Tekmar Share Discussion Threads

[saltaire111] 30/10/2020 08:59

The only good news is that the twerp will have lost a lot too on his remaining share holding!

[jonwig] 30/10/2020 08:50

elsa - stock will be almost all finished mouldings due to delayed shipments. Unlikely to be obsolete.

[tomboyb] 30/10/2020 08:36

Emphasize a trade only for me -

So good luck -

[tomboyb] 30/10/2020 08:34

Took a few -

[elsa7878] 30/10/2020 08:33

Stock 2.5
Trade & other receivables 26.8
Cash 2.1
Trade & other payables 16.2
Other liabilities 1.4

Assuming stock is not obsolete and no bad debts. Leaves current assets - liabilities of £13.8m. £2.75m paid to Pipeshield owner leaves £11 million. Approx half market cap now. But is the co profitable?

[pugugly] 30/10/2020 08:33

Will Schroders now double down? Market cap fall now makes it an attractive takeover target (imo) as in a growth market. Or am I wearing rose tinted glasses.

[igoe104] 30/10/2020 08:26

What was the CEO excuse for leaving wants to spend more time with his family? I think we should have seen though that one....

[1tommyt] 30/10/2020 08:19

Don't think you can blame them for Covid impact. This is something everyone at GOW20 has reported. Year end change was already highlighted during last update to offset from the peak demand as business is usually seasonal towards offshore installations. I don't think this really tells us anything we didn't already expect other than new management is buying time to enact a restructure, that is also what was said back in March.

[igoe104] 30/10/2020 08:19

Yep, lessons to be learned for me here, never invest in a company where a CEO leaves, until the picture is clear. Poor decision on my behalf.

[davidblack] 30/10/2020 08:18

Deck clearing as the new management decide to reset timelines and state the “Blooming Obvious.”

This may have killed the momentum but once it settles this is going back to being a super buy but not today!

[pugugly] 30/10/2020 08:04

Bloodbath - Schroders taking a bath - They are usually guite good investors - Someone there must be feeling uncomfortable today - as am I.

[elsa7878] 30/10/2020 07:38

1tommyt3 Sep '20 - 07:55 -
Are you able to share what Berenberg said ?

thomshrike3 Sep '20 - 08:36 - 410 of 555
Very factual, giving more confidence to their FY estimates.

Not sure that comes out in the press release this morning.....

[elsa7878] 30/10/2020 07:30

Revenue of £15.5 million. FY forecast was £41.5m. Clearly not going to hit that. £35m looks more likely.
Nothing on profitability.

[pugugly] 30/10/2020 07:28

update out - Does not tell us very much (imo) but increased competition and contract delays - revenue and profits foggy due to covid - Changes of accounting dates - often a red flag (imo) but sounds as though problems uncovered - Could be read as a profit warning
"As a result of this change, the next five financial reporting events will be:


Notification of unaudited interim accounts for the six months to 30 September 2020, on 1 December 2020

·Notification of unaudited interim accounts for the six months to 31 March 2021, by 30 June 2021

Publication of audited accounts for the 18 months to 30 September 2021, on 31 January 2022
·

Notification of unaudited interim accounts for the six months 31 March 2022 by 30 June 2022


Publication of audited accounts for the 12 months to 30 September 2022 by 31 March 2023

However given price fall over last month risks may already have been baked into the share price.

[rambutan2] 29/10/2020 20:51

Depends on what size of position they'd like, or what say in the price etc etc etc. Since BGF bought in, as I suggested on this thread at the time, I thought a raise likely. Although I never imagined it would be down here.

[leedslad001] 29/10/2020 20:20

Do you think Schroder would be adding if a raise was imminent

[rambutan2] 29/10/2020 20:01

Thanks dangersimpson for your comments. To my mind it is clear there is some sort of background issue as the share price has been down too long now. And that is despite Schroders adding. An upcoming share raise makes sense. imho

[thomshrike] 29/10/2020 17:38

At their recent participation on a broker conference, new mgmt never indicated the possibility of a capital increase. Instead in fact the company mentioned that it continues to look at bolt-on acquisitions.
The WK build-up results primarily from the continuous delay of projects around the world because of the pandemic.
But there is also a clear trend of customers - Orsted, etc - to extend payment terms. There is a natural limit to this, as Tekmar's products are critical to projects and represent a small part of the total cost of the each project. But to some extent this may also be a reflection of the company's unwillingness to lower prices.

James's departure did not have to do with CF management. He left because he believed the company now needed a CEO that would have the experience and patience to re-organize the company, which is at this moment a clunky sum of 5 or 6 businesses, with plenty of room for margin improvement.

[leedslad001] 29/10/2020 17:19

See you in December then !

[jonwig] 29/10/2020 17:08

danger, #544, #547. Thanks for those!

[dangersimpson2] 29/10/2020 16:59

Why do you think net working capital would be higher in July than in October?

NWC seems to be consistently higher at the end of September than the end of March:


H1 H2 H1 H2£m Sep-18 Mar-19 Sep-19 Mar-20HY Revenue 7.1 21.0 17.1 23.8Stock 1.7 1.9 2.1 2.5Trade & other receivables 7.0 20.0 20.0 26.8Trade & other payables -2.8 -9.8 -8.4 -16.2Other non-current liab. -1.0 -0.8 -0.7 -1.4NWC 4.9 11.3 13.0 11.7NWC/Revenue 69% 54% 76% 49%



Why do you expect July to be the worst month for working capital? (genuine question)

I don't think they will need to raise if they pull back on the growth, however that may mean them not bidding for some contracts or losing some market share. None of which would be ideal, and I think that's why the founder CEO has gone.

I'd like to be invested here, but for the moment I have scared myself off by looking at the balance sheet. The potential for a market growing at 15% for a decade is an enticing one, but so far I see them too undercapitalised to take advantage. The growth is sucking in capital, which is why the ROCE is so low. I need to get comfortable that this will now reverse and they can actually generate shareholder value by investing capital that will generate a return above their cost of capital. To do this I need to see the latest figures and hear the new CEO's plan to generate growth that enhances shareholder value rather than destroys it. Since they are in a close period this will be December at the earliest, unless, of course, they do a capital raise before then which addresses theses issues.

[1tommyt] 29/10/2020 16:10

Ok I think we have same understanding. But I think it is unfair to take a creditor due in October (the m£1.25) and compare to cash in July when the debtor position is so high and I think safe for all reasons stated. Clearly working capital is a balancing act with such high sales growth up 50%.I highly doubt without more m&a they will need a raise. I really liked the m&a I think they added value that is currently unrealised, but at 75p doubt we will see much more...

[leedslad001] 29/10/2020 16:06

You forgot to mention if your invested here