Petards Share Discussion Threads

[tiltonboy] 25/9/2015 10:15

It took them over a month to announce the last purchase!

[rivaldo] 25/9/2015 10:00

RNS - Chelverton Growth Trust have bought another 300,000 shares and now have 1.5m shares, or 4.32%:



It's noteworthy imo that this £5.2m m/cap company now has Downing and Chelverton both increasing their holdings and now owning almost 15% between them.

[rivaldo] 17/9/2015 11:22

Nice 180k buy at 12.82p reversed the early fall. Come on PEG :o))

[rivaldo] 15/9/2015 18:30

The 25k at 13p reported at 16.25 was probably a buy from earlier on too.

Looking good chart-wise.

[cheshire man] 15/9/2015 16:30

Would be good to break 14p end of week ! just need a bit more volume

[tiltonboy] 15/9/2015 16:03

Approaching the 12 month high, and the supply of stock appears to be dwindling. A good announcement from here might propel us clear of the two year trading range.

[rivaldo] 15/9/2015 15:59

A 15k buy at 13p seems to have had a decent effect :o))

[tiltonboy] 10/9/2015 22:54

EC,

Petards lacks critical mass in all of its businesses, and needs either a major acquisition, or as you say to put itself up for sale.

For a business that has "lumpy" turnover it is difficult to put on a multiple that reflects its trading record/prospects. I think you quite rightly suggest a fully taxed p/e of 10, as being reasonable. What is encouraging is the "annuity" type turnover which is increasing and gives more visibility, but this is still relatively modest.

I am encouraged that there are now two small institutions as shareholders, who have mopped up much of the loose stock, but I think any major upward movement from here is unlikely in the short term without corporate developments.

I am most likely to sell-down my holding (535k) from 14p upwards, and trade out of what was a poor positon in Water Hall, with a respectable gain.

[effortless cool] 10/9/2015 20:22

I have updated the header to reflect the 2015 H1 results.

It would be very interesting to hear other's views on the strategic matters that I touch upon.

[melton john] 10/9/2015 00:11

hxxp://petards.com/corporate/documents/investors/petards_reports_and_accounts_2011.pdf

Note 20 explains the share consolidation to reduce the number of shares in circulation and hence increase the share price above nominal 1p. Standard jiggery pokery when share price drops below nominal price as no new shares can be issued until this is corrected. The deferred shares will be cancelled if they aren't already.

[courant] 09/9/2015 14:02

Strong interims yesterday, this is on a forward PE of less than 10.

[rivaldo] 09/9/2015 11:35

Chartist targeting 18p here as well as WH Ireland:

[effortless cool] 09/9/2015 09:21

Re post 154,

In my rush to look before I left for work, I actually misread my spreadsheet. £347k was the 2014 H2 result - I only had £123k in for 2015 H1, so £356k achieved actually represents a big win.

I am still updating my projections but, in the meantime, have topped up to 350k shares, which is about 1% of the company.

[effortless cool] 09/9/2015 09:18

"The results are in line with the company’s plan to become highly profitable and cash rich".

I'm not sure that constitutes a plan.

[rivaldo] 09/9/2015 08:30

From Beaufort Securities' market report FYI:

"Petards Group (PEG.L, 12.50p) - Speculative Buy

Yesterday, Petards Group (Petards) announced its interim results for the half year ended 30th June 2015. During the period, the revenues fell to £6.1m from £7.2m in H1 2014, mainly due to £3m of lower margin equipment deliveries for the Ministry of Defence. The company reported a 39% rise in EBITDA to £609,000 and the operating profits soared to £436,000 (2014: £346,000). Pre-tax profit rose 30% to £356,000 resulting in an EPS of 1.03p against 0.79p in H1 2014. The total cash stood at £2.0m (31st Dec 2014: £1.4m) with no bank debt. On the operational front, the company won a several key contracts including orders worth more than £2.5m for Petards' eyeTrain CCTV systems and a new project from Bombardier. Petards order book at the end of period stood at £19m.

Our view: The first half of 2015 has been quite successful for Petards with improved margins and a stronger order book. The results are in line with the company’s plan to become highly profitable and cash rich. The company’s performance follows its over 100% rise in orders from MOD, Siemens, Bombardier and Hyundai Rotem along with higher number of contracts from its existing and new customers.

Petards received orders worth £3m after a five-year framework deal with Siemens Mobility for the supply of Petards train related products and services. Further, the company plans to avail new opportunities in its relatively small scaled division of Emergency Services.

We expect Petards’ second half to be in line with the market expectations largely due to the number of contracts, pre-orders and higher customer acquisitions. Given the above, we maintain our Speculative Buy rating on the stock."

[rivaldo] 08/9/2015 10:01

WH Ireland this morning reiterate their 18p price target and note that their forecasts could be raised:

"Petards*# (PEG) - Buy – Interims – solid results; forecasts unchanged

Market Cap £4m Price 12p Target 18p

Interims demonstrated a very creditable performance. H1 2015A revenue decreased by 15.3%, reflecting the mix of work undertaken in the period. However, the gross margin moved 900bps higher to 36.4%. PBT of £0.4m showed an increase of 30.4%, with diluted EPS moving 22.6% higher to 0.8p. The Group ended the period with a net cash position of £0.4m, an inflow of £0.5m since the beginning of the year.

Solid outlook for the remainder of the year. The order book at £19m is marginally lower than the previously reported £20m position in March but shows good order coverage for H2 and beyond. Management note that order intake across the Group has been slower than anticipated in part, but with a good number of opportunities in the current pipeline. Looking further out, last week’s formal opening of the new Hitachi rail vehicle manufacturing facility in Newton Aycliffe is clearly positive. At this stage, we make no changes to our estimates but should current trends continue, see scope for these to be raised in due course.

Our valuation is undemanding. Based on our forecasts, the shares currently trade on a FY 2015E fully diluted PER of 7.6x and EV/EBITDA of 3.5x. Given the level of secured work, in addition to the pipeline of opportunities ahead, we believe that these multiples significantly undervalue the business. We maintain our Buy recommendation and 18p share price target, a 20% discount to the wider Support Services sector."

[cockerhoop] 08/9/2015 08:49

They're suggesting approx £7.5m rev for 2nd half (40% of just under £19m).

[rivaldo] 08/9/2015 08:29

Very good H1 results. PEG made 1.03p EPS in H1 alone, against a 12p share price.

Forecasts are for 1.5p EPS this year, so it looks like they could well be beaten, and possibly handsomely.

Cash generation was good, and they now have a £2m cash pile against a £4.84m m/cap, with the CLN not due until 2018.

The outlook statement shows a lot of confidence for the year end outturn.

Good to see the "much stronger" recurring revenues this half too.

The overhang appears to have disappeared. With a mere £4.8m m/cap WHI's 18p target is well within reach given 1.5p+ EPS this year.

[tiltonboy] 08/9/2015 08:02

The Convertible Loan Note exercise price is 8p, so they will convert barring a major downturn in the price.

Pretty happy with the figures overall.

WHI have re-iterated their buy recommendation and 18p price target.

With two institutional shareholders on board now, it would be hoped that there isnt too much more loose stock around.

[tomboyb] 08/9/2015 08:02

Results look ok to me -

Better than expected -

[singer8] 08/9/2015 07:57

be WARNED hatey has been doing this for years
track record of failure

[singer8] 08/9/2015 07:55

his list of failures grows
AEO
ADSS
AUK
MOS
TYRU
UJO
TNCI
JSI