Hellermanntyton Share Discussion Threads

[mattjos] 10/4/2013 21:00

quite by chance & without being able to reveal how exactly but, learnt today from what might be termed the horses-mouth, that trading and next set of figures are 'exciting'. make of that what you wish

[ricky46] 10/4/2013 16:03

There's a fair few trades going through today.

[ocaudillo] 08/4/2013 18:46

Spent the weekend going through the prospectus. Strikes me as along the lines of Fastenal..

[ricky46] 08/4/2013 16:26

I take it the shares have been in demand with the over allotment taken?

[rolo7] 07/4/2013 20:48

anyone got market forecasts for this year for hty or is it too early, been looking at the accounts, think there are profits to be made from, fx gains/reduced losses, lower finanace cost and a tax rate at 25% not 28%.

[1957chris] 05/4/2013 11:26

Some hellish chunky trades this morning - 2m and 1.85m shown up on L2 at 195p.

[flyfisher] 05/4/2013 09:39

prospectus.

[mechanical trader] 05/4/2013 07:43

Excelent.....very solid........

[glasshalfull] 04/4/2013 21:15

Thanks for flagging this simon.

Interesting company and valuation appears promising. Spirent sold HTY in late 2005 for £290 million...when turnover was only around the £190m level & PBT of £23m (year ended 31/12/2004).

Fast forward to 2013 & market cap appears a reasonable £430m when you consider that the company has underwent €150m worth of investment since Doughty Hanson acquired them; commands margins c. 20% and describes itself as having a strong cash generative model & indicates that it,

"expects to maintain a progressive dividend policy, targeting an initial payout ratio of 30-40% of adjusted annual net income and with the maiden dividend expected to be announced in August 2013".

Turnover now up to €514m and €100m EBITDA.

Haven't seen the prospectus on the website & obliged if anyone can send me a link if I've simply missed it. Also unaware if there are any broker notes doing the rounds.

Looks good value at first glance and looks like it was priced to go given the wobble that Cyprus delivered when they were book building.

Ricky - As you'll note from this post...they did indicate that dividend policy. Here's a link to the info.



Regards,
GHF


Edit - Annual Report posted on their web site 5/4/13...gearing level 35% for 2012. Would still appreciate any broker notes that become available.

[ricky46] 04/4/2013 20:52

Unaudited accounts for 2012 are on investor website as follows:

Revenue €514,211
Operating profit €65,638
Profit before tax €50,317

Adjusted ebitda €100,352

Net debt €178,290

I read somewhere they are going to distribute dividends 30% to 40% Of profit.

Anybody confirm this please.

[mechanical trader] 04/4/2013 16:37

Wouldnt be suprised to see a tipsheet
like whashot or gci or even scsw
tipping this this weekend.

If so it should shoot up monday.

[simon gordon] 04/4/2013 10:27

Cable tie IPO shows market resilience

30 March to 5 April 2013 | By Robert Venes

Successful pricing for HellermannTyton despite ongoing Cyprus crisis

Goldman Sachs and JP Morgan last week priced the £211.9m UK mid-cap IPO of HellermannTyton, a little-known business in an incredibly niche and largely insulated sector.

The float for the cable ties-maker is one of the smallest for a corporate in Europe this year, and lacked the fanfare of previous UK deals, but is highly significant in the continued recovery of the IPO market. Issuance to date had been dominated by insurers and previously listed entities.

"HellermannTyton is a classic UK mid-cap industrial business with steady earnings growth and a good dividend yield delivering a mid-market total shareholder return," said Alasdair Warren, European head of ECM at Goldman. "The fact you can get something like that done says a lot about this market, particularly against the backdrop of a Cyprus-type event. A year or two ago, frankly, the IPO would never have priced against this backdrop."

A covered message was delivered after one week of bookbuilding and price guidance on Monday was 190p–200p, against the price range of 190p–235p. Pricing came on Tuesday just above the bottom of the range at 195p. Bankers on the deal said it could have priced at 200p, but the decision was taken to focus on quality in the book and more certainty of a positive aftermarket.

