Centurion Electronics CUC. Traded on the Aim Market.
Drat, Shares mag got in before me and had this one as one of their plays of the week and I feel they are justified in their tip.

Heres a recent article I have lifted from another site and it sums up the company and its prospects.


Nice one, Centurion
By Neil Thapar

- Is Steven Cunningham of Aim-quoted Centurion Electronics set to become the next Alan Sugar of consumer electronics?


The short answer is that it is far too early to tell. But Cunningham's Centurion is potentially as well placed in a rapidly growing segment of the electronics market as Amstrad was during the 1980s personal computer boom. If Cunningham comes anywhere near to replicating Amstrad's success, investors can look forward to outsize gains in the years ahead.

Few have heard of either Centurion or its founder and 41% shareholder. However, there are parallels between the two entrepreneurs. Aged 37, Cunningham went to school in Enfield - not far from Sir Alan's stamping ground in the East End. Both essentially found their calling in sales and marketing. Cunningham started out as a photocopier salesman in the City while Sugar cut his teeth selling car aerials in the market stalls of Petticoat Lane.

As chairman and chief executive, Cunningham has now positioned Centurion for the emerging market for in-car entertainment systems such as flat screens, DVD players, and portable connectivity devices that enable games consoles to be used while on the move. Its products are mainly aimed at backseat passengers and should be a godsend for harassed parents on long journeys with a carload of kids.

The company, floated on the stock market last Christmas, claims pole position in the UK in-car entertainment market, ahead of brands such as Alpine, Pioneer, Sony and Philips.

Centurion designs, markets and distributes products under its own brand, subcontracting manufacture to the Far East. Its products can be factory-fitted to order, or in the aftermarket at a dealer's showroom. A separate range of portable "plug and play" systems is also available that can be connected ti a cigarette lighter socket in a car, caravan or boat.

The market for in-car entertainment and navigation systems is expected to grow rapidly over the next decade as miniaturisation, new technology and carmakers' desire to introduce new optional accessories helps to drive up demand. According to industry estimates, the aftermarket in-car entertainment systems grew eight-fold to about 235m in the past three years.

Cunningham says one of the group's key strengths is its ability to integrate small, flat screens and other devices into headrests, the car roof or other parts of the interior. It also has the know-how to develop products that are compatible with a car's electronic systems, power supply and wiring.

"Many of our rivals are focusing on developing information systems for the driver but we are concentrating on leisure and entertainment products," he says.

As a result, Centurion has signed up some big names in the car industry including BMW, Toyota and Nissan to offer its products as optional accessories. The group is also in talks with other manufacturers.

Separately, its products are also sold through retailers Argos, Currys, Dixons and Halfords. Among motor dealers it boasts Pendragon and CD Bramalls as its partners. On average, its products cost about 350, making them affordable and competitive against rival systems that can cost as much as 1,500.

Given that Centurion is reaching consumers through many different channels, growth is likely to be explosive. Moreover, this segment of the electronics industry is still at an early stage in its cycle and should underpin several boom years for Centurion.

Although Centurion, with a 14m market value, is still small, its results are already beginning to demonstrate the scale of its market opportunity. [/b]Maiden interim profits, reported in May, surged ahead 211% to 398,000 on a 95% increase in turnover to 2.8m.[/b]

It puts the company in on course to at least double taxable profits to 1.4m for the year ended 30 June 2003 but not yet reported. Taxable profits of over 3m in 2004 also look achievable according to the sole published forecast by its house broker Daniel Stewart.

For now the group also has sufficient resources to fund its growth. It had more than 1m cash in the bank at the half-year and recently also moved into new premises of 25,000 sq ft in Welwyn Garden City, Hertfordshire.

The shares have doubled since they were floated at 30p last December but canny fund managers such as Katie Potts of Herald continue to mop up the shares. Pent-up demand has led Cunningham to sell some shares in recent weeks. But the shares still look good for the long term and are likely to attract further attention as it becomes better known in the City.

