Romag Holdings Share Discussion Threads

[garbil] 15/6/2009 11:26

Late reporting of the buys from last week that reversed the
downtrend.

IMHO

[masurenguy] 15/6/2009 11:23

Very unlikely to be Sells at the mid-price - look more like broker to broker transactions to me.

[9degrees] 15/6/2009 11:03

Are these buys or sells going through at 37.5p ??

[garbil] 15/6/2009 10:27

More support for bullish view:

Schroder increase the size of their holding by 0.28%
to over 5%.

[asparks] 13/6/2009 16:36

there was no point

[eisler] 13/6/2009 00:59

Not even going to bother explaining why you missed the point I was making...

[garbil] 12/6/2009 13:17

Yes.

Only up 15.4% today.

And the 21st best performing share
on the entire London market.

Truly dire.

[eisler] 12/6/2009 12:59

Such a low number of trades/volume after a collapse in the share price always spooks me.

[masurenguy] 12/6/2009 11:42

Well I'm not a Chartist but 30p looks to be support having previously bounced off it as the low in March.

[asparks] 12/6/2009 09:53

looks like recovery has started

[asparks] 11/6/2009 13:42

neil
I am still in prfit overall here, and expect to make more profit in both medium and long term I sold most of my holding recently at 55p.

[neilrr] 11/6/2009 12:14

asparks, post 778.

Unfortunately, you appear to be correct.

[masurenguy] 10/6/2009 11:41

Well you can pick both positives and negatives from the Interim Report depending upon whether you are espousing a bearish or bullish viewpoint. In the short term they bounced off the March lows of 31p after some director buying at 31.75p.

The 12% fall in sales needs to be seen in the context of the substantial increase in sales during the prior year so this is not so significant. The 50% decline in the gross margin is the real issue that I would like to see explained ! Most of the windfall from the currency gains was offset by the inventory writedowns so that did not really distort results too significantly.

Goimg forward the rise in the price of oil, some improvement in commodity pricing, the energy crisis and government legislation on an international scale to promote the use of solar energy are all long term positives for Romag and a market cap of circa £16m could be considered undervalued in the context of their forward potential as opposed to short term fundamentals.

[garth] 10/6/2009 11:30

Garbil,

I accept all of that. But if the first half performance is repeated in the second half they will face a trading loss of £2.6m for this year.... How low will the shares go on the back of that?

Longer term the prospects are, as I have said before, for a considerably higher share price.

FWIW, I hold a few - roughly at break-even.

G.

[garbil] 10/6/2009 10:19

JOHN M. KENNAIR, MBE, Chairman said:




'As a result of extremely difficult market conditions, trading in the first six months of the year has been very challenging. In particular we have seen a marked decline in demand and pricing for our PV products, in line with wider market trends. Management has acted decisively to control costs with head count reduction and the renegotiation of supplier contracts, while ensuring the business is well-positioned for the market pick up in the medium term.



In the longer term, a number of factors give reason for optimism. We are currently seeing a high level of enquiries for projects expected to come to fruition in 2010/11, including a number in the Middle East. Domestically, the UK government's announcement that a feed-in tariff will be introduced in April 2010, will provide further significant stimulus to solar PV in the UK. Furthermore, we are very positive about the domestic and international prospects for the recently-launched PowerPark products, and are delighted that we are able to announce an MOU with British Gas for marketing, distribution and installation.



All these initiatives give good cause for a more positive outlook in the next financial year and beyond

[garth] 10/6/2009 09:44

This from the results adequately explains the falls. Lower sales, falling margins, increased inventories and a trading loss. Without the profitable hedging the results would look terrible. That hedging has now gone - so what hope for the second half???


"Sales in the six months to 31 March 2009 fell by 12% over the corresponding
period last year to GBP10.2m (2008 GBP11.6m).


Lower trading margins were exacerbated by a one-off provision of GBP0.9m
relating to the write down of certain finished goods inventories. This provision was required due to the rapid decline in prices in the solar PV market.


The resulting trading loss of GBP1.3m (2008 profit GBP1.1m) was more than offset by a profit of GBP2.7m on the disposal of the group's currency hedging
contracts, which were no longer considered to be as strategic to the group due
to currency movements and changes in expected sales mix going forward.

As I announced at the annual general meeting in February, the uncertainty in the solar PV market has resulted in a number of projects being delayed. This has contributed to the increase in inventories of GBP4.1m over the period. Despite this increase, gearing (defined as net debt divided by equity shareholders' funds) increased only marginally to 45% at 31 March 2009 (42% at 30 September 2008). "

[masurenguy] 05/6/2009 15:08

Looks like it !

[wonder boy] 05/6/2009 14:45

Am I the only one that thinks these guys are going to run out of cash???

[garth] 01/6/2009 06:43

"Romag agreed to build two prototypes". Good news. But not a company transformer just yet. If they roll them out nationally though....

[garbil] 31/5/2009 09:36

On a more positive note:

[muangsing] 29/5/2009 09:47

PUGUGLY

Thanks.

I must be blind, I didn't notice that despite skimming the cash flow statement.

My guess was that it was capitalised R&D re Powerpark. But as you point out the wording is "Payments to acquire intangigble assets" which does not suggest internal R&D.

I agree with your sentiments as to the possibility of "the interim loss very much worse than stated"

Regards

[pugugly] 29/5/2009 08:41

MUANGSING

From the cash flow statement.

Payments to acquire intangible assets | | (1,873)

BUT no indication as to what it included Which (imo) is a major NO NO.

All I ca suggest is that you contact the company asnd ask what is included. I suspect soem of this will be capitalisation of R&D - If so it makes (in my view) the interim loss very much worse than stated.