Editor's Pick: Markets: The week that was (16-20/11/09)
(CHNS.L) China Shoto PLC Buy/Sell
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Summary
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| Date/Time | Headline | Source |
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| 14-10-09 | RNS |
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RNS Number : 7842A China Shoto plc 14 October 2009 China Shoto plc ("China Shoto" or "the Company") Directorate Change The Company is also pleased to announce that Mr. Qian Shangao, aged 54, will be appointed as a new Executive Director. Mr. Qian has been working for the Company for almost 20 years, and is the Vice President. He is the leader and one of the managers of R&D team. There is no further information to be disclosed on Mr. Qian under Schedule Two paragraph (g) of the AIM rules for companies.
For further information:
China Shoto plc
Yang Shanji, Executive Chairman Tel: +44 (0) 20 7242 2666/ +86 159 6108 0515
Seymour Pierce Limited
First City Public Relations
This information is provided by RNS The company news service from the London Stock Exchange END
BOAFFEFLLSUSEIS More |
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| 16-09-09 | RNS |
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RNS Number : 1430Z China Shoto plc 16 September 2009 China Shoto plc ("China Shoto" or "the Company") Directors Dealing The Company was informed today that Two Stars Invest Limited, a Company controlled by Chief Executive and Chairman Yang Shanji, has acquired the Company's previous Chairman, Cao Guifa, shares which are registered under Wit Invest Limited. The price paid was £1.80 per share. Two Stars Invest Limited now owns 15,384,615 shares representing 65.90 per cent of the issued share capital of the Company. Wit Invest Limited and Cao Guifa no longer hold any shares in the Company.
For further information:
China Shoto plc
Yang Shanji, Executive Chairman Tel: +44 (0) 20 7242 2666/ +86 159 6108 0515
Seymour Pierce Limited
This information is provided by RNS The company news service from the London Stock Exchange END
RDSUNVWRKBRKARR More |
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| 15-09-09 | RNS |
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RNS Number : 0549Z China Shoto plc 15 September 2009 China Shoto plc ('China Shoto' or 'the Company') Directorate Change The Company announces that Mr. Cao Guifa has stepped down from the Board to pursue other interests, and Mr. Yang Shanji will take over the post of Chairman. The Board would like to thank Mr. Cao Guifa for his contribution to China Shoto for the past four years. Mr Cao Guifa will also be cancelling his right to exercise his share options. He currently holds 300,000 options at an exercise price of £1.3. These options will be cancelled. For further information China Shoto plc
Seymour Pierce Limited
Media enquiries First City Public Relations
This information is provided by RNS The company news service from the London Stock Exchange END
BOASFSSIISUSEIU More |
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| 15-09-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 0351Z
China Shoto plc
15 September 2009
China Shoto plc a green energy solution provider
2009 Interim Report
Contents
1 Highlights
2 Chairman's statement
3 Consolidated statement of comprehensive income
4 Consolidated balance sheet
5 Consolidated statement of changes in equity
6 Consolidated statements of cash flows
7 Notes to the interim consolidated financial statements
Highlights
* Revenue up 41% to £96.46 million (2008: £68.59 million)
* Profit for the period increased by 43% to £5.56 million (2008: £3.88
million)
* Basic earnings per share up 43% to 23.37 p (2008*16.33 p)
Chairman's Statement
Despite the continued uncertainties overhanging the global economy, China's GDP grew by 7.1% during the first six months of 2009 over the same period a year earlier, driven by the Chinese Government's Renminbi 4 trillion (£375 billion) economic stimulus package. The package has seen massive investment in new domestic infrastructure projects, underpinning continued strong growth for China Shoto plc (the Company). Sales revenue during the six-month period to 30th June 2009 increased to £96.46 million, up 41% from £68.59 million for the first half of 2008. Profit for the period increased by 43% to £5.56 million (£3.88 million) while basic earnings per share rose 43% to 23.37 p (16.33 p). During the half year, we maintained our objective of becoming a leading supplier of green energy products, and continued our work on the development and testing of new environmentally-friendly storage products, which we believe will position us to maintain our strong growth as we move forward. In particular, the Company is planning to invest in a new lead acid battery recycling project, which we anticipate will provide recycling capacity of 100,000 tons of used batteries per year after completion, further underpinning our growth plans.
