Zirax Share Discussion Threads

[stegrego] 14/12/2007 18:51

Not in here, but been watching for a good 9 mths or so.

If i was in, id be selling as quick as i could before the moscow news became more common knowledge.

It may work out ok for Zirax, but it looks like a long drawn out messy affair about to kick off and that rarely ends in the share price being higher.

Good luck to holders, but wont be joining you for the time being.

[azalea] 14/12/2007 17:54

Fair comment. Perhaps if suspicions of very dodgy de-icing material is proven,it could in the end work in ZRX favour. Anyway, the fat lady has yet to sing, so it ain't all over yet.

[whonosewhy] 14/12/2007 17:41

I know Azalea but according to their figures it was a $12m deal for the year last time. They were confident they would get it again this time and to be honest if they have not got it the communication is not great and there is a $12m hole in the expected income for the year.

In my earlier post I have said that the company has clearly worked more of the Oil Industry side of the business deliberately to make sure less reliance on the seasonal de-icing products.

The new plant is now open in Italy so they have more of the stuff to sell to meet the demand.

[koolio] 14/12/2007 17:35

Azalea. You are right but it is "De icing" on the cake...

[azalea] 14/12/2007 16:03

Moscow Council is not the be all and end all for ZRX.

[whonosewhy] 14/12/2007 11:01

Reply back quickly -

Dear XXX,

Thank you for your enquiry.

Unfortunately, the situation has not changed from a couple of weeks ago, as we must disclose any information to the market first. However, I can re-affirm that Zirax believes it has a strong working relationship with Moscow City Council, and that we are the only supplier with the quantity and quality of high performance de-icing products to meet their requirements.

Regards,

David Roach

Cardew Group

Financial & Corporate Communications

12 Suffolk Street

London

SW1Y 4HG

T: [phone]

F: [phone]

M: [phone]

E: [e-mail]

W: www.cardewgroup.com


In fairness this reply probably says it all. Zirax appear to be stating they believe they are the only people for the job. Reading the article indicates an alleged accusation that the people who seem to have been given the contract have in some used Zirax product and passed it off as their own.

Presumably Zirax still believe that this may lead to the tender being altered although the article also suggests deliveries have started so it may be a little too late. We are after all in December now and the weather f orecast in Moscow is snowy and icy.

[carlos panda] 14/12/2007 10:48

Interesting article although rather worrying.

I expect the short term result to be a pretty hard knock to the share price (especially given current market sentiment). Still, long term I remain optimistic.

[whonosewhy] 14/12/2007 09:55

Slight concern this morning - Found this story -



Seems to suggest that the contract has in fact been decided for Moscow De-Icing but no formal announcement from anyone.

It also possibly explains the delay which looks to be potentially heading for a battle over lots of things.

I have emailed Zirax directly to ask if they can comment. I will update further if I get a response.

[kamukak] 08/12/2007 11:35

Hi guys,, I am new to this board,,, I read about this company and its really a gem, but share price is not moving anywhere,, Is it because very few shares are in public hands? or there is some other reason for it?

Some one was telling me never buy a share in a company which has less then 40% shares in public hands.. does it make any sense? Please educate me... I am new to all this stuff. thanks

[whonosewhy] 07/12/2007 15:24

I had emailed the company separately and got a similar message. I think we will hear something before Christmas about the contract and we will be left to assume it has been held up by the election.

The fact that the current incumbents have swept back into power in the election should be good news.

Aside from that the interims suggest less reliance on the seasonal deicing and growth in the oilfield sector which seems likely to be kept busy.

[azalea] 30/11/2007 17:26

Perhaps MCC has bigger things on its mind right now - the election! Im' sure ZRX will put out an rns when it has something to report that might influence the share price one way, or. the other.

[masurenguy] 30/11/2007 17:09

Why can't they disclose the current position to the market via an RNS.

Either:
a: They announce a renewal of the contract
b: They announce an extension to the previous contract
c: They announce that a new contract has been awarded to someone else and calculate the impact of losing this contract to current year profits
d: They announce that there have been delays in awarding a new contract by MCC and clarify whether or not they are still supplying them with product on a non-contractual basis until a new contract is finally awarded to whoever by MCC.

