Eleco Public Share Discussion Threads

[ansc] 15/6/2010 11:56

I'll second that sentiment, rathkum, have you managed to buy-in at you targeted price yet?

[rathkum] 15/6/2010 11:48

I am sure there is one coming and hopefully makes good reading

[ansc] 15/6/2010 11:38

There was a trading update issued on 3 June last year. I wonder if there will be one forthcoming this time, we could certainly do with something!

[ansc] 07/6/2010 12:03

Had a quiet weekend so amused myself by scanning through my first ever ELCO Annual Report - 1999. What a changed beast! Just as a flavour: turnover then of £26.9 mil [including £2.1 mil from the long-gone Rail & Marine sub] (last year £70.6 mil); shares in issue 38.6 mil (now 60.7 mil); shareholders' funds £6.57 mil (now £21.57 mil); debt £502k (at 31 December '09 £2.1 mil); employees 264 (now 605); chair's salary £131k (now £350.8k); Mr K's shareholding 2,228,706 (now 7,569,255).

More importantly for investors perhaps, the share price was hovering around the 20p mark (if my memory recalls correctly) which is not much less than today's quoted 24p. The construction industry is well known for its cyclical nature so, come the inevitable upturn/recovery, is this the right level? My buy this morning indicates my feelings!

[gengulphus] 28/5/2010 12:44

I've taken a look at yesterday's trade lists, both the two for AIM that can be obtained from ADVFN's "Trades" page and the one on PLUS Markets ( no longer obtainable on ADVFN's "Trades" page, but it can be seen on ). Comparing with the intraday chart, it's clear from the timing that the price ticked up on the PLUS Markets trade, whose price is high enough to very plausibly be a buy. The two AIM trades look like sells - it's possible that they're buys on the wrong side of the spread, but it doesn't look particularly likely to me given their timing and volumes.

My guess would be that this is a matter of there being multiple market makers / RSPs who were generally somewhat hungry for stock at the start of the day, but not quite hungry enough to raise their prices. The 8000-share buy on PLUS Markets went to the one who had the lowest offer price, and so probably the lowest bid price as well, and increased their hunger enough to trigger them into raising their prices - and their bid price rising caused the market price to tick up. If the sells later in the day had gone to that same market maker / RSP, they might well have lowered their prices again - but at a guess, they went to other market makers / RSPs who were happy to absorb them, reducing their hunger for more shares but not by enough to make them eager to get rid of shares and so cause them to lower their prices.

I emphasise that that's all guesswork - it's a reasonable explanation of the sequence of events, but there are almost certainly other viable explanations!

Gengulphus

[ansc] 27/5/2010 21:32

A touch of inverse reaction in respect of the share price today, sales easily outnumbering buys yet again (as has been the case during the last few days) but the price firms slightly. Weird unless I've missed something meaningful along the way.

Buyers beware by the look of it.

[rathkum] 14/5/2010 11:02

I met John Kettley several times when attending company AGM's and held him in very high regard and that was one reason I invested heavily in Eleco. He did a wonderful job at Eleco turning the company around that ended up paying a very decent dividend.Management, management.........

I have no doubt he will do the same again. If we avoid a double dip, whatever that means then this company's recovery will be very rapid. That is why I kick myself for missing a golden opportunity to get in at 24p.

[ansc] 14/5/2010 10:13

A very reasonable suggestion, rathkum, I've been pondering that very point myself. ELCO have been a well run unit for quite some time and they're not the only construction company who've struggled in recent times, the majority are in/have been in exactly the same situation. Allowing for the fact that they are now even leaner thanks to the cutbacks forced on them because of the recession, ELCO would be a snip (and a terrific acquisition) for any of the majors even at double their current market valuation.

[rathkum] 14/5/2010 10:01

ansc-missed the boat. Set a limit of 23.5p with my brokers but unable to buy the quantity I was looking all for the sake of 1/2p. Stupid really on my part. Still looking for an entry point.

However I hold Alumasc (more for the dividend) which has many similarities with Eleco on the construction/building side of the business. Could they bid for Eleco one day? I wouldn't discount that.