That approach paid off with an unspectacular but steady debut just above 195p on Tuesday and a close at 196p. By Wednesday's close the stock had inched up to 202p and was at 205p by late Thursday morning.

Concentrated

The top 10 orders in a highly concentrated UK long-only dominated book accounted for about 65% of the deal. That required a high degree of scaling back for others with 20% of orders allocated nothing, including all those who did not meet management. Conversion from one-on-ones in the UK was upward of 70%.

Alongside UK mid-cap specialists, there were a small number of orders from France, Continental Europe and the US.

"We had very broad engagement from a wide range of long-only investors, with very few momentum players," said Warren. "This was a very high-quality book with close to 100 accounts that had really done the work. That says a lot for this market in terms of breadth and depth."

Barrier to entry
Key to the equity story was resilience and a protected business. HellermannTyton maintains 20,000 product lines. The cost per product is clearly very low, but the size of the business and the economies of scale it has established in producing more than 12bn items a year is an effective barrier to entry, as borne out by the numbers.

The company achieved organic sales CAGR of 11.5% and margins of around 20% since 2010.

Adjusted Ebitda margins have been consistent at 15.3%, 20.1%, 19.7% and 19.5% for 2009–2012 respectively. Revenues grew by 34.2% in 2010, 14.6% in 2011 and 8.6% in 2012 to €514.2m. Pricing represents an estimated 2013 P/E of about 10, compared with a UK industrial average of 12–13.

As befits the marketing story, first-day trading volumes were unspectacular, with just 11.41m shares changing hands, representing 10.5% of the base offering of 108.69m shares.

Primary issuance of 15.3m shares raised £29.83m for working capital and bolt-on acquisitions. Secondary selling of 93.38m shares largely came from private equity house Doughty Hanson, alongside a small number of shares from management, to raise £182.1m. There is also a 10% secondary greenshoe from Doughty Hanson, which if exercised would increase the free-float to 55.5% from 50.5% currently. Goldman is stabilisation manager.

The market cap is £419.9m. Doughty Hanson is left with a 46.1% stake on the base offering, subject to a 180-day lock-up.

[rolo7] 04/4/2013 08:28

Not sure mike, not sure even if results for the end of last year have been released either.

[mikepompeyfan] 04/4/2013 06:56

Has anyone worked out what the dividend payment and yield is likely to be on this at the current share price ? I'm struggling to find it.

[ricky46] 03/4/2013 19:11

I got some in my Sipp first thing.... Hopefully up and away from here....

[johnsoho] 02/4/2013 16:21

I managed to buy some in my Lloyds TSB share dealing ISA....very pleased

[ryandj2222] 02/4/2013 15:56

With so many people keen to get them in their ISAs I can see this going up a bit once all ISA providers allow it.

[mechanical trader] 02/4/2013 15:52

Type of stock Tip Sheets love to
tip.

Any out this next weekend anyone??.

[maxxyjazz] 02/4/2013 15:36

I managed to get some in my ISA finally, but had to ring up. Still can't buy any on their website.

[someuwin] 02/4/2013 15:04

Can buy in Selftrade ISA.

[ricky46] 02/4/2013 15:01

I rang today to buy some in Sipp and Isa they said tmw they are available within the wrappers.

But I managed to pick some up in a normal trading account today.

[maxxyjazz] 02/4/2013 10:09

Cheers rolo, I just rang my broker and he said they are still waiting confirmation that it eligable for an ISA.
They applied late on Friday and it takes 24 hours. My broker doesn't seem to have their finger on the pulse.
The chap I spoke to did say he'd give me a ring as soon as he gets confirmation. Otherwise I'm changing brokers.

[rolo7] 02/4/2013 09:33

maxx i sent email to halifax takes up to 24 hours for mine.

[maxxyjazz] 02/4/2013 09:26

My broker still won't let me buy any in my ISA.