Pressure Technologies Share Discussion Threads

[arthur_lame_stocks] 28/9/2022 18:47

The company is now trading at a significant discount to NTAV with modest debt and a recovery in 2023 expected. CSC has to be worth £20m on its own.

I'm loath to buy anything in this market but if the price keeps falling I may just get some.

[darrin1471] 28/9/2022 18:22

500k @ 27.9/28p near the end of the day.

[my retirement fund] 28/9/2022 18:10

Really? I think that's a vote that they won't be supporting these utterly useless idiots in a fund raising effort, but then who would. It's inexcusable to have driven this company onto the rocks post covid after all the financial help they had. To have entered one of your busiest years on the order books on record with the most competitive export market also on record and you are staring insolvency in the face is unforgivable!!!

[baner] 28/9/2022 16:42

Miton often dump their sour grapes in a totally reckless manner - excellent buying opportunities for a brave punter.

[cerrito] 28/9/2022 16:11

I see that Miton sold 250k yesterday. Repeat that for 5 days and they will be out.

[jotoha2] 27/9/2022 20:02

If there is no return to profits then the present valuation will be to high , 8p at the moment is probably fair value.

[tresham] 27/9/2022 16:13

We should have known in July, after the sale and lease back; things were going wrong then. I didn't like that deal, it is a committment we don't want. Another share where lots of talk of exciting prospects just means thing are going wrong. At £10m market cap, the company is cheap. If the CEO and CFO could go without too much expense I could see the company being bought out.

[cerrito] 27/9/2022 15:50

Well the new Chairman who joined on April 1 certainly has a baptism of fire. I do not know if he gets more or less than the £65k his predecessor got but if he does a good job he will be worth it. Too bad that they had such an anti social AGM that we could not meet him
Obviously in the current environment companies such as PRES have many booby traps to negotiate and they are not alone with all the delays announced this morning. Incidentally tomorrow we have a manufacturing company with first class management-AVG-announcing their prelims and I am interested to see what delays they have had. We were warned in the July IMC update that there were delays in hydrogen but that Almet’s orders in June had been good.
I give the CEO the benefit of the doubt, but no idea if I am being charitable.
The people who seem to have read this right are Lloyds as I have been surprised by the hardline I have read them taking over the years with PRES. It did seem that they reduced their facility with the proceeds of the Roota sale and leaseback. I go on the basis that they will show flexibility on the covenants in the short term but will expect any scheme that E&Y come up with be effective before the June 2023 RCF end date.
As stated the role of Schroders with their 26% will be v important but I have never seen them as being very proactive-perhaps I am wrong.. Harwood will be proactive and no idea if Gresham House will join them or say to hell with it and exit their 5% holding. The danger to the share price is that an Insti with a smaller holding will decide to in Lynton Crosby’s phrase get all the barnacles off the boat given current market conditions and sell and not be too fussed about the price. If that happens there will be no bounce back in the share price and is a major reason why I am in a funk and not planning to add at these prices. I do not see myself as selling.
I am not sure if I see much appetite for yet another equity raise. I do not see an obvious way forward. Someone could make an offer for PMC and that would be in theory good but that would leave us CSC which is rather too small to justify its own AIM listing. Someone could buy the whole company and sell of what they do not want.
Just as well they are in the three sectors with high visibility. My reading that defence is virtually all naval and indeed submarine so they would not be benefiting from the need to kit out the Ukraine army.
PS I assume by now the previous Chairman sold all the 360k odd shares he used to have.

[darrin1471] 27/9/2022 12:26

Plenty of jam for tomorrow

"The Board now expects PMC to return to profitability in the second quarter of FY23."