Operating Review
Back up batteries
During the first half of the year, revenues from the sale of back up batteries increased by 52% to £90.09 million (£59.31 million) accounting for 93% of the Company's total revenue.
Various subsidiaries or branches of all three of China's telecommunication operators, China Mobile, China Unicom and China Telecom operating in 31 of China's provinces, autonomous regions and municipalities, remain the Company's main customers. Sales to these customers accounted for 94% of the total revenues from back up batteries.
Total revenues from sales to branches of China Unicom grew by 374% compared with the same period of 2008, accounting for 47 % of the total revenues from back up batteries.
Power type batteries
The rapid development of back up battery sales has meant a reduction in the production of power type batteries. Revenue decreased from £9.28 million to £6.38 million - a decline of 31%.
Patents Granted
During first half of 2009, the Company was granted two new patents by the State Intellectual Property Office of the People's Republic of China, so that as of 30th June 2009 it held a total of 117 patents.
Market
Partly as a result of the Chinese Government's stimulus investment in major infrastructure projects, domestic sales of back up batteries rose to £86.63 million, an increase of 82% over £47.61 million for the same period of 2008.
As we have reported previously, the Company works constantly to maintain good business relationships with its major clients, which, along with our strong after-sales service, we believe plays a major part in underpinning our strong market position. To mitigate the impact of fluctuating lead prices, the Company has initiated a price linkage scheme with major clients. Recognising the large telecom operators' requirement to cut energy usage and adopt high-efficiency environmental protection measures, the Company also became one of the first to enter a "Green Action Plan" with China Mobile. The Company was awarded the accolade of Best Global Partner of ZTE Telecommunication for 2008-2009. In first half of 2009, China Shoto was the biggest single supplier to China Unicom and China Telecom, with revenues from these sales to be realised during the second half of the year.
Fairs
Overseas there has been a slow-down in growth in the Company's main market, India. As a result revenue from exports was sharply down during the first half of 2009. The Company continues its programme to penetrate international markets. The Board believes demands from foreign markets will yield strong revenues in the future. To further enhance the Company's overseas reputation and exploration of foreign markets, the Company participated in many fairs during first half of the year, such as the 22nd Sviaz Expo Comm Moscow 2009, 2009 Middle East (Abu Dhabi) International Communications Exhibition, Mobile World Congress 2009(Spain), Communic Asia 2009 in Singapore and the 7th International Lead Acid Battery Fair/Technical Communication-- ILBF CHINA 2009.
Financial Review
Sales revenue in the first half of 2009 increased by 41 % to £96.46 million compared with £68.59 million in the same period last year. Profit for the period increased by 43% to £5.56 million, up from £3.88 million during the same period last year. Basic earnings per share increased 43% to 23.37 p compared with 16.33 p in the same period last year. Due to a lower average lead price and a greater proportion of sales of higher margin back up batteries during the period, the gross margin for the half year increased to 30.8% from the 24.9% in the first half of 2008.
Principal Risks and Uncertainties
The turbulent global economy and stronger competition from local and overseas companies could reduce margins. The Chinese government may adjust policies particularly interest and exchange rates.
Lead Acid Battery Recycling Project
The Company is preparing plans to invest in a major recycling plant for lead acid batteries that will provide regenerated raw material to sell to major users of lead or other battery manufacturers. Since the Company is mainly engaged in the manufacture and supply of lead acid battery products in China, the construction of a lead acid battery recycling project represents a logical extension of our current battery product supply chain structure which will both help meet the tendering requirements of our key customers and contribute towards national recycling efforts. The Board believes the investment will promote the development of the Company's main business and become a key growth driver but also promote and strengthen our leading position with the three large telecom operators. We estimate that after completion of the project the annual recycling capacity will reach 100,000 tons of used batteries.
Dividend Policy
In the light of the Company's planned battery recycling project which will require a major capital investment and the change in certain clients payment delivery times during this current year due to global economic conditions, the Board does not recommend an interim dividend. In undertaking a major investment and funding the continued expansion of the Company's business, the Board believes it would be prudent to determine a dividend at the year's end. The intention would be to review and if possible, pay a dividend at a level within the parameters of the Company's policy.
