Tp Share Discussion Threads

[septblues] 05/4/2017 14:54

Clearly revenue and margins did not quite meet expectations. In this class of business with a good order book that means efficiency improvements required in delivery. But obvioulsy on the right path with a 35% increase in revenues forecast this year which will flow through to the bottom line.

[eastbutwest80] 05/4/2017 08:20

PA, sorry for the delay. My concerns may be unfounded but it appears as though bringing in such a large contract over this type of period may limit potential pipline in the future from the perspective of new orders. I'm sure there is plenty of business out there for the maritime business but this seems like it is the golden chalice so my concern is that showing such a large order book for 2017 can only mean a drop in sales turnover next year? How proactive is the maritime business? as generally when a product is so specialist, customers come to you and not the other way round so i would be interested to know how proactive they are being in hunting for new business or using their technology for other markets?

[pavey ark] 04/4/2017 09:55

ebw80
Thanks for the local knowledge, the increase in orders at the engineering unit was put down to the new management team, contacts etc.
The new and expensive machine tools that were recently installed should boost things further as they would not have gone for them without the orders or very realistic chance of orders.
I agree about the D&T unit and although I was very pleased with the continued and considerable reduction in losses I would have liked some sort of idea as to where we are now.
The word was that this unit would take on work from the other units but no details.
Can you expand a bit about your concerns for Maritime ?

[eastbutwest80] 04/4/2017 09:23

This company looks like it cound make some serious money this year across all 4 divisions

My only concern is about maritime continuing with the work they are doing vs trying to win new business as it appears that they are dragging orders forward?

I agree with PA; I drove past the engineering division 2 weeks ago and it looked like you couldnt fit anymore work in! there was even stuff outside. Something big looks like it is happening there. Does anybody have any knowledge on what has been changed in H2 to show such an increase? New market?

Also wondering what they are currently working on in D&T? Are these now alligned with the rest of the divisions.

Interested to see what ALS and FSS do this year too.

[eastbutwest80] 04/4/2017 09:19

This company looks like it cound make some serious money this year across all 4 divisions

My only concern is about maritime continuing with the work they are doing vs trying to win new business as it appears that they are dragging orders forward?

I agree with PA; I drove past the engineering division 2 weeks ago and it looked like you couldnt fit anymore work in! there was even stuff outside. Something big looks like it is happening there. Does anybody have any knowledge on what has been changed in H2 to show such an increase? New market?

Also wondering what they are currently working on in D&T? Are these now alligned with the rest of the divisions.

Interested to see what ALS and FSS do this year too...

[pavey ark] 04/4/2017 09:17

By my calculations there is c. £5m in the pot for further acquisitions which would leave working capital.
Given their record with SSM and the MS additions and appropriate cost synergies this outlay could generate £1m a year in additional profits.
With similar companies on a PE of 12 or more then there is obvious scope for this to be reflected in the share price.
It must be remembered though that 12 months ago the share price was under 3p so we have come a long way.
Given the following points:
1 strong and very competent management
2 strong cash position
3 large and growing order book
4 world leading technology ( TP Maritime)
5 year on year (at least 5years)substantial improvements in the business and it's outlook

I am very confident going forward and would certainly put this down as a low risk investment with considerable upside potential.

[cfro] 04/4/2017 08:32

Very pleased with these results. Very detailed report with an extremely upbeat tone.

Net cash over £9m and intimation of further acquisitions.

[pavey ark] 04/4/2017 08:18

Always a lot to take in with full year results but the main points for me were:-

1. expected earnings from acquisitions in MS of £700k/ year
2. Losses fall yet again in D&T ( the monkey is now off our back !!)
3. As usual Maritime is going well but this was an excellent performance.
4. Engineering made a considerable loss but due to a very bad H1.
"Most notably, the Engineering business improved its order intake in the second half of the year, to close at circa three times the 2015 closing order book value."

