Plexus Share Discussion Threads

[james japp] 02/2/2024 23:27

Jeffian,

One Duval and one I’ve not tried before that began with L, a German sounding name. From Waitrose.

[jeffian] 02/2/2024 23:10

I worked for a brewery once. Lots of people used to talk like that after a brewery tour.

[jeffian] 02/2/2024 23:04

Aye, I'm breaking sweat now, A333, as Mrs J doesn't allow a 'mild spell' to interfere with her Hive-controlled hothouse.

Which Belgian beer did ye crack, JJ? I had a foo Leffe's me's'en whilst rustling up veal escalope with crispy sage and a squeeze of lemon. Guigal's Cotes du Rhone helped me through teh rugby. Teh Oirish did well.

[studentinvestor13] 02/2/2024 22:55

forecast earnings without the one off deal 0.3p

15.25/0.3 = 51 times earnings

overvalued by at least 30 times

[paulypilot] 02/2/2024 22:21

Re podcast interview with CEO - it's in my pending tray - would like to do this at some stage, but it's a lot of preparation work, and January has been insanely busy for me doing my Stocko small cap value reports with hundreds of 2023 year end trading updates to review, so I haven't really even had time to think about any CEO interviews. Might park the idea for now, until we have some significant newsflow, contract wins in 2024, or after next results? I think most people understand where we are with Plexus - having gone from near-death in 2022, to a much more stable footing now. Then what happens in future will depend on how they manage to capitalise on the opportunities they have.

Dave - note that Plexus has to maintain a minimum level of engineering staffing in order to retain international accreditations.

Public bulletin boards like this can be very destructive, as you have to remember this is a UK company that employs real people, and is negotiating contracts. Competitors and customers may read the stuff on here, written by anonymous pseudonyms who very often have little to no actual knowledge of the company. Worth bearing in mind before hitting send, as people could be harming a real business with good prospects. So we should perhaps choose our words with a little more discretion.

Regards, Paul.

[disc0dave46] 02/2/2024 21:54

PaulFair points. But even through their peak times overheads were 50% of income and salaries are way over the top for a business with 36 employees. How can admin costs be half of their turnover?.Even prior to the £8m deal and having to ramp up Capex and working capital the numbers are poor, £0.3m profit on £10.8m revenue. As for the CEO, I'm not sniping I'm stating the facts, that all the deals he made has made him richer. The cynic in me still can't reconcile the timings either which leads to me not having too much trust in him,, so would sooner stay clear.Wish holders all the best and good fortune.

[chutes01] 02/2/2024 21:36

Overseas expansion will also add to costs, but as you say, a great platform for growth now, £15M is a daft valuation.

[paulypilot] 02/2/2024 20:46

Just to reply to some points above.

I think the criticism of the CEO is pretty unfair. My view is that he took a risk and personally propped up the company at a time (Oct 2022) when it would not have had any other options than a deeply discounted placing. Just to keep it afloat could have easily doubled (or more) the share count. 10% pa on the convertible loans, and repaying them (so no dilution) is more than fair in my view.
Here we are in an absolutely transformed for the better position now, with net cash, and bumper profits for FY 6/2024, yet the share count has only gone up from 100m to 105m due to the sale of treasury shares. That's a remarkably good outcome I think, and we have the CEO to thank. Not entirely altruistic of course, but it was very fair overall I think. There were really no other options, and he could have totally screwed over small shareholders, but didn't. And the share price is 7x higher than it was at the lows, so we should be thanking him, not sniping at him.

AS regards the forecasts, I am assuming that with the big cash inflows from the £8m special contract, plus the $5.2m licensing deal, that Plexus would spend some of that cash on increasing engineering staff for growth. Plus we know they are spending some on increasing the rental fleet. Therefore I don't suppose the deal amounts would feed directly through to profit. Cenkos did say in one note that the £8m deal is high margin, I think they have previously said rental deals are something like 60% gross margin, from memory?

We've now got a much more stable company, funded OK for now, and with lot of potential. So am sleeping much better at night now, after the $5.2m deal, and relieved no dilution or a cash call re the convertibles.

A good platform now, and what happens next will depend entirely on newsflow re new contracts. So there's a wide range of potential outcomes, but so far so good, is my thinking.

Regards, Paul.

[james japp] 02/2/2024 20:40

RIP Apollo Creed.

[michaelg1] 02/2/2024 20:28

RIP Carl Weathers.

[source] 02/2/2024 20:12

Paulypilot when is that podcast interview with Ben coming out?

[avatar333] 02/2/2024 16:13

On the subject of saunas: I do know of one: jeffian Towers!

[avatar333] 02/2/2024 16:12

4049

Erm...

4050

Good man.

[james japp] 02/2/2024 16:08

4040

I did indeed. 2 bottles of strong Belgian beer and then 2 good hours in front of Poirot.

[monte1] 02/2/2024 15:57

Can ye honestly say that ye haven’t enjoyed the delights of a floating hot tub on the River Thames AVATAR333?

[avatar333] 02/2/2024 15:55

A sauna boat?!

[monte1] 02/2/2024 15:49

Did someone mention ‘Tesla’ at all?

[avatar333] 02/2/2024 15:38

Noted, with thanks, mate.

I suspected it may have been about Boris or Tesla, I must confess.

[michaelg1] 02/2/2024 15:27

It was something about Abdul mate.

[avatar333] 02/2/2024 15:25

Hee hee

What is he tweeting about, mate?

[avatar333] 02/2/2024 15:14

I give up with him, mate. When he does return to his home thread he will post 'recent'!