Pan Euro Share Discussion Threads

[rivaldo] 21/6/2013 07:28

PAN achieved 4.5p EPS before the £3.72m one-offs, £2.45m of which is a bad debt provision which PAN seem confident of recovering in some or all extent.

It's a shame they didn't highlight this core EPS as well as the "headline" EPS as most companies do.

The outlook statement is confident and bullish.

And it's intriguing that Rosbunker has been assigned a fair value of £22.5m with several sets of negotiation for disposal ongoing.

The reaction will depend on whether the market looks at the ongoing business or the "Headline" reported figures.

[pantastic] 21/6/2013 07:24

Chairman's Statement



It is with great pleasure that we can report to shareholders that your board's strategy of growth is beginning to show results. We continue to grow our revenues within Europe, reflecting the accuracy of our name change to Pan European Terminals, and all our European terminals are operating at full capacity paving the way for a brighter year ahead.



The year under review did see the Group report lower than anticipated profit, mainly as a result of the high one off costs. However, your Board is confident that the Group will return to a strong profit in 2013.



As expected, operations in 2012 continued to grow. Despite the impact from our successful efforts to maintain our 50% holding of the Rosbunker asset in Kaliningrad, revenue has increased by 32% as a direct result of good figures from Petro Broker International BV (Holland), Baltic Top (Kaliningrad) and the integration of Dan Balt AS (Denmark) into the Group structure.



With regards to our ongoing acquisition programme, we are pleased to report that both of our recent acquisitions have been integrated quickly and efficiently, and have achieved the targets we anticipated pre-acquisition and are growing steadily. Both have expanded their customer base which is important to the integrated model that we advocate of building bulk for our clients.



As stated in the accounts and the Financial Overview below, we have taken the appropriate action to classify Rosbunker as an investment, and as such, profits from this operation will only be taken when cash is received from this investment. This has the benefit of aligning the accounts with the Board's intention to quickly reach a positive resolution for the Group. The Board has identified several strategic options, all of which are at an advanced stage of discussion - and each will ensure that the result is in the best interests of all our shareholders. The change in current accounting treatment on this asset has no impact on the cash receipts of the Group and is therefore recognised as a pure accounting matter.



With the expanded group now fully operational we are confident that we have a significant presence in the transhipment market and are building critical mass to allow us to grow this position and the Group. There are new opportunities available to us which we are pursuing vigorously, having shown that we have the ability to successfully integrate new acquired assets in a timely and cost effective manner. Our model of expansion will continue to be handled in a careful and calculated way to ensure growth in value for shareholders.





Richard Healey

Chairman

20 June 2013

[pantastic] 21/6/2013 07:23

Simon Escott, CEO commented, "We have made good progress in Europe this year, due to the solid performance from Petro Broker and the successful acquisition and refurbishment of Dan Balt, both of which gives us a strong base for the future. In Kaliningrad, Baltic Top showed significant growth, while we are hopeful of a swift resolution with the Rosbunker terminal, due to the ongoing progress there.



"We continue to carefully look at opportunities for expansion within our existing facilities and also at new acquisition targets in different geographic locations that meet our strict criteria for acquisition. This will ensure economic and environmental risk is managed going forward, whilst giving us the best opportunity to offer our growing client base, flexibility, better service and competitive rates for 2013 onwards. It is the Group's intention to publish an update on progress made in 2013 in due course"

[pantastic] 21/6/2013 07:22

HIGHLIGHTS

· Revenues increased 32% to £20.6m (2011: £15.6m)

· Underlying Profit before Tax (pre non-recurring expenses) of £4.87m (2011: £5.05m)

· Non-recurring items include:

- £2.45m bad debt provision

- £1.27m of other one-off costs

· Profit before Tax £1.15m, after £1.31m of finance costs

· Strategic milestones achieved with:

- Ownership or management of 385,000 cubic meters of refined product tanks

- Doubling of revenue at Baltic Top due to new diesel customers

- Successful integration of Dan Balt acquisition, refurbishment of facility to be completed by end June 2013. New contract for 2013

· Reclassified Rosbunker asset to investment with fair value of £22.5m

· Refinancing of £8.5m Loan Note on more favourable terms

· Recurring central overheads reduced (for second straight year) by 35% to £1.2m

· Net Assets increased to £47.6m (2011: £44m)

· Group cash in bank at 20 June 2013 is £2.4m (at 31 December 2012: £1.1m)

[pantastic] 21/6/2013 07:08

Accounts released RNS

[pantastic] 20/6/2013 13:54

And what fantastic investments they were too. Decent facilities at very very reasonable prices. To build up a business from pretty much nothing to protect shareholder value was a massive achievement which I think has been rather overlooked by many. Without it we could have just been left with Baltic Top, and without the work to re-secure Baltic Top after the dirty pesky russians got their hands on it...we could be sat on NOTHING.

Then there's the acquisitions. Anyone can acquire a business having raised a bit of cash to do so but it is the successful integration of such a business into the group that makes or breaks the whole thing. Again, it would appear that this has worked pretty well too - something else that maybe hasn't received the credit deserved.

You say Wednesday, I favour Tuesdays although it would be nice to get the RNS on Monday as as we move into next week I envisage some panic selling if we don't sniff news...

