AEA Technology Share Discussion Threads

[hightech] 18/9/2012 10:51

Thank you.
I understand the point you mentioned, "UK Government should step in and underpin the pension blackhole rather than let a good business go under. becuase they pick up the pieces via the pension bail out fund if the company fails anyway".

It is cheaper for the government to support the company ..

[warwick69] 18/9/2012 10:44

i only know what i have read on this BB he was an ex senior employee so all i imagine he knows the company very well?

if there was no pension problem this would be fine? as the relative amount of debt is not that big.. but the penion deficit is enormous..

very much like Unigate where the Pension fund ended up buying the shares of the trading company?

it is in situations like thse where UK Government should step in and underpin the pension blackhole rather than let a good business go under. becuase they pick up the pieces via the pension bail out fund if the company fails anyway...

[hightech] 18/9/2012 10:35

Warwick,
I agree with your analysis above. This company is unique in its activities and is very well known with strong links around the world. The list of vacancies in its website is huge. All positive signs, IMO.

Would you mind to share your knowledge about Watson's interest and analogy behind it, as/when becomes available.

[warwick69] 18/9/2012 10:09

more steady buying today?

[warwick69] 18/9/2012 09:53

i note on here that some of you have speculated that the Watsons had sold well from recent RNS it looks as though they are still buying u to 13.4% of company now. 190 million shares no way they will be able to easily sell those without someone knowing?????


he must be confident being an ex senior employee perhaps he knows more than most pi's ?

might just ring him up and ask what he thinks ?

[fenseal3] 12/9/2012 09:45

Looks like this is starting to move back up again...it's been tested the last couple of days but the chart and the buying wants to see this higher...i saw the lowest point in the last two months was 0.03p offer, i must admit i have been waiting for the drop towards this mark but it doesn't look like it's going to happen.

[hightech] 11/9/2012 13:09

Thank you Fen,
I think it will survive, but risk is there. If they succeed to get new contracts, the share price can jump ten fold.
As you rightly said, it worth a small punt as it may get you rich.

[fenseal3] 11/9/2012 09:18

HighTech, looking at the pension issue, now they have restructured the company, in their words (we have started to deliver results), i think they would be able to service the pension issue, the banks know that turnover is improving all the time, if they can get to a level where they can make enough profit to pay any liabilities service the pension deficit and breakeven then we will be off to the races...the banks have given them 5m, so they must see a future here...waiting to sell elsewhere to buy in today.

Taken from the last results.

Capital structure and funding

Since the date of the profit warning in January, Lloyds TSB Bank plc (the "Bank") has remained supportive of the Group's activities while the Board, together with its advisers, prepared a new strategy and business plan. During this period, the Company sought to reach agreement with the Bank as to revised facilities, including amended covenants for 2013. At the same time the Company held detailed discussions with the trustee of the Group's defined benefit pension scheme (the "Trustee") with a view to addressing the significant deficit of the scheme and the Group's on-going funding of these retirement benefit obligations.

The impact of the significantly reduced profit level and its effect on our bank facilities and covenants, combined with the increase in the level of the pension deficit, has meant that the Board has, with the Bank and Trustee, been exploring ways to match the level of Group debt and pension obligations to the level of profit and cash flow being generated by the Group's businesses.

The new strategy and business plan has now been completed and discussed with both the Bank and Trustee. The new strategy and expected operating performance sets out a positive way forward for the Group and its employees, and the actions already taken by the Board to improve operational efficiency have started to deliver results. However, as announced on 18 July 2012, despite constructive discussions with the Bank and Trustee, the Board has been unable to achieve a long term solution to the existing levels of net debt and the significant on-going funding costs of the Group's retirement benefit obligations.

As a result, with the support of the Trustee and the Bank, including short term financial support, the Board decided to consider all strategic options to realise value and can report that this process is now underway, including ongoing discussions with a number of interested parties. However, as previously announced, the Board does not envisage there will be offers for the share capital of the Company and the Board expects that such options will result in little or no value for shareholders.

