Miton have acquired a further 2.5mill @11p.Allegedly insider dealing is illegal but I would be staggered if Miton werent invited to a factory tour with tea, cakes & a word in their ear about how busy they are currently.With view to Directors & senior management buying & Miton I reckon that , on the ground, they are seeing strong signs of recovery & the year to 30/4/18 may not be quite as bad as expected.Perhaps CRU will get a new lease of life after !
Difficult to be enthusiastic about an investment which has regularly disappointed over the years ,despite occasional bursts of optimism from Jg.
However,since the latest abject profits warning PDRs ,including our CEO have been picking up a few shares here & there ,which,at the very least, shows some enthusiasm for our survival & prospects.The current year is drawing to a clise & maybe it wont be quite as bad as expected.Hopefully JG has a masterplan to sell out for,say 20p,which I would gratefully accept
I have confidence in this company and share dealing by directors is nearly always a good sign.Rome wasn't built in a day and although a division has set them back a bit,was impressed with management's response and strategy to sort out situation.
PS In my experience too much director dealing £100,000's etc is bad news for shareholders as it sometimes leads to company going private.
JG should go or try to sell the company & cash in his chips.The AGM trading statement was extremely positive & very encouraging with strong rhetoric about strong sales,stable margins & positive progress.If he really believed what he said on 12/10 he needs medical treatment as 2/3 weeks before the period end he must have been aware of the problems.
Automotive was clearly a very poor decision-low margin & competitive industry with large capital requirements.I will be looking to exit the shares I have left although I smelt a rat since the Interims have been so delayed.
Later than ever before & with out patchy track record ,our ability to disappoint & our recently weak SP (despite expectations of a substantially improved first half)- the delay is a concern.They could be lining up another bolt on acquisition requiring funding & all will be announced at the same time.Presumably they will be published v soon .
Where are the results? I keep on holding in the hope that the acquisitions will help with the bottom line and that the previous run of disasters is previous and now behind us.
The share price is disappointing ..We need the New Guy to shake this mess up and get some profit coming in..I feel my faith waning..Why has J G not kept a closer eye on his investment.
There should not be so many surprises and disappointments in a well managed company.Good management starts with the person at the top ??
It was quite a bullish statement. I have been looking into the new COO Mick Wood and he has an impressive CV. He came from Linpac and has enormous experience. If Mick can sort Coral out then the share price will take off and we will all finally benefit. Let's see what the interims say which should be announced in December.
Following the outlook statement last month we expected an improvement in trade ,as advise D by JG , but still good to hear that we continue to trade well with stable margins & if this continues we could see an increase in the dividend when Interims are published in Dec.
In recent years our plans have been severely hampered by events which were not anticipated,i.e.the bad debt in 2016 & the disaster @ Mouldings ( resulting in the departure of our CEO & FD).Perhaps we will have a disaster free period & our much more diverse group ( than it was 2/3 years ago) will fire on full cylinders & enable our SP to recover & move forward.
I still consider it likely that when JG is ready to retire he may engineer a disposal in order to realise the value of his holding.Continues to be a high yielding slow burner.
With all the acquisitions JG has made the company is no further on. It's probably in a worse position than it was 2 years ago. He keeps harping on about the increase in turnover and all the new products they are manufacturing - 90 new automotive products since March 2017. How has it helped the profits? He clearly states that Interpack, Tatra and Global are inline and in some cases are exceeding expectations. If that is the case then Coral is losing a shed load of money and that confirms to me that taking on automotive products is a killer as I have stated in a previous post.
The Coral plant needs sorting out properly. We are now on our third CEO in 3 years, let's hope he has the balls to sort it out once and for all.
Market clearly impressed-not but I am sure that JG will buy his customary few shares following the dip & a strong sign of confidence in our expected performance in the current year would be to see all Directors & senior managers increasing their holdings .After all at todays buying price they will get a yield of approaching 5.5% which they may expect to increase substantially if this year is as good as JG expects it to be
The second half downturn was well signaled & great to see a final divi being paid ( albeit at an understandably reduced level).The Balance Sheet is a bit more stretched but we have had to build up inventories in our car component division & have acquired more assets over the year,apart from the investment in Haydock.We are almost 5 months into our current financial year so JG has good visibility as to the likely outcome & he appears to be pretty optimistic.
