Eurodis Elect. Share Discussion Threads

[muxdapanza] 27/1/2005 08:00

3 v 3 bid offer
Jeff just moved up

[boiiinngg] 27/1/2005 07:57

Morning all - Here we go... I personally am happy with interims and as we will have another interim before results this gives us good points to keep track of the progress which is evidently being made... Good recovery stock as I hoped....

[chiansaw] 27/1/2005 07:52

Dell - not so much that the figures are as expected, but they are looking to return to profit as opposed to sinking even more in the mire. The price at present is not for a viable company imho. Thats all. Happy to now sit for another 6 months plus!

[dell314] 27/1/2005 07:50

I see the rose tinted glasses are on, as usual.

I've only had a quick scan, but I can't see any definite timescales for a return to profitability, implying it isn't imminent:

The reduction in operating costs has materially reduced the breakeven point and this will assist in returning the business to profitability in due course.

Net borrowings are down, mainly due to the fundraising:

Net borrowings at 30 November 2004 were EUR 56.8m (2003: EUR 82.4m), a reduction of 31% due mainly to the equity issue in March 2004. Net borrowings were EUR 9.3m higher than at 31 May 2004 due to operating and interest outflows in the period to 30 November 2004. Net debt levels are within market expectations and it is expected that there will be adequate headroom going forward.

Rgds
dell

All IMHO, DYOR etc.

[ed winchester] 27/1/2005 07:28

I'm very relieved indeed guys.

[addicted2shares] 27/1/2005 07:26

...The alliance with World Peace Group in Asia has been further strengthened by
establishing a Hong Kong based joint venture company, Eurodis WPG Asia Limited.
This will provide a seamless logistics service for production transfers from
Europe to Asia Pacific, enabling us to tap into the rapidly growing Chinese
market...

[ed winchester] 27/1/2005 07:23

yes interesting to note they have increased gross margins by 1.2%

[youngers] 27/1/2005 07:21

I agree Ed - The increase in gross margin is very encouraging - I would be worrying if they were undercutting the competition and therefore margins to be dropping in a desperate bid to get back turnover.

The new business also sounds like it is at a higher margin which again brings breakeven closer.

[ed winchester] 27/1/2005 07:21

this comment :

The reduction in operating costs has materially reduced the breakeven point and this will assist in returning the business to profitability in due course.

this is effectively saying not "if" but "when", about eurodis hitting profitability.

[youngers] 27/1/2005 07:17

I actually thought sales were pretty good. I was assuming that most of the fall in the second half of last year came in the final quarter.

This gave a base coming into this period of under 70m per month - therefore to get back to over 154m in six month is not bad. But is probably even better when you think of the split of that number and say 72 in Q1 and 82 in Q2.

Add on the new turnover from the JV's and we must already be at 90m per quarter going forward - i.e only 10 short of breakeven.

[ed winchester] 27/1/2005 07:17

youngers

well summised. the biggest thing I was fearing was another bombshell... that didnt happen. Doug is saying all has been sabilised and I am sure he is being coy about future trading. But he gives a hint that they are cocentrating on high growth businesses and the franchise wins.

I am now confident that the market will view eurodis is now here to say, and will rerate it likewise.

[youngers] 27/1/2005 07:13

Thanks all.

Looks fairly good. Net debt position stayed under 60m. Net cash outflow from operating activities only 5.5m.

Bottom line loss before exceptionals/goodwill only 10m. Therefore breakeven point is somewhere around 400m turnover per year - well below what was previously acheived.

Board seem fairly confident that the business will return to profitability.

Any other views?

[momentos] 27/1/2005 07:13

You're right, no bombshells. Sales a bit disappointing but otherwise look well on course.

[ed winchester] 27/1/2005 07:06

no bombshells. losses susbtantially reduced.

Commenting on the results and prospects, Doug Rogers, Chairman, said:
'The Group continues to make progress. The level of trading losses is
substantially reduced from the prior year. Notwithstanding the competitive
environment, we expect to gain some business from new franchise arrangements,
from our increasing participation in high growth areas such as wireless and
power supply technologies, and from the alliances with our business partners
ATeG and WPG.

The reduction in operating costs has materially reduced the breakeven point and
this will assist in returning the business to profitability in due course.

[youngers] 27/1/2005 07:02

Where is the best place to get the results first??

[addicted2shares] 27/1/2005 06:57

morning, are we all wearing the brown pants?

[momentos] 27/1/2005 06:55

Morning all....

[drewz] 27/1/2005 01:43

If Doctor Doug gets this baby turned around and back to £5-£10million profit per year then we are looking at a recovery (eventually) to an unconsolidated price of 5p-10p a share.

And I might even get my money back.

I'm sure that's what Peter Webb of Unicorn thinks can happen. Or surely he's shrewd enough to have otherwise bailed long since.

[momentos] 26/1/2005 21:14

Er, thats next door. You can just about see the "Electron House" on the main building.

It's not Eurodis House. Quite funny that the accountants that bought it don't even know the proper name of what they bought (see previous link).

[jordaggy] 26/1/2005 21:10

Looks like a rented Regus building to me !

momentus - you'll have to do alot more hiding tomorrow if she finds out you've sqaundered the savings on ELH !

[momentos] 26/1/2005 21:07

Anyone here lol? I'm hiding from the missus.