Maturing business Molins is struggling to grow.
Revenue is 33% smaller today, then 2004. Market valuation decline by 80% since 2003. Are Molins shares still value for money?
Molins management made a recent trading update suggesting the poor results is for last year. Because customers were delaying orders till 2017.
The second good news is their pension situation. With the UK Bond Rates (known as the 10-year Gilts) rising. Their assets pay more in cash flow to Molins retirees.
The downside to Molins is capital expenditure. Because they haven’t spent big for a long time. Molins asset age in 14 years (is a record), and 60% of their assets meet that age.
Their last big spend was in 2003 at £13.6m. Since 2009, Molins average £4m in CAPEX. Don’t be surprised if they spend £10m.
On share price, Molins could average 80 pence per share in 18 months. But, don’t be surprised if it falls back to 40 pence because of the markets at all-time highs.
Revenue is 33% smaller today, then 2004. Market valuation decline by 80% since 2003. Are Molins shares still value for money?
Molins management made a recent trading update suggesting the poor results is for last year. Because customers were delaying orders till 2017.
The second good news is their pension situation. With the UK Bond Rates (known as the 10-year Gilts) rising. Their assets pay more in cash flow to Molins retirees.
The downside to Molins is capital expenditure. Because they haven’t spent big for a long time. Molins asset age in 14 years (is a record), and 60% of their assets meet that age.
Their last big spend was in 2003 at £13.6m. Since 2009, Molins average £4m in CAPEX. Don’t be surprised if they spend £10m.
On share price, Molins could average 80 pence per share in 18 months. But, don’t be surprised if it falls back to 40 pence because of the markets at all-time highs.
Is Molins a value play?
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