Sondrel (holdings) Share Discussion Threads

[masurenguy] 28/11/2022 07:42

Interesting - onto my watchlist.

21 October 2022
Sondrel (Holdings) plc

First Day of Dealings on AIM

Sondrel (Holdings) plc, the fabless semiconductor business providing turnkey services in the design and delivery of 'application specific integrated circuits' ("ASICs") and 'system on chips' ("SoCs") for leading global technology brands, is delighted to announce the admission of its entire issued ordinary share capital to trading on AIM. Gross proceeds of £20m have successfully been raised by way of a placing with institutional investors of 36,363,636 new Ordinary Shares (the "Placing ") at a price of 55p.

Key Highlights:

-- The Placing received strong support from institutional investors and raised gross proceeds of £20m.

-- The market capitalisation of the Company will be approximately £48.1m on Admission. The Company has 87,461,772 Ordinary Shares in issue and a free float of approximately 41.1£

-- Sondrel has grown over a period of 20 years and its previous designs have been included in well-known products such as Apple iPhone, Sony PlayStation, Meta's Oculus Quest virtual reality headset, Samsung, Google and Sony smartphones, JVC prosumer camcorders and Tesla and Mercedes-Benz cars.

-- The net proceeds of the Placing will enable the Company to:
o increase the number of engineers it employs;
o invest further in developing its Architecting the Future IP platforms;
o accelerate sales in the USA and in other geographies; and
o strengthen the Group's balance sheet in, inter alia, the delivery of project-based designs and customer supply management contracts.

-- As at 31 July 2022, the Group's pipeline of revenue opportunities stood at more than £300m.

-- The Directors have ambitions to grow revenues to over £100m in the medium term.

Since the y/e 31 December 2021, the Group has traded strongly in receiving new customer orders with an aggregate value of £19.4m in the 6 months ended 30 June 2022 and in securing and commencing work on a material turnkey design and supply engagement in Q2 2022 for a multi-billion dollar European customer. Unaudited Group revenues generated in the 6 month ended 30 June 2022 of £8.0m were significantly ahead of the prior period, with full year revenues generated in the ended 31 December 2021 of £8.2m. Given the positive momentum following the Group's transition in business model and the Directors' positive assessment of the strength of the Group's growth strategy, the Directors have confidence in the Group's prospects for current and upcoming financial years.

[mr euro] 03/11/2022 10:39

I only have a few of these (£10k) and did a bit of a deep dive with a view to buying a lot more.

I'm not completely convinced yet. Some holes in the story; what have they been doing for the last 20 years, why go into Sales mode (at times) during the investor presentation, spoken to an employee of many years and the leadership dont tick the boxes, the new head of Sales in the US is unlikely to have much impact (based on my read).

In time the pieces may fall into place and if the head of Sales hangs (or not fired) around for long enough, be may do something.

My initial reaction was they wont be indepenent for too long but now I'm not so sure.

Lets see.

[giardap] 25/10/2022 21:18

Any reasons, data to back your optimism Glavey?

[glavey] 22/10/2022 16:21

Ah, that's better. Always wanted to post something like that. I feel much better now.

[glavey] 22/10/2022 16:20

No brainer. Amazing potential, could be worth £1b in five years!
It's bound to be taken out by one of the big boys sooner or later.
US sales just opening up. Winner, winner! This will multi-bag for sure.
Check out the website. It's the future!

[mr euro] 21/10/2022 08:01

I don't mind third :)

[the white house] 21/10/2022 07:34

Always good to be a close second

[lufc55] 21/10/2022 07:09

!FOLLOWFEED

[km18] 07/3/2022 12:48

...from last year...

