Ms Share Discussion Threads

[xdavid] 27/6/2006 11:13

Actually, Goatman, you have to look at the PDF to see the whole range of stuff they do (interceptors and access covers etc)...



(Try to ignore the commentary about "meeting the needs of the filling station of the 1990s" :-0)

[cwa1] 27/6/2006 11:13

Morning MSI ers

Just grabbed a few. That RNS was about as upbeat as any I've seen for a while and I was slightly surprised to see it down 7%. Obviously expectations had been pretty high for MSI in the first place. Have any of you on this board spoken to MSI to see about some broker coverage/ press profiling, etc? Seems a shame to have a story like that and nobody really gets to hear it. From reading through a few of the posts here it seems as if the board are a touch parsimonious. Maybe they should raise their game to just being a bit frugal and splash out for some coverage?

[xdavid] 27/6/2006 10:58

goatman, see global-msi.com for what they do (includes the stuff underground too). Don't know about cost of entry but MSI are the "sole contracted canopy partners for Shell, Esso and Jet throughout Europe" and a "leading european forecourt structures partner" for BP.

I had a closer look at the reduction in revenue etc between the 1st and 2nd 6 month periods. Actually, the same thing happened to revenue in 2005 (although about half as much) so suggests that there is some kind of annual pattern - maybe MOD payment structure? Worthy of a question to MSI, methinks, and something to remember when next interims come in.

However, although revenue was down in 2nd period, the share of operating profit (before interest and tax) was actually UP in 2nd period compared to 1st. I suspect it will take a better accounts person than me to explain it all properly...:-) but I'm reassured that there is nothing untoward in the pattern and frankly I look forward to further earnings jumps due to the obvious success of the new gun contracts and the huge european forecourt developments planned this year by Shell (mentioned in posts a few days back).

[cockneyrebel] 27/6/2006 10:44

just the canopies and the prefabricated stores as for On the Run I believe goatman, along with the car wash bays.

CR

[goatman] 27/6/2006 10:24

I have held MSI in the ISA since May last year and increased in May this year. It now forms 20% of my ISA and I'm happy with that for now...

Not sure what the barriers to entry are to building petrol station forecourt structures. But if they are getting the work, then fine! More specialised would be the fuel metering pumps. Do they make the pumps, does anyone know? Always fascinated me how those things work..we all trust 'em to deliver the fuel we pay for!

G

[mr. t] 27/6/2006 09:47

I've reduced my holding after the results, to balance my portfolio. After the recent rise, MSI was over 25% of my share holdings. It is now a more reasonable 12%.

The results were good, but the 2nd half turnover, profits and EPS were less that the first half. To me, I couldn't go on holding that many shares when there is now a risk of the growth petering out.

However, the fact is that their year on year growth is still there, the prospects look excellent and the cash generation is something to die for. Also, the directors' share holdings and their attitude to share buybacks are fantastic.

I will happily hold my remaining shares and look forward to them appreciating in value...

[cockneyrebel] 27/6/2006 09:46

sensibility will return imo.

As for the golf ranges, yes, part of the comopies business so an extension of that imo. Part of the investment may have gone into this for payback in the coming year or two along with the guns imo.

I'm delighted to be holding a PE this low and a solid company with an excellent track record.
Earnings in H2 may have bee sacrificed a bit for investment but that's the right thing, not the short term thing.

Those that get bored will drift away and miss the payback I suspect - probably buying back higher when it gets tipped in the tip sheets or ecognised in the press. I'm holding, it's done me well over 2 years and I expect it to do even more over the coming year.

CR

[iandippie] 27/6/2006 09:28

Well, still happy to hold, but wont be adding just yet. I was hoping for 18 eps, and although MSI is going great guns, I don't think this will get to 270 in the next couple of months. However, happy to be heavy in these, and happy to be proved wrong about 270.

[cambium] 27/6/2006 09:20

Thats for standing doubleorquits, the seating is more.

;o)

[doubleorquits] 27/6/2006 09:19

Take your own sandwiches definitely. I understand they are charging £10 per head for all attending the AGM as well - but that does include a cup of tea.

