Ig Design Share Discussion Threads

[interceptor2] 07/5/2015 11:01

The link above is to the companies homepage, there is a video of an interview with CEO paul Fineman, I believe this was after the interims in December, but before the recent trading update.

It gives a great overview and feel to the business and the opportunities that lie ahead here.

Since investing here on the release of the ahead trading update, I have been increasing my holding, the more research I have completed, the more I can see an opportunity of a large rerating within the next year.

I believe we could be about to see a significant earnings increase caused by two powerful catalysts, first we know that due to restructuring and investment of facilities in Holland and Wales, the benefits are now being seen in higher margins. The second benefit is the continuing reduction in debt and hence interest payments, this will also feed through to the bottom line.

In fact in the video, Paul Fineman said that he now expects top line growth over the next 2 years, so another factor to consider is revenue growth.

These are all very powerful factors that are coming together at the same time. I would be very surprised is the share price has not doubled within the next year imv.

[time 2 retire] 05/5/2015 00:59

I just came across this again, its a brilliant insight into what we do-i'm not sure if i posted it before (i probably have as i post everything i find!) but maybe a few of the new IGR share holders have not seen it...

[aleman] 01/5/2015 09:58

The update and new forecasts get a write-up in Shares Magazine. Nothing new, just a bit of extra publicity. In a nutshell it says, "remains undervalued on 8.2 times March 2016 forecasts".

[battlebus2] 26/4/2015 13:44

Thanks Daz, great to hear, sorry I couldn't make that event.

[daz] 26/4/2015 13:00

I heard Gerwais Williams of Miton speak yesterday at the Master Investor show, explaining his strategy of focusing on small caps. He believes global growth is going to be slow for many years and the larger caps, which are linked to GDP or commodities aren't going to be able to grow earnings in that environment.

In his view the smaller caps, which are able to invest for growth and/or to reduce costs have the greatest potential and so his focus is on AIM and in particular the dividend payers.

After hearing him speak, it was easy to see why he likes IGR so much and I'd fully expect the new Miton UK MicroCap investment trust, which launches on April 30th to be taking a position. This is expected to be a £100m fund, so even a if they take a 1-2% stake, that's going to be significant for IGR on a current market cap of around £50m.

I has previously thought there would be a pull back after the recent spike but as a consequence of the above, I now think that the share price is going to stabilize and perhaps even move on from current levels over the next few weeks.

[psolomons] 24/4/2015 11:43

Pity it looks like we won't know the site value for three months but these things take time I suppose.

[daz] 24/4/2015 11:25

Thanks for the reply T2R, a power station site must be very substantial and so if that wasn't the site being referred to in the RNS, then the expected proceeds must be considerably more than the £1m mentioned in the RNS.

[time 2 retire] 23/4/2015 23:09

I'm not sure Daz but i would like to think we'll get near market value for the sites which should be well above £1m. Hopefully we'll find out soon if all goes to plan.

EDIT.

I just re-read the RNS from 17th April 2013 Daz and the freehold property mentioned is our old print plant which is much smaller than Hirwaun-the site earmarked for the power station.

I would like to think that a major player entering into a £200 million project would be happy to pay a good price for our land.

t 2 r

[daz] 23/4/2015 22:05

T2R

I was just reading the original RNS about the major investment in Wales on the 17th April 2013 and it says this ...
'... Execution of the investment will take 12 months, after which point pay-back is expected to be approximately three years, excluding the potential to subsequently dispose of a surplus freehold site valued in excess of £1m.'

I know you've said that there are 2 properties for sale but are they really worth £10m together?

[battlebus2] 23/4/2015 20:54

Thanks T2R, I wonder who the secretary will be after the election.

[time 2 retire] 23/4/2015 20:07

Today's update on power plant, the planning inspector has recommended for approval the scheme, the secretary of state now has 3 months to decide...




23/07/2015 - Deadline for Secretary of State to make decision

The Planning Inspectorate issued a report of recommendation to the Secretary of State on 23 April 2015. The Secretary of State has 3 months in which to issue a decision. The decision letter and report of recommendation will be published on this page of the website once a decision has been made.

[psolomons] 23/4/2015 12:53

I would expect the market to be told when IG agrees a sale price for the old factory site as it will no doubt be market sensitive.

[interceptor2] 23/4/2015 11:11

Since buying in here on Tuesday I have been researching further to try to get up to speed, the more I have researched IGR the more I am liking the potential.

There is some very useful info on these thread that is worth looking back for, particularly use was the Hirwaun property disposal info from Time 2 Retire which saved me much digging (thanks for that). It seems that an announcement could be soon with a selling price of up to £10.0m for a power station development.

This would be a positive to the net debt position and working capital, which would feed down to less finance charges and hence higher net margins. It is evident that margins are also improving due to investment in operations in Wales and Holland, so adjusted net margins reported in December's interims improved to 2.60% from 2.34%. Reading Tuesday's trading update it is clear that they will report a healthy increase again in margins in July due to lower finance charges, better operational performance and some improved tax charges.

It would seem that some strong factors are coming together at the same time imo, and this is before any sales of Hirwaun is announced.

IGR are a low margin business at the moment, but I love a situation where it is possible to see clear factors that will change this and then it is possible to start the number crunching.

[psolomons] 23/4/2015 08:05

The value of the old Hirwaun plant has not been factored in so expect a favourable reaction to that. t 2 r thinks we should be hearing something about the sale very soon.
My forward valuation is much higher than £1 and I have been studying these and their progress for years.

[pugugly] 22/4/2015 09:50

Paul Scott woken up at last some 21 months too late.



His followers might push it over the magic £1.00 level but (imo) now starting to look fairly valued.

[psolomons] 21/4/2015 16:39

Up on high volume, nice and extremely encouraging. Lower debt, higher revenues and a restart of dividends. The recovery story is really bearing fruit.
I'm very interested to see what the sale of the old Hirwaun factory site raises.

[speedsgh] 21/4/2015 12:31

Today's Edison note...

Investment pays dividends -

[psolomons] 21/4/2015 10:50

It's certainly not the time to sell. There may be a few profit takers are a nice run recently but this share is heading north.

[time 2 retire] 21/4/2015 10:44

I think we may get a couple more announcements soon Aleman which may also get this ticking up a little more before the June results, one regarding the IG USA investment, the other being the South Wales property sale if all goes well.

Net debt could be well below £20 million by year end 2016 IMV

[aleman] 21/4/2015 10:19

Great results. Market cap going over £50m should see IGR open up to some of the bigger funds. That and the return of the dividend should see any discount in rating to the market eradicated. EBITDA of £17m and debt of £30m should see a market cap around £70m or 120p+ but it won't happen all at once. The June results will likely see another small step up, though, and this one might not have finished yet.

[daz] 21/4/2015 09:19

Update out from Edison:
EPS Mar 2015 - 11.7p, Mar 2016 12p
Debt - Mar 2015 - 30m, Mar 2016 26m

They say the dollar strength will affect 2016 earnings. The 2016 debt figure is after expected US investment capex, so underlying debt reduction is actually stronger

[interceptor2] 21/4/2015 09:01

Thank you Daz, worth knowing that there is some selling pressure, I won't chase the price higher but will add gradually.

[time 2 retire] 21/4/2015 08:52

Full year figures out June 23rd say EDISON,

[daz] 21/4/2015 08:32

I think if you're patient interceptor, you'll be able to pick up more at closer to 90p, there have been some sellers over the last year.
I'm hoping though that some new institutional buyers will become interested now that the dividend has been restored.