Pressure Technologies Share Discussion Threads

[horndean eagle] 09/12/2014 14:38

Worth bearing in mind any cuts in oil capex have yet to bite in at all. Oil at current levels makes pretty much the entire north sea space uneconomic. No one will be in a rush to start back up either given huge lead times in developing assets. Ones that have been sanctioned and costs already sunk will carry on in meantime.

[cockerhoop] 09/12/2014 10:02

WCB,

Yes busy morning for me too, I also hold ZYT and ESR which have both reported good results today. I'll have a look at RWS when I get back from the dentists :-(.

[undervaluedassets] 09/12/2014 09:39

this smacks of panic.

Don't discount the fact that this may fall further.

But those who have a more accountancy mindset will start buying here. . today's numbers are too good.

Good results and a share price fall = bargain

[tintin82] 09/12/2014 09:29

Good set of results. I was in for the rally on the latter half of 2013 but bailed once it passed 600p. Looking for a entry point around the 360p mark. Inevitable cuts in production of the more marginal offshore assets are yet to be realized and the knock on effects.
One for the watch list.

[shanklin] 09/12/2014 09:29

nurdin

I presume the oil prices will need to go up a fair bit before the O&G orders will flood in. I hope the broker note for these results will fill in some of the gaps w.r.t. the absolute size of the order books in the various company divisions.

Am out looking in currently, having perhaps been overcautious in selling the remainder of my holding today. Would be happy to buy back in when its clearer what is going on here and I feel more confident its positive.

Cheers, Martin

[cockerhoop] 09/12/2014 09:25

I think it's worth noting that they did revenue of £35m and Operating Profit of £5.6m in the H2 compared to £20m and £2.17m Operating Profit in H1. This year we also have revenues from Quadscot and Greenlane to add in.

[cockerhoop] 09/12/2014 09:21

WCB,

Good to see you posting, i've missed your contributions over the last few months.

Regards the cash:

Whilst they had £5.6m of cash at year end, they did invest it (and a bit more) on the purchase of Quadscot and Greenlane on 1st Oct.

[nurdin] 09/12/2014 09:16

I dont expect oil prices to remain at current levels for long.Any sign of an upturn and orders will flood in imo

[shanklin] 09/12/2014 08:43

As above, I commented on the adjusted number being well ahead of forecasts. What concerns me is the absence of information on the size of the order book when we know the majority of new orders are tied to the O&G market.

[topvest] 09/12/2014 08:43

Yes, they are still expecting growth overall and so I would have thought forecasts are still in the high 40s at the moment. Just a reaction to the lack of momentum on good news and it looks like the current year will be flatter. Still massive progress in the last year though.

[iandippie] 09/12/2014 08:41

Whoever keeps banging on about the "high" earnings per share doesn't understand the difference between basic and adjusted (or normalised) eps. It's the adjusted eps that matters. This is now on an historic eps of 11, not 17, and dirt cheap.

[shanklin] 09/12/2014 08:41

So far, there has been no commentary on the size of the order book and how much of it falls in the current year. Clearly they'll run off the current order book, and that will be helpful, but what percentage of (say) last year's sales do they comprise.

If the company wanted to provide re-assurance, I would have thought they should be dealing in absolute numbers not just percentages.

[cockerhoop] 09/12/2014 08:40

Very comprehensive set of results, lots of detail to wade through.

As expected an excellent 2014. adjusted EPS well ahead of expectations so at £5.00on a historic PE of about 11.

Order books holding up but cylinder sales will be reduced in 2015 and Kelley already looks a dud (i'd be amazed if they buy another 40%).

Looking for engineering to take up the slack with new acquisitions Roota and Quadscot looking astute buys.

Be interesting to see how Greenlane performs.

[undervaluedassets] 09/12/2014 08:38

Normalised is 45P? Really?

Well then is just cheap.

[rcturner2] 09/12/2014 08:34

The market looks forward of course and the current year is the concern. 70% of revenue is from the oil and gas industry.

[nurdin] 09/12/2014 08:30

Current forecasts,pre todays statement, were for eps 46.5p which translates to pe of 10.7 at 500p .I guess the estimates will be shaved back but not as viciously as todays reaction appears to suggests imo

[topvest] 09/12/2014 08:29

Normalised EPS is 45p up from 22p so they are now on a P/E of just over 10, but still a relatively low dividend yield of just under 2%.

[undervaluedassets] 09/12/2014 08:28

pe of 17 on todays numbers...

expensive ? really?

undemanding for a true growth stock...

asos and amazon (not true apples and apples comparison I know but still) have earnings that are going backwards. and trade on many multiples of the PE ratio here.

We have had the big fall before the results and now record results... hard to know what more the company could have done.

[rcturner2] 09/12/2014 08:27

I'm happy with those results. The market reaction no one has any control over. Long term this is a great business, 2015 may be a pause in the growth, but fundamentally this is a well run and effective company.

[topvest] 09/12/2014 08:21

They are very well placed going forward. This will bounce back no doubt, as starting to look cheaper again for such a good business. I top sliced half of mine, at much higher prices, but am keeping the rest.

[essential] 09/12/2014 08:19

Topped up at these levels. Market pretty savage on anything remotely negative. Time to be brave me thinks..we shall see

[pugugly] 09/12/2014 08:18

Initial market reaction negative Down 12%-

As yellowdog correctly points out p/e at market opening was high. At 490P looks as though historic is about 17 on unadjusted earnings .

We need to see adjusted brokers estimtes for next year but still feels slightly on the high side (imo)

[westcountryboy] 09/12/2014 08:15

Adjusted eps 44.9p - but you have to search quite hard to find that! Net cash £5.8m too.

[rcturner2] 09/12/2014 08:12

At a share price of 487.5p, the PE is 17.