"the Board is confident in underlying market opportunities and expects a return to profitability and positive cash generation in FY23"

"confidence in further significant hydrogen revenue growth in FY23, weighted towards the second half of the year"

"outlook for CSC in FY23 remains positive, supported by an order book of GBP5.9 million, major defence contract placements expected in the first quarter"

FY23 starts on Monday

[40 fathoms] 27/9/2022 11:34

@jotoha2 - the announcement says that on an adjusted basis (EBITDA) they will be/are profitable for the second half of the financial year. But the scale of this profit has not been sufficient to outway the loss incurred in the first half. I think the question is the extent to which they are profitable and more importantly at this point, where they stand from a cashflow position. It would be logical to assume that delayed orders are tying up more working capital than expected, but we are given no sense as to their ability to mange this.

On a positive note, they did improve their net debt position from @ GBP -4.9 million Oct 2021 to @GBP -3.9 million expected Oct 2022. Included in that number is the decrease of the drawn facility with Lloyds from @ GBP -4.8 million Oct 2021 to @GBP -2.4 million expected Oct 2022 (2.4 million is the new facility limit)

[jotoha2] 27/9/2022 11:33

BOD have little skin in the game , which for this sort of company is not clever , Schroders hold nearly 27% , but their track record is not exactly brilliant CPI down from £12 to 26p and they were buying millions at 40p .

[jotoha2] 27/9/2022 11:23

They clearly have a good order book , but are they profitable , obtaining contracts at bad margins is easy to do , the energy crisis will hurt them more , change at the top required to achieve profits, can see this crashing much further .

[lookagain] 27/9/2022 09:53

Paraphrasing Warren Buffet, if you want to make a million in the share market then start out with a billion.

[meijiman] 27/9/2022 09:25

Management needs to change..current lot are effing useless. Dreamers and fantasy world dwellers.

[40 fathoms] 27/9/2022 08:41

@my retirement fund - in complete agreement IF they agree to a waiver it will come with a price tag.

[my retirement fund] 27/9/2022 08:21

40 Fathoms, difficult to know how the bank would want to support, i'm just saying its not going to be anything like on previous terms, and they are currently in a position to recoup losses as secured against the buildings and land but these value may now be falling fast. Bottom line is until that issue is resolved longer term so decreasing their risk and improving the return from banks perspective - banks are there to make money ! it remains completely unvisitable. Perhaps larger shareholders will remain supportive and agree to support a discounted rights issue - who knows ? On that prospect, difficult to see how significant shareholders would be happy to support the current board without changes!

[darrin1471] 27/9/2022 08:02

I was not expecting a trading update this morning. Lucky as I intended adding before full year results.
Obviously disappointing H2 with the exception of hydrogen.
PRES are still positive about FY23.
Banking uncertainty is always undesirable.
Fall is understandable in current market conditions.
Having been lucky not to add before the results, I have trebled my initial holding this morning. 3 bagger next year appears possible for fair value. Hydrogen potential which is my primary interest and it is all in addition to the 3 bagger IMO.

[40 fathoms] 27/9/2022 07:57

I don't disagree, but banks will also not want to trip up a business that can trade its way out of any breach. You could well be right about it being taken out or at very least we might see a trade sale of Roota, which I would be pretty happy about.

[my retirement fund] 27/9/2022 07:39

I wouldn't imagine Lloyds would not agree to anything without a severe pound of flesh. Banks cannot afford to be idiots in the new environment we are in. What ever the terms were before and the interest rates you can quadruple them and quadruple them again ! I suspect the days of this being a public limited company are numbered.

[andyview] 27/9/2022 07:35

I’ve taken a few back, it’s a cruel cruel market for sure

Gla

[40 fathoms] 27/9/2022 07:09

What does not hurt these day! If it turns out Lloyds are happy to waive the covenants that will suggest that the outlook is as they say, and any pain will be transitory. Also, as of yesterday's close we were only down 6% for year, based on my portfolio and even if we see a very hefty fall today, it would still be among the best performers and worthy of being mentioned in dispatches. Pain is relative!

[andyview] 27/9/2022 07:07

I think it’s the banking position weighing heavy too