[ansc] 13/5/2010 10:41

Another point worth consideration is, with ELCO involved with 'affordable housing', how much effort will this new government(?) put in to stimulate this sector; despite much fanfare by the last lot, not a great deal appeared to happen.

Have you been buying this morning, rathkum, and caused this surge? I'm in profit already!

(lol)

[rathkum] 12/5/2010 17:52

Thanks ansc.Appreciate your response.

I first bought in (1993?)when Kettley took over and it is credit to his skills that he turned around this company when it was in dire straits. Turned out to be one my best investments

[ansc] 12/5/2010 17:14

rathkum - According to the Interim Report, there was an IPR dispute - the ownership and rights of software - in connection with the German connector plate business which caused disruption and, as a result, loss of profitability. I quote:

'Certain matters came to light in the period under review, regarding certain actions allegedly taken by the management of a competitor in collaboration with some of our own German employees. These alleged actions, which came to our attention as a result of an extensive internal forensic investigation into our systems, have been seriously detrimental to our business under review. Those employees and members of the management of our business who are alleged to be involved have since left our company and have now joined this competitor.

Having regard to the material adverse effect on our business of the alleged actions of those allegedly concerned, we were strongly advised to refer this matter to the Public Prosecutor in Germany for preliminary investigation under German Criminal Competition Law and we duly did so. We understand the Public Prosecutor has since instigated premises searches at the offices of our competitor as well as a house search at the home of at least one of our former employees and that the investigation continues. However, we are not in a position to make any further comment on the current status of that investigation at this stage'

I hope that helps.

[rathkum] 12/5/2010 15:01

ansc-can you eloborate on this German court case. Is that why it is dipping?
I am looking to get in myself now that it fallen to an attractive level

[ansc] 12/5/2010 14:35

At 22.8p, I couldn't resist having a small punt on one of my old favourites this morning.

OK, we know this year's results are going to be pretty diabolical but ELCO have always been a well run unit - JK is no mug - the economy has supposedly bottomed out so construction should start to pick up and, who knows, there is a 50:50 chance that the German court case could be decided in the company's favour.

All in all therefore, worth a little dabble (imho) if locked away for a couple of years.

[rathkum] 09/3/2010 12:38

Agree, alarm bells ringing

[robert1983] 09/3/2010 10:20

time to forget about these and come back in a few years!

[ansc] 26/1/2010 11:47

Not when someone is prepared to buy 100k @ 38p!

[rathkum] 26/1/2010 09:51

Very tough outlook, share price may come under further pressure.

[ansc] 26/1/2010 09:15

As bleak as feared but not the end of the world:

Eleco plc ("Eleco" or "the Group") - 26 January 2010

Trading update

The Board of Eleco, the specialist provider of Building Systems and Software to
the construction industry, issues a trading update for the six months ended 31
December 2009 in advance of its Interim Results which it expects to release on 5 March 2010.

The Building Systems Division continues to experience tough trading conditions,
evidenced in particular by the deferral both of order confirmations and site
start dates in the precast concrete businesses, due in a number of instances to
difficulties experienced by customers in arranging appropriate bank financing
for their projects. The overall order book held by the Building Systems Division is similar to this time last year and it is not yet experiencing an upturn. Margins also remain tighter than anticipated. In addition, operations on site in November and December were affected more than usual by severe adverse weather conditions and this continues into January. In response to these challenging market conditions, the Division has implemented further cost reductions.

Bell & Webster Concrete gained its first two contract awards with a combined
order value of GBP9.3m for projects in the custodial sector, for which its Rooms accommodation system is particularly well suited. These orders will begin to benefit trading in the second half of our financial year.

The Timber Engineering companies serving the housing market have noted a gradual and encouraging improvement in trading conditions. Results of these companies were, however, impacted by significant legal costs incurred in relation to an ongoing dispute involving our German connector plate business.

In contrast, the Software Division has benefited from a modest increase in
overall sales and a substantial reduction in losses in its visualisation
businesses. The Software companies are also seeing the benefits of improved
coordination and performance management across the Division. As a consequence,
the Software Division is expected to report a significant improvement in its
results and profitability in the first half of the financial year.