Outlook
The Board believes that the completion of our planned lead acid battery recycling project will have a significant beneficial impact on raw material cost savings, as well as contributing to environmental protection and the implementation of a sustainable development strategy. As such, the project is expected to become the main driving force of the Company's revenue growth. The Board believes that the Company's new types of back up batteries such as the 2V Gel Battery, 12V AGM Battery and 12V Spiral Wound Battery are being well received by the market. Domestic market competition has at the same time become more intense as a result of the financial crisis and, although our existing key customers are large and well resourced, we are constantly re-appraising our client base and expanding our product range to maintain our strong historic growth. World economic difficulties have and will continue to affect our business but we remain confident that our relationships with existing customers should ensure the maintenance of goodwill and underpin our objective of becoming a worldwide supplier of green energy products.
China Shoto has already become the largest back up battery manufacturer in China, and maintains its target of becoming the largest lead-acid battery producer in Asia. As a China Environment Friendly Enterprise-an important award by government, the Company intends to become a worldwide green energy solution provider. We are confident that this will further enhance our opportunities for growth.
Cao Guifa
Chairman
Consolidated statement of comprehensive income
For the 6 months ended 30 June 2009
Notes 6 months ended 30 6 months ended 30 Year
June 2009 June 2008 ended 31 December 2008
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Revenue 96,464 68,594 183,083
Cost of sales (66,746) (51,510) (134,794)
Gross profit 29,718 17,084 48,289
Other income 121 679 576
Distribution costs (15,142) (8,265) (23,259)
Administrative expenses (7,048) (4,016) (10,866)
Other expenses (479) (21) (377)
Finance costs (772) (1,106) (2,811)
Profit before tax 6,398 4,355 11,552
Income tax expense 4 (835) (480) (1,258)
Profit for the periods/year 5,563 3,875 10,294
from continuing operations
Other comprehensive income:
Exchange differences on (4,449) 2,311 13,740
translating foreign operations
Total comprehensive income for 1,114 6,186 24,034
the periods/year
Profit attributable to:
Owners of the parent 5,455 3,813 10,070
Minority interest 108 62 224
5,563 3,875 10,294
Total comprehensive income
attributable to:
Owners of the parent 1,113 6,086 23,529
Minority interest 1 100 505
1,114 6,186 24,034
Earnings per share for profit attributable to the * *
equity holders of the parent during the year
-Basic 23.37p 16.33p 43.14p
-Diluted 23.22p 16.29p 43.14p
Continuing operations
-Basic 23.37p 16.33p 43.14p
-Diluted 23.22p 16.29p 43.14p
Consolidated balance sheet
As at 30 June 2009
30 Jun 30 Jun 31 December
2009 2008 2008
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Assets
Non-current assets
Property, plant and equipment 22,290 16,716 25,249
Available-for-sale investment - 148 -
Intangible assets 2,525 1,891 3,123
Deferred tax assets 39 81 43
* 24,854 18,836 28,415
Current assets
Inventories 35,643 29,270 28,410
Trade and other receivables 47,828 43,831 36,056
Short-term investments 11,559 4,311 3,946
Cash and cash equivalents 32,776 7,344 50,797
* 127,806 84,756 119,209
Total assets 152,660 103,592 147,624
*
Liabilities
Current liabilities
Bank borrowings 23,891 30,656 32,845
Trade and other payables 75,028 36,816 61,122
Income tax payable 194 260 164
Total liabilities 99,113 67,732 94,131
*
Equity
Share capital 2,334 2,334 2,334
Share premium 8,630 8,630 8,630
Other reserves 2,916 2,916 2,916
Statutory reserves 9,252 6,678 9,252
Retained earnings 21,437 13,332 16,800
Foreign currency translation reserve 8,246 1,402 12,588
Total equity attributable to equity 52,815 35,292 52,520
holders of the parent
*
Minority interests 732 568 973
Total equity and liabilities 152,660 103,592 147,624
Consolidated statement of changes in equity
For the six months ended 30 June 2009
Attributable to equity holders
For the six months ended 30 Share Share Other Statutory Retained Foreign currency Total Minority Total
