Ms Share Discussion Threads

[cockerhoop] 12/12/2023 14:08

hydrus,

Yes, the cash balance is abnormally high because of the cash received upfront for orders yet to be delivered. With the $100m of hedging also carried out to match quoted forex rates, $41m of which is forecast to unwind within 12 months gives an indication of the current direction of travel.

Also note the abnormally high receivables (presumably the £22.4m VSHORAD yet to be paid but covered by UK Export Finance or the like) will also be converted to cash in time (maybe already??).

[harry_david] 12/12/2023 12:37

Norbert, that's why I bought some more this morning. Great to have your support, your knowledge is definitely superior.

[norbert colon] 12/12/2023 12:01

Personally I’d ignore market pricing and take it as an opportunity.

These H1 numbers are the start of what will be a very good FY/24 with FY25 looking equally good. Ive got my own thoughts on H2 and I’m confident it will be another step ahead of H1 with FY EPS possibly in three figures depending on delivery dates and that makes no allowance for any US Navy production sales in H2 as its seems likely they won’t start to fall until H1/25.


With a rock solid balance sheet (cash+freeholds) and earnings growth well into double digits, is a PE of substantially less than 10 pricing the business correctly?

[hydrus] 12/12/2023 12:00

Apologies I mean petrol superstructures not forgings in my earlier post.Presumably the cash balance is particularly high because they have billed andreceived payment for some of the 'contract liabilities' specified in the current and non current liabilities. The momentum in the business is significant and it seems to me that a likely outcome here is a bid for at least the defence part of the business. The contracts with US Navy are very desirable for many I'm sure, taking in to account just how long it takes to enter the market based on MSI experience!

[johndoe23] 12/12/2023 11:43

Now only 4% am I missing something?

[valhamos] 12/12/2023 11:10

Well it reads clear enough to me. It's an interim report - reporting on the last 6 months since the last annual report.

"In last June's annual Statement, I highlighted ....."

"I am now delighted to confirm we have been awarded the first production order contracts". From the context "Now" obviously equals in the period since the last June's annual statement.

[harry_david] 12/12/2023 11:02

Well I bought a few more this morning. Yes the recent and pending contracts were part of the reason but the main factors are the level of profits and the massive increase in liquidity.

[johndoe23] 12/12/2023 10:47

7% rise is paltry

[mikeh30] 12/12/2023 09:39

And todays headlineI am now delighted to confirm we have been awarded the first production order contracts with the US Navy to supply our 30mm naval gun. This significant development is complemented by a further contract to maintain and support those systems

[mikeh30] 12/12/2023 09:35

Please see the below extracts from previous contracts "The Company has yet to be awarded a production and supply contract related to the US Navy Mk38 MOD4 weapon system""Regarding the ongoing opportunities in the US, we cautiously believe that we are well placed to be awarded a contract to supply our MSI-DS 30mm naval weapon system to the US Navy"

[mikeh30] 12/12/2023 09:32

The previous contracts were for the gun mounts and the optical sight stuff.This is for the actual weapon systems

[cockerhoop] 12/12/2023 09:10

Tom,

They're the contracts previously announced in September & October.

[johndoe23] 12/12/2023 09:10

Why would anyone sell??

[sundance13] 12/12/2023 09:08

Early sellers out of the way, hopefully onwards and upwards from here past a tenner.

[74tom] 12/12/2023 08:20

Wow, surely this is the major news today;

"I am now delighted to confirm we have been awarded the first production order contracts with the US Navy to supply our 30mm naval gun. This significant development is complemented by a further contract to maintain and support those systems."

@Norbert, that's the big one right?

Any idea on contract value?

[gleach23] 12/12/2023 08:16

Not to mention the £731k loss swallowed up on forward currency contracts

[hydrus] 12/12/2023 07:43

Forgings profits dropped substantially in the period also (by over £2m) so if activity picks up as they allude to then that's an additional driver to support profits in the next few periods. Defence profits of £5.7m vs a small loss last time.

[johndoe23] 12/12/2023 07:33

When I said 1100p, I was being Conservative

[andershow08] 12/12/2023 07:31

Bigger vshorad contract (£54m) still to come in H2, further interest, defence margin hugely increased and US revenues to start in H2.
Superb results

[rolo7] 12/12/2023 07:27

Nice bank interest to come in h2

[sundance13] 12/12/2023 07:15

Amazing results, will make an early put we could be challenging a tenner today off the back of these results, assuming we repeat H1 earnings that would still be a PE under 15.

[johndoe23] 12/12/2023 07:15

Net cash and earnings also doubled. Wow indeed. Now we know why share price was rising in to results! However, still undervalued in my view. Share price of around 1100p fair value

[someuwin] 12/12/2023 07:13

Wow2...

"The balance sheet is again much stronger with net cash at GBP50.05m (2022 - GBP23.88m), reflecting the valuable upturn in activity in our 'Defence and Security' businesses."

[bigbigdave] 12/12/2023 07:02

Wow
For the half year ended 31st October 2023 profit before tax increased substantially to GBP7.72m
(2022 - GBP3.46m) on revenue of GBP57.02m (2022 - GBP42.03m).