CRU has always been unlikely to be a super growth stock but our revenues & diversity are growing as will,hopefully, our dividend again this year so on a yield currently of 5% & the possibility of a recovery in our SP as we demonstrate improved results I have no plans on selling my holding.Lets hope that there are no more unpleasant surprises , our new COO performs well & we continue growing revenues & profitability.
This company is going from bad to worse regarding keeping shareholders informed.
Results were always announced in July except for last year which was August. It's now September and the Chairman hasn't had the decency to explain why there has been a delay in announcing the results.
Cru have generally been poor over the years at communication with shareholders/stakeholders.
With view to the dire profit warning earlier this year & the subsequent announcements regarding asset purchases & new contracts in new business areas(automotive) I would have thought a trading update next week would be very useful in rebuilding confidence,improving our SP & enabling the issue of new shares in respect of any prospective acquisitions @ a higher price.
Let's see !
Agree that there must have been a good reason for the machinery purchase and it will have been a real bargain. One not to be passed by.If utilisation is below capacity it is possible to grow the business and the numbers will fall in line One needs to remember that several Executives reporting this previous performance and responsible for steering the business using the numbers as a guide seemed to have failed and are now "Pursuing personal interests" The new people at the helm at Haydock doubtless have a very clear view to where they are steering the ship.They doubtless realise that Joe is giving them his full backing but that the Gulag awaits those who cant cut it..
A question was asked at the AGM last September regarding machine utilisation at the Coral plant in Haydock. Mr Zandona said it was running at approximately 60% - pretty poor! He said that this would increase in early 2017 as they were negotiating new contracts.
We then had a profits warning in February. Now they are buying more equipment and getting involved in manufacturing parts for the car industry. The car industry is notoriously competitive and Terms can be prohibitive.
They need to fill their existing capacity before they get involved in buying more equipment. Coral's communication skills with shareholders continues to be dismal.
New machines at bargain basement prices from receiver.I brought stock from the receivers some years back and paid only 10p in the pound of actual cost .So this looks like a real prize for a company that's a going concern.
Automotive product production seems like a good direction.. Well done Coral... Must not count chickens but cant help it. Nice to hear good news.
Very positive announcement today regarding a £600k asset acquisition & contracts which have the potential to be long term & presumably profitable.Pity we werent updated more generally on trading since the previous dour RNS
Posted last year Wish I had the good sense to heed my own advice.. If I had I wouldn't be sat here posting this twaddle but sitting on my own dessert island with my gorgeous Girl friend who does everything she is asked with out question and never asks questions or answers back.Reality is some what different..Never was much good at choices Will put this in the bottom draw..Do we follow Joe and buy 100,000 or do we have better uses for £14000 quid?
Dont panic over China growth faltering ......We are a little smug here in GB because our Economy grew at 1.5 % last year.
We are talking basic statistics .......Basic Statistics indicates to me that by examining the 5 year chart that our share price is bound to reconnect with the 200 day average .Today that is 14pence!!!!!! That is a little unnerving for those who have just bought in at above 20p
I have just raked this post up from last year.Just shows how utterly brilliant I am...If only I were to take heed of my own advice and act on it I would not be sitting here posting this rubbish but sitting on a beach on my own desert island with my beautiful girl friend who does every thing she is asked with out question Never ever answers back ...Back to reality ..Put up the 5 year chart and count how many times the price has contacted and indeed fallen through the 200. Ask your self without emotion how you decide on when to buy in ? On a Tip or on cold calculation? You could be asking for a spanking in my opinion.The Chinese sell off is potty but so is most of the world. It could result in CRUs price revisiting the 200 in short order. Hold for the long term? Put it in the bottom draw again with all the others? it will recover with time? Look at the 5 year to see how many times we have climbed above the 200 That gives an idea of the number of selling opportunities where one can exit with a profit after our purchase below the 200.
Basic logical investment sense.
