Stadium Group Share Discussion Threads

[cockneyrebel] 03/9/2010 12:22

Hmm, where did I get £40K from ? :-)

you're right Daz :-)

These are ruddy cheaper than I thought :-)

CR

[daz] 03/9/2010 10:46

CR, the annual rent is 0.4m, which if it did represent a 7% yield, would value the property at approx 5.7m!

[cockneyrebel] 02/9/2010 22:14

Agree - if you looked at the £40K rent as a 7% yield then you're getting £2.8m.

A forward eps of 9 looks too low imo interceptor. I'd expect 9p this year based on H1. If they can't do 10p-11p+ for the coming year (fwd PE 5 to 6) I'd be amazed, what with the demand for electronics products and services at the moment and especially with their exposure to China imo.

CR

[interceptor2] 02/9/2010 21:57

Also I dont think they will have any problems selling the property for significantly above book value, from the branded plastics division. See an extract below from todays results.

"Flambeau have entered a lease at an annual rent of GBP0.40m expiring between December 2010 and June 2011, and the property has attracted significant interest from potential buyers."

[interceptor2] 02/9/2010 21:51

Maybe some investors were looking for an exceeding expectations outlook today for the full year. But I'm very happy with an inline to market forecast, when you consider it is just the electronics sector now.

I would expect to see an exceeding expectations statement at the next trading update. They have made 3.9p in this H1, they made 4.0p in the last H2, so 5.0p plus for the next half looks attainable. For 9.0p EPS to the full year.

Brewin Dolphin normally update on the day of the results or the day after. Should be an interesting read.

I know the historic 5 year EPS has been average, I should know having had these on my watch list for much of that time before finally buying shares in July.

But SDM have a much different feel to them now.

Sold off plastic division, to concentrate on core electronic division.
Cash rich now.
Paying down pension deficit.
Operate in hot sector, with significant foothold in China.
Looking for targeted acquisition.
Organic growth looks very promising, even without acquisitions.

A forward EPS of 9 would give a per of 6.6, which isn't too shabby. imo.

As you can see I'm just a tad bullish here.

Good luck

ic2...........

[daz] 02/9/2010 20:09

It does like the shares are suffering from an overhang. The 80,000 trade last week may still need to be mopped up and there maybe more to come.

The electronics sector is hot at the moment, so if the companies broker does their job, you would think that some small cap fund will mop them up, it shouldn't need too much arm twisting.

[cockneyrebel] 02/9/2010 18:45

The 'wow' factor I was purveying was this UK-I:

Revenues (continuing operations) up 37% to GBP23.13m (2009 H1: GBP16.83m)
Profit before tax (continuing operations) up 120% to GBP1.45m (2009 H1:

These are set to do record sales, record profits and record earnings this year too. Divi raised nearly 20%

I think that's pretty 'wow' considering they'll do that with the plastics division gone imo.

CR

[cockneyrebel] 02/9/2010 18:20

H2 09 eps was 4p because earnings are usually weighted to H2. You can expect nearly 2p on the 4p of last year's H2 imo.

So the near 3.9p in H1 and more like 6p likely in H2.

Cash has nearly doubled too from £2.6m to £4.6m at the end of the period and they have the plastics business building to sell well in excess of £2m.

£1.8m net cash - they'd have £4m net cash with that sold - the mkt cap is just £18m.

You've listed that line of eps but the last two years was through a recession - and it held up even through that so it's a bit disingenuous to regard that run of earnings as anything other than exceptional imo - especially when larger co's saw earnings fall in the recession by some way.

CR

[cockneyrebel] 02/9/2010 15:21

growth is flying UK-I. The growth is even stronger in the electronics div than the plastic div they sold (which was 15% of profits.

3.9p eps in H1 - they only need a flat H2 to meet forecasts 0 they are growing earnings at about 2p per half year.

There's not much this cheap about and paying 4% and in a sector that's seeing high demand imo.

CR

[ukinvestor220] 02/9/2010 15:15

The trouble is the outlook is dependent on what deals they do to consolidate.
The current earnings are as forecast, albeit without the plastics division, so the balance of that is that thy have some extra cash to make up for it. But they could blow that on the wrong acquisition. So it is not quantifiable and hence risky. Historic growth has been fairly flat although they broadly maintained earnings through the recession.

[stegrego] 02/9/2010 12:38

Bit of a damp squib here so far.

Market too interested in chasing oilers with no oil and miners with no mines.....