The shares are valued at less than ten times expected earnings for 2003 and offer a dividend yield of 1.3%. Although small companies can trip-up if they fail to control and manage their rapid growth, Centurion's rating is low enough to justify the risk. Climb aboard.ENDS.

Looks like an excelent growth story to me.

GF.

Dropped a few pence this morning and this represents a great bBuying opportunity, Ive added this morning. 200p by Jan next year.

gf.

A good day for this company but blimey are these shares volatile. Only one I can think of is worse is Psion. Own them and you never sleep, was I glad to get shut.

Not joking now but was on the computer a few months back owning Psion and they had risen 5p, i thought oh brilliant, anyway went for a quick slash,2 mins at most, and banged up the real time portfolio when I got back and the buggers had gone down 2.5p. Couldnt beleive it, but its true. Never buy those again. GF.

Does anyone know when results are due as they are likely to be very good. Help appreciated.

cheers gf.

Charles Stanley @ Co Ltd, placed a Buy note on these yesterday although the price has drifted down I feel due to instituion sells.

Worth sticking in there, has a very high Beta and when the pick up comes will certainly move northwards.

cheers GF.

Top bombing this afternoon on the back of a shareholder buying and the Buy note above.

cheers GF.

Another very good day for this one. Anyone know when results are, cant get into hemscott where I normally get them.

cheers GF.

GF

According to Hemscott

Next Prelim announcement 14 November 2003
Next Annual report due 21 November 2003

SH

Cheers Sharehappy, looking forward to these, should be corkers after the new deals signed in the last 6 months.

cheers GF.

Wow, up just under 12% as someone tipped them??????, looks very much like it from the number of trades gone through already.

gf.

Could be about to go north, level 2 is looking promising.

GF.

Results I think due Friday????. Can anyone confirm.

cheers gf.

Reorort results on the 10th, next wednesday, and we may get a good run up to them, but beware they are very volatile. Hoping for good ones and perhaps a new contract thrown in.
cheers Gf.

Any thoughts on the potential of CUC on the back of good results?

I've seen these fall 10% in half an hour before only to finish the day 5% up! I expect some MM games so sold half of mine a few weeks back at 127p They've held out well, so to be honest I haven't a clue what will happen from here. Good results will gain good press, so I'll add on either a dip or v.good results. Be careful, however, becuase expectations are quite high and this years results may be more about next years potential than the current year ending. It will be volatile, I believe, on results day!

Hmm, Centurion is highly risky in my books and its products ain't as hot as they are being made out. Its a difficult market and one that is dominated with bigger players with bigger pockets if they make any waves then they will face the wrath of bigger companies. I would parallel them to a small fishing vessel attempting to defeat ten battle crusiers. They may be small and nimble but then the firepower of weighty competition turns on them, they will sink without a trace.

Just my opinion of course!!

Or possibly get bought out!

If you are contracting to far eastern factories just about anybody can do that so there is no need to buy that sort of company. Just send some body over to Asia. Like err, Alba for example!! Who turnover hundreds of millions.

There is a lot of hyperbole and PR surrounding this stock, it's great when its shooting up and stock is short and if you can make money that way, that's great but there is nothing special or new here. Just be aware of that.

Well I for one beleive in the management of this company. Show me a good management and I will show you a good workforce and a good company. The company have signed some high profile contracts of late, and I expect more to be announced.

Results wednesday fingers crossed they will do the talking for this one.

cheers GF.

I would interested to know what terms they have signed with retailers and what rotation rights and stocking comitments they have made.

BTW Goldfinger I think finding good management is not the problem if even if you have a good management I can't see that they can turn around a business with back economics.

With Centurion they have no brand or loyalty from suppliers or stockists the marketplace is dominated by low cost producers and therefore what ever they do they will have to sink to the lowest common denominator.

With people like Alba and Medion muscling in on their territory they have one hell of a battle ahead of them.

I could take a plane out to Asia tomorrow and sign up similar products and sell them to retailers so I don't see what Centurions USP is.