Northbridge Industrial S... Share Discussion Threads

[0rb1t] 05/5/2013 09:12

Here's the latest brochure from their transformer business:

[0rb1t] 05/5/2013 08:59

There's a link to the annual report on their website but it doesn't work yet. Here's the presentation from the annual result which I haven't seen before:

[topvest] 04/5/2013 15:51

Annual report has arrived. Must admit to being quite bullish on this one now; has to be a good chance that they can finally achieve 30p EPS this year with a strong start to the year, and improving market conditions. At some point this will then get re-rated to a forward P/E of 15+ and it looks like this has started to happen. UK and Australian operations look very good. They just need the Middle East operation to improve as well.

[topvest] 01/5/2013 20:16

Yes, all looks very promising indeed. From a chart perspective it looks destined to push up to £4 or so. All time high was about £2.91 previously so well through that. Still only on a forward P/E of 10, so there is still scope for quite a bit more!

[pyemckay] 01/5/2013 15:06

nice and quiet as she grinds higher. one to tuck away.

[smithie6] 01/5/2013 14:04

surprisingly quiet on this msg board....

as NBI grinds higher...

[smithie6] 23/4/2013 13:11

...maybe Peter Harris is warming up to make an offer ! ;-)
(increased his large holding even more recently.....)

just joking

----

with the share price performance (and co. perf.) over last few years....he must be happy...(and justly so)

[markt] 16/4/2013 14:26

I would guess then that in cashflow it occurs because the money was actually exchanged to pounds....
whereas perhaps the translation of for. ops. was not exchanged and hence doesnt go into the cashflow numbers...

(personally I think that accounts need to give the actual calculation...so that PIs can see what is going on, eg. non-current foreign assets of value X at start of year in pounds had value of Y at end of year due to exchange rate difference, giving an exchange difference of T pounds

and
non-current foreign assets of value X at start of year in pounds had value of Y at end of year due to exchange rate difference
giving an exchange difference of S pounds

...otherwise...imo ...us PIs are in the dark...and maybe most accountants as well !

[countryman5] 15/4/2013 17:11

Expect a mention in Friday's IC

[0rb1t] 15/4/2013 16:19

Hi markt,

Exchange differences on translating foreign operations (of minus 583K) appears in the P&L after the earnings have been calculated.

In the cash flow it says that the exchange losses were only 6K.

The asset values in sterling must change in the balance sheet but not exactly sure how this is represented.

Anyway I think this will remain static or slightly drift up now until next results. 2014 estimate is 35.25p. If everything goes well this year then I can't see why this is not valued at 12x 2014 earnings come next April (ie 420p). Unless of course we get a bid in the meantime.

[markt] 14/4/2013 18:48

Orb1t
foreign currency
...I read some info in last annual report....

is the following a correct summary

1) that the increase or reduction in value in pounds ....of cash or similar assets.... in other currencies held over all of the reporting period
(ie. value X on day 1 and value Z on last day of rep. period , producing a diff. of Y)....
goes into the profit calculation....


and

2) that the diff. in value in assets which are not cash (hire equipment ?, goodwill) is reported....but is not included in the P & L calculation

Is that correct or ?

[sammy_smith] 12/4/2013 08:57

Listen to Eric Hook, Chief Executive Officer & Craig Robinson, Finance Director of Northbridge Industrial Services - 2012 full year results.

Click the link below to listen.

[0rb1t] 12/4/2013 08:23

Aggrekko update this morning and everything going OK there also.

[0rb1t] 12/4/2013 08:22

This is from the Prelims yesterday:

Foreign currency exchange risk

The Group is exposed to movements in exchange rates for both foreign currency transactions and the translation of net assets and income statements of foreign subsidiaries. As local management have responsibility for their own bank accounts, the cash at bank balance is held in Euro, US Dollar, Australian Dollar and UAE Dirham accounts. There are also outstanding balances for trade receivables, trade payables and financial liabilities in these currencies. The Board manages this risk by converting non-functional currency into Sterling as appropriate, after allowing for future similar functional currency outlays. It does not currently consider that the use of hedging facilities would provide a cost-effective benefit to the Group on an ongoing basis although a forward currency contract was used to fix part of the cash consideration paid to the vendors of DSGR on completion of the acquisition.

