Most defence stocks are booming, maybe this is a bit niche to join in. |
Thanks 40fathoms, that's really interesting and helpful.
Everything does point to a sale doesn't it? the sale of PMC, the change of name, it's too small as a stand alone business to absorb listing costs and a sale is the only way Staveley, Gyllenhammar and Schroders can exit, so it has to happen.
Like you said if they can secure these potential contracts then proof of concept is there and just a matter of price then.....
No friends in the market this week but hopefully that changes with the hydrogen orders and shareholders have a decent year (for once). |
40 Fathoms
apologies to you - your estimate of the cash position was absolutely correct, and i was wrong! i also share your views on the property - if there was a change of use the value could be dramatically higher - the location is fantastic. finally i share your views re a potential bid price - could well be north of 60p, given the net cash. let us hope !! |
 Heng Heng,
I not sure about that, but I do read a lot and have views !
1) As of today, I estimate the cash position to be approximately GBP 3.8 million. However, due to seasonal factors and assuming the larger expected orders materialise, some of this cash will need to be allocated to inventory and working capital by mid-year. Therefore, I expect the next cash position to be closer to GBP 2.4 million, excluding the lease financing associated with some machinery. Net cash position should then build back up by end of FY.
2)Factory "as is" @ GBP 2.8/3 million. If the issue with the ransom strip is resolved, it could be close to GBP 4 million, solving this will come with a cost. To get anywhere close to GBP 6 million, you would need to redevelop the site, which would require planning permission and most likely a change of use.
3) I am sure there are lots of groups interested in parts of the business but probably less keen on taking it all. ITM would be an obvious choice for Hydrogen, and whoever ends up owning Forgemasters (currently owned by the MOD) would be obvious for defence. Both companies are located in Sheffield. If the trajectory they have laid out in terms of new, larger orders plays out and the UK Government does not back away from its support of Hydrogen, then within 12-18 months taken over at between between 60p and 70p per share is my best guess. |
Hi 40 fathoms, Yoiu appear to be the most knowledgeable person here on all things CSC therefore can i ask you a few questions;
1. What do you estimate the net cash balance to be today post the PMC sale?
2. What do you estimate the factory freeholds to be worth (I've heard estimates of £6m)?
3. Who are the potential acquirers of CSC in the trade place?
Many thanks |
A couple of additional points to add to the various comments from yesterday.
CSC is not just a qualified supplier to the US Submarine program, if you read yesterdays results carefully it is stated they have not just qualified as a "critical supplier". As such no tariffs, exemptions or tariffs they are buying our cylinders.
It seems pretty clear that the two major Hydrogen deals they are expecting in Q1 and Q2 are the BP Aberdeen Hydrogen Hub and HAR1 Bradford project. I think they can have reasonable confidence to take in excess of GBP 10 million of H2 orders this year but with much of that recognised next. |
40 Fathoms
sorry but i do not think you are correct re the cash proceeds - although i would be happy to be proven wrong. |
If they want to cut central costs they can reduce from 4 to 3 the number of external directors.
They ignored my question of the costs of being listed and the benefits for strategic direction of being private.Fair enough because really a question for the Chairman and the Board at the AGM.
A bit surprised that after all these years of new management they are still able to get extra efficiency gains in the plant.
In terms of the share price my concern is that Schroders will do what they have done in other companies where I have shares and whittle down their 19% holding. |
Banner have you factored in to the Balance Sheet that the cash from the PMC sale came after the period end ? So you need to add @6 mn of cash to these numbers ? |
Can’t see tariffs on US defence spending |
Tariffs = Trump - Make America Great Again - So chance of PRES or soon to be
Chesterfield Special Cylinders Holdings plc becoming burnt toast? |
Disappointing results as well as balance sheet. However, with US orders in pipeline - and they will be MASSIVE - the company will be an attractive take over candidate. The potential property value is huge, however they need to produce somewhere and this is more relevant when it comes to raising funds, where they can use this as collateral. |
Going concern ok..at least for next 12 months.