In order to support the Group whilst these options are pursued, the Bank has given an agreement in principle on the terms for a new money facility to provide additional short term funding of GBP5.0 million on a secured basis through to the end of October 2012. Entering into a formal facility agreement in respect of the additional GBP5.0 million will be conditional upon the Group providing security and an ongoing liquidity covenant.

Still alot of risk here, but for a small punt it could be well worth it!!

[hightech] 10/9/2012 15:13

fen,
Ay conclusions? what do you think.
I feel they have the capacity to develop and even expand, but the pension issue is the problem.

[charly_cox] 10/9/2012 14:11

EU Shale Gas Report Draws Polish Ire

Posted on Monday 10 September 2012


The European Commission has published a report by British consultancy AEA Technology which examines the potential impact of shale gas extraction on EU climate goals. A number of experts are skeptical about the findings of the report due to the earlier close cooperation between AEA Technology and Russia's Gazprom

It shows that extracting shale gas generally imposes a larger environmental footprint than conventional gas development, which is why AEA recommends updating some of the current EU regulations regarding shale gas exploration and production.

New requirements are expected to raise shale gas production costs, although it still depends on how stringent they would be. The European Commission is working on plans to present some specific solutions.

Poland's Treasury Minister Mikołaj Budzanowski criticized the report for "misleading the public" and said that the government would soon take action in response to the publication, Rzeczpospolita reported.

Poland is thought to have the EU's largest shale gas reserves, but estimates of total accessible deposits vary widely and some initial exploration has not yielded the expected results.

A number of experts are skeptical about the findings of the report due to the earlier close cooperation between AEA Technology and Russia's Gazprom group, the world's largest extractor of natural gas, Rzeczpospolita wrote.

Warsaw Business Journal, 10 September 2012

[1leigh] 10/9/2012 12:55

Keep an eye on this. I can see the Watson's trying this again if it gets low enough.

[duncandisorderly] 10/9/2012 10:01

Have set a target of .03 mate.That still leaves me massively down but at least I have recouped some small losses.Will then chuck it all in Zenergy and wait.

[1leigh] 08/9/2012 01:02

don't hold your breath. dunc, let us know when you close out.

[fenseal3] 07/9/2012 12:10

Watching this today to see which way it might go....there has just been a nice 8.5m buy, so far today we have 37m buys and 25m sells...looks like the RNS yesterday regarding the Watsons has not dampened spirits here,, i will give it a couple of hours.

[paid_piper] 06/9/2012 23:26

spot on

i would worry that company could suspend shares at any moment to 'clarify financial position'

[cyberbub] 06/9/2012 23:00

The question is not whether the company will continue, it will certainly continue and maybe even expand, the only question is whether shareholders will see anything.

[fenseal3] 06/9/2012 17:16

Hightech i have been watching from the side lines today, whats your thought on Mr and Mrs Watson selling, also do you see value here, the banks seem happy to give them support with a 5m loan till the end of October...surely they would not have done this if they thought they would lose the lot...i'm trying to work out if it's worth a punt or not, cheers fen.

[hightech] 06/9/2012 16:28

I think the company is in much better shape than they pretend to be. They have the money to employ so many new engineers in the UK and US.

[hightech] 06/9/2012 16:25

Why the company is employing so many new staff then? Check their website.

[hightech] 06/9/2012 16:23

All transactions appears were done on 15.08.2012. I wonder why they are reporting it now.

Does that mean another players is playing games. Buying a lot and selling half, reporting any part of the transaction to help themselves. This can only be done in collaboration with top guys the company, IMO.

[paid_piper] 06/9/2012 16:19

last one out turn out the lights ?

[skinny] 06/9/2012 15:18

Strange that the date of the transaction was 15.08.2012.

[doobster78] 06/9/2012 15:13

LOL - The Watson have sold the lot ... very well done to them ... kept buying bits and pushing the price up as they knew a buying holdings rns would do the trick then dump the lot. Thats what u can do when u have money

[duncandisorderly] 06/9/2012 12:51

I think I'll keep it running until the middle of next week then put it into my Zenergy shares.It's another one that owes me big time.