Science Share Discussion Threads

[oregano] 10/2/2015 09:02

IC - Ratcliffe is interested in capital growth, not distribution. So a trade sale is a possibility, but these businesses don't attract huge multiples as they have no contracted recurring income. I think the lack of distribution is a shame as whilst income is not contracted, it does recur. SAG could easily afford to pay out £3m in divis = a 6.5% yield. Which would get a fair bit of interest.

[anumidium] 10/2/2015 01:22

Well, its probably not this chat about the company being taken private ...

[battlebus2] 09/2/2015 21:06

Good rise today, anyone know what sparked it :))

[oregano] 09/2/2015 15:54

if he tenders nothing, his holding could go to 45%, so he effectively controls it. But he effectively controls it anyway now.

I just hope the tender is at a respectable price. which it should be otherwise people won't offer shares, as per the last tender at 85p. i think 160p this time.

[mjcrockett] 09/2/2015 15:49

Oregano, that's a good point. However, while the business has done OK over recent years it has not grown hugely and PERHAPS the Chairman is reviewing his plans.

It will be most interesting to see if he tenders a significant block of his shares in the upcoming tender offer. If he doesn't then he could considerably strengthen his holding in the company which would make a delisting or even a trade sale easier to push through. Such ideas may not have crossed Mr Ratcliffe's mind but you never know.

[oregano] 09/2/2015 12:11

those suspicions being what? taking it private? surely if that was the intention then he would have tried at 40p when he took his original stake.

[battlebus2] 28/1/2015 15:05

Thanks Hastings for your insight.

[hastings] 28/1/2015 14:55

Sagentia's exposure to the oil-gas and renewables is largely run through the 2013 acquisition of OTM. But, given Sagentia is effectively about bringing new ideas and products to market one would hope that area hasn't been too adversely hit. I would have thought the company has more than enough in terms of a diversified spread anyway, while one would hope they are also doing rather well at present within the area of robotics.Still feel the Harston Mill asset is also worth a fair bit more than the current book value too. Property on the South side of Cambridge is extremely well sought after, while rents across the board, are amongst the highest in the country.Nice company that has been turned around, solid balance sheet, highly regarded team and the added attraction of very nice margins.

[123prezzie] 28/1/2015 13:02

Does anyone know what proportion of their business comes from oil/gas/renewables. This sector is usually mentioned as the third most important, so I would guess 15/20%. Worries about this may be holding the price back.

[sailing john] 23/1/2015 14:16

EJ and MJC - spot on!

BB2 - Just doubled up on this pull back!

GL - SJ

[mjcrockett] 23/1/2015 14:12

Another factor is the £/$ exchange rate. The company say that profits for H2 2014 will be ahead of expectations because of the favourable movement in the exchange rate. Well the exchange rate has continued that favourable movement considerably into 2015. So, barring other problems, profits for 2015 should be further improved.

[eezymunny] 23/1/2015 14:02

Quite an interesting one. With the cash pile (£15m) and the property (may be worth £18m if you read the AR, so added value of potentially £10m if you deduct £8m mortgage) you pay only about £22m for a company that has done £5.7m op profit in 2014. If future trading is good it does look very cheap here, non?

[battlebus2] 23/1/2015 13:59

Thanks S.J. seems to be selling pressure indeed..

[oregano] 23/1/2015 11:55

it would be a strange time to sell, given a tender of 20% of the market cap is on its way. When SAG last tried this at a discount to the market price, 85p i think it was, there were no takers. Hopefully lessons learned and it will be at a premium.

[sailing john] 23/1/2015 11:16

BB2 - It's usually me following you!! - Managed first trade of the day - perhaps should have bought a few more.

There appears to be a string of 10k buys going though so presumably a decent sized sell order being filled. Hopefully will clear soon.

GL - SJ

[davebowler] 23/1/2015 10:48

Westhouse;


Sagentia – Positive trading update and potential £10m return of cash

Trading in the second half of 2014 was stronger than the first half of the year, and adjusted operating profit is anticipated to be ahead of expectations partly due to the move in the sterling-dollar exchange rate in H2 2014. With net cash of £15.1m and the likely absence of a major acquisition opportunity Sagentia is considering a return of c.£10m probably via a tender offer.

We’ll look to reinstate forecasts with news of the return of cash and results in March but view the potential return of cash as a vindication of our sum-of-the-parts 175p target price and Add recommendation.

[battlebus2] 23/1/2015 10:41

Also joined you today S.J. , not following you around i promise :)))

[sailing john] 23/1/2015 10:00

Bought back in on the bell

Still nice and quiet here!

SJ

[oregano] 23/1/2015 09:47

And the next news was good. Hopefully a tender offer at a premium. the cheap sellers cleared out.

[hastings] 10/12/2014 11:32

hxxp://www.cambridge-news.co.uk/Sagentia-teams-American-firm-lead-development/story-25514620-detail/story.html

[grahamite2] 25/11/2014 16:48

The latest is against Tesco, it seems.

How can a general shareholder action against the company make any sense?