Ms Share Discussion Threads

[rivaldo] 13/4/2006 15:26

Hope so CR. Final results are only 2 months away, so I doubt if MSI will have agreed terms by then given that VT have still to dot the i's etc on the contract.

But it looks highly likely that MSI are in the front line (ho ho) for this one, and it'll just underpin future growth even more than the order book already does.

No wonder they're continuing to buy shares in.

[cockneyrebel] 13/4/2006 15:03

I expect an official announcement in the results, as they did at the last results.

CR

[cockneyrebel] 13/4/2006 15:01

Fab find Rivaldo - the market won't sleep forever!

Spot on - this must be worth a packet to MSI :-)

CR

[gringostar] 12/4/2006 09:59

Old one but good one Rivaldo.
I did't realise how well this division was doing.

[rivaldo] 12/4/2006 07:59

Google Alert sent me this today for some reason. It dates from March'05, but not only might it explain to some what MSI's defence division does, but it also got me thinking.

With ocean piracy and criminality (drugs etc) spiralling across the world (Indonesia, Somalia, coastlines in general) all sorts of ships, not just warships, are having to install anti-piracy measures or use naval protection for their cargoes. The final para spells out what MSI-Defence provide - I'd have thought these products would be in big demand at present and in the future:

"ADI contracted to supply MSI Gun Systems for project protector

3 March 2005
ADI Limited (Australia) has been awarded the contract to supply the main gun systems for the New Zealand Ministry of Defence's Project Protector program by the lead contractor, Tenix Defence Pty Ltd.

The systems are the MSI DS25M designed by MSI-Defence Systems, UK. This modern modular design enables a smaller calibre gun system to be configured in virtually any format to meet the full spectrum of potential naval configurations, from manned, with basic sighting, to full autonomous control by a ship's systems or control at a remote station.

The systems for the Protector vessels will incorporate the ATK 25mm M242 Bushmaster cannon, common to the NZ Army's light armoured vehicles, giving the navy commonality of ammunition and cannon training and support.

"ADI has chosen to continue collaborating with MSI to offer new supply and through life support for the MSI modular gun systems. Previously we produced six 30mm MSI gun systems for the Royal Australian Navy's Huon Class minehunters," said Mr Lucio Di Bartolomeo, ADI's managing director.

"ADI considers the MSI modular gun system as the best in the market. It is extremely well designed, very robust, while maintaining a lightweight footprint.

"Its marinisation is excellent. This is critical in achieving reliability and low through life costs. This has resulted in a system capable of withstanding the pounding from heavy seas and green water exposure while then continuing to deliver the best reliability and availability of the systems currently available in the market."

MSI has well over a hundred units in service with a range of navies.

Tenix was awarded the Protector Project in July 2004 after an extensive competition involving over 25 shipbuilders worldwide. The Protector fleet will comprise one multi role vessel, two offshore patrol vessels and four inshore patrol vessels to be progressively delivered in 2006 and 2007. The MSI gun systems will be installed on the MRV and the two offshore patrol vessels. Tenix tendered the MSI gun in its baseline offer to the MoD and has been negotiating with ADI to conclude these contractual arrangements now in place.
_______________________________________

ADI Limited is a major supplier to the Australian and New Zealand Navy and Army of small arms and medium and large calibre guns systems. It provides logistic support for the majority of the ADF's gun systems. ADI is also the primary supplier of munitions to the ADF. It constructs and maintains naval ships; designs and integrates combat systems, aviation mission systems and naval communications equipment; designs and manufactures high mobility and protected military and emergency response vehicles. (For more information, visit www.adi-limited.com.)

MSI-Defence Systems is a major company within the UK based MS International Group with its head office and manufacturing facility in Norwich, UK and an important support establishment in Weymouth, UK. It plays a leading role in the design, development and supply of naval systems unrivalled in reliability, flexibility and performance. It embraces spearhead technologies coupled with an in-depth understanding of the naval environment. This has resulted in a quality product and service portfolio comprising, naval weapons, sensor platforms, navigation equipment, military diving systems, tactical shelters and logistic support. The technologies behind this portfolio are derived from the company's 80 years of experience in naval markets. MSI systems are fitted to all the current major Royal Navy platforms as well as 40 navies across the world."

[gswredland] 10/4/2006 15:20

nothing like a rise to get everyone chatting again eh!

[iandippie] 10/4/2006 15:17

Let's get this party started!!

[rivaldo] 10/4/2006 15:09

Looks like people have found a home for their 2006/7 ISA money :o))

[cockneyrebel] 10/4/2006 14:46

Oooo... here we go.......

