Danakali Share Discussion Threads

[zedder] 22/9/2004 16:21

Maybe some signs of life again after their announcement about extending the agreement with Staples.

[chestnuts] 14/9/2004 19:32

Hi every one not looked at DNK for a while but have noticed a giant symetrical triangle forming, but on Nasdaq its a giant ascending triangle are the 2 companys still the same??? as the DNK should bounce from here but danky as a bit to go.
thanks in advance

[johnymac] 14/9/2004 16:54

Anyone any ideas on why the drop in last few days ??
The story is still the same, just taking a little longer for the turnaround to happen.
Maybe people just getting bored with waiting so long for some decent revenue news instead of cost cutting news.

[bertybassett] 07/9/2004 10:57

Thanks zedder

[zedder] 07/9/2004 10:52

From Help, Glossary, Trade Types:

'B' Broker to Broker
A transaction between two member firms where neither firm is registered as a market maker in The security in question and neither is a designated fund manager.

[bertybassett] 07/9/2004 10:35

Been looking at buying back in last few days, theres been a trickle of buys. What is a B buy please anyone?

[bertybassett] 06/9/2004 17:39

Over here!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[blockbuy] 06/9/2004 17:21

where is everyone?????????????????????????????????

[bertybassett] 06/8/2004 10:08

and down they go.....with the rest of the market I know.....time to top up soon.

Yes they need to grow sales and now they have all their engineers on training for the new Canon products lets hope they hurry up! Now they are selling all of the most popular machines on the market, it must be beneficial.

[miata] 04/8/2004 18:34

Could do better. Ok the margins are up but they have got to grow the sales.

[nwmadden] 04/8/2004 13:44

Hmmm, which way now!


Company Danka Business Systems PLC
TIDM DNK
Headline 1st Quarter Results
Released 13:30 04-Aug-04
Number 6169B





Embargoed until: 13.30 4th August 2004

DANKA BUSINESS SYSTEMS PLC
("Danka", the "Company" or the "Group")
- Announcement of Results for the Three months to 30th June, 2004 -

Results reflect improved operating profit, continued maintenance
revenue stability, higher gross margins, lower operating expenses

Danka Business Systems PLC ("Danka", the "Company" or the
"Group"), a leading independent global provider of office imaging
systems and services, today announced its results for the first
quarter to 30th June, 2004 that show operating profit before
exceptional items of £4.3 million, an increase of 64% year on
year. The results reflect a 170 basis point increase in the gross
profit percentage and a 15.6% decrease in recurring distribution
costs and administrative expenses ("operating expenses")
including a foreign exchange benefit of 7.1%. Although total
turnover declined over the prior year, retail maintenance
turnover was in line with the previous quarter after adjusting
for foreign exchange.

During the first quarter:

* Total turnover was £171.8 million, a 16.7% decline from the
comparative prior-year quarter. Most of the decrease was related
to lower retail equipment and related turnover, which was
affected by a continued focus on higher gross profit and the
underperformance of certain geographic segments of our business.
Adjusting for currency exchange, total turnover declined by 10.1%
year-over-year.

* Retail maintenance turnover was £87.2 million, 15.0% lower
than the comparative prior-year quarter. Adjusting for currency
exchange, retail maintenance turnover declined by 7.9% year-over-
year. On a sequential basis, retail maintenance turnover
increased by 0.7% and was essentially flat when adjusted for
currency exchange.

* The digital portion of Danka's overall equipment base
increased to 58%.

* The gross profit percentage was 38.4%, an increase of 170
basis points from the comparative prior-year period and the
highest rate in eight quarters. The improvement was due to higher
gross profit rates in both the equipment and maintenance lines of
business.

* Recurring operating expenses were £61.7 million (35.9% of
revenue), 15.6% lower than the comparative prior-year period.
Adjusting for currency exchange, recurring operating expenses
were 8.5% lower than the comparative prior-year period.

* Operating profit before exceptional items was £4.3 million,
63.8% higher than the comparative prior-year quarter.
Exceptional items in the current quarter were charges related to
the previously announced restructuring of the Group's operations
(in the comparative prior-year quarter, the results benefited
from the release of certain restructuring reserves).