June 2009 (Unaudited) capital premium Reserves reserves earnings translation reserve * interests
£000 £000 £000 £000 £000 £000 £000 £000 £000
Balance as at 1 January 2009 2,334 8,630 2,916 9,252 16,800 12,588 52,520 973 53,493
Total comprehensive income for - - - - 5,455 (4,342) 1,113 1 1,114
the period
Dividends paid - - - - (818) - (818) (242) (1,060)
Balance as at 30 June 2009 2,334 8,630 2,916 9,252 21,437 8,246 52,815 732 53,547
Attributable to equity holders
For the six months ended 30 Share Share Other Statutory Retained Foreign currency Total Minority interests Total
June 2008 (Unaudited) capital premium Reserves reserves earnings translation reserve *
£000 £000 £000 £000 £000 £000 £000 £000 £000
Balance as at 1 January 2008 2,334 8,630 2,916 6,678 10,406 (871) 30,093 468 30,561
Total comprehensive income for - - - - 3,813 2,273 6,086 100 6,186
the period
Employee share options - - - - 163 - 163 - 163
Dividends paid - - - - (1,050) - (1,050) - (1,050)
Balance as at 30 June 2008 2,334 8,630 2,916 6,678 13,332 1,402 35,292 568 35,860
Attributable to equity holders
Share Share Other Statutory Retained Foreign currency Total Minority interests Total
For the year ended 31 December capital premium Reserves reserves earnings translation reserve *
2008 (Audited)
£000 £000 £000 £000 £000 £000 £000 £000 £000
Balance as at 1 January 2008 2,334 8,630 2,916 6,678 10,406 (871) 30,093 468 30,561
Total comprehensive income for - - - - 10,070 13,459 23,529 505 24,034
the year
Transfer to statutory reserve - - - 2,574 (2,574) - - - -
Employee share - - - - 298 - 298 - 298
options
Dividends paid - - - - (1,400) - (1,400) - (1,400)
Balance as at 31 December 2008 2,334 8,630 2,916 9,252 16,800 12,588 52,520 973 53,493
Consolidated cash flow
statement
6 months ended 30 6 months ended 30 Year ended 31 December 2008
For the period ended 30 June June 2009 June 2008
2009
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Profit before tax from 6,398 4,355 11,552
continuing operations
Adjustments for:
Amortization of intangible 37 23 53
assets
Depreciation of property, 1,018 683 1,557
plant and equipment
Losses on disposal of 262 20 36
property, plant and equipment
Gain on disposal of - - (10)
available-for-sale investments
Provision for inventory 327 - -
impairment
Impairment loss on loans and 868 - 224
receivables
Share based payment expense - 163 298
Financial income (188) (59) (194)
Financial expense 959 1,106 2,811
Cash flow from operating 9,681 6,291 16,327
activities before changes
of working capital and
provisions
Working capital changes: *
(Increase)/decrease in: *
Inventories (10,920) (8,085) 208
Trade and other receivables (15,359) (8,315) 8,848
Increase/(decrease) in: * *
Trade and other payables 21,733 6,848 14,845
Cash generated from/(used in) 5,135 (3,261) 40,228
operations
Income tax paid (800) (749) (1,661)
Net cash flows from operating 4,335 (4,010) 38,567
activities
Cash flows from investing *
activities
Financial income 188 59 194
Purchase of land use right - (2) (450)
Purchase of property, plant (1,018) (1,004) (3,971)
and equipment
Purchase of short-term - (2,832) -
investment
Proceeds from disposal of 23 133 126
property, plant and equipment
Funds placed on deposits (8,901) - (1,622)
Disposal of available-for-sale - - 170
Cash flows used in investing (9,708) (3,646) (5,553)
activities
Cash flows from financing
activities
Increase in bank borrowings 65,947 23,993 50,354
Decrease in bank borrowings (71,431) (18,593) (51,560)
Interest paid (959) (1,106) (2,811)
Dividends paid (1,060) (1,050) (1,400)
Cash flows from financing (7,503) 3,244 (5,417)
activities
Net (decrease)/increase in (12,876) (4,412) 27,597
cash and cash equivalents
Cash and cash equivalents at 50,797 11,087 11,087
beginning of periods/year
Foreign exchange differences (5,145) 669 12,113
Cash and cash equivalents at 32,776 7,344 50,797
end of periods/year
Notes to the interim consolidated financial information
For the six months ended 30 June 2009
1. General information
China Shoto plc is a company incorporated in the United Kingdom on 10 May 2005 under the Companies Act 1985. The interim consolidated financial information of the Company for the six months ended 30 June 2009 comprises China Shoto plc (the 'Company') and its subsidiary undertakings (the 'Group').
