Pv Crystalox Solar Share Discussion Threads

[cjohn] 17/9/2018 17:18

No sign of kleptomaniac tendencies in PVCS management up till now. So I think the scenario you're worrying about is unlikely.


Far more likely is that they decide it would be a good idea to blow some/all of the cash on an acquisition. This is how shareholder value is most likely to be destroyed in this case. (I've seen it several times before in similar cases!)


All cash should be returned ASAP to shareholders. It is their money, not a plaything for management.

[zcaprd7] 17/9/2018 16:44

Thanks, I thought I'd checked that a while back, I think it's pretty clean... My only concern is that the assets are going to swiped from us by management?

[varies] 15/9/2018 15:16

Pejaten
I add my thanks

[cjohn] 15/9/2018 14:11

thanks for the interesting detail, Pejaten.

[pejaten] 14/9/2018 17:22

The company has a defined benefit scheme with two employees. One of those died last year. The cost of the scheme is covered by insurance policy taken out. In 2017 there was a credit because company will still receive money for pensioner who died, but that money is not due to the estate of that individual

[zcaprd7] 14/9/2018 10:36

I don't think there is much else left, inventory is practically gone, and everything else is closed down?I will have a rummage regarding pensions, but haven't seen anything...

[varies] 14/9/2018 10:00

The German operation is certainly very small with only 20 workers employed with a focus on cutting glass and quartz for the semiconductor and optics industries.
Efforts to sell the German wafer manufacturing business failed and most of the workforce had to be laid off. It is not clear to me whether the factory space occupied by that business has been disposed of. They cannot need much for the 20 workers remaining.
It seems unlikely that PVCS would want to expand this glass-cutting business to a size significant for a company with a market cap of £40 million, especially if it has to be managed from the UK. We should surely see news on this front before long.
Are there any indications of the volume of sales of this remaining business ?
One more question : is there likely to be any substantial pensions liability ?

[cjohn] 14/9/2018 08:09

Yes, they would.

I hope they get on with flogging off the German operations, then return cash.

[zcaprd7] 14/9/2018 08:08

Indeed, so we are still looking at 30p a share here.... Surely they'd need shareholder approval for any kind of acquisition?

[cjohn] 14/9/2018 08:05

Today.


Very encouraging in my view.


net cash of 39.6m euros. With 14.3m euros due end November. This makes 53.9mm euros or 48.1m pounds.


Current market cap is 38.8m pounds.


German operations have been heavily rationalised and converted to quartz and glass cutting and only 20 employees remain. This suggest any further wind up costs will not be large. The net cash figure is AFTER costs associated in making redundant the vast bulk of the German workforce. There is a possiblity of a German management buyout of operations there.


The main risk here is that the management blow the cash on an acquisition. There need to be concerted demands from shareholders for a cash return.


all best


CJohn

[zcaprd7] 13/9/2018 09:18

Today or tomorrow?

[napoleon 14th] 10/9/2018 13:36

Interims on Thursday 14th

[zcaprd7] 10/9/2018 10:44

The divestment plan would be useful for a start?

[extrader] 09/9/2018 18:10

Hi salpara111,

Don't the rules (not 'convention, I agree), say 'within 6 months ?

The all-important settlement cash isn't due until 30th Nov, what can they usefully tell us before then ?

ATB

[salpara111] 09/9/2018 13:20

Interims were on 24/8 last year but we still have yet to see anything. I assume there are negotiations going on in the background but they will need to release something in the not too distant future.

[cjohn] 05/9/2018 08:43

Better said it DIDN'T take into account the wafer contribution from PVCS. The 34m euro figure was PRIOR to any delivery of wafers by PVCS.


The two companies have now netted off the price of PVCS's wafer delivery against the 34m. (The value of the wafer delivery has fallen because of the collapse in wafer prices. Therefore the NET figure PVCS will receive has gone up.

[zcaprd7] 04/9/2018 17:26

Aha, so the expectation figures took into account the wafer contribution...

[cjohn] 04/9/2018 10:36

Pejaten
17 Aug '18 - 15:48 - 6955 of 6959

Minimum amount expected at Dec 31 was 20.5m as per annual report. They subsequently increased this to 24m in March. The fact that we are now getting 28m is inevitably a combination of the value of supplying wafers and interest.

zcaprd7
18 Aug '18 - 02:53 - 6956 of 6959


I'm going off the November statement :

"The award requires the customer, who has failed to purchase wafers in line with its contractual obligations, to pay the amount of around EUR34 million including interest to the Group. The obligation to pay is not conditioned upon the delivery of 22.9 million wafers, outstanding under the contract, although the customer's right to seek such delivery is not precluded by the award."



Hi zcaprd7

the 34m euro figure is pre the payment PVCS makes to the other party in lieu of delivering wafers. It's not the net figure.



As Pejaten implies, the NET figure has improved from 20.5m to 28m for PVCS principally because of the collapse in wafer prices since the annual report, but also because of continuing interest payments. The final figures fit this analysis.

[zcaprd7] 20/8/2018 23:40

I thought they were looking to do different things at the German facility (cutting quartz?) so they can offload them?

[steve73] 18/8/2018 12:24

ff.. It looks to me as if this new technology is disrupting traditional wafering methods, which PVCS are continuing to do at their German facility. Probably more likely to reduce the possibility that the German ops can be sold off as a going concern, which would entail higher closing costs for us.

..but really, I'm only guessing...

edit, re-reading the nexwafe item, I see they're making monocrystaline wafer, so perhaps not a direct threat to our multicrystaline wafering.

[flyfisher] 18/8/2018 12:05

Would the remaining german facility be compatible with this project.

hxxps://www.pv-magazine.com/2018/06/21/nexwafe-announces-250-mw-disruptive-kerfless-wafer-factory-in-bitterfeld-germany/

[zcaprd7] 18/8/2018 02:53

I'm going off the November statement :"The award requires the customer, who has failed to purchase wafers in line with its contractual obligations, to pay the amount of around EUR34 million including interest to the Group. The obligation to pay is not conditioned upon the delivery of 22.9 million wafers, outstanding under the contract, although the customer's right to seek such delivery is not precluded by the award."

[pejaten] 17/8/2018 15:48

Minimum amount expected at Dec 31 was 20.5m as per annual report. They subsequently increased this to 24m in March. The fact that we are now getting 28m is inevitably a combination of the value of supplying wafers and interest.

[zcaprd7] 17/8/2018 12:22

Sorry, last total figure was 34 million (including interest) so they have done a reduction...