Eleco Public Share Discussion Threads

[ansc] 29/3/2012 08:53

No announcement this week thus far so, if the company keeps its promise, results will be published tomorrow. I have to admit that I've never been keen on Friday releases having seen in the past too many 'shocking' figures' being slipped out with companies seeming to hope that, during the weekend, their awfulness will somehow fade away.

Will tomorrow's news be the exception? We don't have much longer to wait. It might be scrambled eggs for lunch then!

[ansc] 16/3/2012 12:23

It looks as though the Money Makers are trying a bit of a tree shake which, judging by the number of buys marked this morning, doesn't appear to be working too well ..... thankfully!

Two weeks to go for the results (hopefully).

[ansc] 09/3/2012 14:59

Forlorn and unloved, capitalised presently at a mere £6.1m, is there any realistic hope for ELCO's survival?

I'm still positive (just!) when you look at the overall picture. During the last six years, the company has acquired Asta (software) in December '06 for £7.65m, Milburys (construction) in November '07 for £7.07m and LubeKonsult (software) for £0.16m in August '10. When you've added these additions to their exisiting construction and software subsidiaries, that overalll £6.1m capitalisation begins to look slightly out of kilter.

We know from the last Interim figures that the construction side is still loss-making but that software is profitable and growing; since that announcement, they've achieved a fantastic price for the sale of their last timber engineering interest which elimated a huge chunk of the bank overdraft.

The 'Final' announcement scheduled for the end of this month is clearly going to be gloomy. But I go along with Hardman's sentiment that a thriving and profitable software focused group is emerging. Furthermore, 45% of ELCO's shares are held in long term investors' hands which, of course, includes the chairman's own 12.24%.

On that basis, I've been adding steadily since December in spite of the incessant selling which has been taking place. If I end up with egg on my face, so be it ..... luckily, I like the taste of eggs!!

[ansc] 23/1/2012 11:02

I'm grateful to see that someone else hasn't given up on ELCO - a 50k purchase @ 10.75p this morning.

[ansc] 17/1/2012 14:22

Launch of Milbury website (see under 'Websites' above).

Hardman & Co feel more optimistic [] following the recent subsidiary sale. Their last paragraph reads:-

'This is a major advance and a thriving software focused group at Eleco is coming into clear shape.'

[ansc] 29/12/2011 16:13

dvsfm - Where? Any link available?

[dvsfm] 29/12/2011 15:13

just been tipped

[pugugly] 19/12/2011 11:46

Before buying on this news suggest chout out pension deficita - Not sure what they are now or how much (if any) went with the assets sold.

[andrew james] 19/12/2011 07:20

RNS Number : 2019U

Eleco PLC

19 December 2011

Eleco plc

("Eleco")

Divestment of Timber Engineering Interests

The Board of Eleco (AIM: ELCO) announces the divestment of its Timber Engineering Interests with the sale of Gangnail Systems' UK timber engineering business, and of International Truss Systems' South African timber engineering business, to companies within the Illinois Tool Works Inc. group (NYSE: ITW).

Total funds receivable in relation to the sale amount to GBP7,962,500 of which GBP6,762,500 was received on completion and a further GBP1,200,000 was placed in escrow and will be released subject to certain conditions over the next 2 years. The funds received on completion have been applied to reducing Eleco's bank borrowings.

The divestment by Eleco of its timber engineering businesses is consistent with Eleco's previously announced strategy of reducing its involvement in certain of its capital intensive building systems activities and expanding its successful international software interests. The divestment also represents a major step towards strengthening Eleco's financial position.

Profit before Tax of Eleco's timber engineering businesses for the 12 months ended 30 June 2011 was GBP900,000. Net asset value as at 30 June 2011 was GBP1,900,000.The financial impact of the divestment on Eleco will be finalised and reported in Eleco's preliminary announcement of its results for the 18 month period ending 31 December 2011, which is anticipated in March 2012.

Enquiries:

John Ketteley

Executive Chairman Tel: [phone]
Matthew Turner

Finance Director Tel: [phone]
Cenkos Securities plc Tel: [phone]
Adrian Hargrave

Tim Anderson Tel; 0207 466 5103
Buchanans

This information is provided by RNS

The company news service from the London Stock Exchange

END

DISUWUORAWAUAUA

[paul119] 15/10/2011 22:25

No positives at all!!

Happy days - Eleco at 9p!!!! Great job in taking a cash rich company to net debt in 2 years.....and then there is the pension issue!!! Get out while there is still a penny to be had!