[topvest] 11/4/2013 20:48

markt - translation of foreign subsidiaries I suspect which effectively goes through reserves as it doesn't impact EPS. Tasman is Aus $ denominated I think, so I suspect that is the biggy!

Think Northbridge are now pretty well placed. Now is the time to deliver on their strategy.

[countryman5] 11/4/2013 11:33

Westhouse have increased target share price from 350 to 400p

[markt] 11/4/2013 10:51

"Exchange differences on translating foreign operations 583k"

Anyone know what is this ?

difference in value in pounds of cash held abroad ?
or
difference in value in pounds of assets held abroad ?
or ??

[topvest] 11/4/2013 08:58

Pretty solid results I thought, and got back the lost ground from last year's blip. Key challenge now is to get the EPS in the 30's - they do look better placed in 2013 to achieve, so I'm holding.

[interceptor2] 11/4/2013 08:55

True Orb1t, but still a slight miss. I do feel that the outlook for NBI is positive this year, and I might see an opportunity to buy back in later in the year. I would guess that the share price will at best go sideways for a few month's, but hopefully due to them operating in a strong sector, the share price might still advance.

Regards ic2...

[0rb1t] 11/4/2013 08:47

interceptor2 - NBI had amortisation and impairment of intangible assets of 698K GBP. So the adjusted EPS would be about 27.2p.

[0rb1t] 11/4/2013 08:41

Here's some key points from the results:

Crestchic brand of loadbanks - new freehold property for 1.7m GBP operational by Sep 2012. New Sales Manager. Operating profits up 30.5% (even after previous constraint of limited site size)

Middle Eastern business, NME. Revenues up 60% compared to quiet 2011.

Northbridge Transformers - 3.8m GBP investement in fleet. Slightly lower margins but longer contracts so more revenue visibility. Business grown from its original base in Belgium to a worldwide audience leveraging off NBI's depots throughout the world.

Tasman oil tool rental business - obtained Quality Assurance Standards Accredited supplier. 2.9m GBP investment. Operating profit up 45%.

Northbridge Industrial Services (Asia Pacific) Pte ("NAP") in Singapore. Small profit during year. NAP has now won several other contracts in the region and will spearhead our move into China and will provide a larger contribution to Group profits in 2013

Based on the Group's cashflow from operating activities there is further capacity for increased borrowings.

Northbridge strategy is to acquire and consolidate specialist industrial equipment businesses

[interceptor2] 11/4/2013 08:15

I have sold out at the open. Even though the outlook is bullish and they say that results were in line with expectation. Looking at the results they have missed the brokers targets imv.

So I will sit on the sidelines now, and wish holders the best.

Regards ic2...

[0rb1t] 11/4/2013 07:16

All looks good. 2013 estimates are currently 35p but NBI's house broker Westhouse currently have no estimates. But at 35p we are on a forward PE of just over 9.



The first quarter of 2013 has started well with a number of large contracts continuing from last year and additionally new contracts have been won which are planned to commence in the first half of 2013.

There are signs of recovery and improvement in most of our markets and the shortfall of larger rental projects in power testing and commissioning has already eased. Delays in projected start dates of certain contracts are still being experienced, but with an increased fleet size we are better able to manage utilisation. Further hire fleet investment is planned for this year and our increased production capacity and additional marketing activity will lead to continued growth.

As a sign of the Board's confidence in the Group's prospects, an increase in the final dividend for 2012 of 10% has been proposed. We are pleased with the Group's progress in 2012 and, having started 2013 with good levels of continuing contracted rental demand and product sales orders, we expect continued growth this year in line with market expectations.

[nurdin] 04/4/2013 15:28

Results next Thursday...expect these to motor in the run up to the announcement..

[woodcutter] 03/4/2013 12:46

soon be top up time if it hits 300p. I think we may see a significant uplift in the divi at results

Woody