Pressure Technologies Share Discussion Threads

[cockerhoop] 11/10/2016 12:50

I can't get me breath!

my retirement fund30 Aug '16 - 12:06 - 1639 of 1655 0 0
They will need to do a round of funding - equity funding would be the best option imo however they will need to get a crack on with it before this becomes a penny share imo

[my retirement fund] 11/10/2016 12:00

Did you loose money here on the way down then bud? That's too bad hope you've learnt from your mistakes and your looses were not to great :-) :-)

[cockerhoop] 11/10/2016 11:42

I laughed, me mate laughed

blueball6 Nov '15 - 21:39 - 1515 of 1653 0 0
How low can this go..?
My Retirement Fund6 Nov '15 - 22:17 - 1516 of 1653 0 0
55 pence

[cockerhoop] 11/10/2016 11:09

Too funny.......

My Retirement Fund27 Apr '16 - 08:30 - 1593 of 1651 0 1
I thought this looked extremely overvalued.

Question for shareholders is can it survive?

[my retirement fund] 11/10/2016 11:05

This is due a significant turnaround and eventual re-rating imo.

[cockerhoop] 20/9/2016 14:45

Interesting article on the drill ships sitting idle in cold storage:



Maybe certification work on eventual power up for PRES

[cerrito] 09/9/2016 23:30

Looking at Enquest’s first half performance I saw their unit opex was $23 per barrel down from $46 in H1 14….this ability to cut costs is a good illustration of the pressures that companies like PRES and other O&G suppliers face.

[cerrito] 30/8/2016 23:15

Exceptional costs of £4m pre the £3.3m write back makes sense as there will need to be a big write down of Intangibles. Remember non contractual customer relationships are in the books at £11.7m following the recent acquisitions and we have a further £15m of Goodwill…in fact exceptionals may be higher than £4m, especially with redundancy costs. It will be interesting to be a fly on the wall when they discuss the write downs with their auditors-though of course as it is non cash (exc redundancies) not all that relevant.

[rhomboid] 30/8/2016 23:04

Thanks for the link, I seem to recall Chris Boxall is a big holder of Pressure Technologies so I'd expect him to get a good steer , my concern is precisely what the ebitda covenant or other covenant that are keeping mgt awake at night and how close to breach PRES are going to bet breaching them.

[cockerhoop] 30/8/2016 22:14

It's taken from the Investors Champion commentary quoting the house broker

Following the latest update the house broker has
revised estimates to an adjusted pre-tax loss of £1.4m
for the year ending September 2016 on revenue of
£36m. For 2017 estimates are for revenue of £48.5m
and a pre-tax profit of £1.6m.
Exceptional costs in the current year are estimated to
total £0.7m and result from a mix of amortisation of
acquired intangibles, redundancy costs, net of a write
back of £3.3m of deferred consideration that is no
longer expected to be paid.
With cash flow benefiting from the large orders in the
Alternative Energy division net debt is now forecast to
be under £3.5m at year end compared to previous
expectations of approx. £6m

[cockerhoop] 30/8/2016 21:28

Net debt now forecast to be under £3.5m at year end compared to £6m previously expected.

[cerrito] 30/8/2016 19:44

Like miavoce I do not see them as needing an equity raise. The dividend suspension will save £1.2mpa; this payment for Roota is the last one; my reading is they have low capex requirements and a good current ratio-albeit flattered by low levels of activity.
Very interested in hearing counter arguments.

[miavoce] 30/8/2016 17:28

Providing the company receives the expected payments from customers (i.e. no significant defaults) we should be alright for cash and so no need for fundraising. Prospects look pretty bright for the next financial year given that contracts are now starting to be finalised I wouldn't be surprised to see a bid from one of the large engineering firms, particularly given the potential of the AE division.