[pugugly] 19/9/2011 09:13

Can anyone see anything positive in these interim results ? Having held and sold for a loss a few years back (very glad I sold) I have kept on watch list in case of any signs of recovery but current trading coupled with pension liabilities suggest I should stop wasting my time.

Views?

[ansc] 01/7/2011 13:51

50k bought by the Money Makers yesterday @ 12.5p, the same 50k sold on by them this morning @ 14.5p. A 16% return in less than 24 hours; nice 'work' if you can get it!

[dugganjoe] 21/6/2011 08:48

what a pile of pants this co is

when is the next bank covenant test?

[ansc] 21/6/2011 08:31

Missed this:

Bell & Webster secures phase 2 of Reading Student Accommodation project
Monday, 30 May 2011

Bell and Webster is pleased to announce that they have secured a repeat order from Morgan Sindall to manufacture and construct 595 student accommodation rooms at Reading University. Shaun Brown, Managing Director of Bell and Webster says "This is phase 2 of the project and it's great to be back working in partnership with the Morgan Sindall team again. We have developed and implemented some process improvements evolved from phase 1 of the project, which will allow us to exceed the client's expectations." Bell and Webster have implemented Asta site control software which complements their existing Asta Powerproject. Asta Sitecontrol enables Bell and Webster's project management team to record a permanent daily record of site activities using the site diary and other tools. It integrates with Asta Powerproject to provide a joined-up solution to site management and planning. Another process improvement is the purchase and use of the Tekla BIM software. Ashley Moss, Estimating Manager of Bell and Webster commented that " The Tekla BIM software is a major leap forward for our business and will continuously improve our design service levels and will make our off site manufacture process more efficient".

Bell and Webster is a leader in the design and manufacture of precast concrete hotel and student accommodation rooms.

[paul119] 02/6/2011 22:47

Spooky

Sorry for delay in response to your challenge march 3.

Post again if you want my reasoning.

[paul119] 02/6/2011 22:46

ansc - Why on earth would you add?

[ansc] 03/5/2011 11:08

Taken from their website (I haven't looked at it recently but I must say I like the very slick set-up now):

Bell & Webster Concrete invests in safer logistics
[Monday, 18 April 2011 15:48]

'Bell and Webster is pleased to announce a further significant investment in an additional 20 sets of trailer delivery A frames. Shaun Brown, Managing Director of Bell and Webster says "We had originally purchased 16 sets of the new type A frames late last year to improve product handling at our manufacturing sites and at our clients' sites. These were put on trial and have been a great success for us and our clients have been delighted with this improvement. The new A frames' have a built working platform and access / egress ladder system, which enables our loaders and site installation teams to access and carry out the lifting operations, without the use of portable ladders or MEWPS". Bell and Webster are currently delivering to some space restricted sites in London and the new A Frames have proved invaluable. Eric Ward, Group Health and Safety Manager commented that " This latest investment will help underpin Bell and Webster's Health and Safety and customer service improvement programme and these new A frames will be used on all future deliveries ". Bell and Webster is a leader in the design and manufacture of precast concrete hotel and student accommodation rooms.'

Just a pity that they haven't got much use for these A frames at the moment what with their concrete-business trade being virtually non-existent! Never mind, at least they are still producing according to the above.

Price slipping back as I anticipated. The question is 'at what price to add?'

[illiswilgig] 09/3/2011 08:35

Yes, I too am surprised at the response to the results. I guess that they were taken as 'could have been worse and things will get better' The price is a little too rich for me to add. It's not a very liquid stock (To say the least) so it could all change if there is a seller, but it seems that the stock is closely held at the moment.

[ansc] 04/3/2011 14:18

Construction leads spring recovery dash
Activity in the construction industry is increasing at the fastest pace in eight months, lifting hopes the economy will return to growth in the first quarter of 2011, according to new data.

[ansc] 03/3/2011 17:19

By Elco standards, it's been a hive of activity recently on the LSE trading-wise; more bargains have been transacted during the last four days than the combined total for the previous two months I suspect, not that that's saying a great deal. The icing on the cake, a 50k 'buy' (@25.5p) this morning, dare we imagine that it could have been an initial purchase by our new FD?

My concerns of a couple of weeks ago about how the share price would react after the Interims were released were clearly unfounded. Nevertheless, I'll keep a little put by in the piggy bank just in case there's a sudden relapse!

[ansc] 03/3/2011 09:09

Why the unexpected tick-up? Surely that 2k 'buy' this morning cannot be responsible ..... could it?