[cockneyrebel] 02/9/2010 09:40

If you look at the plastics division that they sold,the operating profit fell.

So basically the rest of the business is doing even better!

Saying they'll meet forecasts even with the plastics division gone is a gross understatement imo. Profuit in the continuing business is rocketing.


Interview here this am with Dow Jones:

LONDON (Dow Jones)--U.K. electronics manufacturer Stadium Group PLC (SDM.LN) is hoping to make targeted acquisitions, Chief Executive Nigel Rogers said Thursday, adding that as a major independent player it can use its strengthened balance sheet to lead consolidation in the fragmented market.
"In the U.K. and in Asia we can look to leverage our design skills and balance sheet to look at acquisitions and joint ventures," he said, adding that acquisitions on "realistic multiples" are likely available in the market.
Any buys could be comfortably carried out using the firm's GBP7.6 million of headroom on its existing bank facilities or net cash of GBP1.8 million, Rogers said, but didn't rule out using some equity as part of an acquisition, particularly if Stadium wanted to keep management on board.
Rogers added that China would be the company's first choice of market to buy in within Asia due to the opportunities available. The firm also already has a management and manufacturing presence in the country.
"If you look at some of our target markets in Europe they're talking about developments like high-speed rail but in China it is happening right now," Rogers said. "This would open up a new market and new opportunities."

[interceptor2] 02/9/2010 08:15

Topped up first chance @ 64p.

Check the revenue growth below stunning!

Stadium Electronics
UK = + 29%
Asia = + 43%

Stadium Power
UK = + 19%
Asia = + 100%

[cockneyrebel] 02/9/2010 08:14

Not many co's doubling profits :-)

CR

[daz] 02/9/2010 08:07

Lots of positive stuff in the divisional performance.

Stadium electronics
'...Success has also been evident in the active targeting of new customers in major growth sectors. In each of our key target markets - greentech, security, transport, medical and LED - we have achieved at least one significant new business win during the first half of the year. The pipeline of future opportunities is similarly encouraging.'

'...The site was also approved by a major Continental European automotive OEM for the production of in-car data communication equipment. This will enter production in 2011.

Stadium power
'...Product development activity is focused on new ranges of green power supplies designed to meet or exceed energy efficiency requirements, which are increasingly governed by global legislation. This is expected to be one of the significant drivers of revenues in the medium term.

Momentum gained in the first six months is expected to continue as increasing enquiry levels and engineering development indicates growing demand and potential for further expansion.'

[cockneyrebel] 02/9/2010 08:06

breakout being tested here - expecting a good 10-15% when it goes through imo.

CR

[interceptor2] 02/9/2010 07:56

Agree results were very strong, and confident SDM will beat forecast by some margin.

Great to see operating margins increase to 7.5% (5.1%)

Net cash increased to £1.83m, after supporting working capital for revenue increase in H1, so should see healthy increase in H2.

Regards ic2..........

[philjeans] 02/9/2010 07:42

Great figures; shares look set for a further boost.

Consistent performer.

[cockneyrebel] 02/9/2010 07:38

trading at a big discount to others in the sector imo.

CR

[cockneyrebel] 02/9/2010 07:37

Cracking results imo.

They are going to do over 9p eps even without the plastics div imo, plastics made up beggar all of H1 eps. Just a flat H2 would see 8p eps but with the current growth rate they'll do better than 9p imo.

10-11p eps going fwd imo.

20% divi hike too = 4% more ore less.

I'd say a fwd PE of below 6 here and some very strong growth.

CR

[yoyoy] 02/9/2010 07:20

Well I think this puts them ahead of Redmayne Bentlys forecast of 8.0p eps for 2010 and a divi of 2.50p

"Financial Highlights

� Revenues (continuing operations) up 37% to GBP23.13m (2009 H1: GBP16.83m)
� Profit before tax (continuing operations) up 120% to GBP1.45m (2009 H1:
GBP0.66m)
� Strong net cash flow from operations at GBP1.68m (2009 H1: GBP1.45m)
� Earnings per share 3.9 pence (2009 H1: 2.4 pence)
� Interim dividend 0.95 pence per share (2009 H1: 0.80 pence per share)"

[cockneyrebel] 01/9/2010 17:41

Cheers Aleman - a very competent board here imo and as sad as the death is I'm sure that out of adversity will put the situation to theier advantage, if that can possibly be the right phrase in this dreadful event.

CR

[yoyoy] 01/9/2010 16:58

thanks Aleman

First time I've seen anything like that.

Excellent move by the Board