* The loss for the quarter was £0.5 million, compared to a
£1.3 million loss in the comparative prior-year quarter. After
the financial costs of non-equity shares, the current quarter
basic and diluted EPS was a loss of 1.2 pence per share, compared
to a loss of 1.9 pence per share in the comparative prior-year
period. Adjusted basic and diluted losses per share were 1.0
pence per share (losses of 2.1 pence per share in the comparative
prior-year period).

"Our renewed profit focus for fiscal year 2005 yielded success in
the first quarter," commented Danka Chief Executive Officer Todd
Mavis. "As the Company continues to emerge from its turnaround,
we have increased our focus on improving operating profit. Strong
gross margins and our cost reduction efforts were major drivers
of improved operating profit this quarter. In addition, we are
pleased with the continued retail maintenance turnover stability.
This is particularly encouraging as we continue to refine our
strategy to leverage our services organisation as a foundation
for growth and profitability. Our strategy was again validated
this quarter by the progress in our Danka @ the Desktop connected
solutions and TechSource, multi-vendor service initiatives.
Furthermore, we believe this strategy will fuel demand for our
equipment solutions."

Cash usage for the quarter was £14.6 million, due in large part
to the funding of the cost restructuring and the Group's bi-
annual debt service payments which occur in the first and third
fiscal quarters. "In addition to the interest payments on our
debt, we used £4.6 million in cash to fund operational cost
savings which is part of our prior year cost restructuring plan,"
said Danka Chief Financial Officer Mark Wolfinger. "Notably we
are experiencing the benefits from our cost restructuring, and
have realised almost all of the cost savings in our financial
results. Moreover, a dedicated team of senior Danka executives is
performing a comprehensive review of our business processes to
identify additional cost savings opportunities. I am confident
that, as we begin implementing the recommendations of this team,
we will reduce operating expenses further."

"We are focused on building momentum as the fiscal year
progresses," concluded CEO Mavis. "Although the second quarter
traditionally is our seasonally slowest period of the year, we
believe our focus is on the right priorities. These include
maintaining stability in our maintenance business, improving our
equipment sales execution, achieving cost reductions, generating
positive free cash flow and leveraging our improved
infrastructure to gain additional efficiencies and improve
customer satisfaction further."

Conference Call and Webcast

A conference call and Webcast to discuss Danka's first quarter
results has been scheduled for today, Wednesday, 4th August, at
15:00 U.K. time. To access the Webcast, please go to
www.danka.com and click on Investor Relations. To participate in
the conference call, callers in the United States and Canada can
dial [phone]; UK and international callers should dial +1
(617) 786-4501. The conference passcode is 86827808. A recording
of the call will be available from approximately two hours after
it is completed until 22:00 U.K time on Wednesday, 18th August.
To access this recording, US and Canada callers may dial (888)
286-8010 and UK and international callers may dial +1 (617) 801-
6888 using conference passcode 89408179.



For further information please contact:

Danka Business Systems PLC
Donald Thurman, Danka Investor Relations 001 770 280 3990
Paul Dumond, Company Secretary 020 7605 0150

Weber Shandwick Square Mile
Katie Hunt/Helen Thomas 020 7067 0700

[nwmadden] 28/7/2004 15:07

RNS Number:3206B
Danka Business Systems PLC
28 July 2004

Embargoed until 15.00 28 July 2004

Danka Business Systems PLC
("Danka" or "the Company")

Danka Sets First Quarter 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 first quarter financial results
for the three months ended 30th June, 2004 prior to US market open on Wednesday,
4 August, 2004, and will have a conference call at 3:00pm UK time (10:00 a.m.
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 [phone] and UK and International callers please dial
[phone]. When prompted, please enter passcode 86827808. The live audio
broadcast of the call also can be accessed from Danka's web site at


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
and click on Investor Relations. A replay of the call may
also 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 89408179. This playback will be available until 10:00pm UK time
(5:00 p.m. EDT) on Wednesday, 18 August, 2004.

- ends -

[kobetailovers] 25/7/2004 09:21

Miata,with only two posts in the last month (both being yours),It looks like interest in this company is long gone.

Danka seems to have taken corporate restructuring to a new level with no end in sight.

I'll keep trading danky as opportunities arise but as far as any investment is concerned,better look elsewhere.

