Company Updates - FSTA, TMI, TBLD

Trading updates from Fuller's and TMI; and tinyBuild vote passes.

Fuller, Smith & Turner

Fuller's has released a trading update for the 42 weeks to 20 Jan 2024. Overall, the business has delivered 11.5% sales growth versus the year before, and trading during the Christmas and New Year period was particularly strong with sales up 21.6%.

Taylor Maritime Investments

We also got a trading update from TMI covering the quarter ending 31 Dec 2023. Here are some highlights:

  • NAV per share has increased to $1.36 from $1.31 the prior quarter due to a recovery in vessel values.
  • The average charter income for the quarter rose c.15% to $11,977 per day, and the average time charter equivalent (TCE) rate at the quarter end was $11,996 per day.
  • At this level the fleet is breaking even, and every $1,000 increase in TCE from here will increase cash flow by $19m on an annualised basis. (Note: the break-even includes finance costs and the dividend.)
Operational leverage around the break-even TCE.
Operational leverage around the break-even TCE.
  • TMI's debt-to-gross assets decreased to 24.9% at quarter end from 26.9%, after the repayment of a further $11.4m of debt. On a look-through basis (including Grindrod's debt), debt-to-gross assets was 35%.
  • Debt repayment remains a priority, and management is looking to bring down the look-through debt-to-gross assets to 25-30% through additional asset sales. This, along with the realisation of planned operational synergies, should reduce the break-even TCE, and increase the net cash flows the company is able to generate.
  • As highlighted before, the portion of the global Handysize fleet nearing retirement age significantly exceeds the orderbook for new vessels, creating a structural supply deficit, while minor bulk demand continues to increase each year. This presents a significant opportunity over the next few years that TMI is positioned to capture.
Global bulker fleet age profile.
Global bulker fleet age profile.
Grain and minor bulk trade development.
Grain and minor bulk trade development.
  • Principals of the original Taylor Maritime group (making up most of the Executive team) acquired a total of 3,910,450 shares in the market during the quarter, bringing their total ownership to c.8% (26,493,914 shares).


Finally, we got the results of tinyBuild's Special Meeting on Friday: all resolutions passed, and so the net proceeds of c.$11.4m will be released.

In the end, 4,844,179 shares were subscribed by investors through the Open Offer, raising gross proceeds of $0.31m. This exceeded the 4,000,000 shares subscribed by institutional investors in the Placing (excluding the Private Placement given to Atari).

I for one am glad to have this whole sorry saga in the rear-view mirror, so we can move on to the next chapter for the company - which will hopefully be a positive one.

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Jamie Larson