[my retirement fund] 30/8/2016 12:06

They will need to do a round of funding - equity funding would be the best option imo however they will need to get a crack on with it before this becomes a penny share imo

[cerrito] 30/8/2016 08:18

I took the contract delays in my stride but was spooked by the wording on the covenants and that they appear to be sailing close to the wind. Forget any dividends in the next 12/18 months.

[arthur_lame_stocks] 30/8/2016 07:56

Better outlook for 2017, however.

[betelgeuse1] 30/8/2016 07:29

FULL BLOWN PROFIT WARNING


As we have highlighted previously, the outturn for the current year is dependent on the timing of contracts in this division. It is now clear that delays both in award and commencement on a number of these contracts, particularly in the USA, will have a significant impact on the expected results for the year as a whole, albeit that the 2017 financial year will be positively impacted as a result. In addition to these delays, we have also encountered some unanticipated additional legacy costs and margin erosion on a first of type project in North America. These factors, coupled with R&D spend that has been charged to the profit and loss account as part of our tax planning, will swing the division from a profit to a loss that will materially impact the Group result.


Banking and cash

The Board continues to monitor cash flow as a priority. The final payment of £2.3 million deferred conditional consideration in respect of Roota was paid in July but this will be compensated for by operational cash generation and receipts from major contracts which have been paid or are due before the year end. The Group therefore expects to meet its banking covenant tests at the financial year end.

[miavoce] 22/7/2016 16:41

Exited Superglass today with a small profit following the agreed cash offer (was hoping to hold long term for bigger gain but you can't win them all). I've been watching PRES for a while and decided that this would now be a good place to invest the proceeds of my Superglass sale. Reasons:-

- over 50% of revenue (as per last results statement) comes from overseas so weak pound will provide opportunity to increase share of overseas markets

- have been gaining market share in several areas

- alternative energy division looks like a gem for the future

- oil price improved / more stable so some confidence should return to the sector

- company appears to be really well managed

- given the very weak pound I wouldn't be surprised to see a bid come in from a big US or far East engineering co.

[my retirement fund] 08/7/2016 11:26

will weak sterling help?

[dlku] 05/7/2016 20:24

M&G and Aviva suspend property trusts as Brexit risks crystallise - as it happened

Pound plunges to new 31-year low as property funds refuse to let investors withdraw money after a rush of post-Brexit redemption requests

Get experimental mobile alerts for the June US jobs report this Friday
Pound crashes to $1.3000
M&G freezes fund
Aviva suspends property redemptions

[cerrito] 16/6/2016 12:59

Been quite busy so only now had a chance to look at the figures.
After the Aril 27 trading update, these figures were pretty much as I expected ie pretty dire. Sales in the half year were £17m-well down from the previous half year to Oct 15 when they were £23m.
I think they were sensible not to pay the interim dividend ; I assume they will pay a final dividend but much reduced from last year’s 5.6p Good that they were able to modestly reduce their borrowings but they do warn of future cash strains-ie Roota pay out, capex and possible increase in working capital with pickup in orders. That said do seem to have comfortable cash position but I would have preferred a more robust statement on the covenants position.
They are looking for a big turnaround in alternative energy as talking about a full year profit so needs to reverse the first half loss of £0.9m. That said, they are talking big figures ie £10m order YTD and medium to high probability of a further £30m.
Always a bit suspicious when in the interims the report is made by the Chairman rather than the CEO as suggests that CEO not up to much which is not the case here; not sure what to make of it. Also recall the question at the AGM of what Brexit would do to them(when it seemed rather theoretical) and the answer was not much except perhaps uncertainty; actually to me Brexit would be a small plus as it would make £ cheaper certainly against the US$ but big picture is that it would be broadly neutral.(sales in Europe in full year 2015 at about 20% of total seem to have been historically high and for some reason think quite a few of these are to Norway)
The IC Report is useful though I find it irritating that divisional Brokers’ forecasts are given on an ebit basis and the breakdown given by the company are on a pre tax basis.
Sitting with what I have for the meantime