Talk about need to reduce centrsl costs code for delisting??
Singers have a buy with a tsrget price of 50p but per their forecasts we need to wait till FY 27 for a PBT.
They have tied their colours to the mast ref getting hydrogen orders H1CY25.
Incidentally when prepping yesterday I found a to me good resume on HMG hydrogen financing programmes by City Lawyer Norton Rose. |
It is very likely that PT will be taken over in a not too distant future, following this qualifying for the US program - fantastic news !! As Fathoms say, this will give them an increasing and more stable order flow and thus better value of the business. My guess is we shall see 50+p on the table before the end of this year. |
Qualifying for the U.S. Nuclear Submarine program is an enormous achievement. The scale of this program promises a much steadier order flow when compared to the orders they have historically received from other countries. Now we just need a couple of large Hydrogen contracts wins to flow from the HAR1 round, which the Government is the process of documenting.
Also, I am encouraged by the fact that they will be reengaging with shareholders via IMC when the results are released. It has been a good while since they have engaged with shareholders. |
The announcement today of the big £9b RR nuclear submarine contract reminded me of my holding in PRES. The statement was as clear as mud as to what it all meant and I am going on the basis that this was all as rehash of news that was in the public domain.
I assume we will get the finals soon. Last year they came out in November and in the days gone by we would have had the AGM by now. I appreciate the complications of the PMC sale and change of leadership in the finance function.
I note that not all that much trading activity and the few posts here suggests that PRES is out of sight out of mind for many people.
I have no inclination to buy or sell. |
It could be due to the government announcing today that it had signed contracts with 3 of the winning bids from the HAR1 round and that the others should follow early in the New Year. There should be a very decent amount of near term work for PRES from some of the projects in the HAR1 round.
In addition they have said that HAR2 round, the results of which should be announced soon, has been massively oversubscribed.
Not near term but also this week we have had Germany and Norway place a joint order with ThyssenKrupp for another 6 submarines. ThyssenKrupp has historically sourced from Chesterfield. |
Bit of a move up recently. News due? |
This is the report on which the FID was taken for BPs Aberdeen Hydrogen Hub if you search in the document for Chesterfield you will note that we are penciled in to provide the Hydrogen Storage elements of the project. This would be for 109 cylinders. 6 banks of 500 barg storage each containing 9x 1.2 m3 cylinders & 5 banks of 900 barg storage each containing 11x 0.3 m3 cylinders.
The Aberdeen project is rated to produce @300 tonnes of hydrogen per year, by comparison the largest HAR1 project approved is in Bradford and that is rated to produce @4,500 tonnes per year. |
These HAR1 projects should now roll forward pretty quickly. Plenty of high pressure steel cylinders needed across these projects and these will be need in pretty short order given the time lines. No doubt we will see some decent orders flow from some of these projects.
The HAR 2 round is also very close behind this. |
baner and 40 Fathoms
Fingers crossed that your upbeat thinking comes true. |
Cerrito, they're not thinking of 25, it's 15 by 2050. |
Not a party pooper, but also this is not one of the things we had expected to start a party ! They are still to come (hopefully) 1) Certification in to the US submarine supply chain, 2) Hydrogen orders from HAR1 & 2 rounds 3) Other major submarine programs like AUKUS or the Triomphant replacement.
Yes, it is pretty clear now that for every type 26 Frigate built you can put us down for @£950k of orders. It seems like Norway is looking at the Type 26 and I am sure one or two other as well. |
There will very likely be further orders of this nature Cerrito. This is a really good stamp of approval from most demanding customers, confirming CSC´s status as a AAA supplier. |
Good news this morning but call me a party pooper this will not move the dial all that much given over the next 5 years it will add £0.5m of income against the CSC income in the last FY of £20.7m.
Speaking from ignorance, surprised that Canadians thinking of having as many as 15 destroyers. |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
