Cradle Arc Share Discussion Threads

[pavey ark] 15/4/2015 13:34

Thanks for the recent links folks.

The interview with the CFO and the Edison report are essential listening/reading for all.

I was shouted at in the past but I did say (repeatedly) that ACI was worth more than the entire market cap on its own, I note that Edison gives it a value of £30m.

Central costs are predicted to fall to £1.3m and the implied fair value given by Edison of 7.3p can hardly be taken as optimistic.

Reading the report I can see a number of places where the figures could be better than those predicted by Edison but it is a very thorough and detailed analysis.

[bullster] 15/4/2015 13:24

Goodbye and good luck for the future, Mr Dashcroft.

We're doing fine now.

[timmbo] 15/4/2015 13:07

Thanks again, everything worked and can download the full report as well, no registration required!

[18bt] 15/4/2015 12:52

timmbo: but you may have to register

[humphries1] 15/4/2015 12:37

timmbo then try this type BRR MEDIA then were it says search type in CORAC

[timmbo] 15/4/2015 12:37

As if by magic a 500k trade pops up!

[humphries1] 15/4/2015 12:31

timmbo i have just tried it no problems

[timmbo] 15/4/2015 12:30

Probably a big buy out there, sells are doing nothing to share price

[timmbo] 15/4/2015 12:29

Humphries1 Not working for me yet,.

[timmbo] 15/4/2015 12:28

18BT Good stuff, do you have a link?

[18bt] 15/4/2015 11:23

A new report by Edison out today - summary as follows:
Corac group is establishing itself as a niche manufacturer of high-precision, technically demanding products for two primary end-markets: Aerospace & Defence and Energy & Process Industries. The strategy to transform from an early-stage R&D developer to a through-life support group is continuing rapidly, supported by acquisitions and demonstrated in a record order book. With market-focused restructuring set to complete in 2015 through recently announced site changes, refocused technology development and the significant licence agreement with Spirax-Sarco, we forecast that the group has a clear route towards earnings break-even by 2016. With the current valuation beneath that implied by A&D and cash alone, we believe this inflection point will provide a catalyst to re-rating.

With Corac yet to transition to profit, P/E-based peer ratings do not reflect the progress achieved. We therefore value Corac on a sum-of-the-parts basis using relative EV/EBITDA multiples. This yields an implied fair value of £30.9m or 7.3p/share. Our approach discounts the EBITDA loss-making Energy & Process Industries segment to zero,highlighting that the current rating is more than
supported by A&D alone. We feel further evidence that the strategy is resulting in contract wins and that cash drain continues to reduce could act as a catalyst
to re-rating

[cerrito] 14/4/2015 13:52

Should also have said I was reassured by the Going Concern Statement

[pavey ark] 14/4/2015 09:56

One of the easiest way for any management to improve things is to stop spending cash.
It is even better if the cash was being spent in an area that was not profitable.
The Gas expander deal in the US looks good for CET, it would do no harm for potential investors/customers to see the Spirax deal, so this could be big but the main point is that with CET producing all the loss it is a bit of a no brainer to make efforts to reduce this loss.

I'm happy with the change of name as it does close the door on the past.
I think that CET will make TP Group money but things have certainly changed regarding the shape of the company.

[propercharlie] 14/4/2015 08:57

Not too bad. with ACI and HTT being steady, the question as always is when will CET turn cash positive? There is a hint that it will be this year.
With the cost restrucuring locations etc we should see a saving on costs over this year
So if HCI and ACI grow at same rate, CET turn cash positive we might see the P&L swing positive.

On CET if it does not deliver the goodies very soon why keep this dragnet in the group. release it and let the remiander sail into positive territory

[cerrito] 14/4/2015 08:15

Good to see that they were true to their word and operating cash flow in H2 was £0.7m
Revenue in H was at £11.8m the highest for any six month period since I started tracking in 2011 but not all that profitable with Gross Profit in H2 being £1.8m down from £2.3m in H1

[pavey ark] 14/4/2015 07:49

Certainly not the sort of share that would appeal to any number of AIM investors but very solid and certainly heading in the right direction.

The company's position is improving not only on a year to year basis but the EBITDA (loss) has improved from £1.4m in H1 to £0.7m in H2.

£250k legal costs in central costs this year and £322k one off "termination costs" don't flatter the accounts.

Hard to be concerned about a company which has over 50% of its market cap covered by cash. (still to look at the cash position in detail)

CET is a very valuable asset and I certainly think that there is money to be made from its intellectual property (God knows enough has been spent getting to this stage)but the simple fact is that without it this is a profitable specialist engineering/defence contractor with a large pile of cash and a growing order book.

[timmbo] 14/4/2015 07:12

Zzzzzzzzzzz Now our name is even boring, 'TP Group PLC'

[timmbo] 14/4/2015 05:42

Let's not forget ' Overall trading is expected to be ahead of expectations with a reduced loss, significantly improved cash position and a growing order book. Discontinuing loss making legacy gas compression projects supports the further improvements expected in financial performance during 2015.'

[timmbo] 13/4/2015 19:29

I think Corac has just lost its Sparkle.

[bossman1978] 13/4/2015 14:58

Tomorrow will be interesting indeed. We could do with a re-rating news

[pavey ark] 13/4/2015 11:00

Strange to see no posts for days and the results out tomorrow.
Only activity in the shares is a small amount of selling.

Given all the updates in the past six months I'm expecting EBITDA to be at or close to break even for the second half but lots of other things to look out for.

Hope to see the cash pile being spent ( wisely) this year as absolutely no value is being given to it at present.

[bullster] 10/4/2015 12:10

As I said, institution swaps, plus pickup on the overhang.

Talos Securities Ltd. 7.36m shares passed onto another institutional investor, new on our books.

TD Direct Investing (Europe) Ltd. picked up the Talos shares and added another 3+m to give them 10.60m shares.

edit.. TD's 3+m was acquired from a few other ii's selling a few, and pi's.
The overall institutional investors percentage share ownership in Corac is up about 0.2-0.3%.

[bossman1978] 10/4/2015 11:41

We only need a hundred more chunky buys.

[timmbo] 10/4/2015 11:40

Now 100k mmmmmmm