Pennant Share Discussion Threads

[clocktower] 21/12/2011 10:53

Very positive statement and I agree with you topvest. Good Luck.

[topvest] 21/12/2011 10:11

Very good news yet again from Pennant - looks to me like these are going to be yielding well over 10% in 2012. No debt, increasing revenue and EPS, increasing dividends, share buy-backs. Share price still only at book value. Well under-priced in my view.

[topvest] 09/9/2011 20:26

Yes, great results and the contract wins haven't fed through into the results so should be lots of growth to come.

[deadly] 09/9/2011 09:01

No interest any more?
Decent results this week, increased div by 100%.

"I am pleased to report a profitable first half in which major contract wins have substantially increased the Group's order book.. Activity in respect of these new orders will increase progressively during the second half and they are expected to contribute significantly to revenues in 2012 and beyond.

"In addition to the new orders won, tendering activity remains high particularly in the Training Systems Division providing a growing pipeline of opportunities for the medium term."

· Earnings per share of 0.72pence (2010: 0.67pence);
· Net cash at period end of £699,000 (2010: £1,026,000);
· Interim Dividend of 0.5pence per share (2010: 0.25p per share);

[topvest] 19/6/2011 11:21

Another contract win in May on their web-site:



They seem to be doing very well.

[topvest] 22/5/2011 11:54

Either way they are a good and honest bunch by my reading. Powell may want an exit himself before he retires I suspect or he may want to buy the whole group. Either way it would likely be at a premium. This group is probably reasonably attractive to a predator as reasonably priced. Anyway, I'm happy to hold at least until we get to the 30s.

[gengulphus] 18/5/2011 20:48

It is interesting to note that at the AGM yesterday the Powells got authority to increase their holdings from 38% to 44.77%. I have no idea of the reason. It may be that there is a substantial shareholder wanting to sell.It is not nedessarily 100% positive , as it may be a prelude to a taking private.

It's just a fairly standard buyback resolution, with an extra clause saying that they may not do buybacks if the buybacks would result in anyone being obliged to make a bid for the company. That's because shareholders in the 30-50% range whose percentage of the company increases (and shareholders below 30% whose percentage increases to above 30%) are normally obliged to make a bid for the company, and that applies just as well to having your percentage rise as a result of buybacks causing the shares in issue to decrease as to having it rise because you've bought extra shares.

An extra "whitewash" resolution was also passed to release the Powells from that obligation if their shareholding remains the same but buybacks make it increase as a percentage of the company (they're still obliged to bid if they buy any extra shares). That basically makes it possible for the company to do the buybacks without having to buy proportionately from the Powells.

They've been doing the same thing each year for at least the last five years, so if there is a plan to take the company private, it's a long slow one. The Powells' percentage of the company has been increasing as a result of buybacks, from 32.67% in the 2007 circular about the waiver resolution to 37.40% in this year's. So I wouldn't rule out the possibility of them eventually wanting to take the company private, but I wouldn't regard the buyback and whitewash resolutions as particular evidence of it.

Gengulphus

[ganthorpe] 18/5/2011 18:17

Agreed the £0.63m looks far too low.
I expect it will take time to ramp up turnover on the Westland contract and as a training contract the gross margin will presumably be below the 40%group average.

My estimates are for growing turnover to about £11m and pre tax profits of £0.8M

.Tax should again be well below the normal rate with old losses still to set off , but with increased profits it could be £50000 or more.

On that basis with 29.5m shares in issue , earnings per share would be about 2.5p, divided say H1 1.0p ans H2 1.5P.

It is interesting to note that at the AGM yesterday the Powells got authority to increase their holdings from 38% to 44.77%. I have no idea of the reason. It may be that there is a substantial shareholder wanting to sell.It is not nedessarily 100% positive , as it may be a prelude to a taking private.

All this is just my ramblings.

GAN

[topvest] 16/4/2011 18:32

Yes, next year's forecast of £0.63m PBT, 1.7p EPS and 1.1p dividend look relatively easy to beat given there is going to be a jump in revenue for the large contract wins. I wouldn't be surprised to see £1m PBT and 4p EPS in a year or two - looks like the share price should move to 30p+ with any more positive news.

[ntv] 07/4/2011 09:44

even beat my forecasts for
the year
looks a geat little company

[topvest] 29/3/2011 12:30

Yes, all quiet again - yields 6.5% before any increase in the dividend next week which is still undervalued I think.

[dick grasso] 28/3/2011 08:39

topvest, It's likely to be slow and steady but I agree with your valuation going forward!

[topvest] 28/3/2011 08:35

Yes, agreed - fantastic results. 1.25p dividend for the year, including the interim is pretty good. With excellent prospects should be able to hit 3p+ EPS this year, so should be 30p+.

[dick grasso] 28/3/2011 07:52

2p EPS, current P/E of 9.8, strip out cash P/E is 7.5p. Low debt, 5% yield. Strong order book, contract worth £10m over 2 years to start 2013, these seem extremely cheap at present in my view!

[dick grasso] 28/3/2011 07:36

Impressive results to boot!

[topvest] 23/3/2011 21:34

Thanks next week then. Could be in for a chunky dividend...hopefully!

[enami] 23/3/2011 13:00

Next prelim announcement 28-Mar according to TDW.

[topvest] 22/3/2011 21:33

Be nice if we could get back to 30p here! Results should be in the next 1/2/3 weeks as well. Anyone know the date?

[dick grasso] 22/3/2011 09:24

The previous 3 moves have been around 40-60% so I think it's fair to say that if results are good next week we could see the share price around 20 pence!

[ntv] 22/3/2011 09:16

with a significant chart BO

[ntv] 22/3/2011 09:15

looking good

[topvest] 22/3/2011 08:53

Yes, a very significant win - great news. Roll-on the results!

[dick grasso] 22/3/2011 08:18

Yes, a big big deal this contract in my view, worth 2 x Mcap! Results should give us a little more detail on time scale, costs, any further benefits or extensions etc! A truly fantastic announcement for a company of this size!

[enami] 22/3/2011 08:15

Nice RNS today pushing the share price up.

Results due 28 March I believe.

[dick grasso] 22/3/2011 07:53

Am I the only one here today guy's?