Pressure Technologies Share Discussion Threads

[cockerhoop] 15/7/2015 13:13

Since they raised £16.1m in March 2014

They have spent:

KGTM £2.4m
Roota £7.6m
Quadscot £6.9m
Greenlane £5.8m
Freehold £3.3m

Net debt at 30/04/15 was £7.5m

[rcturner2] 15/7/2015 09:06

Where did the other £10m go then?

[cockerhoop] 15/7/2015 08:55

Spread very tight this morning 180.1-180.55

Regards the acquisitions, i'm with Zoolook in that they were mostly funded with paper(issued to amongst others Mark Slater). Over £3 million of the current debt was used to purchase the freehold of CSC.

Also the acquisitions all have earn outs so the current subdued trading is likely to result in lower considerations ultimately being paid.

[zoolook] 14/7/2015 09:41

Fair enough they spent more than they raised on acquisitions and freeholds which are investments or liabilities if taking a apocalyptic view. The borrowings are £11.7m but the assets give an NTAV of £20m vs a current Market Cap of £26m. Not many (proper) businesses have that level of downside protection.

[rcturner2] 14/7/2015 09:18

zoolook, if that was the case how could they go from net cash to net debt? They clearly borrowed money as well as issuing shares at some point.

[zoolook] 14/7/2015 09:00

RC2 they raised the cash to make the acquisitions (at 3x the current SP). If anything their timing was perfect. Are those acquired business really worth a third of what they paid for them ?

[kingston78] 13/7/2015 20:35

This share is on my watch list. It will rise rapidly if and when there is a steady rise in the oil price. So watch out for the oil commodity market.

[rcturner2] 13/7/2015 12:24

Friendless at the moment.

Although they have managed the business very well, I think going from net cash to net debt through acquisition was timed very badly (with hindsight).

[pugugly] 13/7/2015 11:19

Looks like continued weak selling with no support - 21K sold in 10 lots. Almost looks like a weekend sell tip (imo) Anyone seen anything ?

[pugugly] 02/7/2015 14:03

Query - Bottom forming - OR a ledge on the North Face of the Eiger before the fall continues ??

[cockerhoop] 17/6/2015 12:04

From the share price action looks like todays Analyst/Investor Roadshows are going ok and still Davids Investor Lunch to come :-)

[cockerhoop] 17/6/2015 08:10

Cerrito,

Quadscot and Greenlane acquired in Oct 2014 will have added to the admin expenses (as well as adding revenue).

[cerrito] 16/6/2015 17:23

If people attending the lunch tomorrow can find out why admin costs were a very high £7m in the six months..almost the same as £7.9m for the previous 12 months. Note that they have a separate item for acquisition costs.
May be due to Greenlane reorganization

[cerrito] 16/6/2015 09:37

Agree with you Puguly and I too found the news about the FD a bit odd not so much the fact that he is going more the timing of everything; the results were better than I feared and having read the June 4 update I was expecting a cut in the dividend

[cockerhoop] 16/6/2015 08:20

Pug,

From memory it was approx 17.5p EPS on Rev of approx £60m. They were pretty savagely cut after the last Trading Update.

I can't write too much today as off to help out at daughters school sports day but thought there was some interesting hints towards further acquisitions with the new FD.

Ironic that the worst performing area was Greenlane that is non O&G related.

Cheers btw for not taking offence at my very tongue in cheek Uberbear portfolio :-)

[cockerhoop] 16/6/2015 08:02

Pugugly,

Charles Stanley Forecasts were reduced after last trading statement to approx 15p for the current year.

RCT,

Have you not noticed that they spent £15.4m on acquisitions!

[rcturner2] 16/6/2015 07:31

Surely the swing from net cash to net debt is a bit of a worry?

In a six month period they have had a net cash outflow of £13.3m.

[pugugly] 16/6/2015 07:25

Possibly not as bad as I expected but forward prospects foggy. Basic loss per share 3.4p -v- 6.9p profit last year but the BULK of the reduction was caused by the exceptional write off of the loans to KGTM. Adjusted eps 12.1p



"Given the foregoing and the fact that around 70% of our revenue is derived from this sector, the Board considers it unlikely that the Group will see a substantial improvement in trading at least until the second-half of next year."

"Recovery of this has coincided with a downturn similar to that experienced by the Precision Machined Components Division and the level of orders and enquiries has reduced markedly and is expected to remain subdued into the next financial year. "

So little hope of an improvement short term -

I suspect they may be too optimistic on POO as Goldman calling lower.

Last estimate I have for 2015 is that of Charles Stanley of adjust eps of 31.2p and dividend of 9.05p both of which (imo) are under severe pressure.

Also (imo) FD stepping down at 60 sends an uncertain signal - Could be he wants a better quality of life (if so no problem) or falling on his sword (negative)

Will need to see how Mr Market reacts and how Analysts adjust their estimates for 2015 & 2016. As order rate appears to be slowing down I would be surprised if 2015 eps were much above the region of 18p-20p but this is very much a guess.

All imo dyor etc. -

[shanklin] 16/6/2015 07:09

Given the recent trading statement, using the word "growing" twice in the early paragraphs of the H1 report seems a little unwise to me. Also "highly profitable"?

Did nobody read the RNS before it was issued?

[cerrito] 15/6/2015 22:39

davidosh
I am afraid impractical for me to join your lunch.
As per previous post talking about my experience at AGM be good if you can grill him on the following
Thanks and hope it goes well
Where they will not give guidance is to what %age of their sales are capex and how much consumables and also how many of their sales in exploration and how much in production

[pugugly] 15/6/2015 19:26

Any predictions for tomorrow? - Also new adviser + lunch.

Mending fences ? or celebrating that the tide has turned ??

Only Only some 635 minutes to wait - Will it be relief or sorrow ?

Will the "uberbear" be proved right or wrong ?

[davidosh] 15/6/2015 12:05

Would any of you like to meet management for a presentation at a private investor lunch on Wednesday ? Just email me.