''The Group is in discussions about how they will meet these commitments, including exploring contractual amendments which would enable higher volume product strategies and integrated commercial offers to growers. The outcome of these discussions may impact the full year results and expectations for growth in the next financial year. ''
That is a profit warning in my book, they come in 3's most times
To be completely honest though it would be reassuring to see some director buys etc to reignite confidence for buyers/investors as there has been an absence of this manner of intention for quite some time
Glad to hear from an ex-employee and it sounds as though you remain reasonably confident in the company's mid to longer term prospects. I think a fundamental question at the moment is whether the company is suffering from lumpy sales, in wich case the share price fall is likely to be an overreaction, or whether there is anything more serious, such as competitors entering the market or a souring in its relationship with Bayer . I went back to my post of June 2014 and my reasons for investing then were the company's access to technologies at Rothampstead and other research instutions and the potential to globally market products derived from these technologies. I think it would be fair to say that the company has had some success in this strategy and new products are still being introduced so as far as I am concerned my reasons for investing are still intact so I will continue to hold with a long term horizon.
Fragile and hopeful maybe but knowing the circumstances behind certain elements within the company I personally feel that a buyout won't actually happen unless it ticks certain boxes - the company and its supporters have been waiting for the 'big boom' with its technology and I feel they will still be clinging to this belief while there is still cash in the bank and increasing revenue, although maybe only for another 12 to 18 months through the next growing season (or 2 at most)
Clearly Pinterest you have a good insight into the business but I am struggling to see from where and when substantial profits will arise to support the type of valuations that you mention. I think it all looks very fragile.
Given the purchase prices and option values of the historical Director's & Institutional deals I think it unlikely any sale would be sanctioned much below £1 per share (as an ex employee I'm also aware of the 'exit price' that was discussed many times given the technology in question and although £1 is significantly below that level maybe they would relinquish given the recent performance - although there is still cash in the bank and some traction, albeit slow) Personally I'm considering a top up if it falls to 35p or slightly lower as a possible chance at a little boost to my retirement fund - I was hoping for £3 to £4 a share back in 2012 but feel that's way beyond expectations now
Whilst broadly agreeing, it is of concern that the company is, in effect, largely dependent on Bayer for survival. I regard this as one of my small cap ventures that has probably gone wrong which happens from time to time, but not worth selling now.
I think the take home message from the company's update was expect more volatility as the company is buffeted by a variety of factors including take-up of new products, customer inventories, modification of agreements with Bayer Crop Science, currency movements etc. However, the company is continuing to develop and commercialise products and revenues are continuing to increase so I am happy to hold but would certainly not object if Bayer decided to acquire Plant Impact at significantly over 50p per share.
There was an interesting article in yesterday's FT (page 16) about a crop enhancement treatment for maize provided by a Danish company called Novozymes who are in partnership with Monsanto soon to be taken over, probably, by Bayer. Too complicated for me to repeat here but by fungi coating the seeds, the crop yield is increased by 2%. Points that emerge, to me anyway, are that co-operation with Bayer is crucial to Plant Impact, that there are potential strong competitors around, patent protection is vital, huge opportunities if the product really works.
Personally, I found the annual results very mixed and not entirely inspiring. It is clear that it will be a very long time before there are dividends on the way and that the support of Bayer continues to be essential.
It seems they recognise the need to focus better and not try and service too many countries at once. PIM is a tiny company with good leverage if things go well but seems overstretched. This is evident in that its products are not "must have" and need direct support in order to gain traction.
They are expanding the sales effort and continuing to invest in R and D which is right, indeed essential
Revenues may improve somewhat in the current year but so will costs and this trend is likely to continues for some time. There is still plenty of potential but in terms of profits and dividends this has to be seen as a very long term investment. imho
It seemed to me that the appointment of the new CFO read well and am puzzled by the strange reaction this morning with the sp well down. Of course, the problem with most small caps is that the sp only really moves after results are announced or when there is a meaningful breakthrough. May not be relevant to PIM but farmers everywhere are under the cosh and have little cash to spend.
Another of my holdings, Croda International, announced a deal today in which they are buying seed enhancement specialist Incotec for £109M. In the announcement of this deal Croda said "Seed enhancement has been identified as a key market opportunity for Croda's Crop Care business". Whilst I am not suggesting that Incotec's business is the same as Plant Impact's I think it does show that Plant Impact is working in a sector which is regarded as very attractive because it offers plenty of growth so Plant Impact's high rating may well be justified.
