Tex Share Discussion Threads

[tuscan4] 26/6/2014 16:12

Have Tex sold their 40 tonne hammer ? If so this would add several hundred thousand to this years pre - tax profits,and further illustrate the low value of the offer. Another cynical move by the bidder to deprive Tex shareholders of their rightful returns. Apart from the financials , morally this bid deserves to fail.

[lasmo] 23/6/2014 18:45

Looks like Tex and Bidder have had their knuckles rapped by the takeover panel for not giving clear disclosure of all connected parties. I also wonder how the Directors of Tex can be seen as independent when they have to make a judgement with the chairman / major shareholder is sitting by their side.

[tuscan4] 16/6/2014 15:18

AGM statement is the usual smoke and mirrors. Tex is desperate to hide the fact that profites this year will be £2m plus. No questions allowed at today's AGM.Hiding behind takeover rules..Tex Board must realise that a significant and growing number of shareholders are aware that the offer is inadequate, and that this Scheme of Arrangement will be defeated. The next offer(the Subsequent offer) needs to raise the exit price or they will end up without 100% control which is the LAST thing that Burrows wants. Vote to reject the Scheme of Arrangement

[rburtn] 11/6/2014 11:58

Well, I've seen the document which is extremely light on trading prospects - none in fact, 'trading in line with management expectations', I'll bet. The only argument they use in favour is that it provides an exit.(they say this is why shareholders should accept) That's a pretty damned expensive exit at £1 for £1.44 of assets - and growing rapidly. This company increased it's NAV from 7.2m to 9.2m in 12 months and the bidders expect to take us out at a value of £6m! It's nothing like enough. Come on Guys, you must do a lot better than that!

[rburtn] 09/6/2014 14:47

I believe documents are being prepared for issue to shareholders, whether they leave us any the wiser is another matter.

[lasmo] 09/6/2014 13:28

My main gripe with the way this takeover is being handled is that the chairman & management involved have full visibility of the forecasts and future trading prospects. I believe that minority shareholders should be given access to a similar level of information so that we can make an informed decision. Until that happens I remain sceptical that it is in my best interests and as such will be voting against.

[tuscan4] 09/6/2014 09:29

So, the Investors Chronicle thinks the bid is at a "decent" premium to the share price.Really! The Tex share price has been held back by several factors. Firstly in 2013 Tex had to make an exceptional one-off charge of over £1.0m relating to a difficult Oman contract(largely not Tex's fault). Secondly since RDR at the beginning of last year, a steady stream of selling by inexperienced advisors has weighed on the illiquid market in the stock. Thirdly the group cut the dividend in March at the moment Oman was 90% provisioned,the balance sheet was improving with modest gearing and the 40tonne hammer was on hire at a very healthy margin. We can now surmise why the dividend was reduced. A petty act which no other Fully Listed company would have dreamed doing.Finally in the May IMS,when the hammer hire had been extended,possibly to the end of June, and would likely on its own produce profits in excess of the whole of the groups reported profits in 2013, what mention was made of this amazing success? Not ONE word. We now know why. Instead there were platitudes that the group was ahead of budget. Without knowing the budget this statement is unhelpful. The question of Corporate Disclosure and Governance needs to be raised. Should not the "Independent Directors"have seen fit to appraise the Shareholders that their Company was enjoying a substantial improvement in its fortunes? And also to explain why a 100p offer still reflected a "fair" offer. Did westhouse Securities who have been associated with Tex for a matter of weeks,understand the full extent of the groups underlying profits?If so could they explain why a group which could make £2.0m pre-tax this year(more if the hammer hire is extended,or is sold,or finds work in the US in the second half)was only worth £6.3m An exit P/E of 4 and an EBITDA multiple of 2.7.
Shareholders WAKE UP! This is UNFAIR. REJECT .

[tuscan4] 06/6/2014 18:34

Tex will produce Pre-tax profits of £2.0m this year EBITDA of £3.5m. 40 Tonne hammer is in Venezuela still earning significant profits and cash flow. Bid is opportunistic attempt to deprive shareholders of the profits bonanza now coming through. Reject. Without the bid stock will be well ahead of 120p when the Interims are announced

[bandari2] 04/6/2014 16:54

Apparently some analysts are pencilling in pre tax profits of £2 million, after write offs for current year.The reality is the group is trading far better, with considerable revenue being generated by the 40 ton hammer.Opposition to the bid is growing,more shareholders are waking up , and it looks as if 15% plus of the shares may be voting against, as things stand.

