Zirax Share Discussion Threads

[tumshie11] 04/2/2008 13:29

Funny you should say that Whonosewhy but I sent a tongue-in-cheek email to Zirax yesterday saying that I hope they have despatched a salesman with CaCl2 samples to China and also that there will be a lot of drilling going on in Algeria soon and they should nip over to Algiers and have a chat with Sonatrach.

[azalea] 04/2/2008 08:42

Agreed, but once PI catch on (as they appear to be doing this morning) and read up on its profit profile, the share price will get into gallop mode as it nears FY results in April.

[2magpies] 04/2/2008 08:38

Does anyone know what RHPS say (in essence)?

I have believed that this share should be doing far better than it has.

[azalea] 04/2/2008 08:21

If ZRX can get a foothold in China its prospects will be virtually unlimited.

[whonosewhy] 03/2/2008 22:59

Oh no thailand that is it for sure !

I keep reading about really bad winters everywhere and the amount of oil being pumped out of the ground and thinking about Zirax sad I know !

[azalea] 01/2/2008 22:20

Better late than never!

[thailand] 01/2/2008 20:41

and just to absolutely guarantee this share's implosion Red Hot Penny Shares has also tipped it in tomorrow's issue.

[whonosewhy] 25/1/2008 16:13

Oh no now we're all doomed if its in IC !

[azalea] 25/1/2008 15:29

Today, the IC reaffirms its 'buy' recc saying the Austrian acquisition is a good move - providing a footprint in the EU from which to expand its sales.

[whonosewhy] 21/1/2008 17:59

Google translation of Solith Anlagenbau website news about Production Plant -

12.10.06
Opening of the new production plant opening of the new production plant

After 2 years of project development, and 3-month construction phase was at 12.10. The plant solemnly into operation. Customers, partners and the press had a picture of the single calcium chloride brine production facility in Austria. The mayor of Ebensee, Mr Herwart Loidl gave the opening speech, followed by various units in the construction and development phase illuminated. After the factory tour went to dinner at the Wild Mitterecker-saloon, where the day was a nice fade. After the factory tour went to dinner at the Wild Mitterecker-saloon, where the day was a nice fade.
Hr. Hr. Gangl, Mayor of Raaba and the metallurgical sector "Gangl, Mayor of Raaba and the metallurgical sector"

Not sure of some of that translation and it seems everyone had a nice day but for me the key points are -

Newly built further production facility opened in Oct 06. Possibly the reason for the debt - i.e. Build cost

Also might explain lack of profit on the books, this company could have only just got to producing properly in Oct 06.

My favourite bit is "had a picture of the single calcium chloride brine production facility in Austria."

Zirax have just taken over the only real competition they should have in Austria. This plant opened in Oct 06 was the Single (only) plant of its kind in Austria.

Assuming they own the plant then Zirax have also got themselves a whole load of Plant and machinery into the deal too.

I remain positive here.

[stegrego] 21/1/2008 17:51

Not snap, im a minute in front of you.

Therefore YOU COPYCAT :)

[masurenguy] 21/1/2008 17:46

LOL - snap Steg !

[masurenguy] 21/1/2008 17:46

MYOPIA = SHORTSIGHTEDNESS

Your ID says it all !

[stegrego] 21/1/2008 17:45

Myopia - i think you are being a little short-sighted... :)

[myopia] 21/1/2008 17:40

you might all be right but i still think it looks like an expensive way to get in the market in Austria. They're buying a loss-making company with negative assets and 1m of debt, for 200k and an eventual probable 3.7m although they don't mention what level of profits the acquisition will have to make before they pay that. Just think myself it would have been wiser and cheaper to set up something simple there of their own and supply customers from their new Italian facility - I thought that was the whole point of adding capacity in Italy in the first place but now no sooner is that set up than they acqire this! Seems a little strange to me.

[buzzaldrinsballs] 21/1/2008 11:52

I can't believe I'm getting excited about a company which, with all due respect, has as its main business making and selling glorified grit. Not exactly glamourous but I am sorely tempted to top up my holding

[whonosewhy] 21/1/2008 09:38

Myopia - according to the June 07 figures they had cash US$ 8.6M which is roughly 6M Euros - they are paying 200,000 euros now plus 290,000 of investment needed and the rest based on profits being made. I hardly see how this "takes up a lot of their cash".

It actually looks like my earlier post predicting the need of the product in the Alpine region was an obvious prediction.

The debt is also manageable because the last reported debt levels were very small.

It also makes the company less reliant on the Moscow Contract.

[philjeans] 21/1/2008 09:08

Yep; good strategic fit and they only pay up if business prospers - clever and good.

[masurenguy] 21/1/2008 08:49

Most of the consideration is deferred and subject to profit performance over the next 6 years so it should be largely self financing. Looks like a good move to me !

[azalea] 21/1/2008 08:05

Its an excellent move and wholly in line with its strategy to move into W. Europe with supplies from its newly established production base in Italy. Where better to have its first footprint than Austria, a country with lots of snow, significantly dependent on its winter season with an essential requirement to keep all roads free of ice.

[myopia] 21/1/2008 07:13

This looks like an expesive acquisition and takes up a lot of their cash - On the face of it not a brilliant move in my opinion.

[whonosewhy] 20/1/2008 23:17

Myopia

The Moscow Contract appears to have possibly been delayed by both the election and an argument over the tender process and the award of the contract.

Zirax had been the chosen supplier for previous 4 years so sales from Jan-Feb 07 where in the half year to Jun 07.

What is not known is if Zirax just carried on supplying as the incumbent supplier or if anyone else did.

I'm not an expert on the weather but looks pretty cold every time I check.

Sales to UK may be limited but they have opened the new factory in Italy and I imagine that the alpine regions are within easy reach for supply from this new factory.

All the comments suggest they were previously unable to keep up with demand - hence the new factory.

It may not be the year end figures that are key but perhaps what is said about the future and trading across Jan/Feb since the Moscow contract announced.

[myopia] 20/1/2008 15:43

I'm not fully up to speed on this co yet but am aware of the moscow contract being won. I presume this is for next year is it as it can hardly have much effect on this years results given that the financial year ends at the end of December? And has it been unseasonably warm in Moscow this year hence no need for de-icing products until the very end of Dec? I don't know. Management sound very confident but the market obviously has a lot of doubts about this group so final results should be interesting.

PS, hardly think this county will ever have use for their products with double-digit temperatures at night in Jan and oil reserves fast running out in the north sea!

[whonosewhy] 17/1/2008 13:28

Has anyone seen any confirmation of numbers on the Moscow Contract?

All I can find are follow up stories on the argument and claim and counterclaim about the contract and the award of it.