Danakali Share Discussion Threads

[miata] 04/2/2004 14:07

Danka Business Systems PLC (Nasdaq:DANKY) today announced results for the three and nine month periods ended December 31, 2003. The highlights for the quarter reflect:
-- as expected, the company delivered substantially improved
overall operating performance versus the first two quarters,
-- an increase in cash of almost $7 million during the quarter,
after interest payments of approximately $13 million, and
-- significant progress in the implementation of its
restructuring plan, resulting in lower SG&A.

On December 12, 2003, the company announced the initial phase of a cost restructuring plan that is expected to provide total annual savings of approximately $40 to $45 million, primarily resulting from headcount and facility reductions. As a result of the employee severance and related costs, and the costs associated with the facility reductions, the Company took a restructuring charge of $20.0 million in the quarter. In addition to the plan announced on December 12, 2003, Danka will take immediate additional steps designed to further reduce costs. These further reductions will be focused in all segments of the business and are expected to result in an additional restructuring charge ranging from $20 to $25 million. These actions are expected to provide additional annual savings of up to $11 million when fully implemented.

[johnymac] 04/2/2004 14:05

They were ebitda positive and they have reduced their debt, and they have 58mill cash.
So could have been a lot worse, the turnaround story continues.
Hopefully these results are written into the price.

[kobetailovers] 04/2/2004 13:53

What's a polite english way to say these guys are screwed? lol

See you on the u.s yahoo board.

[zedder] 04/2/2004 13:52

Not to my reading of it. Revenue Q on Q down from $353m to $331m. If that keeps up, all the cost savings will do is mean they keep losing or maybe just about breaking even.

[serious punter] 04/2/2004 13:51

Hi Cinoib

Not in DNK currently, was waiting for results. My computer is playing up but I gather pre-market across the pond is down. I'll sit on the sidelines still. Sincerely best of luck to holders

[cinoib] 04/2/2004 13:48

Looks like an acceptable improvement in this 1/4.

[zedder] 04/2/2004 13:27

Eyes down watching. Results very soon.

[zedder] 03/2/2004 15:32

UK price is now at a discount to US. Think I'll grab 1500 quids worth now.

[zedder] 03/2/2004 15:31

The Thomsonfn web-site that generates some of the pictures in the header has been shut down. A great shame, as it would have been very useful for tomorrows action.

[zedder] 03/2/2004 15:27

The action in the US smacks of the MMs trying to shake out a few holders before tomorrow. The volume has been very light, yet the price is down about 3%. If the UK MMs drop it any more (49/52p as I type), I'll be very tempted to take a partial top-up today. I'll save the rest of what I just raised by selling a few stocks in order to be able to buy on any significant drop tomorrow. I still think this will be 85p+ before the end of 2004.

[latifs100] 03/2/2004 15:20

ppl bailing out b4 results, holding from 60p

[zedder] 02/2/2004 17:24

Q3 results to be released before US Market opens on Wednesday:



Fingers crossed!

[johnymac] 01/2/2004 18:45

A nice DNK ramp on the yahoo board, but he seems to be talking sense.



We shall know soon enough, next results should be out soon.

[lowtrawler] 30/1/2004 15:47

UK price has moved way out of line with the US today. It is trading at 56.6p equivalent in the US but you can buy in the UK for under 54p. I have taken the opportunity to pick up another 10k.

[zedder] 26/1/2004 18:54

Looks like $4.12 (56.4p at $1.82 exchange rate) is a very strong floor in the US today (see thread header).

Jay on the Yahoo board was offering to e-mail a pdf file which was a recent Craig-Hallum report:



I took him up on the offer and it is a very worthwhile read. Price target is $7 (approx 96p!).

[lowtrawler] 26/1/2004 15:13

Danky sitting around $4.21 shortly after opening. Looks like the price gap has narrowed to about 1p. looking at the US BB's, a lot of holders expect $5+ this year. I think we will see $4.50 in the next few weeks.

[lowtrawler] 24/1/2004 23:36

Yes, there was a late 6 cent surge in the price. At current exchange rates, it puts a value of 58.5p on the shares. However, the UK has been trading at a 1-2p discount to the US price for a little while and late surges tend to reverse the following trading day - better to use $4.20 as an indicator and this gives a price of 57.7p - apply the 1-2p discount and the UK should open at 56p on Monday.

[miata] 23/1/2004 21:17

Danky closed up at $4.26.

[zulu001] 19/1/2004 11:05

Part of the reason may be because most of Danka is held by American shareholders and Americans can take their profits in their new tax year as (low-taxed) capital gains. Gains on their shares held for less than a tax year are subject to income tax (roughly double the rate). Thus even though they may have wanted to spend the cash or seen a better opportunity they would not sell until the New Year. This concept also leads to buying just before the end of a tax year.

[lowtrawler] 19/1/2004 10:46

Why did DNK retrace from the 60's? It looked to have good forward momentum and then suddenly stopped.

[zulu001] 19/1/2004 09:09

Interesting that GS&Co now hold 7,576,040 shares - over 3% of the
Company's issued Ordinary Share capital.

[zedder] 17/1/2004 19:34

Majic,
My target is $7 for DANKY before the end of this year. That would be about 96p at current exchange rate. If the $ strengthens again to say $1.75, then a pound it just might be!

[majic] 17/1/2004 18:04

Jonnymac - you cannot be serious!

[johnymac] 15/1/2004 20:58

Well, I am not concerned, as I said before.
Cost Cuts equate to more profit.
A leaner meaner Danka is what is required. Roll on a pound.....

[farmsted] 15/1/2004 10:14

I read concern in the US thread over loss of key personel to competitors, shares down yesterday. Has anyone got any more info