[lasmo] 02/6/2014 08:29

I'm hearing that they have a very good margin project in South America which will add significant profit to this year's figures.

[bandari2] 01/6/2014 16:11

Shareholders should reject this offer , the share price was reflecting a poor past year, and was beginning to rise in anticipation of a better year next year.
Most Tex shareholders have been invested for years and have been a pretty loyal bunch, they don't deserve to be treated in such a mean way.
I will definatly vote against.

[lasmo] 01/6/2014 15:52

Lets hope so! I encourage all shareholders to reject this offer until the full facts are known. The AGM is in few weeks time. What does the year so far look like? I suspect that the Chairman, who currently holds 31% knows a lot more than we do. If the results are good enough to return the dividend to 7 or 8p, the share price could easily return to £1.20 and beyond. The current offer I believe to be less than 3 times EBITDA, I think we should be demanding of least 5 to 6 ie a target price of at least £1.50 per share.

[briangeeee] 01/6/2014 10:36

If I've read it correctly, it's effectively the Chairman bidding for the company, to take it private, saving on listing costs and somehow on pension administration costs. Does seem a very mean bid, that should probably fail.

[lasmo] 31/5/2014 23:56

Agreed. This is a very low offer. I have just under 1% of the shares and will definitely be voting no. They need to do much better.

[rburtn] 31/5/2014 19:55

In the last report the Chairman said they'd suffered a 1m drop in sales, it was actually 600k, they also cut the dividend which some would say was unneccessary. I found this difficult to understand at the time - I now discover the Chairman is behind the MBO! Thoughts of fiduciary duty cross my mind.

[hastings] 30/5/2014 09:48

well done Aleman, you deserve a pint!

[sirhedgealot] 30/5/2014 08:44

Damn, I was watching this but the results must have slipped by me. Now this offer. Damn and damn again lol.

[aleman] 29/5/2014 18:02

Hello! 100p agreed bid announced! Anybody else here?

Seems very cheap to me. In fact, at about 2/3rdsd of NAV (no intangibles) and less than 3 times operating cashflow before working cap movements, I'd say it was derisory. I'll be voting against.

[aleman] 14/5/2014 11:25

Trading ahead of last year's Q1 but sustained enquiries not converting into orders as well.

[hastings] 07/5/2014 06:59

May be of interest to others taking a look.

[aleman] 19/3/2014 14:51

Manufacturing volume in Q3 was -0.6% and Q4 was +1.2%. so H2 was about +0.3%. No fireworks there, then. January was +2.2% but it was against a very weak comparison month 12 months ago. Numbers look to be on the mend but I don't trust government numbers, particularly ahead of an election. Given the profit warnings around from UK small cap manufacturers in Q4 (AIM had the most warnings since 2009) and weakening index of small and medium businesses in the in the US FNIB survey, I don't think there is anything at all odd about TXH numbers. I can find little evidence of underlying strengthening in the UK economy apart from government numbers which often get significantly revised later once political capital has been made from them. Some of the biggest bellwether companies like packaging company Macfarlane, which has 20000 UK customers, have only shown meagre improvements. I think the recovery is being exaggerated for obvious reasons.

(The exception is the housing sector where there is clear improvement in activity but that is only being achieved through mortgage lending up 30% in January - funnily enough spurred on by the government's help to buy scheme kicking in ahead of an election. What good is a debt-driven boom if it's actually just a debt-driven slight improvement with a tax-payer subsidy, and the sector with the greatest job growth is real estate?)

[pictureframe] 19/3/2014 13:29

A bit concerning - manufacturing is booming currently and these should be showing a lot more growth imo.

[aleman] 19/3/2014 10:55

Results out. EPS is down to 9.1p but cashflows still look strong compared to market cap which makes the slight cut in the dividend disappointing, although the yield is still over 5%. Good to see debt down by £478k despite capex exceeding depreciation by £353k. Still looks cheap at the current price to me. Net current assets below market cap is usually a buy indicator to value investors.

I rang in the minor error in the results. See if you can spot it. I doubt it will mean a replacement RNS as it is only a small value discrepancy and does not alter the main numbers people look for.

[knigel] 06/11/2013 15:21

Down 10% but no trades!