It has not ended the day too badly: down less than 5%. When Petrofac announced an SFO investigation their share price just about halved.
Anything like this is serious, but I can't imagine it is very large if it was in Algeria. Skipping through the Finals I could see no mention of Algeria specifically; and there was plenty of ROW activity which was mentioned, so it must be pretty small fry.
whatever it is a cloud hanging over the company now until it is sorted.
Whatever they've been up to in Algeria may be pretty minute in the overall business, but this could put a dampener on the share price and the business for a significant time. (The Petrofac SFO enquiry was launched 11 months ago and is still ongoing.)
I've just had a very quick skip through them and can not see any real negatives:
Turnover & profit is at the top end of their guidance in January. The Order book is up, markets are strong, dividend is up, debt is significantly down, Margin is perfectly acceptable, Net assets are up, pension deficit is down. The business has a nice geographic spread. They are instigating a buy back.
At an sp of 1400 (quite a bit above the current price as I type) we have a PE of 12, a well covered yield of over 3.5%.
It all looks very positive to me; but markets disagree.
No. It seemed to be recovering nicely up to yesterday; and of course no news relating to it yesterday - unless there is some fear that Trump is going to stop the US Government buying anything from outside the US or some such stupid idea.
We have had a couple of big fall backs during the recovery before, so hopefully it is just another one of those.
So, should Mr Sharma really have resigned? It looks a very minor dip to me, in the context of the MOD's known difficulty in getting sufficient funding. I baled out of this earlier in the year, before the warning, on the grounds of the MOD's difficulties, but I am not sure now I should have done. I agree with you that 15 is looking a bit on the low side.
Jan 11 (Reuters) British defence contractor Ultra Electronics , which has warned of lower defence orders in the country, said on Thursday it had significant exposure to a rising U.S. defence budget, and had seen growing demand for advanced technologies.
The company, which makes military electronics for land, air and sea operations, also said it expects to have modest progress in 2018 underlying revenue and operating profit on a constant currency basis. ...
Shares of Ultra Electronice were up 13 percent at 1428 pence in early trading, making it the biggest percentage gainer on the FTSE Midcap Index Ultra Electronics said it had begun the new year with an order cover on expected revenue of about 62 percent, higher than about 56 percent in 2017.
"The board is confident that Ultra has sustainable operating trading momentum with a significant number of recent long-term contract wins," said Douglas Caster, Executive Chairman.
The company said order intake for the year ended Dec. 31, 2017 was about 900 million pounds ($1.21 billion), adding it would recommend a final dividend of 35 pence per share.
The company said the search for a new chief executive was underway, after its last CEO quit in November as Britain's government scaled back business with the defence contractor. ...
Funding pressure on the Ministry of Defence has forced it to pause, cancel or delay several programmes and "within the last few weeks a number of our UK orders budgeted for 2017 have been affected," Ultra Electronics said in November.
Ultra Electronics' new chief will be looking to tap U.S. President Donald Trump's promised $700 billion in defence spending. The U.S. accounts for 50 percent of the company's revenue, while UK accounts for 24 percent.
I hadn't expected this after the November statement, but you can never got too many trading updates! And it says things are in line with the November statement, but there is a little more detail given.
Incoming orders have been strong with £900m in v sales of £770m, so we have an increased order book at year end.
They are raising the dividend, albeit modestly, and companies facing Armageddon don't do that, so it shows confidence that this UK blip is likely to be a short term blip only.
Operating profit this year will be just under £120m. last year it was just under £90m, so a 33% rise. That's not bad is it? Admittedly the number of shares has increased, but only by 10%. So last year's EPS was around 83. A 33% increase in earnings and a 10% increase in shares would give us an EPS around 100 - a PE of 12.5.
Full year dividend is likely to be 49.6
2018 is likely to show modest improvement on 2017 (although it's early stages.)
So I think a business growing modestly with a good international coverage & a PE around 12.5 & yield of nearly 4% merits a weak buy recommendation.
"the pay review body for the MP's independent and watch as they give them a massive pay rise."
I don't see why we have to pay for this very expensive independent review of MPs salaries every year or whatever it is. It would be a lot simpler if they applied a set factor to average earnings which HMRC could produce easily enough. Use the same factor each year. Multiply average earnings by the factor - that's the MPs salary. If the MPs do a good job of running the economy average earnings would go up, so would the MPs salaries - fair and simple. And if we really wanted to see MPs fight for the people they represent than each MP's salary would be pegged to the average earnings of their constituents!
"but be reassured they are concentrating on important things like putting the cost of a cup of coffee up 5p."
HB -- correct, and they are doing nothing about business rates which fleeces most premises based businesses . They are also doing nothing about building houses for the public sector - 55,000 in 2010 and 5800 in 2016 -- they just don't give a monkey's.
They are happy to call the pay review body for the MP's independent and watch as they give them a massive pay rise.
I sound like a socialist all of a sudden -- not so but the Tory lot don't inspire confidence.
I think they might get wiped out at the next election.
Well found Games, but this is nothing new - it is exactly the reason for the profit warning in November. This Government is dithering on all major things - like defence budgets or Fox's take over of Sky - but be reassured they are concentrating on important things like putting the cost of a cup of coffee up 5p.
One would have thought the announcement of winning £26m of new contracts would lift the shares a bit - it may be small fry - only 3% of annual turnover - but still nice to see that customers have not lost faith with the company the way shareholders have.
The amount of director buying going on, gives me reassurance to top up more at these levels. Another case of markets over reacting to some not so good news, Just short of targets so share price falls by 20%. Overcooked!
"More director buys." Yes & another fund taking up upping its stake.
"Spartan hurdle cleared." As I read it I think it is one hurdle has been cleared but there is still another regulatory one before the deal can go forward.
An impression I get about the way markets react to good or bad news these days is (in my opinion) best explained by the rise in technical trading - the number of people - not just private traders, but brokers too - who trade share with no knowledge of what the company does or what news affects it. They love to see momentum and all jump on the bandwagon when they see it. What this tends to do, in my view, is when a company announces bad news, the share price goes down, and keeps on going down way past its sensible level. (The converse is true with good news.) This should give people who understand the true value of a share a big advantage in being able to buy something cheap and sell expensive.
Invesco & Legal & General have both increased their stake (or taken a stake.) As their holding before this (if they had one) was below the notifiable threshold, we don't know how big a buy their recent one was.
And another director buy today - only £20k, but even Directors of PLCs don't all have wads of readies to shell out at any moment's notice, so it is still positive.
I'm waiting till it stops going down and shows some sign of recovery before I join them.
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