Pressure Technologies Share Discussion Threads

[zoolook] 12/2/2015 19:50

I was impressed with the set up at Roota - best contract machining business I've visited. Hopefully the manufacturing businesses will continue to hold their own in 2015 with Greenlane kicking in big time in 2016. There were some large trades (200K, 100K and 100K) that went through late morning marked down as sells.

[emmo1210] 12/2/2015 19:04

Any better 'feeling' on the state of affairs and if its as bad as some peoples reading of the recent trading statement? Anything said about Kelley? Cant all be bad, at least they can stretch to a few sausage rolls.

[cockerhoop] 12/2/2015 18:08

Yes a very impressive turnout, approx 30 investors. A big effort made by the company with tours of both CSC and Roots arranged along with a buffet lunch and several presentations made. A very worthwhile afternoon IMO.

[james188] 12/2/2015 17:02

John H stated at the Q&A following the AGM today that the safeguarded HS2 route just clipped a corner of the Meadowhall site and would have no impact on the operation viability of the business. A very well attended and informative session. Literally standing room only for quite a few people

[coppertrader] 12/2/2015 16:53

Anybody manage to get to the agm?

[rcturner2] 10/2/2015 10:19

I have to say as a THAL shareholder at the time, it was a massive own goal and I sold shortly afterwards, which has saved me a lot of money. It was a terrible related party transaction.

[cockerhoop] 10/2/2015 09:45

Shanklin,

Regards your post questioning the the property purchase (post 1231).

My understanding is that the company was due to pay over £500,000 in rent per annum (pa) from July 2015 on the Meadowhall site, they have therefore borrowed an additional £3.36m to purchase the freehold and AFTER interest payments on the borrowings they are £200,000 better off pa and own the freehold. Seems like a prudent long term deal to me.

(Unlike the whiffy property deal at THAL) LoL!

[shanklin] 06/2/2015 08:55

RCT2

That really is a bit of a sh1t article about PRES.

Struggle to believe he expects to ever be taken seriously after writing, "It came as something of a shock."

[rcturner2] 06/2/2015 08:52

Comment here in the Telegraph:

[shanklin] 06/2/2015 07:48

Pugugly,

Other than the £1.4m loan write-off and decision not to invest further in KGTM which are very specific, that seems to me to be a reasonable interpretation of yesterday's RNS. IMHO, their commentary also suggests that the H1 results will not be overly affected by the oil price weakness (as a number of us had suspected) and that the lack of visibility really kicks in in H2 and beyond.

All IMHO DYOR.

Cheers, Martin

[pugugly] 05/2/2015 16:30

Shanklin:_ Sorry if my post gave that impression - Never intended to imply that you were saying that.
To clarify:- I think we are both reading from the same page and the message is "Our customers are under pressure from the fall in the price of oil and at the moment we are not sure of the level of orders and margins in the forseeable future"

Do I read you correctly ?

[stardrops2] 05/2/2015 16:25

Just had a quick glance at Naked Traders latest post he took a few this morning

[shanklin] 05/2/2015 15:59

Pugugly

I have no wish to paint the PRES management as dishonest.

[pugugly] 05/2/2015 15:13

Shanklin_ The fact that they have not provided the x.y & z is because there is no clarity in the market - As I said earlier they have great difficuly in forecasting as their customers have mainly frozen their capital budgets -

It is I believe the sign of an honest (but probably uncertain) mangement that they have not given us figures.

In a worst case scenario (which is [my guess] 35% probable) there may well be a need for rationalising the business units [layoffs etc] and as a previous poster said reduced earnings can also mean negative earnings -

Agreed if a quick return to normal then an attractive buy - If not then could see a drift back to myinitial buying prices in April/May 2009.

[cockerhoop] 05/2/2015 15:01

Some commentary from Investors Champion including new house broker forecasts on a divisional basis.

[rcturner2] 05/2/2015 14:09

The guys that run PRES are very conservative, they are not going to get drawn into guessing the future. They are not a weak company with a weak balance sheet. They are a very successful business whose clients are currently suffering. The fact that they have been so conservative in the past with the dividend shows that they have always been sensible with cash reserves and have always acknowledged that earnings can fall as well as rise.

[shanklin] 05/2/2015 14:02

APAD

I like the approach of your alternative T/S. I do wonder if PRES would feel sufficiently confident in the state of their business to provide the x, y and z needed to complete it.

[apad] 05/2/2015 13:07

I increased first thing this morning, have=ing bought a first tranche on the morning of the news about property purchase.
The excellent Paul Scott comments (and I agree with him):
Profit warning - being a group of companies mainly serving the oil & gas sector, this company was obviously going to warn on profit, and it has done today. I think this is probably a buying opportunity, because the price had already factored in the (inevitable) profit warning, so the sharp drop today is double-counting, in my view.

You would have to have been living on a different planet not to realise that oil services companies would have reduced profit this year (and probably next year too). Therefore, as you can see from the two year chart below, the price of PRES had already dropped dramatically, in anticipation of a steep fall in profits in the short term. So it's bizarre to see another steep drop this morning when the company simply confirms the inevitable. Anyone selling today must be seriously myopic to have not seen this coming, which makes it all the more illogical for the price to be down so much today.

Markets are meant to anticipate obvious things like this, and then barely move on the actual news.
Looking at the detail of the profit warning, I think they have handled this badly. The announcement today is far too long-winded, yet contains hardly any specifics. What they should have done is said something like this: due to the collapse in the price of oil, we are likely to have a period of poor trading in 2015, and probably in 2016 too. We anticipate that profit in 2015 will be £x, and that profit in 2016 will be between £y and £z. We will update the market every three months on any changes to this guidance. The company has more than adequate cash resources to weather the downturn in our markets. Business should return to normal when oil prices return to normal.

Instead, today's announcement is long-winded, but light on specifics. The tone is wrong too, sounding almost as if the company is surprised that business is deteriorating, when it should be glaringly obvious to everyone that the whole sector is struggling in the short term.

My opinion - good companies with sound balance sheets will survive and prosper in the long term. That's how I see this company. I suspect that buyers at this level could end up looking smug in a couple of years' time, but should be prepared to look daft in the shorter term!

[rcturner2] 05/2/2015 12:46

Exactly, people posting that they will need to tap shareholders within 6 months need a reality check.

[jombaston] 05/2/2015 12:41

Low visibility I agree but I think the biggest factor at play is small cap/AIM hysteria.

Look at Wood Group. Roughly speaking the share price has retreated from over 800p to 600p. That 25% decline compares with over 60% at PRES. So the trailing multiple (forget forecasting for now) is half at PRES. That is not even taking account of the full year contribution from the newly acquired businesses.

Which company do you think has lower debt, higher margins and higher ROCE?

Now both of these will be sensitive to the oil prices but which would you chose?

Dont ask me to forecast the oil price but if you want exposure to the sector you could do a lot worse!