Heywood Williams Share Discussion Threads

[barnetpeter] 09/9/2003 14:27

TOMORROW is the ex-d date. Last chance to buy today to get your 10%!

[hvs] 09/9/2003 14:25

Think its next week.

and payment in October , all very quick compared to many other companies.

Nice uptick and still further buying coming , think will definitely break 150p this week.

[pictureframe] 09/9/2003 13:38

up a little again today, when does it go ex divi please ?

[barnetpeter] 08/9/2003 22:26

Nope, because the next payment due will be 10P!

[maywillow] 08/9/2003 22:06

hvs,once the ex divi is out of the way and theres less hype,Is there a risk that the share price will fall back through the 120p support?

[maywillow] 08/9/2003 21:43

thanks hvs

without a doubt the US pipe laying co. will find a buyer

[hvs] 08/9/2003 21:40

Venture Capital fund who will then sell off the 4 remaining divisions to make more then they initially put in.

Heywood have a big US business but not done well think there is good potential
there for someone to buy and sort it out ,hopefully present management will get
to grips with it first.

Last CEO was just not upto the job bad Board mistake to appoint him .

[maywillow] 08/9/2003 21:37

hvs Who might the predators be.?

[hvs] 08/9/2003 21:32

I am ihn no hurry to sell.

They are clearing their decks and there may be predators looking to swoop.

£ 600mill business with very little debt and very good cash flow will tempt some I thinks.

[barnetpeter] 08/9/2003 21:23

Looks to me as if the income funds have hit this big time today. 180k, 50k etc is a bit rich for private investors. The ? are clearly buys. Still yielding 10% and as the press said at the weekend, all the recovery prospects are thrown in for free. I would guess that this will be bought up quickly by the funds until the yield hits 8% although it will obviously dip on Monday when it goes XD.

[maywillow] 08/9/2003 20:33

You might well see 175p if it breaks the 158p resistence level.

And then?

[hvs] 08/9/2003 20:29

Hi peter,

Like you think we shall see £ 1.75 near term .2-3 months.

[barnetpeter] 08/9/2003 14:01

Probably will bounce off 1.5. But still yields 10% at that price so we will see it this week I think. Holding for 175 and 5.25p dividend in short-term. As I said above the problems are "all in the price".

[hvs] 08/9/2003 10:33

Hi pictureframe,

Looks like it will cross £ 1.50 TODAY

[maywillow] 08/9/2003 09:57

From 120p to 130p and now 147p,

Very good

[pictureframe] 08/9/2003 09:04

Will break £1.50 this week

[hvs] 08/9/2003 08:37

Moving along very nicely now.

AND THE JUICY DIVI IS YET TO COME

[penpont] 08/9/2003 00:34

I'd been considering Heywood as a recovery and income play too but I must admit I just felt it was too risky, so I chose Avon Rubber instead.

Just for the interest of holders/prospective buyers (and because I haven't seen it anywhere else other than HS Premium service), here's an item that appeared there on 3 Sep, and I'll also paste up the only recent forecasts that are available from HS:

INTERVIEW Heywood Williams former boss in line for 450,000 stg pay-out
ERN DIV MGT ITW/GBR/CON/

--- by Malcolm Locke ---


LONDON (AFX) - Ian Stuart, the former chief executive of PVC doors and
windows maker Heywood Williams PLC, could be in line for a potential pay-out of
around 450,000 stg if the terms of his contract are honoured by the company.

Stuart, who resigned at the end of July after the group issued another
profits warning, was paid a basic salary of 302,000 stg, according to the 2002
annual report and accounts. He was on an 18-month contract.

The group today stressed that no compensation package had yet been agreed
with Stuart, but shareholders are likely to be angered at any sizeable pay-off
award in the light of the company's recent performance. A series of profit
alerts have led to savage downgrades by analysts over the past year while the
company's share price has halved over the past 12 months.

Today, the shares firmed up 4-1/2 pence to 142 at 10.30 am as a more upbeat
message on prospects offset a pretax loss of 1.7 mln stg in the first six months of 2003. In the corresponding profit last year, the group made 10 mln stg.

Despite the fall in half-time earnings to just 1.3 pence a share, the group
is holding the interim dividend at 5.25 pence and re-affirmed its intention to
maintain the total 2003 payout at 15 pence -- which will be largely covered from the proceeds of recent sales of the Coldseal and Creation Group of companies.

"Shareholders have taken a lot of pain and the interim results were very
disappointing, but we're taking remedial action to ensure we unlock growth and
the profit potential of the company," chairman and acting chief executive Hamish Bryce told AFX News in a telephone interview this morning.

"We're aiming to get some stability back into the business. We have leading
market positions for our products in both the US and the UK. We just need to
improve our execution skills to deliver improved results," he added.