Company overview:
Sanderson Design Group designs, manufactures, and markets wallpapers and fabrics. The UK-based Group international luxury furnishings manufacturer operates through its subsidiaries  in France, Germany, Netherlands, and USA. SDG is proud to be recognised as “one of the most versatile and distinctive fabric printers in the world”, with brands under the umbrella having over 95 years of experience in the sector. Back in 2019, the Group presented a strategic framework aimed at building brand recognition, product concentration and reduction  of overhead combined with tight inventory management.
The significant drop in the stock from 2017 was due to a negative trading update, downgrading the expectations for the full year results. Following a period of almost no movements, the 2019 “refurbishment” brought the Group on the right path. Last acquisition was in 2017 and goodwill has not moved since then at £16.7m. this should be observed in more detail as impairments could hinder net profits in the coming periods. Growth in revenue is mediocre still, at 1.31% CAGR, and EPS have been falling over the last 3 years. On a more positive note, ROCE is growing at 12.1% CAGR and gearing is negative (excluding the IFRS 16). Valuation is average with the majority of ratios in line with industry averages.
The Interim results for the period ending July 2021 are confirming the company is executing on its strategy to strengthen the business. Revenue for the 6-month period is ahead of 2020 by 47%, at £57.5m. We love that they have included also 2019 figures, as this year’s are actually outperforming also the pre-Covid ones. Basic EPS is 44% above 2019 result at 5.31p and the company has a healthy net cash position. They are also reinstating the interim dividend of 0.75p. Key highlights are the growth levels across all regions of operation, with North America being the star of the show. Outlook is positive, with the first weeks of the autumn sales being in favour of Sanderson, and they are “confident of meeting the Board’s expectations for the full year”.

Short analysis:

Cash was in line with 2021 year-end figure
Net cash position
CA/CL = 2.55
Cash ratio = 0.68
Interest coverage = 703.42
P/S TTM = 1.6, which is above the sector average
BV ps (2021) = 95.1p, growing at 10.1% CAGR
Operating profit of £4.9m
Gross profit margin of 62.5%...

...from WealthOracleAM

[cwa1] 18/9/2019 14:44

Mine in too. Happy/sad stuff.

[aishah] 18/9/2019 14:10

Proceeds in today. APC bid at 10p for 50% ROI, so not a bad return. Will another bidder emerge?

[rivaldo] 11/9/2019 09:09

Yep, goodbye SND. 'Twas a very successful investment, but was taken out too early.

[aishah] 10/9/2019 08:53

So we depart AIM. Proceeds paid around 23rd. 56% ROI

[aishah] 09/9/2019 11:46

Suspended pending an announcement.

[zero the hero] 11/8/2019 23:45

Think its time to assume the top is close enough despite the speculation.

[investopia] 07/8/2019 11:51

I'll never think of mergers and acquisitions in the same way again!

[rivaldo] 07/8/2019 11:28

Here's a very useful article from Edmond Jackson - I hadn't read as far down as point 17 of the RNS!



Extract:

"While Sanderson directors, senior managers and their relatives – owning 22.3% of the share capital – appear to have accepted the offer on a "hard" irrevocable basis (i.e. binding in all circumstances) the institutions – respecting their clients' best interests – are in "semi-hard" mode.

Point 17 in the 1 August RNS cites Unicorn Asset management (with 3.7%) declaring a 155p threshold for a higher offer; Downing LLP (4.3%) at 150p; and Gresham House (8.9%) at 154p.

It suggests they have done their sums to conclude that if acting as responsible stewards of capital, fair value of 150p to 155p is also worth holding out for. This also reflects the market working efficiently in the balance of interests: informing advisers to a potential rival offeror, how high they need go.

Aptean (implicitly its private equity backers also) would then need to trump this. It's likely they've war-gamed such a scenario i.e. 140p is effectively the opening bid and if they are lucky to get away with it, then it's been a fine tactic. Proof of Sanderson's current market value depends on flushing out any rival."

[rivaldo] 05/8/2019 15:29

Thanks for that. Perhaps there's still hope for more then.

Certainly interesting to see quite a few trades now being reported at above 140p (up to 140.5p). Are they buys or sells (in reality, not per ADVFN!)?

[alter ego] 05/8/2019 13:36

the gist of the IC comment by Simon Thompson is that the offer is low and the insti's that have agreed to it could well change their mind if a counter offer, say 155-155p were to appear and start a bidding war. He thinks there's a decent chance.

[rivaldo] 04/8/2019 07:30

It's pretty ridiculous that this SCSW tip would probably have taken SND up to around 138p-140p anyway.

And the CEO knew that SCSW were likely to feature SND, since the article states that they met him "last month".

Which makes the directors' and institutions' decision to sell at 140p even more supine.

[tjbird] 03/8/2019 17:34

Better to get the second one mentioned in scsw now looks cheap on per of 3-4