Intelek Share Discussion Threads

[jeff h] 16/6/2010 10:27

Well done in keeping the faith pentangle...especially with such a big holding....you'd be absloutely gutted today if you'd sold.

Was only looking through my files last night and started buying at 12.75p in November 2006 and as you say been quite frustrating since.

Thought it was a little strange last night to see all the "Brokers Research" reports on the company website removed.

[pentangle] 16/6/2010 09:54

Nice to see patience rewarded as Jeff H says. Looking back I started buying into ITK in January 2007 and its been like watching paint dry as they have gone nowhere in three and a half years.

However, it is my biggest holding and I have about 1.7% of the company so a good day on balance. However, intrinsically I could see these a lot higher than 32p a few years down the line had they not gone for this offer.

[davidosh] 16/6/2010 09:08

DB the chairman is linked to R&I so obvious why they would give approval albeit conditional. Apart from that it is still wide open and there appear to be good sized private investors who I presume have close knowledge of the company. I will speak to Schroders to see if I can gain their thoughts.

[nickcduk] 16/6/2010 08:59

Major shareholders:-

David Matthew Bramwell (dup) • 19,000,000 21.75
Rights and Issues Investment Trust PLC (dup) 17,500,000 20.03
N Lewis 5,650,000 6.47
Schroder Investment Management Limited 5,207,274 6.05
Framlington Investment Management Ltd 4,850,000 5.55
Nigel Lindsay Mills 4,676,550 5.35
R B Fletcher 4,650,000 5.32

Not sure how well that has formatted

[jeff h] 16/6/2010 08:24

"patience should eventually see its reward" I said here a few weeks back....
how true I am pleased to say

[davidosh] 16/6/2010 08:24

Who are the other significant holders and why no other conditional acceptances beyond 25% if the offer is so good ?

[davidosh] 16/6/2010 08:20

FWIW...I agree with Nickcduk. I think there is every chance of a competing offer as the current price is only a forward multiple of nine times earnings and with a strong dollar the company and its assets must seem cheap looking from overseas.

The Paradise Datacom business is already gaining market share and a competitor may see this as their only chance.

Nickcduk....TND next for a bid then...lol

[nickcduk] 16/6/2010 08:20

The offer is derisory. Its less than 10 times earnings and less than 7 times pre-tax profits. I am pretty confident we will get a counter offer.

[pentangle] 16/6/2010 08:17

Actually they have tied up 25% of the shares and it looks like the 5.6% owned by the Directors is irrevocable. However, acceptance can be withdrawn for the other 20% in the event of a counter offer. So, whilst the Directors may have accepted the bid, it does not rule someone else getting involved. Not saying they will, but don't rule it out.

[nickcduk] 16/6/2010 08:16

regandjess - The deal has not been done. They don't have a large number of irrevocable acceptances. A competing bid at 35p or higher means they have less than 5%.

Just checked my records and I found that I purchased all my shares in 2007. That is a very long wait for a return. Had they not had this offer it wouldn't have surprised me if the shares were still trading around 17p a few years from now. ITK and TND are both shares I have held where pension issues negate nearly all the earnings. Its something I am very wary of going forward and why I haven't been keen on increasing my stake since 2007.

[blueliner] 16/6/2010 08:13

Good result pleased for all long term holders

[deswalker] 16/6/2010 08:11

rather pleased

[royaloak] 16/6/2010 08:07

Bought this one week ago for my long term account after results. What I call my bottom draw account where I leave them for a few years!

[balcony] 16/6/2010 08:04

Welldone all holders.

[regandjess] 16/6/2010 07:59

nic.I dont think so, the deal has been done and agreement reached. Read the RNS

[nickcduk] 16/6/2010 07:37

The offer although welcome is tight. Even though they don't really want the composites and Labtech the company is still worth a lot more than they are offering. I think a rival bidder will enter the fray. Private equity might be interested or another leading Satellite comm play might make a move. Hold on tight. The ride has just begun.

[spooky] 16/6/2010 07:20

I dream of mornings like this,they don't happen very often but when they do they put a big smile on your face and reaffirm your belief in small company value investing.