The Group's balance sheet remains strong, with net bank borrowings of GBP2.2m.
Cash continues to be closely managed and the defined benefit pension scheme has
now ceased to accrue further benefits for members.

In December 2009, Craig Slater was appointed Chief Operating Officer of the
Group. A comprehensive review of our Group strategy, operations and structure is underway. Capital expenditure is being moderated and concentrated on those
projects that position the Group to take advantage of market opportunities.

Owing principally to the lower than anticipated out-turn of our Building Systems businesses, the Group now expects to report an operating loss for the first half. Current trading indicates an anticipated moderate improvement in the performance of all our operations in the second half. However, the Board now anticipates that the Group results are likely to be below expectations for the full year.

The Board is confident that the measures it has taken to maintain the Group's
sound financial position and its continuing investment in people, projects and
products to maintain the clear competitive edge in the markets in which it
operates will, over time, enable it to recover to its full potential.

[ansc] 25/1/2010 10:14

A trading update was issued on the 27th last year. One would imagine that there is little chance of any good news other than from the software side perhaps. But it should at least indicate whether there is a glimmer of light yet, or any sign of one, in this extremely long, dark tunnel.

[ansc] 09/12/2009 08:21

Not sure if there was a need at the present time:

Eleco Plc ("Eleco") - 8 November 2009

Board Appointment

Eleco Plc announces the appointment today of Craig Slater as a Director and
Chief Operating Officer.

John Ketteley, Executive Chairman of Eleco, said:

"Craig Slater is an experienced executive with particular skills in change
management and performance improvement. He has demonstrated excellent strategic
leadership in companies in which he has been involved as CFO, COO or CEO. This
contributed to significant improvement in their performance in each case and in
shareholder value, in the case of Avonside Group plc, Robotic Technology Systems plc and 4imprint Group plc. He has extensive experience of the building products sector, including the manufacture and supply of branded products and building components.

Craig Slater's appointment as Chief Operating Officer is a welcome strengthening of our management team. My colleagues and I look forward very much to working with him."

Craig Slater said:

"Eleco is financially sound, has a number of respected brands and strong
offerings to the construction industry and will, I believe, be well placed to
take advantage of a recovery in the sector. I am therefore delighted to be
joining Eleco and look forward to working closely with John Ketteley and the
management team."

[ansc] 16/11/2009 12:08

A revamp for the website; very smart.

[investinggarden] 09/10/2009 10:37

Concrete setback hits Eleco

[ansc] 09/10/2009 08:18

I hope I spy a distant spec of light in this long, dark tunnel......

'ELECO PLC ("Eleco" or the "Group")
The Building Systems and Software Group

Preliminary Results for the Year Ended 30 June 2009

Group Highlights
* Turnover declined by 16.9% to GBP70.6m (2008: GBP84.9m)
* Group trading profit declined to GBP119,000 (2008: GBP8.02m)
* Loss before tax of GBP1.43m (2008: profit GBP8.22m)
* Loss after tax of GBP1.47m (2008: profit GBP6.13m)
* Proposed final dividend 0.40p per share making total for year of 0.80p per share (2008: 3.00p)

Building Systems
* Turnover declined to GBP57.4m (2008: GBP72.0m)
* Operating profit before impairment charges fell to GBP0.3m (2008: GBP7.4m)
* Sector downturn demanded rigorous action to cut workforce while maintaining technical edge
* Client funding difficulties delayed orders

Software
* Turnover marginally decreased to GBP13.4m (2008: GBP13.7m)
* Operating loss before impairment charges of GBP0.2m (2008: profit of GBP0.9m)

John Ketteley, Executive Chairman of Eleco plc, commented:
"We have prospects in the pipeline. We are leaner and fitter as a Group and can
look forward to the full benefit of the cost reductions achieved in the previous year. We have maintained our relatively strong financial position in difficult conditions. Accordingly, Eleco is well placed to take full advantage of any upturn when it comes."