Surface Transforms Share Discussion Threads

[trickydicky1] 23/11/2023 16:43

I’d be curious to hear from anyone who has built a £100m++ business from very little. In my experience, it takes time and a lot goes wrong along the way.

The apportionment of blame is, in my experience, a peculiarly British past-time.

With very limited financial resources and even fewer long-term institutional supporters, they’ve created a fascinating creature.

The Board has been changed beyond recognition over the past five years, and some serious engineers with experience have looked over this in a lot of depth over the past 12 months.

Doubtless there will be more changes in 2024, but the possibility of positive transformational change is non-zero.

It remains a speculation, as Tesla was in 2018. Please do not invest if it’s possible failure is likely to significantly impact on your physical or mental health.

[swiss paul] 23/11/2023 09:56

Might be using an Elon type of management - break it and make it better. 😀

[supernumerary] 23/11/2023 00:32

The presentation was dismal. In my view they don't think they've done anything wrong - 'events, dear boy, events' - just the innocent victims of unpredictable circumstances. You can sympathise with their position - how on earth could 2 senior engineering executives with decades of experience between them have predicted that machines might break? And then, on top of that, to foresee that if they were unique components of a production line, when they stopped the line would stop. Who'd a thunk it?

They didn't even accept responsibility and offer a Boris apology - you know, the one that goes, 'so sorry for how this turned out' as opposed to 'so sorry I did (or didn't) do what I should have done' - nothing. They just don't get it - they're out of their depth and still don't recognise it.

Unfortunately, incompetence propagates - they've built an organisation in which they feel comfortable, so, as long as everything goes swimmingly they'll be OK. Of course should there be any 'unforeseeable' problems - not very likely that, is it? - then what stops all this happening again?

On the whole, I think I'm in quite deep enough already; good luck to those who feel otherwise.

[bones] 22/11/2023 20:00

Swiss Paul
It should appear on the Hardman website in the next few days, if the past is a guide.

[swiss paul] 22/11/2023 19:27

IS there a recording of today anywhere?

[bones] 22/11/2023 18:19

Thanks pinkfoot. That type of board shake up sounds just the tonic.

[pinkfoot2] 22/11/2023 18:09

I didn’t attend the meeting as I heard it all in the pre placing meetings-and I put my views on here.

Nothing has changed since-I’m very bullish.I think the chairman will not stand for re election and I would welcome that approach.I want the company to be boring-just execute with no drama, and get on with the delivery.

We are well funded, the board have had the fright of their lives, but the new FD and COO are the immediate future.Personally, I would move Kevin to a technical sales director role(I’ve done it before in another business) and bring in a world class CEO who has the CV to execute the ramp up.

I’m taking up all my allocation in the Open Offer and taken a big line in the bigger slug

[bones] 22/11/2023 16:46

Thanks for the positive views, cheese. I will view the recording when it comes out.

Thanks FTM for your comments. I agree the 5 week “turnaround221; in estimates was a major foul up. As I’ve stated before, I think a lot had to do with timing of interims coming before the CFO/COO combo had inserted their feet below their desktops.

As for share price, I believe it will hover around the placing price until the placing and open offer is done, dusted and voted for.

[fevertreeman] 22/11/2023 16:01

Bones all fair points. My firmly held view on management has changed over the last 22 months from being an enthusiastic supporter to having to seriously revise my view of Bundred & Johnson (and Cunningham), as the disappointments piled up. Frankly, it's hard to overcome the fact that the Board signed off the Sept Interims & only 5 weeks later we have an emergency cash raise etc. Worth reminding ourselves of what the Company was telling the markets prior to November 3rd bombshell

Pre-close Statement & OPs Update 31 JULY

Outlook

THE REVENUE EXPECTATIONS FOR 2023 AND 204 ARE UNCHANGED. The production problems of the last six months have inevitably had cost and cash implications. However, cash has been managed by prudent cash management, the use of some contingencies in the original plan and the phasing of capital expenditure for the next phase of capacity expansion. Reflecting the Board's expectation of continuing operational performance, gross cash at 31 December 2023 is now expected to be no worse than £1m lower than previous estimates.
THE BOARD STILL EXPECTS THE COMPANY TO BE PROFITABLE IN THE SECOND HALF OF 2023.

INTERIMS SEPTEMBER 27TH
OUTLOOK

The steady growth in production seen throughout 2023 is expected to continue. Whilst H1-2023 has been operationally challenging the Company has delivered considerable strategic progress. We have engineered a solution to our technical problems and brought in additional furnace capacity designed to our know-how. Productivity efficiencies and capacity improvements are expected to continue through 2023, A TARGET BREAK-EVEN IN THE SECOND HALF OF THE YEAR, WITH PROFITABILITY IN Q4.

[bones] 22/11/2023 15:37

Due to other commitments, I was only able to catch the first few minutes of the presentation live. There will be a recording soon I expect on Hardman’s site.

I will be interested in pinkfoot’s take here as well. Confirmation bias plays a big part in shareholder views and I am not surprised at the tone of fevertreeman’s report as it’s consistent with his firmly held view about the management. I would also like the alternative view of a more optimistic viewer and pinkfoot fits that bill.

I do agree with FTM though that these presentations need a professional polish. The zoom broadcasts are worse than old VHS tapes in both sound and vision and it cannot be too much to ask to prerecord the main presentation to a high standard on digital 4K and then switch to a live Q&A afterwards even if it is back to black and white TV for those.

I also agree that recognition of the pain caused to shareholders by the poor messaging should at the very least be properly acknowledged. I don’t think grovelling is necessary though as we are adults investing in a high risk zone and bumps and bruises are par for this course.

The past is done. I’m staying for the hopefully smoother ramp up in 2024 onward.

[amanitaangelicus] 22/11/2023 15:25

Fevertree. I suspect some customers have threatened them with lower business levels, withdrawals. They.re not stupid. 2024 is about consolidation, delivering what they should.ve done from Day 1. Until there is visibility that problems are sorted, forget it, everyone has been spooked. Pathetic presentation skills - charisma of Michael Gove x Rhys Mogg. Dull as. Wake me up before you go gal ...

[bdaonion] 22/11/2023 15:13

Thanks for taking the time to write up your impressions. I did wonder what was the point of this presentation and unfortunately you confirmed my skepticism. It certainly hasn't helped the share price.

[amanitaangelicus] 22/11/2023 13:01

My stalker, Kenny, is amongst us. He limps around after me like a loving puppy. Can we welcome him with a big cuddle.Ps presentation - Mr Dead. Ooph.

[emeraldzebra] 22/11/2023 13:01

Quemaster - a belated 'Thank you very much' All clear and much appreciated. E

[pinkfoot2] 22/11/2023 12:27

I don’t want Kevin to be Robbie Williams, just do his job

[toffeeman] 22/11/2023 12:06

So who thinks this is going to drop below the placing price?

[mr macgregor] 22/11/2023 11:41

Hooray. Kevin has left the building. Video production difficulties. Hope they’re terminal.

[mr macgregor] 22/11/2023 11:25

Just a nasal drone. I’ve submitted my question. How come Mike Bassett’s Dad is still chairman?

[fft] 22/11/2023 11:19

He needs to talk louder or put the microphone closer to his mouth. The CFO is far better.