How horny is this chart starting to look! :-)

CR

[cockneyrebel] 08/4/2006 11:29

Yep, you definitely get the feeling MSI don't go in for unnecessary expenditure don't you!

If only every business was run this frugally - we'd all be bore senseless but we'd all be much richer!

CR

[xdavid] 08/4/2006 11:18

Noticeable on Friday that there was no huge deluge of new ISA amounts into MSI :)

I ended up not waiting and swapped around some existing stuff for MSI (3 times) in the 2 weeks previously. However, my ISA is now 60% MSI which is heck of an overweight in one position for me. Getting the annual report was a long overdue necessity for me before making any further purchases. For those like me, you can be reassured that the report was of similar extravagance to their websites - nice corrugated cardboard cover in black with MSI in red (no pictures) and insides full of figures (no pictures and only one graph :-)

Looking forward to the next one.

-david

PS. Now estimating PE of 9.1 for 17p earnings. PE 7 for 2006.

[cockneyrebel] 08/4/2006 11:15

Thanks David.

One of the interesting parts of that is the build up in stock, raw materials and good. I think we discussed this here before regarding reduction in cash. £7.6m up from £4.9m. That tells you they have strong advance orders and work in progress imo. That's impressive imo.

CR

[xdavid] 08/4/2006 11:01

To clarify companies making up the MS-International group, from the printed annual report for 2005...

WHOLLY OWNED SUBSIDIARIES
MSI-Defense Systems Ltd
MSI-Forks Ltd
MSI-Forks Inc (sale and part manufacture of fork-arms in US)
MSI-Quality Forgings Ltd (according to Companies House, active for some years)

JOINT VENTURE
Global-MSI plc (50% owned by MS-International)

So MSI-Quality Forgings has been operating for some time & the new web-site appears to reflect increased marketing of this. Perhaps indicating an increase of importance of this subsidiary within the group earnings?

Global-MSI is a joint venture with at least two other european companies, to facilitate design and construction of forecourts throughout europe. The other companies involved can be found on the Global-MSI website.

No breakdown of turnover etc was given in the annual report for the separate subsidiaries, this being deemed "seriously prejudicial to the interests of the group". However, you can identify the contribution of Global-MSI as this is separated out as the joint venture.

Nothing of note in the report which is not in the RNS announcement. But one of the things I was curious about was: Freehold property of £5.9m, valued May 2004.

Regarding reduction in cash from 2004 to 2005, due to stated build up of materials etc, this can be seen within the report under Stocks (in £m, 2004 in brackets)...

Raw Material Stock: 2.5 (1.6)
Work In Progress: 3.8 (2.3)
Finished Goods: 1.3 (1.0)

Then there was the purchase of shares: 1.3 (0.4)

No window dressing of the figures regarding creditors - average creditor days down to 59 from 89 (2004). Amount: 11.2m (12.5m)

Employee Numbers, 2004 in brackets, incl directors...
Production: 221 (215)
Technical: 38 (34)
Distribution: 30 (30)
Administration: 46 (47)
Total Cost: £10.2m (£9.4m)

Copies of report available from: 01302 322133

-david

[capa] 06/4/2006 08:49

My wifes got a G-Spot I could borrow, if I could only find it !

capa

[cambium] 05/4/2006 22:41

I've got a g-string will that do!

[cockneyrebel] 05/4/2006 19:40

About 16K net buys and it's up 6p - imagine what 30K buys would do, a break out on a miserly ne £45K worth!

That's how illiquid this is - silly little 2K trades have stalled it - now they are done watch and see what a modest bit of buying does imo.

£70K buys would mean G-Suits.

CR

[rivaldo] 05/4/2006 19:34

Indeed. Plus the fact that MSI bought back 100k shares in December at just below the current price, with director buying also at slightly lower levels....

Too many positives to take in :o))

[xdavid] 05/4/2006 16:16

Even at 157p, the current 2006 year PE will still only be around 9.2 (conservative 17p earnings).

For forward earnings of 22p (25% growth on top of this years 30%) then the PE would be 7.1, PEG 0.24.

Put it on a PE of 12 in a years time would give a price of £2.60

So plenty more to come to the patient!

[gswredland] 05/4/2006 15:57

me too but may hold off now...bought some a while back at 161!!

[iandippie] 05/4/2006 15:51

Nope. Wish I had tomorrow's ISA allowance today. :-(

[Abuse team] 05/4/2006 15:50

Post removed by ADVFN

[cockneyrebel] 05/4/2006 15:49

Now above the previous high - change in chart trend.

CR