Tex Share Discussion Threads

[knowing] 27/4/2018 12:59

Thanks for the clarification Aleman

[aleman] 27/4/2018 07:43

They did not borrow to pay the dividend. They borrowed to fund an increase in fixed assets of £700k, an increase in receivables of £800k and £268k of relocation costs (plus a bit of interest on the increased £1m debt). The balance sheet is actually stronger. Now add relocation costs (and extra interest) back onto profit and loss and see that this year's results were actually stronger than last year's and a similar profit result in future should see a dividend increase if we get more normal working capital movements.

We just need to be wary that sometimes receivables rise because a customer is late paying. If that were the case here, the rise would be material to the figures and the directors would be failing in their responsibilities if they failed to declare the problem it so I doubt it is the case.

As I posted earlier, the operating cashflow trend improved in H2 and looks strong. The figure for the full year looks more than enough to cover the company's likely needs and still leave some to strengthen the balance sheet further and/or increase the dividend.

[coolen] 26/4/2018 21:51

Good yield until you look at the cash flow statement which shows we (our company) borrowed an extra £1m to pay, amongst other things, the £540,000 dividend.

I accept the above is common practice, but with the new "dividend tax" does it make sense for us to both borrow money and lower (our) nav -merely in order to create a personal tax charge?

[knowing] 26/4/2018 16:17

7.7% yield trading at a 7M M/C on a profitable 41M T/O. Too good to be true.

[battlebus2] 17/4/2018 14:17

Yes very pleased with NAV up to 168 and a 7% dividend and a much better outlook for 2018. Surely a buy.

[value hound] 17/4/2018 14:03

Excellent results IMO, and very undervalued.

[aleman] 17/4/2018 12:50

Pretty decent results. We saw H1 was down a bit on the previous year so would hope for some improvement in H2. H2 EPS were still down a bit but up slightly on H1. Operating cashflow was down in H1 from last year but H2 picked up to be nearly level. I'd normally give that more weight than EPS so I'd hope the underlying trend is slightly improving. Orders strong in some subsidiaries and waiting in others sounds no worse than what we've had and could be positive. A slightly stronger balance sheet and maintained 8.5p dividend makes the shares look very good value at the current 108p. The NAV of 168p includes no goodwill/intangibles. I'd be tempted to have a few more if the market was a bit more liquid but I think that is a way off so I'll just have to sit on what I've got and enjoy the income.

[charo] 16/4/2018 11:13

accounts later than last year any news whenprelims.

[value hound] 10/4/2018 06:48

Agree; just keep doing what you do TXH.

Also; Burrows' personal holding is piddling.

[battlebus2] 09/4/2018 22:59

Dividend is worth holding for imv.

[charo] 09/4/2018 22:17

Burrows should just pay up say 120p and take out.the rest is bull.

[battlebus2] 15/8/2017 20:38

I think the dividend is safe here and like you say the valuation is modest so a LTH IMV.

[aleman] 15/8/2017 20:16

No comments on interim results? I was out. EPS are down a bit but operating cashflow is usually a better indicator and that was only marginally down. Some significant capex and the increase in working capital increased the overdraft and pushed up interest. This could easily reverse in H2, although always beware rising receivables in an economic slowdown can't always be recovered 100% in some sectors. The balance sheet strengthened slightly again, leaving the market cap at a rough 15% discount to book value still - with no intangibles. The shares still look cheap at less than 4 times likely operating cashflow but a similar order book and a cautious board of directors suggest that that multiple does not look like expanding much any time soon, although there did not look to be any reason to sell either, as H2 looks likely to be a bit better, at least on the cashflow front. This means the dividend looks safe so a 6.3% yield ought to be supportive at this level - but this is a UK smallcap and they don't always tow the line.

[aleman] 20/6/2017 16:22

We're getting closer to that £10m valuation where some small cap funds get interested. It might just be a temporary rise this week, though. It's ex-dividend on Thursday.

[aleman] 12/6/2017 13:16

I've just been looking at the strong balance sheet and it looks quite similar to just before the special dividend at the end of 2015. It's actually a bit stronger, although with a small overdraft versus some cash back then. The seasonal swing in working capital is actually likely to eliminate the overdraft for the interims and another 6 months of profit should make the balance sheet stronger still. I think there is a possibility we could see another special dividend at the end of this year if the directors are still thinking along similar lines. Granted, the ordinary dividend is higher, so maybe a special would be a bit smaller, say 10p. There is the possibility that they might be thinking of an acquisition, though. There are always other uses of cash. I'm just saying, the next balance sheet looks set to be similar to then even though 28.5p of dividends will have been paid out between end of 2015 and end of 2017. It's a very impressive performance. What price would these be if they had broker coverage?

In the process of rereading the report and accounts, I think the strategic report that we did not get in the preliminaries sounds more optimistic than the Chairman's report. Note the spike in enquiries for air traffic control rooms. (I suppose a spike in orders might tie up some capital and delay any special dividend until after completions but I'd be very happy with that.)

[battlebus2] 19/5/2017 12:35

Yes and still cheap as chips

[aleman] 19/5/2017 12:32

Perky of late.

[battlebus2] 11/4/2017 10:16

Totally agree, NAV 155p and profits and dividend up, happy to hold.

[aleman] 11/4/2017 09:04

Slightly disappointing results in terms of H2 profit but it looks like Brexit issues got in the way a bit. Hard to say where that goes. The good news is the balance sheet remains strong and the final dividend goes to 6p. I think the dividend will be indicative of what is expected. No need to raise 20%+ if there is anything to worry about. Still cheap and still well worth holding for the fat yield and strong balance sheet that could fund further small acquisitions.

Now back to sleep.

[aleman] 27/3/2017 13:47

Results due soon. Anyone found the date anywhere?

[battlebus2] 06/1/2017 16:12

Ticking higher 130 to buy

[aleman] 03/1/2017 12:36

UK manufacturing PMI hit a 30-month high as dometic and export demand both increased.

[charo] 10/11/2016 09:49

this is a private company masquerading as a public one,no independent directors by any definition.

[battlebus2] 28/10/2016 13:20

Nice move up at 1pm.

[aleman] 11/10/2016 10:41

Slowly rising volume seen here (from nothing at the end of 2010):


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