To be brutally honest in my opinion if it wasn't for JB taking over I believe the company would have been swallowed up by Arysta some time ago at a cut price which would not have benefitted any of us - at the time the company was hemorrhaging cash at an alarming rate and the city had grown tired of empty promises and missed targets
Let's all just hang on for the next leg of the journey as the company's groundbreaking products are finally gaining traction in the major markets with the firm support of some major players in the agri business
An elegant post Plinterest in defence of the award. Cash incentives for exceptional performance are one thing, an award of 5% of the company is, in my view, unwarranted. However, if his performance targets are met it will be bonuses for us all!!
Would still like to hear from others, if and how, these profits will arise within PIM
Bearing in mind he has almost trebled the share price since taking over as CEO is this really an issue ? I guess not if you have been in on the story for some time and even been directly connected with the company in its earlier years when some extremely difficult and lifechanging decisions had to be taken. For those who have only got on board in recent months maybe this can be seen as a bit of a rip off but is it really - they are pretty steep targets and as the long term sp target by the previous CEO was £2 around 2010 I for one don't begrudge this carrot particularly as in my knowledge apart from his salary JB hasn't yet benefitted hugely from his employment as yet !
I see that the CEO has been given options that, when vested, give him 5% of the company for doing his job. The options are all agreed by the remuneration committee who, I suspect, would agree anything. However, there are performance targets which, if met, ( and there are various opt out situations) would be good for all. What are the implications for the shareholders. On the one hand it could be argued that we are being ripped off, but then we are used to that iun many companies, but on the other hand it could be argued that the sp targets must be considered a possibility since they have gone to all this trouble to establish them he has already hit several and is in line for a nice payout BUT were we to think that the gross profits and the sp are achievable, the we should buy as much as we can afford. I really do not know and if anybody has some soundly based estimates -as distinct from wishful thinking, this would be most helpful
Cleantech Building Materials plc
("CBM" or the "Company")
Proposed acquisition of Diamond Wood China Limited
CBM announces that it has today made a conditional offer to acquire all of the issued share capital of Diamond Wood China Limited ("Diamond Wood") (the "Offer"), a Hong Kong-based supplier of sustainable construction materials, in accordance with the strategy stated at the time of the Company's admission to trading on the Standard List of the London Stock Exchange in February 2015.
Under the Offer Diamond Wood shareholders would receive 6 newly issued shares of CBM in exchange for every 25 shares they hold in Diamond Wood. The Offer is conditional inter alia upon CBM receiving valid acceptances in respect of over 75 per cent. of the issued share capital of Diamond Wood and the final approval of the Directors of CBM.
The Offer will remain open for acceptance by Diamond Wood shareholders until 15 June 2015 (which may be extended at CBM's election). Once shareholders holding shares representing more than 75 per cent. of the issued share capital of DW have accepted the Offer the Company intends to invoke the drag-along provisions contained in Diamond Wood's articles of association to acquire compulsorily the remaining shares which are the subject of the Offer.
The Company intends to delist from the Standard List of the London Stock Exchange and to seek admission to trading on the AIM Market of the London Stock Exchange ("AIM"), which would be the final condition to the completion of the acquisition contemplated by the Offer. The Company will therefore be submitting a request to delist from the Standard List, which request would be rescinded if it appears to the CBM directors that the acquisition is unlikely to complete successfully.
Diamond Wood holds the exclusive licence to manufacture and sell Accoya® wood in the Peoples Republic of China ("PRC") and member countries of the Association of South East Asian Nations ("ASEAN"). Accoya® wood is a modified softwood with performance characteristics that equal or exceed those of many tropical hardwood species. Accoya® wood is non-toxic and is produced using a patented green process technology in which a sustainable species of softwood is impregnated with Acetic Anhydride. This process reduces the moisture content of the wood and makes it less attractive to organisms such as insects and moulds. The treated wood has enhanced performance characteristics in respect of durability, dimensional stability, hardness, and a number of other key performance factors.
Volume demand for target applications of Accoya® wood in the PRC and ASEAN markets is estimated by the Diamond Wood directors to be of the order of 14 million m3 per annum. Diamond Wood has been selling to these markets for a number of years and has established a network of distributors and well known reference customers.
Following admission to AIM, the Company proposes to seek the equity and debt funding required to construct its own manufacturing facility in Asia and to provide further working capital for the enlarged trading operation.
"Plant Impact (LSE:PIM) Â has a less than busy discussion area on Interactive but that hasn't stopped the share from making some interesting movements. Near term it looks very possible for any movement above 52.25 to lead to a pretty boring 56p. ..."
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