- loans advanced 524 400 420

- convertible loan notes - 3,185 3,185

Cash inflow/(outflow) for the period 134 (348) (128)





Carbo PLC



Interim results for the period ended 31 July 2003



Notes







1. The Group has significant unencumbered assets mainly in its Continental
operating locations and has begun negotiations with new lenders in the UK and on
the Continent where the bulk of its operations are now located. These
negotiations are designed to ensure that the Group has the necessary working
capital not only to continue in operational existence but also to develop the
new shape of its operations as a cohesive whole. As part of this development
the Company has taken steps to reduce its cost base.



The accounts have been prepared on a going concern basis, which assumes that the
Group will continue in operational existence for the foreseeable future. Whilst
the directors cannot be certain as to the outcome of negotiations with
alternative lenders they believe that it is appropriate for the accounts to be
prepared on a going concern basis. If the Group were unable to continue in
operational existence for the foreseeable future, adjustment would have to be
made to reduce balance sheet values to their recoverable amounts and to provide
for further liabilities that may arise and to re-classify fixed assets and long
term liability as current assets and liabilities.



2. Dividends
2003 2002

£'000 £'000


Preference shares - appropriated 14 11




The dividend payable on the cumulative preference shares for the current
period has been charged to profit and loss account but cannot be paid until the
Company has sufficient distributable reserves to cover it.





3. The calculation of the loss per ordinary share is based on the weighted
average number of ordinary shares in issue of 7,913,990 and the loss after
taxation and preference dividend of £2,165,000. The diluted earnings per
share is based on the weighted average number of ordinary shares adjusted
to assume the full conversion of the convertible loan stock issued on 16th May
2002.




4. Statement of total recognised gains and losses


£'000


Loss for the period (2,151)
Currency translation differences on foreign currency net investments

475
Total recognised losses for the period (1,676)






5. These 2003 interim accounts have been prepared on the basis of the
accounting policies set out on pages 13 and 14 of the annual report and accounts
2003 and are unaudited and unreviewed. They do not constitute full accounts for
the purposes of Section 240 of the Companies Act 1985. The comparative figures
relating to the year ended 31 January 2003 have been extracted from the full
accounts on which the auditors' opinion was modified as to the going concern
uncertainty referred to in paragraph 1 above.





This information is provided by RNS
The company news service from the London Stock Exchange

[barts] 31/10/2003 12:50

Only been monitoring these few a few months and not sure what the results will read. I really do think they are undervalued and looking at today - so does the market. No doubt we will find out later.

[gerty36] 31/10/2003 12:35

30p seems very realistic short term, any ideas on the results seems you have been following these quite closely... I ask in ignorance soz

[barts] 31/10/2003 12:32

Unfortunately all of my funds are now tied up, could only release so much this morning, caught me on the hop as they say.

[gerty36] 31/10/2003 12:19

Thanks for that info barts
are you gonna top up :)

[barts] 31/10/2003 12:11

The last lot of results were posted in the afternoon.

It wouldn't surprise me if they posted them late ready for Monday trading, thus giving chance for some further press coverage over the weekend.

I think they should be better results with them announcing that they will be released.As always AIMHO..........

[thumbtwiddle] 31/10/2003 11:50

Thanks. I see your point entirely.

I thought the results were supposed to be out?

[timbo003] 31/10/2003 11:46

thumbtwiddle

I'm not saying they will, I cannot remember the details, I think they can convert at 25p or thereabouts, but if I held them I wouldn't convert them until:

1) the company starts paying a divi which exceeds the yield on the bonds

or

2) there was an offer made for the company

Nonetheless, there very existence means that the published market cap is very misleading, for example if you own 1% of the shares, you do not effectively own anything like 1% of the company

[gerty36] 31/10/2003 11:45

Now top of the leader board!!

[thumbtwiddle] 31/10/2003 11:25

timbo003

why would bonds convert now?

[gerty36] 31/10/2003 11:22

30p is a distinct possibility here!!

[timbo003] 31/10/2003 11:01

Barts

Maybe

My point is the published market cap is very misleading, what would the market cap be if all the bonds were to convert? In excess of £10M I suspect.

[barts] 31/10/2003 10:50

timbo003

Don't you think that this has been priced in already?

gerty36

Well done. Got in this morning as well. Have been watching this on the monitor for several months now but could not release funds quick enough to get a good price. Oh well - thats trading for you.

[timbo003] 31/10/2003 10:39

Do not be fooled by the market cap, there are shed loads of convertable bonds issued to the "concert party", when they convert shareholders will be massively diluted, I cannot remember all the details, read the last 2 years RNS statements to get up to speed on the extent of the dilution.

[gerty36] 31/10/2003 10:33

barts
well i got in early this am
but am seriously considering more a lot more

[barts] 31/10/2003 10:17

Come on people - where are you???????????

Turnover of this company £53 million
Shares in issue - 7.93 million

Market Capital £1.37 million!!!! I REPEAT £1.37 million

Even if they issue more shares, this will still be seriously undervalued!!!!!

Papers say that: major refinancing and new management expected soon!!!!

IMHO this is a great recovery play!

[barts] 31/10/2003 10:06

gerty36 - have you bought any?

Following RNS posted on 28th October.
I also can't beleive that the lack of interest on this BB.

Looking for 30p short term!

RNS Number:4123R
Carbo PLC
28 October 2003

FOR IMMEDIATE RELEASE 29 October 2003


Carbo PLC
("Carbo" or "the Company")
Interim Results


The board of Carbo announce that the interim results for the six months ended 31
July 2003 will be released on Friday 31 October 2003.

[gerty36] 31/10/2003 09:45

barts results due today?
arent they normally posted first thing?
also cannot believe the lack of interest on the bb

[barts] 31/10/2003 09:11

Positive press comment. Results due out today. Weekend press coming up.

What price could this reach over the next few days??????