More View thread 2 Respond Neighbourhood Watch
Disappointing & sudden departure of CEO & FD suggests that JG was not aware of the problem-especially as the Interims early in Dec made no reference to major problems brewing.If he retains faith in CRU he will have bought more shares today but he may have had enough & I would take 20p from a cash buyer ( ie per share not for the company )
Tip price: 20p | Current Price: 19.75p | % change: -1.2%
Injection moulded plastic products manufacturer Coral Products (CRU) has made a lot of progress in the past year, but the share price has not.
Early in the year, Coral made two acquisitions. Rotolac was acquired from administrators for £160,000 and took the group into new markets, including aerospace and medical. Global One-Pak was acquired for an initial £3.6 million in cash and shares and it makes lotion pumps and trigger sprayers. The Manchester factory acquired with this business has been retained, alongside the main Haydock factory.
The latest interims show underlying pre-tax profit improved from £723,000 to £916,000 on revenues that had grown from £8.26 million to £10.8 million. There were additional shares issued to help finance acquisitions so underlying earnings per share were slightly lower at 1.03p. Investment in capacity has meant that net debt reached £5.2 million at the end of October 2016.
Full-year profit is expected to rise from £1.47 million to £2 million thanks to contributions from acquisitions, although this figure has been trimmed because of the weakness of sterling affecting the prices of products that are imported.
Earnings per share (EPS) are expected to grow from 2.2p to 2.3p, even though there is likely to be a small tax charge in 2016-17. The shares are trading on less than nine times prospective earnings with further growth set to come.
Anyone who bought the shares at the beginning of the year would have received 1p a share in dividends, which is a 5% yield. A dividend of 1.2p a share is forecast to be paid in 2017, providing a forecast yield of 6%. Further acquisitions are likely and this could help to utilise spare capacity at the Haydock factory."
Solid not stellar results, & a little disappointing, but demonstrating a now a much more diverse group than just a year or two.A 10% increase in the divi is very welcome & I am encouraged by the substantial increase in export sales (possibly helped by the weaker £) although we did suffer currency loss on imports.On track for the current year & the Final divi is likely to be increased to so remaining an investment offering a decent yield together with decent growth prospects.
to see our SP holding up despite news in the filed accounts that one of our major customers(presumably of one of our recent acquisitions) has decided to manufacture in house rather than continue with their supply agreement with us.A separate RNS was not issued & presumably we will have to await the Interims early in Dec , unless a period end trading update is issued in the next week or two.
It took a long time fr us to reach & exceed 20p & we have been supported twice at this level in respect of fund raisings,mainly by Miton,20p will hopefully provide the current floor.Assuming that our Interims are strong ,the dividend increased & the outlook statement is positive perhaps our SP will drift upwards towards 30p,providing us all with a capital uplift & particularly Miton who deserve an uplift in their valuation here as they have supported our growth plans when many others wouldnt
What is wrong with the Markets perception of CRU?
Its a turnaround story with proven improvement in both prospects and Profits
We are on track to achieve expectations for this year.
Dividend is improving
Yet we are stuck in this miserable trading range.
When is our Share price going to reflect the situation ?
Volume has again dried up to a trickle
Frustration is the word
We are on track for further growth in the first half,which ends soon & with more to follow.The Interims will include results for 6 months of all 3 of last years acquisitions & there is scope for further efficiencies from both Warrington & Wythenshaw.I reckon that turnover & operating profits will show a decent improvement & the hint was that we may be winning business from overseas companies exporting into the uk due to weaker sterling.We have continued generating cash,I assume,so our gearing will be rapidly reducing & our dividends this year could show a decent increase.
Interesting & encouraging to see 2mill options issued to Rob ( new CEO) to be exercised between Sept 18 & expiring Sept 26, + 550k options on similar terms to 4 senior employees,ie 21.625p price.
This shows a long term perspective & I presume that Rob & the senior employees consider the options to have value which motivates & incentivises them to work hard & achieve targets.
Dave I think you are correct and that this one may be transformational. We have breached the 200 sma on good volume and on a rising trend, the tea leaves indicate that is a good omen. We have taken out the bears and now sit on the brink of upper price Resistance.Will we break through tomorrow??
Volume higher than for some time & too topped up post results Badd,the increased divi being tempting in my SIPP & hopefully with more to come assuming that we continue to grow.
I would not be surprised if another acquisition is not underdiscussion & with view to his current love affair with CRU Gervais & his funds will no doubt be supportive.
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