Danakali Share Discussion Threads

[zedder] 19/5/2004 14:38

Just took 3180 shares at 48p. No massive sell off in the US and it may spike up after the Conference Call.

[zedder] 19/5/2004 14:24

Just watch the price move down towards $3 and watch the volume increase as it does, as the Institutions fill their boots.

[zedder] 19/5/2004 14:22

It's all smoke and mirrors. Revenue has stabilised as they predicted, now when the cost savings trip in fully and the exceptionals stop after the latest headcount reduction, suddenly Danka will be making money hand over fist. The research note I have from just after the Q3 results predicted EPS in the current FY of 50c. Nothing today has blown that prediction out of the water.

[zulu001] 19/5/2004 14:19

Verdict: must try harder.

[serious punter] 19/5/2004 14:18

Thanx Zedder

I'd hold off for a while, you may get them cheaper after the septics have had their initial play.

[zedder] 19/5/2004 14:18

Well I've sold RTS in my ISA for a 14.4% profit in a month. If the price drops when the US starts trading I'll definitely be topping up.

[zedder] 19/5/2004 14:14

One pre-market trade of 2000 at $3.40. See the NASDAQ site (the link is too long):

I've got some other info from the archipelgo.com site, go to the Book and put in DANKY.

They seem to be mulling things over still 500 Bid @ $3.10, 2100 Ask at $3.50. I suspect they are waiting on the Conference Call. I'm kicking myself I didn't buy more in my ISA when they were available at 46p. I'm mulling whether to get some at 48p.

[serious punter] 19/5/2004 14:07

Hi zedder

I'll see how the septics react to these number before getting in again. Have you got L2 realtime for across the pond, mines not working for some obscure reason?

[easytimes] 19/5/2004 14:02

The loss of revenue is a bit more of a concern to me especially in their 4th quarter:

"Danka's fourth-quarter revenue was £185.5 million, 16.4% lower than the year-ago period and 4.4% below the third quarter. Adjusting for currency exchange,
revenue was 11.3% lower than a year ago. Within that total, retail service
revenue was £86.6 million, 18.7% lower than the year-ago period and 5.5% lower
than the third quarter. Revenue from retail equipment and related sales, which
include software and professional services, was £68.0 million, a 14.2% decline
from the year-ago quarter but 1.2% higher than the third quarter."

The positives are a reduction in debt, the negatives a reduction in revenue and margins. Still looks like a long term recovery play to me. The statement seemed to echo caution but progress being made in the right direction IMHO.

[zedder] 19/5/2004 13:41

Free cash flow for the fourth quarter was $18.5 million. Significant cash items in the quarter included net working capital contributions of $12.0 million, cost restructuring expenditures of $8.7 million, and capital expenditures of $7.5 million. The Company's cash balance increased by $7.7 million, to $112.8 million.

Gross debt at year-end was $244 million and Net debt at year end was $131.2 million, a 13.3% decrease from the end of the prior fiscal year.

[zedder] 19/5/2004 13:39

Don't know why the results aren't out over here. They are out in US:



Revenue bang on my $343m estimate

[nwmadden] 19/5/2004 13:34

Here we go, here we go, here we go ...

[geng] 19/5/2004 13:29

Hey Zedder - how are you?

Agree with other posters there has been some serious accumulation over the last month 60p then not long after a £1.

[zedder] 19/5/2004 12:31

Just bought 5000 at 47.89p, could well turn out to be a spin--of-the-wheel type day trade as I've got plenty of other DNK as more of a long-term thing. However, the company have been consistently touting significant costs savings starting this quarter, although some of the benefit may be obscured by one off redundancy (exceptional) costs. I'm confident that with no major shock in the results these could easily fly back up though $4 stateside.

Looking for revenue approx $343m
Gross profit approx $130m
Cash EPS of 9c

Dice gets spun at 1-30pm

[nwmadden] 19/5/2004 11:32

Hope you are right Sharareh! BTW has danka.com folded under the presure of people wanting to listen to that conference call? It's disapeared from my radar screens here. :)

[sharareh] 19/5/2004 11:26

We will see breaking 60p this afternoon!

[sharareh] 19/5/2004 11:25

We will see breaking 60p this afternoon!

[nwmadden] 19/5/2004 09:39

Could the drop to 48p be the markets artificially lowering the price to fleece anyone who bottles it and jumps out at the last minute prior to the results coming out this afternoon?

[clairvoyant1] 19/5/2004 09:19

zulu
how do you see results today,are you short or long,anybody know about oaklandsway,is he about.

[latifs100] 19/5/2004 08:23

fallen to 48p, any bad news expected? results out at 2pm.~?

[nwmadden] 17/5/2004 15:44

RNS:


Danka Sets Fiscal 2004 Fourth Quarter and Year End Financial Results
Release Date and Conference Call

Danka Business Systems PLC, a leading independent global provider of office
imaging systems and services, will release its fiscal year 2004 fourth quarter
and year end financial results prior to market open on Wednesday, May 19, 2004,
and will have a conference call at 3:00pm UK time (10:00am EDT) that day.

To participate in the conference call, please dial in 5-10 minutes before the
start of the call and follow the operator's instructions. U.S. and Canada
callers please dial 800 299-9630 and UK and International callers please dial +
1 [phone]. When prompted, please enter passcode 41813268. The live audio
broadcast of the call also can be accessed from Danka's web site at
www.danka.com.

If you are unable to join the call, a replay will be available at Danka's web
site approximately two hours after the call ends. To listen, please go to
/www.danka.com and click on Investor Relations. A replay of the call also may be
accessed via telephone; U.S. and Canada callers may dial [phone] and UK
and International callers may dial [phone]. You must also enter the
passcode 31905237. This playback will be available until 10:00pm UK time (5:00
p.m. EDT) on Wednesday, May 26, 2004.

[zulu001] 16/5/2004 12:26

Roll on Wednesday.

[easytimes] 06/5/2004 22:00

The outsourcing of IT will not save them any money not if it is being managed by IBM as they'll be looking to charging out additional work outside the SLA, consultants, project management etc etc. IBM are certainly not cheap but will provide a quality service and of course they're a global service provider. The numbers in the RNS indicate a fixed cost service but these types of contracts never work out that way I'm afraid - this is the reality.

[mjele1] 05/5/2004 13:53

Not doing too bad today following the outsourcing announcement !
Wonder whether there will be any upside in the States.

[johnymac] 05/5/2004 13:47

The rns today about outsourcing their IT infrastructure has some very positive statements by the new CEO Todd Mavis.

"we remain optimistic that we can achieve our previously
announced goal of more than $50 million in annualized cost savings by the middle of our 2005 fiscal year"

"We also continue to work diligently on implementing our previously announced cost reduction plan as well as identifying additional reductions to help us achieve our SG&A goal of 30% of revenues."

"Outsourcing the infrastructure requirements to IBM will generate annual savings of up to 20 pct compared to our current costs for completing these same tasks in-house"

One day soon this one is going to fly. Maybe sooner than we think, middle fiscal year 2005 is september sometime.