Ms Share Discussion Threads

[cockerhoop] 07/12/2022 14:06

Agree, fill in acquisitions perfectly possible and probably down to subsidiary management. The big driver here though will be the sole supply US Naval contract which is progressing to plan and that's still in the current price for free imo.

[this_is_me] 07/12/2022 11:57

The Armada Janse bv and Reklaspits bv business were useful by extending the petrol station business to other sectors at a cost of around £1 million (from memory) so that sort of acquisition would be possible if too good an opportunity to miss arose.

[cockerhoop] 07/12/2022 11:00

I don't know how much is 'needed' in working capital but just worth bearing in mind at the end of H1 of the £23m in cash included £20.6m of prodomitably defence advance payments that were yet to be booked as revenue. So perhaps 50% (of £20.6m) would be used in costs to fulfil that revenue.

[this_is_me] 07/12/2022 10:02

How much of the £23 million do you think is needed for working capital (contract liabilities etc.)? Cash is up around £8 million in a year.

[cockerhoop] 07/12/2022 09:01

The cash at MSI is usually matched with contract liabilities so does flatter somewhat.

[this_is_me] 07/12/2022 08:46

I take your point that management have a lot on their plate at present.

Cash is now £23 million compared to today's market cap of £60 million. That certainly provides the fire power for taking over some small competitor or complementary business.

[cockerhoop] 07/12/2022 08:21

I don't think acquisitions are on the cards - suspect they'll have their hands full managing the defence ramp up in Norwich and ultimately South Carolina.

[this_is_me] 07/12/2022 08:11

"...whilst building a substantial war chest to support our continuing
investment, particularly in defence." seems to suggest that the BOD are looking the possibility of more acquisitions rather than just the increased working capital needs for the organic growth expected.

[cockerhoop] 07/12/2022 08:08

Considering there was no contribution from defence in H1 -really excellent numbers.

I really didn't think forgings had a 20% margin in it.

[this_is_me] 07/12/2022 07:29

The company has definitely left covid behind and the prospects look good. Dividend increased by almost 15%. The yield compared to my purchase price 2 years ago is very good. I expect the share price to continue to rise.

[battlebus2] 07/12/2022 07:18

Nice numbers and the dividend is increasing to 2p. Pleased ✅✅✅;

[norbert colon] 06/12/2022 12:03

It will be interesting to see what the Board say about the dividend in the interims as I'm aware that there is an intention to substantially raise the dividend to reflect the balance sheet and future prospects so this may be quite telling.

[goatman] 06/12/2022 11:25

Yes, good to see the upward breakout at last. Held in my ISA for years.

[this_is_me] 05/12/2022 13:40

Sudden jump in the share price after 4 months or so marking time. I bought a small holding almost exactly 2 years ago so I am happy to hold.

[cockerhoop] 28/11/2022 17:50

I'll believe it when the MOD order is placed - they are woeful. AFAIA both aircraft carriers are still awaiting their specified DS30 mounts. I did read somewhere that the T26's were going to get refurbed DS mounts removed from the T23's but possibly old news.
Maybe we'll get some updates in the interims.

[jdk14] 28/11/2022 15:07

Thanks for that Norbert

[norbert colon] 28/11/2022 15:05

Each T26 is proposed to have 2 x MSI DS30 mounts starting with HMS Glasgow which BAE have recently floated (or are about to) for the first time. Australia also have their Hunter Class programme which are the same as the T26 and Canada have their Surface Combatant (CSC) programme all based on the T26 so potentially a decent order flow for MSI assuming that they do go ahead with the DS30 mounts which you'd assume they would given it's standard across the RN fleet.

[jdk14] 28/11/2022 14:58

Norbert - couldn't see anything MSI related on the ships - or did I miss it (must admit I skim read)?

[norbert colon] 28/11/2022 10:33

https://www.navylookout.com/a-guide-to-the-type-26-frigate/

[norbert colon] 21/8/2022 10:10

I'm not aware that the Royal Danish Navy have ever procured from MSI but further newsflow showing the renewed focus on Defence spending globally that can only be a tailwind for MSI.https://www.navaltoday.com/2022/08/19/denmark-to-inject-5-5-billion-into-naval-shipbuilding-sector/

[norbert colon] 17/8/2022 17:53

https://twitter.com/forcesnews/status/1559578985780199425?s=21&t=uY6b5dwY_8q6SDJ1F0OTlQNice to see the autonomous RIB seemingly moving forward with the Royal Navy incorporating a MSI MWShttps://www.msi-dsl.com/product-category/seahawk-mws/

[eezymunny] 13/7/2022 13:57

The article is awful. Fails to mention the big cash pile, freehold property etc on the books :(

Even the PE is totally wrong. Where do they get these people from?

[markwell] 13/7/2022 13:02

Looks interesting, from Citywire today.

This £49m tiddler deserves a bigger following. Its biggest of four divisions designs and makes specialist engineering products for the global defence industry, forming 33% of revenue and performing strongly with follow-up potential from the US Navy, Ukraine and the Philippines for guns, mounts and equipment. The petrol station division, 24% of revenue, designs and constructs forecourt structures, and the forging division, 22% of revenue, benefits from the China supply difficulties. Revenue for the year to 30 April increased 21% to £74.5m, profits from £1.6m to £6m, valuing it at a reasonable 12.7 times earnings and offering a generous 5% yield.

[cjohn] 28/6/2022 08:53

PE of 10, but price to enterprise value of about 6.