Scapa Share Discussion Threads

[cambium] 25/1/2007 14:08

absolutely cracking morning, Sola and rcg and just made a grand on a cfd on XTA, just smc letting the side down - call it noise

[liarspoker] 25/1/2007 12:20

Morning Cambo. :O)

[cambium] 25/1/2007 12:19

Charles Stanley reiterates with a hold yesterday

[cockneyrebel] 25/1/2007 12:13

SCPA - just increased their holding:

At the recent results they said this -

LONDON (AFX) - Shares in Scapa Group PLC have been upgraded to 'in-line' from 'underperform' by Cazenove, dealers said.

The broker told clients that the group's recent results confirmed the success of management in restructuring the cost base, strengthening the balance sheet, and producing better top line growth in Europe. Cazenove added that the recent share price rally reflects renewed interest in the recovery angle, and it expects this to continue as confidence returns that management is managing a tough situation well. [e-mail]

[cockneyrebel] 16/1/2007 12:28

I honestly think that's why it has been ignored but I cannot see Hanover getting involved unless they had a cunning plan master.

WGB, JQV and others have tackled them and Hanover seem really shrewd and likely to have a number of plans. It also strikes me that things are happening here with Hanovere only taking a moderate stake - I think the directors here have been far more receptive than with other Hanover muscle-ins.

The same goes for the asbestos claim. The co seems to think it has provision for the maximum likely claims again them even tho they have never lost a claim or admitted liability. So is there some way Hanover see of reducing that provision - like insuring against the claims in a geared way if they can show sao many claims have been defeated? This might free up more cash and the sort of idea Hanover come up with.

The property assets have never been revalued so I would imagine they are on the balance sheet at far less than the market value.

It seems to me these disposals have reduced debt and interest payments and may have a greater effect than we might imagine. For instance the interest saved from having that cash from the disposal today covers the lost operating profit on the sealants business. That money can be put to work in a much more efficent way now with another monkey off their back.

I dare say this is the sort of stock where it won't be a glaringly obvious buy to most of the market until it's doubled from here but worth holding and waiting imo.

Year end March 31 - perhaps a nice trading update then.

CR

[arthur_lame_stocks] 16/1/2007 11:25

It´s the pension fund that´s put me off in the past.

[hvs] 16/1/2007 11:15

I am interested in joing Scapa holders. I fear about the pension deficit.

Does anyone have an opinion of the below :

Pensions


The IAS 19 pension deficit as at 30 September 2006 was #62.2m (31 March 2006
#63.4m). A revaluation of the UK pension schemes at 1 April 2006 was recently
completed. Discussions are currently in progress with the pension Trustees over
ways to reduce the deficit, including future funding commitments by the Company.
It is the Company's intention to close the schemes to future accrual from 1
April 2007, with employee consultation now commenced on this proposal. The sale
of our Irish subsidiary in June triggered a Section 75 debt which will be funded
progressively, using in part the #0.9m net disposal proceeds as these are
received.

All comments will be appreciated.

[cockneyrebel] 16/1/2007 11:10

Another disposal - sale of the sealants business for £4.7m.

Scapa is pleased to announce today the sale of its Sealants operations for £4.9m in cash with completion expected to occur in February. The business had sales in 2005/06 of £7m and operating profits of £0.3m. It employs 71 people and is based in Lymington, Hampshire. Net assets at disposal amounted to £2m.

Since the interims that's £21.5m in disposals.

I really think the market is undervaluing the sum of the parts here and that will out soon imo.

CR

[hasten] 14/1/2007 15:41

CR
Ta
Agree re:Hanover and asbestos.
Hasten

[cockneyrebel] 13/1/2007 23:29

yep Hasten, I'm back in SOLA. Bought back in at just over £4. Was a mistake to sell but back in after reviewing it. Haven't posted on the SOLA bb in fact I don't even read it because it does my head in over there - makes me behave irrationally.

As for the asbestos claim with SCPA, like the article says, this has gone on for a while and there has only been one successful claim. Hanover would never be in here if the claim was that much of a problem imo.