Management credibility is important and they should formally clarify the current position vis a vis this important customer since winter is nearly here - or even more severely there when it comes to Moscow !

[azalea] 30/11/2007 17:08

I think one can draw a solid conclusion from the reply- in essence ZRX is the only game in town if the city council wants to keep the roads et al, from freezing up.

[carlos panda] 30/11/2007 16:33

Re: Moscow City Council contract:

E-mail to investor relations:

"I note that the Moscow City Council de-icing contract announced on 07/08/06 was due to expire in April 2007.

Given the significant size of the contract it has been surprising that there have been no further announcements regarding contract renewal (or loss) - albeit we are now some seven months beyond the contract expiry date.

Are you able to inform me whether any such announcement is planned? In the absence of this information one would have to assume the loss of the contract."

Reply:

"Unfortunately we cannot provide you with any information without disclosing it to the market first. However, Zirax believes it has a strong working relationship with Moscow City Council, and that it is the only supplier with the quantity and quality of high performance de-icing products to meet their requirements."

It may therefore be that the contract is still in place but perhaps on an extension basis rather than a renewed annual one... Any thoughts welcome.

[carlos panda] 29/11/2007 13:35

The Moscow CC contract announcement seems very late given that the previous contract expired in April 07. I have tried to contact investor relations but have not yet received a return call. Looks as though we have to assume that it was not renewed but given the scale of the contract I would have expected some news - be it good or bad.

[stegrego] 14/11/2007 19:07

Watching still here - really looking for them to get the Moscow contract before jumping in - although last year it was announced in August so seems very late this year?

Any ideas?

[koolio] 14/11/2007 09:44

Good news... Now I would like to see an announcement confirming the renewal of the Moscow city council contract. However this company seems to have a bright future in drilling polymers. In the oil industry you can not pump just anything down a well as any bacteria (that may be present in water) can cause premature failure of the reserve.

[azalea] 14/11/2007 08:32

Today's RNS shows ZRX to be fully on track to realise its potential. Its progress to date - now the second largest global supplier of Cac12 pellets will receive wider press recognition with further comment in the IC likely as a follow up on its earlier buy recc. Very much worth a DYOR look in!

[azalea] 10/10/2007 08:48

A very underrated company that is currently below many PI radar;. I have great expectations for its share price by FY results.

[masurenguy] 10/10/2007 08:24

Excellent progress at the half year interims. PTP trebled over last year and they also have more than £4m cash in the bank. De-icing chemical margins still well ahead of oilfield processing chemical margins and obtaining the renewal of the City of Moscow de-icing contract this autumn will be an important milestone. Based upon the house brokers projections for 2008 they are on a forward PE of 6 at the current share price

GCI recomends them as having 'speculative appeal' this morning:

ZRX
10/09/2007
Oilfield chemicals and de-icing specialist Zirax is scouting acquisitions after trebling interim pre-tax profits to £950,000. The AIM-quoted company, which operates from plants at Volgagrad in Russia and Rosignano in Italy, increased turnover 65 per cent to £6.6 million in the six months to June. Operating profits in both oilfield process chemicals and de-icing more than doubled at a time when demand has been outstripping supply.

Chief financial officer Fenlon Dunphy says Zirax is keen to widen its product range and extend its geographical reach, with targets in the Middle East and Africa. To achieve this, he says the company is 'actively looking' at both new organic developments and potential acquisitions. Zirax has £4.25 million cash. But, says Dunphy, the company would consider coming back to the stock market if the right acquisition opportunity came along.

With capacity being increased significantly, house broker Hanson Westhouse sees pre-tax profits rising by £350,000 to £2.3 million this year, with an acceleration to £4.3 million on the cards for 2008. At 14.75p, the shares have speculative appeal.

[azalea] 24/9/2007 09:20

I like the story - IC and the current trading report, I'm in for 20k.

[masurenguy] 10/9/2007 16:24

A 150,000 T trade sell @14.5p just went through. Probably explains why there was a cap on any share price increase after todays good interim results !

[liarspoker] 10/9/2007 13:48

One virus coming up thus there's no need to remove your address. ;o)

[stegrego] 10/9/2007 13:47

Ta Liars - unless you plan on sending me a virus ;)

[liarspoker] 10/9/2007 13:44

What's your Email address Stegrego ?