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

Not in yet but watching very closely. Any views any one?

Looks very interesting azhar, but certain to be marked up by MMs first thing in the morning. Tipped by two Sunday Rags aswell.

Best entry point I feel would probably be tuesday. May go in.

cheers GF.

Further news of blackout issues this morning in the press will definately make this go today.

Chart for the company.............



Bought some a few mins back.

cheers GF.

Where do you see these going GF (apart from up). Recent RNS indicated that Barclays reduced their holdings. what you think of that? Not in yet still watching. Also Interims due on the 28/10/04 and they give a divi, tho only .85p/s

Nicely up Azhar, especially after I have read my local paper yes, local paper and that warns of Electricity black outs this winter.

As for Barclays reducing, just one of those things. Nothing disturbing.

cheers GF.

Some interesting ratios on digital look..............

Historical P/E of 18.7

Forward P/E of only 15.8

And a forward PEG of 0.76

ITS CHEAP VERY CHEAP.



http://companyresearch.digitallook.com/cgi-bin/digital/security.cgi?username=1038899&ac=7019701&csi=11324

cheers GF.

What the Brokers say.................

Strong Buy 1
Buy 2
Neutral 1
Sell 0
Strong Sell 1
Total 5

cheers GF.

From UK analyst................

Shares in electronic over-ride group Chloride were charged after it was tipped in the weekend press. The Mail on Sunday noted that it had seen 2 years of rising profits and would benefit from its global reach. The shares were recommended as a "buy" at 44.5p. The article said that there would be announcement today of a new contract win at Milan Airport - this failed to materialise (well done the Mail) but the shares still added 3p to 47.5p.

cheers GF. Wonder if the announcement will be made and how much will it put on the price?????????????????????????.

Holding steady. I think we need that Milan deal to get things moving.

It'l come Azhar, and when it does we could have a nive move upwards. Buys far higher than sells so far today.

cheers GF.

on bloomberg news lsat night/they said the deal had been done/
(tich -tape)

definately worth a good punt -results out on 28th October 2004 -with the major contract win I reckon -should see 55p by then imho!

Good point made there hondaman, yes they are likely to announce the new contract on results day.

Some nice big buying today.

cheers GF

bristlelad if the deals been done it should have been reported on RNS so it could be out either weds or thursday.

cheers GF.

I agree/ gf/ i have aiso looked confirmation/ could not find any on RNS etc of deal / still in and hoping/

Still waiting to get in....

Slipped a bit today. Maybe ppl think that there maybe no Milan deal.

Looks like all small caps taking an hit. Certainly more buys than sells with this one.

cheers GF.

MMs messed about with the spread and price yesterday. Get in now before they price you out.

cheers GF.