[ansc] 02/3/2011 10:10

Having had time last night to study the Interim Report in more detail, the directional sea change going forward (emphasising on software rather than construction) is profound bearing in mind the success that's been achieved by their construction side during the not-too-distant past. Whilst it's quite understandable in the ongoing economic environment, will it prove to have been the right decision when, sooner or later, the economic outlook invariably improves; in the past, construction has usually been one of the first sectors to bear fruit following a recession. As they say, time will tell.

I was half expecting some reference would be made to modular housing in the report seeing as (i) according to the media, this is the way houses are likely to be built in the future, (ii) ELCO's new GFD comes with connections in that direction and (iii) the company looks to have strength in manufacturing components for such houses. It's probably a 'watch this space' situation again.

All in all, I'm now convinced that the company will eventually pull through so prepared to give them a chance and will sit it out patiently for the next ? years!

[ansc] 01/3/2011 12:21

Better late than never! The proverbial curate's egg but, overall, no worse than I anticipated:

'Eleco PLC ("Eleco" or the "Group") - 01 March 2011

The Construction Software and Building Systems Group

Interim Results for the Six Months Ended 31 December 2010

Strategic emphasis now placed on growth of profitable construction software interests

Group Financial performance

-- Turnover amounted to GBP31.8m (H1 2009: GBP32.5m)

-- Group adjusted operating loss before amortisation and restructuring costs of GBP0.7m (H1 2009: loss GBP0.7m)

-- Loss before tax of GBP1.7m (H1 2009: loss GBP2.2m)

-- Loss per share of 2.8p (H1 2009: loss 3.5p)

-- Net bank debt at 31 December 2010 of GBP5.7m (H1 2009: GBP2.1m)

Group Operational performance

-- Improved operating performance at Software with strong growth in turnover and profits.

-- Building Products marginally profitable with poor performance at Eleco Timber Frame offset by profits in other businesses.

-- Further loss, albeit significantly less than in second half of last year, in Precast Concrete operations, principally caused by losses on custodial contracts and adverse weather in December.

-- Gross margin maintained due to change in revenue mix.

-- Reduced cost base with administrative expenses down over 10% compared to the previous six month period.

Software

-- Turnover increased 13% to GBP7.3m (H1 2009: GBP6.4 m)

-- Adjusted operating profit before amortisation and restructuring costs more than doubled to GBP0.7m (H1 2009: GBP0.3m)

-- Acquisition of Lubekonsult AB, the ventilation software and estimating business, in Sweden for GBP393,000 is performing ahead of expectations.

-- All software businesses now profitable and growing both top line and operating profit.

Building Products

-- Turnover increased to GBP10.3m (H1 2009: GBP8.8m)

-- Adjusted operating profit before amortisation and restructuring costs of GBP10,000 (H1 2009: loss GBP0.8m) Loss of GBP0.4m at Eleco Timber Frame more than offset by profits in other businesses.

-- Market conditions remain tough but cost base reduced and all businesses performing ahead of H2 last year.

Precast Concrete

-- Turnover amounted to GBP14.3m (H1 2009: GBP17.4m)

-- Adjusted operating loss of GBP1.5m before amortisation and restructuring costs (H1 2009: loss GBP0.2m)

-- Trading adversely impacted by the poor performance of the custodial contracts, now almost complete, and adverse weather experienced during December.

Pension

-- The deficit shown in the accounts at 30 June 2010 has reduced by GBP1.5m, from GBP9.8m to GBP8.3m, primarily due to investment performance in the period.

Board appointment

-- Group management strengthened with the appointment of Matthew Turner as initially part time Group Finance Director in January.

Change of accounting date

-- Change of accounting reference date to 31 December for operational reasons. An unaudited second interim report will be released for the period ended 30 June 2011. The preliminary results for the eighteen months ended 31 December 2011 will be released no later than 31 March 2012.

Outlook

-- Our Precast Concrete and Building Products businesses were affected by further adverse weather in January 2011. However, the Board is of the view that our Building Products operations will produce a modest improvement although our Precast Concrete interests will continue to experience operational difficulties until the four major custodial accommodation contracts have been completed, which is expected by the end of June 2011. The Board is also of the view that our Software interests will perform well in the second six months.

Strategy

-- The Board plans to concentrate on expansion of its software and service operations while reducing the current emphasis on Building Products and currently loss making Precast Concrete manufacturing interests.

-- The Board believes that this strategy will significantly reduce the financing requirements of the Group's Building Products and Precast Concrete interests while facilitating the planned expansion of the Group's Software interests, both in the UK and internationally.'

[ansc] 01/3/2011 11:09

Results not published this morning as promised (which I've always regarded as a bad omen from past experiences) yet the share price has been raised twice this morning.

H'mm, perplexing .....