[smokyjoe] 20/6/2013 13:36

Don't get me wrong, i'm totally with you on all the improvements PAN have made over the last couple of years, particularly regarding the diversification it has meant for PAN's business model. And the 'issuing equity to pay bills' slant is a little disingenous, it is much more likely the cash flow has been effected by PAN's investment expenses rather than operating expenses. Anyways, i reckon the results will be out next Wednesday, i seem to remember they were last year ;-)

[pantastic] 20/6/2013 13:07

Ok fair enough on the turnover/cashflow thing. You got me there. Still, -£2.26m to -£480k is quite an improvement. Add in Dan Balt for 2012 and presumably things are now into the green?

I think his comment about issuing equity to pay the bills might still be a little misleading. Compared with other AIM outfits (I'm looking at you LSE:MTV) PAN is worlds apart.

There will be quite a few legal bills for Rosbunker plus the one-off setup and integration costs for the European businesses that will be diluting the 2011-2012 figures a little. On an ongoing basis, I don't think there will be any issue generating plenty of wonga. There are a few old debts on the books that have been there a long time - again, I don't see that problem getting any worse, only better - i.e. it doesn't appear to be a current problem.

[smokyjoe] 20/6/2013 12:49

Be carefull in mistaking turnover for cash flow, they are not the same.

[smokyjoe] 20/6/2013 12:45

Well there wasnt a positive cash flow figure in the last 2 set accounts we've seen. Those for yr end 2011 stated a negative cash flow from operating activities of £480000 and the year ending 2010 was an even worse at negative £2.26mil, so i doubt Cjohns points are defamtory, or libelious.

[pantastic] 20/6/2013 11:04

Whilst the Rosbunker money MAY be tied up in Rosbunker still (to be confirmed), I think you are overlooking the money that we do have full access to from an improved Baltic Top business (100% owned and controlled) and two european terminals.

The issues of equity weren't to cover day to day running costs in the absence of income. The Company has also invested in efficiency improvements as documented in RNS.

It is a grossly inaccurate statement to say there has been no positive cashflow in years. I do hope the Company don't read this discussion board as this is quite a defamatory statement and one I would legally challenge if I were them.

i understand your frustration at the figures running late (I am not happy about this either) but making up false statements isn't the way to address your concerns.

[cjohn] 20/6/2013 10:35

Hello Smokyjoe, you ask what management are doing with the profits and cash flow.

You don't seem to have understood the position here: the profits are merely paper profits. They are being held by the crooks at Rosbunker. There has therefore been no positive cash flow in the last couple of years. Therefore the company regularly issues new shares to cover working capital costs.

I've made the point here before: brokers and the company itself talking about how profitable PAN is and on what a low PE it is is totally misleading.

We'll have to see if the new non-Russian installations can produce enough cash flow to make PAN cashflow positive, without Rosbunker.

[pantastic] 18/6/2013 12:36

They will be. I'd have sold or reduced rather than added if I thought we were going to fail to post the accounts. I hold far too many shares for this to just be a gamble.

[smokyjoe] 18/6/2013 12:10

Lets see if you're still relaxed this time next week, when they still havnt been released.

[smokyjoe] 18/6/2013 12:08

Couldnt agree more AAA, every year its the same last minute will they/wont they exercise. It tests an investors nerve no end. It cant reflect well in the eyes of potential new investors either. So bloody frustrating. Just look at the share price action this week - not one f'kin trade so far !, says it all really.

[pantastic] 18/6/2013 11:57

Agreed - back in 2011, an announcement was made on 15th June and suspension requested due to the problem with Rosbunker and the accounts. There is absolutely NO suggestion there's a problem this year. The share price was in decline waaay before the bad news in 2011 (easy to spot in hindsight, isn't it?) - so bad news had been leaked back in January/February. In contrast, this year the share price is in an upwards trend. Make of that what you will.

Careless scaremongering about suspension won't achieve anything although I do agree that cutting it fine every year is getting a little tiresome. The interims tend to be delivered more promptly. Also, the massive increase in percentage holdings of the major institutions suggests confidence. This wasn't evident back in 2011.

Relax! I'm infinitely more interested in the interims in September anyway (oh and even more some nice positive Russian news).

[aaainvestment] 18/6/2013 11:47

Mr E needs to set an earlier target, I do not believe that every year it takes almost 6 months to get the accounts ready, I suspect it is by design that the accounts are published late to avoid raising expectaions and pressure to repeat for subsequent years.

I did originally expect them in the first half of the month though, I don't think we should be unduly worried though - if they weren't fit for publication I think we would have heard by now.

[smokyjoe] 18/6/2013 11:20

9 working days left until suspension (including today), ho hum.....down to the wire as usual.

[smokyjoe] 17/6/2013 12:20

Sounds like you got some pre-release info there M_B2, care to share ? or are you just guessing like the rest of us ?

[silax] 17/6/2013 10:08

cheers M_B2..

[m_b2] 17/6/2013 09:18

Not a chance of a divi. They are on track for results.

[pantastic] 16/6/2013 22:19

^ what he said.

Let's see what this week holds. I am expecting some MM games and they rarely let us down on AIM.

Good luck to all Pan People...

[swinging_dick] 14/6/2013 10:11

Okay, institutions have been buying here. Do you think they'd do that without checking if the results will be out on time?
As for a divi, I'd sooner the company husband it's cash carefully and look for growth opportunities rather than give it away and leave itself exposed to a rocky economy.
I want this company to succeed longterm, if you want a divi, go buy BP.

[pantastic] 13/6/2013 13:55

Wasn't me really. I'm guessing it was one of the bigger boys - Alpcot maybe?!