Ms Share Discussion Threads

[yasrub] 02/8/2023 16:19

I think simply the outlook statement on defence from the recent results highlights already committed contract values but further significant potential interest on various fronts that looks more than promising. The dividend was a good indicator.

[yasrub] 02/8/2023 16:02

Thank you for the link

[johndoe23] 02/8/2023 16:00

Thanks for all responses, wonder why no RNS?

[norbert colon] 02/8/2023 15:55

https://www.naval-technology.com/news/pentagon-contracts-shipbuilders-for-nine-new-destroyers/

[cockerhoop] 02/8/2023 15:49

Maybe news of the 9 Arleigh Burke Flight 111 destroyer contracts awarded yesterday for 2023-2027. They are specified to be fitted with MSI 30mm cannons and optical sensors.

[andrew97] 02/8/2023 15:40

The tenor Michael or the treble Nicholas

[fieldhouse] 02/8/2023 15:37

A " Bell " ringing !!

[johndoe23] 02/8/2023 15:26

Something brewing?

[johndoe23] 24/7/2023 10:34

Looks like a nice double bottom on the chart

[aublune] 20/7/2023 07:31

great business undervalued still

[cjohn] 19/7/2023 08:01

Nothing novel or noteworthy about that: it's called "profit-taking".

[johndoe23] 18/7/2023 08:32

Yep gains momentum then just falls back

[harry_david] 18/7/2023 07:44

Funny market, here we have a company with fantastic prospects yet the market has gone to sleep. Guess it won't last long.

[johndoe23] 23/6/2023 21:31

I meant confirmation of delivery.

[yasrub] 23/6/2023 18:38

Hi Norbert thank you for such a summary with such detail of expectations. I personally had eps between 45-50p before the slight contract delay.The proposed divi speaks volumes to me and cash would have been very impressive with contract completion. I am very excited for the potential in the defence sector and suspect it will bring attention to MSI. I use to subscribe to Stockopedia and will look to resubscribe soon. Once again thank you for such a comprehensive reply.

[norbert colon] 23/6/2023 18:14

"I am pleased to report that we have recently received encouraging confirmation that matters have been resolved relating to the delayed significant contract caused by the continuing war in Europe. We expect to receive payment shortly and then the equipment can be delivered."

[johndoe23] 23/6/2023 18:00

So EPS for this year could be anywhere from 60p-80p plus. Hopefully news of the delayed order very soon, plus more contract wins!! Ex div soon.

[norbert colon] 23/6/2023 17:25

Hi Yasrub - i'm not sure if you subscribe to Stockopedia but there is a very good summary on there in yesterday's SCVR by a fellow investor and acquaintance of mine illiswig. Thats a good starting point and I echo his comments.

Clearly it would have been nice to see EPS in the 40-50p area which could easily have been possible (or exceeded) had the VSHORAD kit been booked as planned and if the branding biz wasnt so troublesome.

I have spent an inordinate amount of time (more than any other investment in 20+ years) researching this company and the summary is its very hard to predict the outcome for each subsidiary so I am more interested in the general direction of travel and scale of opportunties.

A year ago it was all about the US Navy contracts at Mk38 Mod4, now we have a very interesting and lucrative other income stream in the form of land-based GWS which have surprised everyone in their speed (and scale in GBP) of adoption.

The size of the order book (with divi increases), big hitter partners (Thales, Saab, Northrop and MARSS etc), US Navy roll-out and now the VSHORAD offering together make this a very compelling investment.

Its still going to be very lumpy and is contract driven but I have accepted that.

The US Navy roll-out will hopefully continue as expected with the first Mk38 Mod4's being fitted for IOC in 2025 on the DDG's. The contract values (sole source) will be in the tens of GBPm annually to start but I would expect these to ramp up and we know they are likely to get orders for 11 units this year (for 2025 IOC) and 8 units in 2024 for 2026 IOC. These are worth circa GBP50m alone. Seems there is still approvals to be signed off but on the balance of probabilities I would suggest any hiccups between now and the signing of contracts should be minimal.

In Defence we also have the A2 Seahawks being fitted to the MkVI patrol boats for Ukraine and to the FPB-98's also going to Ukraine plus I believe we still have GWS being fitted to the Indonesian Navy PC-40's and starting over the next couple of years we have GWS being fitted to the Royal Navy T26's and hopefully the Royal Malaysian Navy LCS with even more to come from 2026 onwards such as the Philippine Navy HDP-2200's and HDC-3100's. Of course, things can change...

There is also the added angle here of potential interest from a larger peer in the defenmce space as I would expect both the US Navy contracts and the VSHORAD uptake to attract eyeballs from the industry. That said, I am not sure a L3Harris or similar would want MSI with its subsidiaries intact.

H1 of this year is seemingly going to be a record half and the investment case rests firmly with the fortunes of their Defence business which clearly seem to find themselves in a sweet spot to put it mildly.

GBP 21m of freehold properties and a decent cash position continue to also help underpin the investment. My largest holding.

[harry_david] 23/6/2023 08:47

In my business Yasrub, deliveries sometimes run a month late and if its the year end this transfers some profit to the following year. It is definitely not a big deal. My view is that when the market digests this report the shares will rocket.

[yasrub] 23/6/2023 06:34

Thank you Norbert. I would be interested for your thoughts on the results and the outlook narrative if you felt able to comment. Overall I concluded it was highlighting the company especially in defence is moving at quite a rate and the % increase in dividend underlined the confidence. Whilst the delayed contract is annoying, hopefully completed shortly.

[norbert colon] 22/6/2023 10:57

AGM 9th August - normal location

[yasrub] 22/6/2023 10:41

The AGM in July will hopefully confirm the outstanding contract is concluded. It sounds like the funds are to be received anytime soon.

[johndoe23] 22/6/2023 10:31

Also, only reporting twice a year does my head in!

[johndoe23] 22/6/2023 10:31

That would be sensible in my view