[miata] 23/7/2004 15:38

Xerox reported earnings of 21 cents per share and it raised full year earnings expectations.

Xerox results were strong and it forecast an increase in 2004 profit to "at least 80 cents per share" against expectations of 73c - its shares rose sharply .

Danky held firm against a weak US stockmarket.

[miata] 19/7/2004 10:24

The Danka shareprice can be affected by Xerox's results. Xerox is due to report on Friday (23/7/04). Earnings are estimated at 17 cents.

[blockbuy] 28/6/2004 13:01

afternoon all........just doing the rounds...........

any news????

[lowtrawler] 24/6/2004 23:31

I did. Sold all 65k last week (18th).

[bertybassett] 24/6/2004 02:14

HI Lowtrawler, did you sell then?

[lowtrawler] 23/6/2004 13:59

berty

I agree with all that you say and think the current management have performed an excellent job in turning them around. I am not saying that they are over-valued, only that they are fully valued. If I am correct, there seems little point in holding. I can't see the UK being sold. However, there are still too many traps for DNK to fall into for me to be comfortable holding. The risk / reward balance is not right.

[bertybassett] 23/6/2004 11:23

I am happy to hold (for now) as I was in a while back so still good profit.
It could well be a while before things are straightened out I agree but there is now a stronger management team which is making changes, Danka can't be wrong to admit they have the worse costs but are now addressing them? This will inevitably be to the benefit of shareholders (and staff) be it to take a while. The sales team have changed as the payment system was detrimental to the company and new measures are now in place.
The technical services deal with HP is a positive step and the adding of the Hitachi print system to there range is excellant news. They are focusing on reducing their overheads/costs and the above measures would not appear to be the actions of a company selling up. (and I have it on good authority they they have no intentions of doing so but I suppose you can never be sure)

[easytimes] 21/6/2004 19:39

Gunnergonk - always good to have inside views, when their results were released they gave the UK and Canada a brief mention blaming their market performance for taking the gloss off of their results. Looks like they are in need of some serious restructuring which will require further funding, to ignore these markets will certainly affect confidence with investors. I believe they will follow the route of many large companies with tight margins - contract out all of their customer services staff as well as their in-house IT. I've already sold as it is clear to me that the turnaround will take a few years yet and market sentiment is so low at the moment with recovery plays and small caps that my position is one of consolidation (great shame really).

[lowtrawler] 21/6/2004 17:35

gunner

Thanks. It reinforces my decision to sell. Worrying times still ahead.

[nwmadden] 21/6/2004 16:18

Thanks gunnergonk, very nice having the views of someone with first hand experience of Danka.

[gunnergonk] 21/6/2004 16:08

sorry havent looked for a while.
low>
1) desperate, danka are trying to save money penny pinching all the wrong areas.
2)the uk have just been told we are the largest loss making section over the last 12 months.
3) the system cost somthing ridiculous and can only be used in the states. pointless.
4)no confidence in upper managment at all, it keeps changing and when they produce poor results they get changed for the next lot.

we have no sales people anymore so sales are non existant. they all left because the commision structure was changed too save danka more money, this didnt work because all of sales walked out and never came back! so now we dont sell anything. more redundancies of engineers has meant a growing work load which as i am an engineer who hasnt had a pay rise for 5 1/2 years i will be off soon. customers are leaving in droves as we havent got the resoures to carry out the work properly, customers ive known for 14 years just cant put up with it any longer.

[lowtrawler] 18/6/2004 09:03

I have been performing some more research on Danka and have encountered a serious oversight on my part (and I believe on the part of many others). Most observers have grabbed the headline that Danka net debt is now only $130m (gross debt of $240m less cash of $110m). However, this net debt figure excludes the preference share debt of $280m. Counting this in, net debt is actually $410m. The preference shares have to be redeemed by 17 December 2010.

The current market capitalisation of Danka is $300m, giving an overall enterprise valuation of $710m. To justify that enterprise value, Danka needs to be generating around $60m of after tax income – around 5% of turnover. It certainly has the ability to generate around $35m this financial year and could increase this to $60m in later years, but it provides little room for upside. In other words, after tax profits would have to be better than $60m on a consistent basis to justify a shareprice of over $5.00 per ADR.

In view of this, I have today sold my entire holding of 65k shares.