Chloride presses the right buttons
Midas, Mail on Sunday
17 October 2004

ALK of power cuts this winter and ageing electricity infrastructure is music to the ears of Keith Hodgkinson, chief executive of Chloride Group.

Though its name is still synonymous with its former battery manufacturing business, Chloride now focuses on technology-to protect electrical equipment from power failures.

Its principal business is uninterruptible power supplies (UPS), in effect large batteries or generators that maintain a flow of electricity in the event of a mains failure.

Tomorrow, the group will announce it has won a major UPS contract at Milan airport. A catastrophic power failure two weeks ago led to the cancellation of 389 flights at the airport.

The company's top-of-the-range system, LIFE.net*, monitors the performance of UPS systems from a remote communications centre, diagnosing and repairing faults without a site visit.

Chloride is recovering after its profits slumped in 2002, when high-spending telecoms customers tightened their purse strings in the face of a market slowdown.

Profits have risen in the past two years and the annual dividend* was increased this year for the first time since 2001.

In a trading statement last month ahead of interim results on 28 October, the company said there were continuing signs of recovery with its performance well ahead of last year.

Analysts forecast profits this year of about 9.45m, with earnings per share* of 2.7p.

With the shares at 44 1/ 2p, the group is valued at 111m llion and trading at almost 17 times expected earnings, which we do not think is too pricey.

Midas verdict: Chloride has been out of the spotlight for some time, rebuilding its business and hoping for more favourable markets, but it is emerging from the shadows. The UPS market is forecast to show good growth and Chloride, with its global reach, should benefit. Buy.

http://www.thisismoney.com/20041017/nm83587.html

Moving up nicely now.

cheers GF.

Among the small caps, plant hire company Ashtead was the main talking point. Its shares gained 2.5p to 71.25p, excited by rumours that the company recently received and rejected an approach for its US operations from rival United Rentals. Takeover speculation was also swirling round power supply group Chloride, up 5p to 53.5p.

What do you reckon 90p takeover???????????????.

cheers GF

Chloride - Thursday 28th October 2004

The global power solutions group managed to shrug off stiff competition to post slightly better than expected interim figures. With public and private sectors worldwide looking to ensure security of power supply, Chlorides outlook looks promising. The stock looks a little pricey but there are reasons for that. Kam Patel reports.

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The group raised interim pretax profits to 2.65m from 1.67m last time on sales up 3% to 77.7m. On a constant currency basis, though, sales were ahead 9%. Basic earnings per share rose to 0.72p from 0.38p and interim dividend has been lifted 6.25% to 0.85p from 0.8p. The group is comfortable with full year forecasts.

Chloride said it continues to see improvement in its markets but cautioned they ' remain extremely competitive'. It added that despite continuing pricing pressure, its order book is significantly ahead of that at year end in March, and that the group continues to outperform the market.

Chloride's business generally covers the provision of solutions and kit to ensure security of power supply. The group's public and private client base covers a wide range of sectors including health, retail, government, oil and gas and telecom-related services. Customers include the NHS, HSBC, Network Rail, BP, Philips and Vodafone.

Major developments that underpin a positive outlook for the group include increasing concerns worldwide about power failure and the rising demand for 'clean' power supply to ensure IT systems function properly. These have already proved to be headline making issues and Chloride is well placed to take advantage of the growing demand worldwide for power security.


The company is number one in Europe for providing Uninterruptable Power Supply (UPS) systems. These are most popular for critical equipment such as medical, telecommunications, and data processing and make up 90% of the group's business. Europe contributes 65% of total group revenue.

Worldwide the group ranks fifth, mainly because of its relatively low exposure to the US which contributes 14% of group revenues. Elsewhere Asia/Pacific makes up 12%.

The outlook for the global UPS market is bright, with research by Frost and Sullivan earlier this year predicting it will grow from around $5bn now to $6bn by 2008.

The group consistently trades at a premium to its sector. Chief executive Keith Hodgkinson defends the rating, saying it can be justified on the basis that the group is growing ahead of the market and that it boasts a strong, recurring stream of revenue from its servicing operations. Investors are also attracted by the group being able to convert profit straight into cash.

Further expansion in the US would be attractive and Hodgkinson says that while the group is always looking for suitable targets, it does not feel under pressure to rush into any deal. There are plenty of opportunities for further growth elsewhere, he says.

Before today's interim figures, Chloride was forecast to deliver a full year pretax profit of 9.37m and earnings per share of 2.86p. In the wake of the statement, its shares rose XXXXX, leaving it trading on 16 times prospective earnings. Buy into weakness.


cheers GF

Could be a bid on its way, but remember this one is recovering.

cheers GF.

Still no news on the takeover.

cheers GF.

Still holding these. Could be a ride up in the price if we get a really bad winter like predicted. Well worth doing the research.

UK smallcap opening - Chloride higher as H1 profit increased by 53 pct
AFX


LONDON (AFX) - Chloride was 4-1/2 pence higher at 92 following a positive set of first half figures, dealers said.

The company reported a pretax profit from continuing operations of 6.5 mln stg for the six months to end Sept, up 53 pct, on sales of 84.4 mln stg, up 18 pct.

It is paying an interim dividend of 1 pence per share, up from 0.85.

mps/tc

cheers Gf.

Our share club on my recommondation jumped on this ride, I'm sure it has further to go. I feel 250 should be the peak. Any thoughts out there?

Buy/ Hold recommendation from Growth Company Investor

http://www.growthcompany.co.uk/recommendations/1050272/chloride.thtml

back at my buying price again...yummy

for info looks pretty bullish....

Chloride Group PLC

FORECASTS
2010 2011

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Investec Securities
29-09-09 BUY 39.26 10.04 5.00 42.85 10.72 5.40

Charles Stanley Securities
29-09-09 HOLD 38.70 9.94 4.70 39.00 10.18 4.80

Arbuthnot Securities
29-09-09 BUY 41.00 10.53 4.95 44.98 11.51 5.20

Missed this last week....

23.09.09: an article in the Telegraph reports: Chloride Group rose 7p to 183p on bid speculation. The talk in the market was that US predators Emerson or Eaton Corporation could be lining up a bid.