Analysts currently anticipate profits of about 3 mln stg for the full year
to Dec 2003, which would give earnings of about 2.5 pence a share. "The
half-time loss of 1.7 mln stg was still a shocker, but there is considerable
recovery potential, although it is taking longer than expected," said Teather &
Greenwood analyst David Taylor.

The group's fall in profitability and share price have prompted renewed talk
of a bid or management buy-out, but Bryce today dismissed any moves to take the
group private. "There have been no talks regarding any precipitative action," he said.

----------------------------

Forecasts for 03/04 - eps in bold:

TD Waterhouse 02-09-03 UNDP 2.40 2.00 9.00 7.20 6.20 9.00
Arbuthnot Securities 12-08-03 HOLD 2.00 2.60 15.00 9.50 8.20 15.00

[barnetpeter] 08/9/2003 00:32

5. The interim equity dividend of 5.25p per ordinary share will be paid on
15 October 2003 to ordinary shareholders on the register on 12 September 2003.

I expect a strong rise this week up to the xd.

[grupo guitarlumber] 08/9/2003 00:30

Who would buy this wonderful company?

Who are the Competitors?

Guardian says buy at 139p

Independent says Avoid.

If it doesn't break the 160p resistence or there abouts,will it fall back below
119p.

A Window of Opporunity perhaps.

[doubleorquits] 07/9/2003 11:34

Thanks for the Sunday Telegraph tip, penpont. it's good to have the profile of these raised and I thought that might happen after the results. The thing about "a number of bidders already said to be circling" is not something I take with much more than a pinch of salt. That is journalistic generalisation -rumour breeding rumour without being specific. When they know they tend to tell and until they state specifics I shall continue to be a little cynical.

However, it is a reasonable rumour - the share price is bombed out and the dividend yield demonstrates that it is grossly under-valued when it gets its act together. On a dividend yield of 6% it would still be regarded as an income stock - even high yield - and that implies the share price could double from here even with a static dividend.

Nevertheless a nice mention today ahead of the ex-div and a definite recovery and bid candidate - just a candidate IMO for now, though but most willing to be wrong.

[maywillow] 07/9/2003 11:02

Who would be the Bidders?

Guardian perhaps?

A US group,European or a UK Enterprise.

[penpont] 07/9/2003 09:55

tipped in S Tel:

'Heywood Williams

On Wednesday Heywood Williams (139p), the double glazing to plastic pipes group, announced interim results. Heywood, which parted company with its chief executive in July following a profits warning, reported a pre-tax loss of £1.7m.

Buried in the results documentation was an announcement that the board would take the steps necessary to unlock the value in the business. The recent disposal of one of the group's US divisions and of ColdSeal, its retail double glazing division, adds to the impression that the company is being prepared for sale.

With a number of bidders already said to be circling, readers should buy.'

[waldron] 07/9/2003 00:26

(Updates with further results and comment on future strategy)
LONDON (AFX) - The new management of Heywood Williams Group PLC admitted to
disappointment over the group's performance in the first half as they unveiled a
swing into losses.
The PVC windows, doors and conservatories group reported an underlying
pretax loss - before goodwill and exceptionals - of 1.7 mln stg for the six
months to June compared with a profit of 10 mln stg a year earlier as turnover
slipped to 278.3 mln from 309.8 mln.
"The group's performance in the first half was very disappointing," said
executive chairman Hamish Bryce. "The anticipated turnaround in the UK
operations was slow to materialise while US markets remained difficult."
He added: "Senior management has now changed, and we have successfully
completed the disposals of Creation and Coldseal. Heywood Williams is becoming a
more simplified group and we will take whatever steps are necessary to unlock
the growth and profit potential which our market leading businesses possess."
The former chief executive Ian Stuart resigned on July 31.
Turnover slipped to 278.3 mln stg in the first half from 309.8 mln a year
earlier and earnings per share dropped to 1.3 pence from 8.6 pence
The group said the 34.8 mln stg it received from the disposal of its
Creation Group operation has strengthened the balance sheet and it added that
the disposal of its Coldseal Ltd business has eliminated a "volatile and
loss-making business"
Operating profit, before goodwill and exceptionals, from continuing
operations was 1.1 mln stg in the first half - excluding Creation and Coldseal -
compared with a profit of 8.6 mln a year earlier for the same operations.
"The deterioration occurred almost entirely in the UK, with Plastic Systems
being the largest single element," the group said.
"Our priority is to deliver the recovery in Plastic Systems and remove
inefficiencies within the other UK activities," Heywood Williams said. "We plan
to take any necessary action in 2003, to enable us to enter 2004 at a much
improved run-rate of profitability."
The interim dividend was maintained at 5.25 pence per share despite the fall
into loss.
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