Edison Investment Research

Molins

Company overview

Molins is a specialist engineering group involved in the design and manufacture of processing and packaging machinery, principally for the tobacco and FMCG industries.

Date	Reports available	Download
Dec 04 2008	Property sale completed Molins has completed the sale of its Saunderton site for £16.2m. The final payment of £15.4m, received yesterday, is £3m more than the current stock market valuation of the whole group and largely eliminates overall group net borrowings. While the share price recovered by 10% following the announcement, it has been in steady decline in recent months, notably since the Interim Management Statement issued in October. Research type: Flash note - Property disposal	Log in to download 1 page note available
Oct 17 2008	Trimming forecasts Molins’ interim management statement today highlighted a deterioration in two of the group’s three divisions – Packaging Machinery and Tobacco Machinery. As a result of the weakening economic environment, we now expect 2008 sales to be £88.9m, which is 3.5% below our earlier estimate, with both divisions contributing equally to the downgrade. We have also reduced our pre tax estimates by 20% to £3.4m. For prudence we have downgraded our 2009 numbers by the same percentage. Research type: Flash note - Trading update	Log in to download 1 page note available
Sep 15 2008	Intrinsic value The need to pare back estimates has undermined City confidence about the success of the current group rebuilding. The market seems preoccupied with the past and with sector issues, tending to ignore the strides being taken towards organic growth. The shares offer a high immediate yield and considerable intrinsic value. Research type: Outlook - Interim results	Log in to download 12 page note available
Apr 28 2008	Attractive yield The market’s cautious reaction to the Molins interim management statement is understandable, but it ignores the underlying value of the business. There is a strong balance sheet, to be boosted in the autumn by the likely proceeds from the sale of its Saunderton site. The key businesses are sound, with recognised global positions in their chosen markets, while the well above average dividend yield looks quite safe. Research type: Update - Trading update	Log in to download 2 page note available
Mar 11 2008	Undervalued The Molins share price has naturally reacted adversely to last year’s problems in Canada, but the true underlying value is being totally ignored. There is a strong balance sheet and a high service content to earnings to counter the capital goods cycle. With a clear strategy to lift both the quality and quantity of earnings in each division, the shares offer significant medium term potential. Research type: Review - Full year results	Log in to download 8 page note available
Jan 29 2008	Planned succession Current and planned management changes are positive moves towards building Molins into the future. Meanwhile, 2007 results, due to be announced in late February, should show the group on course to sustain its underlying improvement. In this context, share price weakness in recent months is difficult to justify. Research type: Quarterly Update - Trading update	Log in to download 2 page note available
Aug 31 2007	A changing business Molins has been strengthened by a series of acquisitions and disposals over the past few years. There is now a strong balance sheet and an improving quality of earnings as the group emphasis has switched from UK manufactured capital goods to the solving of customers’ engineering problems and the provision of spare parts and specialist services. This change has yet to be recognised in the share price. Research type: Outlook - Initiation of coverage	Log in to download 12 page note available

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Edison's research ... is balanced, objective and provides a level of detail not normally associated with smaller companies.

Peter Knowles
Director, Fyshe Horton Finney