I have said many times that Maritime is the star but the other three units could make a very big impact and this now looks to be the case.
I can see a £1.5m turnround in engineering and an increase of at least £700k in the profit from MS.
With the MoD contracts and others Maritime will continue to grow.
Losses at D&T should continue to fall.
Exceptional items down to £200k.
I expect an EBITDA £3m to £4m this year and this is without the input of further acquisitions.

[interceptor2] 04/4/2017 08:03

Strong set of results, and seems sentiments expressed by directors are pretty upbeat.

Pleased to see a strong advance with reported EBITDA numbers, but also noticed that they were profitable during H2 on a non adjusted basis. A quick calculation would seem to show a £0.513m PBT.

[18bt] 04/4/2017 07:22

Positive EBITDA, good cash conversion and a very positive statement. Feels like another small step forward as the business moves further away from its legacy and looks sustainable.

[pavey ark] 03/4/2017 17:56

Larry Laffer, if you read the RNS again you will see that TPG bought two companies ALS had assets of £0.8m and FSS had assets of £0.1m

[timojelly] 03/4/2017 10:24

Surprised by lack of action.

[azalea] 03/4/2017 10:23

The combination of money rolling in with further contracts in the offing, there is no reason why the share price should not make serious upward progress.

[interceptor2] 03/4/2017 08:56

Thanks Pavey Ark, you are right I was looking at the other contract that we still are awaiting for.

I should have picked up from interim statement mentioning the £150m pipeline with £50m from MOD.

[pavey ark] 03/4/2017 08:49

interceptor2,


You may have looked at the other contract which is due for confirmation regarding direct equipment supplies ie complete , new and replacement, purification units.
Today's contract was a support and maintenance type contract for existing units.
Both a very nice contract and I feel confident you will gain from here.
More details of both contracts should come with results.

LL I'm just heading out for the high fells today but will have a look on my return.
( For anyone who knows the area Gray crag round High Street and back to Hartsop.)

[cfro] 03/4/2017 08:39

Also pleased to see the contract news.

[interceptor2] 03/4/2017 08:24

Agree that it is good practice to announce material contracts as soon as possible rather than hold the news back.

So pleased to see this contract confirmed which strengthens their recurring revenue, there was a second notification on 5th August 2016 to announce the start of negotiations for £22.6m over 8 years. So the actual contract announced today for £22.5m over 7 years with additional parts to be added on seems like a very good deal.

Surprised I could add this morning paying less than a 3% premium. :o)

[larry laffer] 03/4/2017 08:20

anybody have an opinion on why the gross value of ALS assets reduced by £0.7m over 3 months. A reduction of 87.5%.

from a previous RNS

"As at 30 September 2016, ALS had gross assets of £0.8 million. FSS generated revenues of approximately £0.2 million and was approximately breakeven in the year ended 31 December 2016. As at 31 December 2016, FSS had gross assets of approximately £0.1 million........"

Whilst writing off assets over time isn't a problem, getting rid of the company Roller before selling the company is odd.

[glennborthwick] 03/4/2017 08:20

I have some links at bae in Dorset who suggest further acquisitions are in the pipeline no idea what or how much.

[pavey ark] 03/4/2017 08:10

Another positive for me is that they could have held this news and put it out on results day.
This contract may have been known about but it is still very good news and I've seen companies releasing this sort of thing at the same time as less than wonderful results, TPG hasn't done that.

[pavey ark] 03/4/2017 07:48

Hard to put a figure on but certainly a substantial contract that gives the company great visibility when it comes to maximising returns as it can optimize personel usage.
£22m plus inflation plus spares among other things.
Over £3m a year and rising but most importantly dependable and predictable.
The original notification did mention £27.6m but that was for 8 years and it looks like this contract has a base requirement/ commitment of £22m with bits added in as they go along which seems quite sensible to me.
I don't really see how anyone could enter into a rigid, binding contract over 8 years with obvious variables and unknowns.
The company has said £22m "at least".

Remember: our equipment is CRITICAL.

[tiltonboy] 03/4/2017 07:33

Yazz, hopefully it is!