CR

[kalmar] 13/1/2007 22:00

Hasten..great link ..thanks..

CR are you back in Sola..or looking to get back in??...I closed my final holding circa 430...but been looking to get back in...before it breaks out again.(thought it would retrace more)...I take it you still like the story??..TIA

[hasten] 12/1/2007 22:05

From an old RNS I know, re: asbestos litigation:

"Scapa is pleased to announce today that it has just completed the re-negotiation of its Legal Cost Apportionment Agreement with its US insurance carriers. This Agreement covers the sharing of defence costs for personal injury claims in the USA that allege exposure to asbestos from a business Scapa sold in 1999. With effect from 1 April 2006 and for the following three years, Scapa's share of costs under the new Agreement will reduce from 50% to 25%. At current expenditure levels this change represents a cash saving of approximately #0.5m per annum."

Presumably, Hanover have thought it all through and the risk of any costs are going to be low...or are these costs fixed?

Hasten

[cockneyrebel] 12/1/2007 21:12

A good link, cheers.

The pension will be sorted, as it has been sorted at several companies like WGB, JQV and others. A pension deficit cannot stay so big that it remains an over-riding burden to the co. Eventually the company isn't viable with it in place imo. If they co isn't viable the pensioners have no real pension in the end so eventually reality dawns on the trustees imo. I think Hanover will be invloved with sorting this as turn around experts imo.

CR

[hasten] 12/1/2007 20:31

Good summary article here for Scapa

www.fool.co.uk/news/investing/company-comment/2006/11/30/a-christmas-carol-for-scapa.aspx

Hasten

[cockneyrebel] 12/1/2007 17:47

oops, edited :-)

more buys than sells today and it got hit - my point illustrated. I think there's one seller wanting to sell a few and the mm's are screwing him if he wants to sell in a lump. They'll probably have the lot off him when they know news is coming and then flog them in the market at a huge premium.

CR

[kalmar] 12/1/2007 16:36

I take it you mean buyers CR ? -)

[cockneyrebel] 12/1/2007 13:13

a few bored sellers, as ever.

I'n looking at 3Ks and 1Ks and 300 sells and bits - hideous bored selling of no size.

One nice RNS and the buyers will pour in imo. Not easy to bu this when everybody else is trying to imo.

CR

[gswredland] 12/1/2007 13:07

Not only that but we have Hanover here too.

[nickcduk] 12/1/2007 11:50

Im in as of this morning for 20k at 24.3p. Ive not brought my full quota as of yet in case the price slips back over the coming months. However, what the market seems to have missed out on is that SCPA will be big benificiaries of the recent fall in oil. They spent 90m last year on raw materials and consumables. Imagine them just managing to save 5% and that works out at 4.5m extra on the bottom line. The likes of RPC and BPI have moved sharply higher whilst the oil price has fallen but SCPA seems to have missed out. Following their sale of megalon they are in a very strong position to reduce their pension liabilities. Im sure if they offered the 15m they got to the pension trustees and offered members a lump sum to transfer out, they would be able to reduce liabilites by 25-30m. That would suddenly make SCPA look a much more attractive prospect for investors.

[handycam] 12/1/2007 11:11

Well, I think I would prefer to see a bit of blue before committing more funds.

[kalmar] 08/1/2007 12:13

boredom sells going thru??????

[gswredland] 03/1/2007 15:46

Joined you guys this morning.
Good luck to all and let's hope Hanover buy some more soon.

[kalmar] 03/1/2007 15:35

TDW..useless online today...cant get anything filled!!....added again ...

[hasten] 02/1/2007 20:40

CR
net today is 198,750 - 43,209 = 155,541 ???
Please correct/comment
Hasten

[cockneyrebel] 02/1/2007 19:50

Only taken net 70K to get the mm's moving up in this today. That's interesting as Friday's volume was flat and Thursday's volume was net 70K sells.

So the 60K they took off someone at 23p on Thursday have been sold back to the punters today @ 25p today when you net it all off and the MM's have turned upwards.

I don't think it will thatke much buying to get this goiinbg up as fast as it came down, and some imo.

CR