2. Accounting policies
Basis of presentation
The financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and interpretations adopted for the use in the European Union. The principle Accounting Policies used in preparing the interim statements are those the group expects to apply in its financial statements for the year ended 31 December 2009 and are unchanged from those disclosed in the group's report and financial statements for the year ended 31 December 2008, except that the requirements of IAS 1(revised), Presentation of Financial Statements, have been adopted, resulting in the presentation of a consolidated statement of changes in owners' equity. This presentation has been applied to comparative information in this report. Financial information for the six months ended 30 June 2009 and for the six months ended 30 June 2008 is unaudited and does not constitute the group's statutory financial statements for those periods. Comparative financial information for the full year ended 31 December 2008 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237 (2) (3) of the Companies Act 1985. The Board of Directors approved this interim statement on 15 September 2009.
Foreign currencies
The functional currency of the subsidiary undertakings is Renminbi ('RMB'), and the unaudited interim consolidated financial information of the subsidiary undertakings have been drawn up in RMB. The presentation currency of the Group is pounds sterling and therefore the interim consolidated financial information has been translated from RMB to pounds sterling at the following exchange rates:
Period-end rates Average rates
30-Jun-08 £1 = RMB 13.5342 £1 = RMB 13.9622
31-Dec-08 £1 = RMB 9.8798 £1 = RMB 12.4398
30-Jun-09 £1 = RMB 11.2387 £1 = RMB 10.2127
3. Business segments
The Group is comprised of the following business segments:
The Power Type Batteries ('PTB') business segment is comprised of power-aided bicycle batteries.
The Back up batteries business segment includes Value Regulated Lead Acid Batteries and Flooded and Gel Batteries.
Allocation basis and transfer pricing
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Business segments
The following tables present certain sales, profit regarding the Group's business segments for the period ended 30 June 2008 and 2009.
Six months to Back up PTB Eliminations Total
30 June 2009 (Unaudited) Batteries
2009 2009 2009 2009
£000 £000 £000 £000
Revenue:
Sales to external customers 90,089 6,375 - 96,464
Inter-segment sales 38,214 - (38,214) -
Total revenue 128,303 6,375 (38,214) 96,464
Results:
Segment profit 7,140 (607) - 6,533
Unallocated corporate expenses (135)
Profit from operations before 6,398
taxation
Income tax (835)
Profit for the period 5,563
Six months to PTB Eliminations Total
30 June 2008 (Unaudited)
Back up
Batteries
2008 2008 2008 2008
£000 £000 £000 £000
Revenue:
Sales to external customers 59,312 9,282 - 68,594
Inter-segment sales - 13,840 (13,840) -
Total revenue 59,312 23,122 (13,840) 68,594
Results:
Segment profit 4,305 383 - 4,688
Unallocated corporate expenses (333)
Profit from operations before 4,355
taxation
Income tax (480)
Profit for the period 3,875
PTB Eliminations Total
Back up
Batteries
Twelve months to
31 December 2008 (Audited)
2008 2008 2008 2008
£000 £000 £000 £000
Revenue:
Sales to external customers 164,794 18,289 - 183,083
Inter-segment sales - 22,718 (22,718) -
Total revenue 164,794 41,007 (22,718) 183,083
Results:
Segment profit 11,499 337 - 11,836
Unallocated corporate expenses (284)
Profit from operations before 11,552
taxation
Income tax (1,258)
Profit for the year 10,294
Geographical segments
Six months to 30 June 2009 (Unaudited)
Domestic sales Export sales Total
2009 2008 2009 2008 2009 2008
Segment sales
£000 £000 £000 £000 £000 £000
93,002 56,894 3,462 11,700 96,464 68,594
Twelve months to 31 Dec 2008 (audited)
Domestic sales Export sales Total
2008 2008 2008
£000 £000 £000
Segment sales 153,369 29,714 *
183,083
All export sales originate from the Back up Batteries segment.
