Direct Line Insurance Share Discussion Threads

[deanforester] 09/11/2007 17:06

Read this bit:

Delling is only taking the staff and customers of Hennix,
who will be integrated into Delling Expo, and not the fixed cost base. Therefore
the contribution to the pre-tax profits of Delling is expected to exceed
#100,000 per annum.

[byroneck] 09/11/2007 09:43

Not sure why it was sold so cheap, but they have claimed that the impact will be over 100k of profit to what is looking like a fully profitable company.

Really starting to like the look of this company and am farm more comfortable with my shares than I was a few months back.

[james t kirk] 09/11/2007 08:17

Is still begs the question if the company makes £100k, why sell for £160k? There must be some large debt that accompanies deal..

[jimcar] 09/11/2007 08:08

This is what they said in the interims

"The Board and management have decided that our
acquisition programme will temporarily cease, apart from small infill
acquisitions that will have a short term identifiable impact on margins"

So the aquisition probably fits the criteria - provided no nasty surprises

[james t kirk] 09/11/2007 08:00

I thought that too - but why have Hennix sold themselves so cheap - what's lurking in the accounts we haven't been told?

[keifer derrin] 09/11/2007 07:19

I thought they weren't going to buy anymore companies until they had sorted out the intergration of the other purchases.

Mind you all extra monies for profit it fine by me...

[stacks] 06/11/2007 11:41

Amazing how much the price has moved since the update on next to no volume. Seems to be good support at this level so can only see it rising from here. 7p to buy and company turning a profit.... seems to be a good entry level.

I have added since the pull back but was unfortunate yesterday to not get in below the 6.5.. someone got a bargain there before I could snap it up!

[argy2] 05/11/2007 17:57

Maybe a Whingerfrith ramp on the way?

[76tom] 05/11/2007 17:24

interesting, I guess it is turning upward now.

[alfieduncan] 26/10/2007 10:50

Interesting movement on the bid side.Smallish buys and MMs readily willing to pay more.Not many sellers at these levels so,MMs, still short of stock I presume.Should go up rather than down.General market willing of course.

[james t kirk] 25/10/2007 07:15

A small buy yesterday and share drifted, but the long term future looks excellent. We'll probably get a Friday 1pm boost from the favoured website, but I think this is a good share to tuck away now - hopefully..

[ph1ts] 24/10/2007 21:33

Good, 'cos that's what I paid for them!!

[loganair] 24/10/2007 08:58

Today the share price is drifting back. I already hold a few and intend to add more as in the next few years as profitabilty comes through and they start to pay a dividend I can essily see a 200% plus increase in the share price from here.

[stacks] 23/10/2007 11:02

At last. It was just a matter of time! Just kicking myself for having not picked up more yesterday at what were super cheap prices.

[tsmith2] 23/10/2007 11:01

offer jumped 1p!! - mms caught very short indeed

[alfieduncan] 23/10/2007 10:54

I think we can say,with a fair amount of confidence,that the MMs are abit short of stock.I`m thinking of getting some more!

[alfieduncan] 23/10/2007 10:45

tsmith2 hi, who are you quoting in your post 1021?

[argy2] 23/10/2007 10:05

One day you are going to call this one right!

[tsmith2] 23/10/2007 10:00

L2 anyone - buying pressure building

[tsmith2] 23/10/2007 09:41

15th July 2007


The fixed costs base is being aggressively reduced so operational gearing will really kick in - potential a multi bagger

Delling


Key Data

EPIC
DLG

Share Price
8.25p

Spread
8p – 8.5p

NMS
10,000

Total no of shares
166.00 million

Market Cap
£13.695 million

12 Month Range
7.125p – 12.75p

Market
AIM

Website
www.dellinggroup.co.uk

Sector
Media

Contact
Aksel Bratvedt 020 7484 5663


On 25th June, Delling announced its results for the year to 31 December 2006. There were few surprises following the profits alert on April 24th. Turnover increased to £10.46 million from £5.30 million in the previous year. £3.41 million of those sales were generated by acquisitions made by the company during the period. While gross profits increased substantially to £4.425 million-from £2.876 million, a sharp rise in overheads meant that the group operating loss almost doubled to £5.203 million. £1.90 million emanated from losses relating to the acquisition of Eckerud in Scandinavia.

Since the year end, net equity within the group has increased by way of a share issue, raising £1.523 million. We estimate that this has boosted net equity to £2.333 million. Since the year end, £850,000 of short term debt has been converted into long term debt.
A strategy of growth via acquisition is now working alongside cross selling between the various operating units within the group. The Delling management continues to take out costs and believes that, having reached what it deems to be a critical mass, its potential for cross selling is greatly enhanced. The company believes that within the Scandinavian region, its role remains as a primary consolidator. It claims that there is a universe of around 200 possible target companies all of which are within financial reach and are all in various phases of development and gestation. A number of one-off issues have now been addressed and trading so far during the current year shows clearly that this is a company which is now growing both its sales and profits rapidly.

In 2006 Delling suffered a 'missed' year in terms of profitability but current trading is strong and, sales are expected to increase from £10.5 million to £22 million for the year ended December 31st 2007 and to around £35 million in 2008. Given that fixed central costs are already covered by operating profits, operational gearing should kick in during the current year when we forecast that Delling will achieve £1.0 million pre-tax profits, rising to £4 million in 2008. That equates to forecast earnings of 0.66p and 2.38p respectively. A 2008 price earnings ratio of 3.47 and price to sales ratio of 0.39 is far to low for what is now 2008 earnings' value the stock at just under 3.0x- clearly too low if these numb growth stock. Our target price remains 34p and the stance is buy.

[alfieduncan] 23/10/2007 09:28

Well I haven`t had a go at these since last march.First in around Aug 05.My head says north.My gut says north.My heart is almost broken.Call me an old romantic but I`m falling in love again and bitten off 50 at 6.584p.

Onwards and upwards

[james t kirk] 23/10/2007 08:46

Online limits

Buy 50k @ 6.85p
Sell 50k @ 6.81p

Tight!

[tsmith2] 23/10/2007 08:07

absolute cracking news - should drive a re rating

looks like at last the acquistions have all been bedded in and synergies are kicking in. GE C&R should have an update on the stock


at 10p the shares would be trading on a 2008 multiple of ~ 5 far too low, but thats where we are going very very shortly before the move onwards