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PFL Premier Farnell

185.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Premier Farnell LSE:PFL London Ordinary Share GB0003318416 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 185.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Premier Farnell Share Discussion Threads

Showing 626 to 650 of 800 messages
Chat Pages: 32  31  30  29  28  27  26  25  24  23  22  21  Older
DateSubjectAuthorDiscuss
16/12/2015
17:09
my retirement..

Debt is sustainable dependant on no more profit warnings. The first thing to go would be the final dividend.

Just keep you eye on the situation the company could still recover. I wouldn't take notice of the fact that directors aren't buying as they have a operation up for sale and directors are precluded from buying under that situation.

simon templar qc
16/12/2015
15:35
oh dear. hope they have good news tomorrow
yellowbram
16/12/2015
14:41
Do you think the debt is sustainable ST?
my retirement fund
16/12/2015
14:39
Not looking so good now they could be in for another profit warning and if that happened the dividend would be at risk.
simon templar qc
15/12/2015
14:28
No director buys down here !
my retirement fund
15/12/2015
09:33
Awful chart - Lowest price in nearly 30 years.
hybrasil
14/12/2015
09:13
Further good news from KCOM today, now at 105p.
rcturner2
11/12/2015
10:02
Debts too high here. Dividend at risk.
simon templar qc
09/12/2015
09:37
Eastbourne1982 21 Sep'15 - 15:48 - 437 of 497 0 0

RCTurner2,

I've just had a gander at KCOM.

As of today:

PFL is £1.0465

KCOM is 90.625p

I don't see much appeal in KCOM, yes the dividend is good however there is no point having a decent dividend if the share price looks toppy, profits are fairly low and revenue has flat lined.

I'd far rather be buying PFL as of today, we will find out which offers the best return over the coming months / years.

rcturner2
07/12/2015
17:42
In the meantime the board members still awarding themselves hefty bonuses and perks at the expense of the shareholders?
geminian
29/11/2015
11:58
Well the board do not exactly instil confidence do they
my retirement fund
28/11/2015
18:12
On my watch list as well. I tend to think its too early at the moment especially with world growth slowing. I would tend to wait for another news update.
simon templar qc
28/11/2015
15:49
MRF,

Just started looking at the chart today after seeing that piece of analysis. Have put it on my watchlist. Are you waiting for a new CEO?

simon gordon
28/11/2015
15:46
Will you be buying at this early stage Simon or waiting to see if theres more bad news to come?
my retirement fund
28/11/2015
14:14
Ennismore - November 2015:

Premier Farnell is a distributor of electrical components, mostly selling to engineering and manufacturing companies in the UK and the US. The products it sells are typically used for research and development, which means they are ordered in low volume as and when they are needed. We spoke to several customers that all said they use Farnell because of its huge range of available stock and the strong service from their relationship managers. This service offering allows Farnell to charge higher prices, and its gross margins have averaged 40% over the last decade, which compares to the 10-15% gross margin that most high-volume distributors generate. Barriers to entry are high as stocking half a million items only works if you have scale. It’s a business model that has been successful for a long time: Farnell’s average pre-tax return on net operating assets is 20% over the last decade. However, a series of profit warnings this year has seen the share price halve. We believe the market has overreacted, and that Farnell is a classic case of a fallen angel.

Internal and external factors have contributed to Farnell’s recent problems. Its former CEO, Laurence Bain, was overly focused on driving top-line growth at the expense of margins and returns – Farnell added stock and lowered prices – and in the end, it failed on all counts. Over the last two years, sales were flat, gross margins declined from 39% to 35%, and inventory turns fell from 2.7 to 2.3 times. We expect operating profit to fall by 20% for fiscal year 2016 (ends January 2016). The CEO left in August and the former CFO is now the interim CEO. On the external front, some customers have been switching away from the one-day delivery service that Farnell offers to cheaper three and four-day alternatives from competitors such as Mauser and Digi-key. We believe these external factors are a small part of the story and, regardless, solvable.