;0)

[diogenesj] 27/6/2006 09:06

Nice results, still looks cheap, but the shares would be a lot higher if they did a bit more in the way of investor relations. I'd take your own sandwiches to the AGM, xd: you can't count on getting any out of these people. :-)

[cambium] 27/6/2006 09:05

What is the bet that we fill that gap by the end of the day.

[bigbigdave] 27/6/2006 09:04

LOL! Tinned tuna.

[xdavid] 27/6/2006 08:57

Hi Goatman. This is a company which did not put out an RNS for a £15m MOD contract because it was spread over a few years and anyway, is what their business is and so not exceptional! A small start-up venture expanding on their petrol station capabilities is just not going to make a show! The only comment/outlook in the results comprises half a page from the chairman (and the first paragraph of that gets repeated :-)

I'm seriously thinking of going to the AGM this year. I'm really curious to see what sort of sandwiches they provide...

[goatman] 27/6/2006 08:43

Good morning CR,

Nice results, I see. I was reading Xdavid's posts regarding golfing range manufacture and it appears that MSI is indeed involved in this. I know that this is a company that doesn't spend more than necessary on visibility, but should this activity not get a mention in the results? I don't see it there! I would appreciate your view. Thanks.

G

[xdavid] 27/6/2006 08:40

Gosh, wasn't expecting it this morning!

24% growth (on diluted eps) - damn good considering the cost of sales seems to have risen by 17% (against +14% for revenue) and the effective "tax" rate is 34%, a full 1.1p per share above last year. Presumably the latter a one off? (Can't say I understand tax and amort' stuff). Distribution costs (oil?) have also gone up a third but this was offset by a comparable reduction in the larger admin expenses (which seems like good control!).

I'm stunned at the cash back up to £5m - this is supposed to be an engineer! And they have still made record capital expenditure on new equipment etc, LOL! Still to look closer at the rest of the balance sheet but looks good at first glance (as Michael Bell states).

Comment wise, the "record forward order book" bodes well, as does the continuing investment in capital and R&D. The export order for the new gun is excellent news (maybe Australians?) and must surely lead to more. Finally, a nice comment on the forgings division - "gathered added momentum through enhanced capabilities" - this must be the stuff on the new web site (which link escapes me at the mo).

From the initial mark-down in price, looks like there has been some recent speculators taking a quick buck but seems to be bouncing back - would have been a good window for those who waited to buy on results - don't usually see that!

All in all, I'll tuck them back into the drawer - see you all in 4 months for the interims? :-) Hopefully, a bit of news would be nice before then but I won't hold my breath!

[cockneyrebel] 27/6/2006 08:30

Yep, let's get real here. Yesterday the shareprice was pricing in beggar all imo, almost pricing in a decline in earnings on that rating. H2 eps slightly lower than it might have been due to investment for new gun orders I suspect but the PE is still way low for the sector and such a great performer.

Doen't make it a sell because it's very cheap rather than screamingly cheap does it? And if those gun orders are as good as it sounds it may well be screamingly cheap still

CR

[sidebar] 27/6/2006 08:27

Accountants can massage most figures but you can't argue when a company puts cash in the bank. £5.19m, excellent.

[bigbigdave] 27/6/2006 08:27

Anyone catch the bottom?

[gardener1] 27/6/2006 08:21

This fallback in share price looks like a great investment opportunity. Not yet bought but finger poised on the buy button. Not a big investor but have followed CR's comments on a number of boards with interest

[rogerbridge] 27/6/2006 08:19

mm's seem to be desperate to shake a few out today. Well they are not having my shares. Quite happy with long term prospects. Off to work.

[cockneyrebel] 27/6/2006 08:07

I think it must be the Ausi order - can't remember the size but looked large on the number of guns.

Suspect a few of Robbie Hood's merry men who bought yesterday won't stay the pace. But longer term the business MSI are doing looks huge and the investment has gone in - payback for those with the will to wait imo. 2007 looks very bright with gun sales so strong imo.

CR

[rogerbridge] 27/6/2006 08:05

looks as though mm's are trying to get some cheap shares, but this may be an opportunity to tuck some away for the pension.

[gringostar] 27/6/2006 07:47

"I am now able to report, that in addition, we have won our first export
order for the new guns"
Anyone know the size of this export order?

[shanklin] 27/6/2006 07:29

Also worth noting the big improvement in the funding of their defined benefit pension scheme.