[drsous] 16/6/2010 07:19

although pleased the value of my shareholding has more than doubled overnight after years in the wilderness,cant help thinking yanks are stealing the company

[ajax01] 13/6/2010 18:29

Anybody know how many were made redundant at Labtech in Presteigne? And how many are left working there?

tia.

[interceptor2] 12/6/2010 00:19

From Hoodless Brennan

Intelek (ITK, 14.75p, £12.89m)

Intelek (ITK, 14.75p, £12.89m) Finals to March 2010 saw revenues of £37.7m (£39.3m) with underlying PBT of £3.9m (£4.1m) withy 3.12p (3.32p) EPS, a maintained DPS at 0.465p and net debt down to £1.6m (£3.8m). The year saw significant growth in the US sales (£7.2m to £12.5m), primarily to the government and military, helping offset reduction in Europe, Asia and Africa. Paradise Datacom had a successful year with its satellite and amplifier business seeing a particularly healthy take-up of a bandwidth saving modem which achieved $2m of sales in H2. Labtech microwave is seeing growth, aided by phased array radar and air traffic control markets, and this year will see a further boost from new products though a delay in a major order will depress H1. CML, the aerostructures business, suffered from the decline in the corporate jet market, only partially offset by military sales. Net debt reduced partially due to reduced working capital. The group expects to "return to return to sales growth while increasing investment in our facilities and product development as we prepare for growth in the years ahead" – suggesting underlying PBT may be more muted than the revenue increase. With forecasts around £4.1m achievable, albeit H2 weighted, the group would generate some 3.4p EPS, putting the group on a 4.3x PER, too low and we maintain the BUY with a 20p price target.

Recommendation: BUY

[westcountryboy] 11/6/2010 07:11

Previous estimate for 2011 was 3.1p so not much change there, in fact. But I agree: what is needed is a step change in performance. The fact is that eps growth has been very muted/uncertain for three years now (though 'underlying' eps is up) and that is why the share price has been becalmed. In that time the company itself has made progress: net assets are up over 25% and net debt down from £5.13m to £1.59m. But a lot of resources have gone on keeping the pension deficit under control in very unfavourable market conditions. CML is less profitable than three years ago, so the company has been entirely dependent on Paradise Datacom to keep growing. If both those cylinders can fire together, then we should break out of this rut, but you can understand the market's unwillingness to believe that until it sees clear evidence of it.

[interceptor2] 10/6/2010 19:49

Update forecasts from Altium with a buy rating.

2011 = PBIT £4.0m and EPS 3.2p
2012 = PBIT £4.5m and eps 3.5P

Gives forwards per of 4.8 and 4.4, next statement which confirms continued improvement in commercial market could see a very rapid re-rating. imo....

[davidosh] 10/6/2010 18:49

That well known publication 'Works management' have this to say



Aerospace sector supplier Intelek said today (9 June) that it had produced annual results ahead of expectations and just marginally below record results for 2009, because of a growth in government and defence business and attention to costs.



Ian Brodie (pictured), chief executive of the Swindon-based designer and manufacturer of electronic systems for satellite and microwave communications, said that Paradise Datacom, its satellite amplifier and modem business, had another successful year during which it gained a higher profile as a supplier of solid state power amplifiers to an increasing number of significant multi-year U.S. government programmes.

Labtech Microwave, the microwave components and manufacturing services business, performed slightly ahead of last year with sales to the phased array radar and air traffic control markets continuing to show signs of growth, offsetting the expected expiry of a long-standing European telecommunications programme.

CML, the group's aerostructures company, suffered from the decline of the corporate jet market but military aerospace sales increased with the Joint Strike Fighter project moving into its next pre-production stage. CML also benefited from its new involvement in fast turn-round composite work for the military transporter, A400M.

Chairman, David Bramwell, commented: "I am pleased to report a resilient performance by Intelek in a year which presented all Group companies with significant challenges. A combination of growth in our government and defence business and continued attention to costs at all levels has enabled the Group to exceed management's expectations. Overall, the Board expects to see a return to sales growth year on year, whilst increasing investment in our facilities and product development as we prepare for growth in the years ahead."

Sales for the year to March 31 were down 4% to £37.7 million (2009: £39.3m) while pre-tax profits dipped to £3.2 million (£3.7m).

[nickcduk] 09/6/2010 20:00

Presentation up on the website now:-