Firstly, Electrocomponents, which has a similar one-day offering to Farnell, has performed much better. Secondly, Farnell is restructuring its distribution model so it can offer two to four day delivery options. We believe that these changes, combined with the appointment of a permanent CEO, will lead to a recovery in operating profit. We’re already seeing an improvement in stock turns and free cash flow, which increased from GBP 14m to GBP 42m in the first half of this year. We would also not be surprised if Electrocomponents acquired Farnell. It is rare for two businesses to overlap so directly and a tie-up would add significant value for shareholders.

Premier Farnell has a market cap of GBP 375m, less than ten times our estimate for this year’s earnings. With net debt of GBP 235m and a pension deficit (tax adjusted) of GBP 45m, the enterprise value of GBP 655m is 8.5 times our estimate for this year’s operating profit. We believe this is the trough and that operating profit will increase once the company has proper leadership. Net debt, at three times operating profit, is too high but the company is selling its manufacturing division, Akron Brass, and announced a cut in the dividend. These actions should allow the company to reduce its debt to two times pro forma operating profit, while still paying out a dividend yield of c. 6%, covered 1.7 times. We expect the shares to re-rate once profitability stabilises or, more obviously, a deal with Electrocomponents emerges. Using a multiple of thirteen times net operating profit after tax, we see upside of 30% in twelve months’ time.

simon gordon
13/11/2015
20:03
I think the question is at what point does its fortunes cliff edge. It seems clear the board have steered this onto the rocks and its very much like a very large vessel with severe gashed in it hull.

The problem being could it really be salvaged before the tide comes crashing back in? ....sinking it for good!

my retirement fund
13/11/2015
19:47
Have revisited the interims and here is my latest appraisal:

The company indicated the second half is the weaker half and the second quarter slowing down continued in the second half.

Since then the Eurozone has slowed down and according to one analyst that could continue in the next two quarters. There is no doubt about it the world economy is slowing down, we have seen a raft of warnings from engineers, Rolls Royce warned lately and also JCB.

I think its likely PFL will warn again and if it does the risk reward ratio will increase on the downside due to the amount of debt the company is carrying.

simon templar qc
13/11/2015
18:36
The shareholders have been active. ......actively selling LOL !
my retirement fund
13/11/2015
17:48
What are the major shareholders doing about the Board and the demise of the share price or are they just as responsible for the problems also?
geminian
13/11/2015
13:53
Eurozone slowing and PFL now on a new low. If the share price continues to weaken much from here that will be a sign of a further profit warning.
simon templar qc
05/11/2015
14:58
They cant even get their financial calender right on their corporate webt site:
my retirement fund
01/11/2015
12:06
Yes its worth watchin but whilst directors are still not doing their job its not worth buying. Citi group slapped a hard and fast 90 pence fair value and sell recommendation on the stock that seemed wise.

The share price is confirming their logic, however one should not be complacent here as the company may well slip ever further down the proverbial.

This is shareholder destruction on a grand scale. The blame needs to be laid firmly at the boards door, yet all we see is them helping themselves to eye-watering salaries, pensions and expense claims not to mention bags of free stock option.

my retirement fund
30/10/2015
20:57
The market cap is well under 400 million yet the business is going to make 70 odd million, offers a very decent dividend and the cash flow situation is good, sentiment in the company is shocking at the moment and I would suggest a lot of bad news is factored in, could the share price go lower ?? of course it could however the valuation looks silly to me.

On a valuation basis this should be trading at £1.40 - £1.75 regardless of difficult trading conditions.

eastbourne1982
30/10/2015
20:11
I still like the company East but one has to question the amount of fall. If they manage to offload the subsidiary that could add some stimulus but with world growth still slowing the company is still at risk.

Another trading update will give some indication which way the share price will go. However if the share price keeps falling I would pencil in more bad news.

simon templar qc
30/10/2015
19:51
Well I'm about 10% down here after you strip out the recent dividend payment, will be holding this medium term though as I think it's cracking value.

My 12 - 18 month target remains at £1.50 regardless of the short term dips.

eastbourne1982
Chat Pages: 32  31  30  29  28  27  26  25  24  23  22  21  Older

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