4. Income tax
* 30-Jun-09 30-Jun-08 31-Dec-08
* (Unaudited) (Unaudited) (Audited)
* £000 £000 £000
Income tax expense is as follows:
Current income tax 835 463 1,335
Deferred income tax:
Origination and reversal of temporary - 17 (77)
differences
* 835 480 1,258
5. Dividends
* 30-Jun-09 30-Jun-08 31-Dec-08
* (Unaudited) (Unaudited) (Audited)
* £000 £000 £000
Dividends on ordinary shares declared 818 1,050 1,400
and paid during the six months period
China Shoto plc declared an annual dividend of 3.5p per ordinary share amounting to £817,031 on 28 April 2009, which was approved by the shareholders on the AGM on 16 June 2009 and was paid on 30 June 2009. The group's subsidiary Yangzhou Zhenghe Power Supply Co., Ltd declared an annual dividend amounting to Rmb 6,059,652, of which Rmb2,484,457 (equivalent to £242,271) was paid to the minority shareholder on 19 February 2009, which was approved by the board of director on 3 February 2009.
6. Earnings per share from continuing operations
Earnings for the purpose of basic and diluted earnings per share are the net profit for six months ended 30 June 2009 attributable to equity holders of the parent of £5,455,000 (for six months ended 30 June 2008: £3,813,000, 2008: £10,070,000)
The profit from continuing operations for the financial period attributable to equity holders of the parent is as follows:
* 30-Jun 30-Jun 31-Dec-08
2009 2008 2008
* (Unaudited) (Unaudited) (Audited)
* £000 £000 £000
Profit from continuing operations 5,455 3,813 10,070
attributable to equity holders of the
parent
The weighted average number of ordinary shares used in the calculation of earnings per share from continuing operations has been derived as follows:
* 30-Jun 30-Jun 31-Dec-08
2009 2008 2008
* (Unaudited) (Unaudited) (Audited)
* £000 £000 £000
Number of ordinary shares
Weighted average number of ordinary 23,343,770 23,744,755 23,343,770
shares - basic
Dilutive effect of share options 149,860 66,642 -*
Weighted average number of ordinary 23,493,630 23,811,397 23,343,770
shares - diluted
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFEEADISLIA
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Not sure that " that's one psychological barrier broken...... " 300p might be the highest price paid today but there were plenty of trades lower than that later in the day. So maybe that's one psychological barrier that the sp has failed to break and has instead bounced down off.
The uptrend cant continue un-abated forever. there has to be a pullback somewhere and £3 seems a logical place for that to happen. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
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Looks like trades are going through at £3 today - that's one psychological barrier broken......
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I've overnight had e-mail confirmation from CHNS that it will be presenting to the City, and that its presentations "will be held late November and early December in London".
Not only does it seem that CHNS have something to talk about, but one would hope that the presentations over the next couple of weeks will stimulate further interest here. More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| Wed 16:23 |
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In answer to my last question about what step-change in profits the lead recycling facility might produce, here's another excellent post from Mattjos (this is the guy who visited CHNS representing his business):
http://www.advfn.com/cmn/fbb/thread.php3?id=10937254&from=8257 ""ok all, here's a quick summary of the metrics on lead re-cycling as best I can dig it out at this stage: Current Ave. Lead price (from Nyrstar interims) equates to around 90p / Kg Re-cyclers pay (from personal experience) around 15p / Kg on collection Add in say 1.5p / Kg for inward transport costs so call it 17p / Kg delivered ready for processing That leaves 73p / Kg as the bit in the middle to cover the processing & handling costs. Lets be conservative and say 70p / Kg @ 90m Kgs / annum = £63m to cover the re-cycling operation & make a few quid. In manufacturing on that scale you don't get into it unless you can see at least 25-35% Gross Margin ... let's just say 30% for arguments sake 30% Gross Profit = £21m ...... work of their current 5% Net Margins & you have another £3m Net Profit or a 50% increase in earnings to say 72p / share No idea where the NAV would end up but on something like a respectable (LOL)PER of 8 that would put the sp at 570 And all this is before the additional revenues from the poly & Gypsum from re-cycling ... then there is the obvious cost savings to the core business of running the complimentary business alongside, any govt incentives for 'green' re-cycling operations, tax benefits. So at still under 300 / share there would seem to be something approaching a 100% gain to be had in the next 12-14 months assuming no other growth in the core business itself or move to higher margin products. Cheap as chips right now then :-)" More | View thread (3) | Respond | Login to Vote up | Login to Vote down |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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