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Real-Time news about Amey (London Stock Exchange): 0 recent articles
|miamisteve: With the future finances secured, the shares are a significantly safer investment now than when Sterling were buying at around the 30p mark.
Debt was calculated at £159 and facilities were extended to £220m, so added the future receipts from Laing and PFI bidding costs etc., The 60m tubelines funds will be found.
a strong scenario now is that the company turns itself round, added the tubelines earnings, next results should see profit of 40m upwards (current market cap. is around £55 million). expect a share price in the £1.00 region by then.
Bids talks still seem preliminary. Amey is a complex company to account, although the board are supportive of these discussions. We could see a bid for the whole company materialise at around the 60p - 70p mark during the summer after the June tubelines deadline.
Alternatively the various parts of the company could be auctioned off. Again this would seem more likely after tubelines and assurances on Croydon tramlink.
i am currently nursing a 20% loss on this stock and have averaged down at 20.7p. While I had never expected the company to go bust, I was concerned over the possibility of a rights issue ( this will now not happen). I have no greater knowledge than the next investor on what will develop. from here I have a 6 month outlook on this stock and expect a tripling of current value.
pumpkins - Tettamanti is a swiss investor, now 71 and based in the UK. He controls Sterling investments and is now ameys largest shareholder. He has made a name for himself as a gordon gecko style corporate raider, building up stakes in under valued companies and forcing break ups. He is worth between 600m-1bn swiss francs. Previously Sterling were a major shareholder in Jarvis, Ameys partner in tubelines.|
|vs: AFX news 27th Jan
LONDON (AFX) - UK road contractor Amey PLC said around 250 jobs would go due
to a cost-cutting initiative. "There are less than 250 employees currently under notice across the group," said a company spokeswoman.
Amey has a workforce of around 8,000 currently.
Shares in Amey were off 2p at 26.25p at 1.30 pm. Amey has seen its share price lose over 90 pct of its value in the last year and chief executive Brian Staples and finance director Michael Kayser have both quit.
|miamisteve: It hasn't affected the other big four pfi companies share price and isn't a revelation, but here's yesterdays times article.
January 27, 2003
Hidden debts raise new fears on PFI contractors
By Mark Court
THE CAMPAIGN to force greater disclosure of secretive Private Finance Initiative contracts is stepped up today, as The Times reveals for the first time the amount of debt hidden in specially created companies by the industry's top players.
The top five companies in the PFI sector have amassed an estimated £2 billion of debt in more than 75 so-called "special purpose vehicles". These are obscure accounting entities which allow companies to park debts off their group balance sheets.
Hardened City analysts yesterday described the sum as "surprisingly large".
They added that the revelation will fuel concerns about the Government's support for PFI.
The £2 billion figure is calculated back from the interest payments which Amey, Amec, Balfour Beatty, Jarvis and Laing have paid to off-balance sheet vehicles. It probably underestimates the true scale of the debt supporting the PFI sector.
This is because the contractors hold only a small stake in most contracts, with banks and other financial institutions holding the lion's share.
The accounting treatment of PFI work by contractors has become highly contentious, contributing to a sharp derating of some company shares.
Today's disclosure is likely to increase pressure on the Accounting Standards Board to provide more information on special purpose vehicles, as well as clear guidelines on how and when PFI companies should book profits from PFI work.
Michael Parkinson, an analyst at the Newcastle office of Brewin Dolphin Securities, said: "The Accounting Standards Board will have to play a part in terms of clarifying the way in which profits from PFI projects are recognised, as it is clear that there are currently huge variances in the timing of revenue and profit recognition."
Mr Parkinson added that the lack of information provided by PFI companies makes it difficult to analyse their shares.
He said: "It is not easy at present for investors to put a value on a company's equity investments in PFI projects, a fact which many finance directors acknowledge.
"Going forward, investors will require more than a simple directors' valuation of their own investments and will require more information on future cash flows and returns on capital."
Laing, which recently sold its UK housing division to become a pure PFI company, is likely to take the lead in providing more information to shareholders.
Adrian Ewer, Laing's finance director, said: "What analysts need is information that enables them to value our portfolio because we are now as much about value creation as we are about earnings."
PFI projects usually have a lengthy construction phase during which value is created but before profits flow in.
The increasing number of PFI projects that are now reaching the operational phase is fuelling the debate on whether the Government should include PFI debt in the public sector borrowing requirement (PSBR).
This is because contractors are using an accounting treatment called finance debtor accounting once a PFI project is operational.
This form of accounting, laid out in accounting standards, is used in low-risk situations and treats the PFI contract as a finance lease.
This treatment undermines the Government's argument that PFI debt should be held off the PSBR because it involves substantial risk transfer to the private sector.
Special vehicles could be storing trouble
OFF-balance-sheet debt is the term for a company's borrowings that do not appear as part of group debt on the company's balance sheet. The off-balance sheet debt of a PFI contractor is non-recourse, so that if the special purpose vehicle (SPV) carrying out a PFI contract goes bust, then the contractor is not responsible for debts. Even so, if the SPV, which is usually highly geared and whose key asset is a cashflow from the Government, fails to perform in line with the contractor's hopes then it could have a serious knock-on effect. One analyst said: "SPVs have massive operating profits and massive interest payments so if an SPV is not generating the profits there could be big trouble."|
|miamisteve: Sit tight till the summer and you'll get your 50p back.
With the temporary 'open to all options' nature of the board at present the company appear now supportive to a break up and sale.
The Vectra sale to be announced shortly will realise a book value profit ( no downgrade on the sale in the profits warning at the tale end of last year, unlike the Laing deal ). This along with return of bidding costs should calm the debt concerns.
It's uninspiring stuff when 'tentative takeover' interest is announced and the share price moves up 0.5p. Especially in these times, the city seems wary of uncertainty.
I expect interest in the company to firm from several parties from Traceys, march, financial review and onward.
Tito doesn't take over companies. Assume him to be on your side looking for the best share price possible.|
|davey crokett: From Nothing-Ventured.com:
Analysts think the deal could be the start of the widely sought after
break up of Amey's business.
Bridgewell's Donnelly estimated that Amey has a break-up value of 60
pence, twice its current share price, although he remains "neutral" on the
"I think it would be difficult to determine at this stage whether someone
would be interested in buying the company as a whole."
Amey confirmed that an unnamed party or parties have expressed "tentative"
interest in the company.
Amey declined to elaborate, stressing that this interest is "very
preliminary in nature."
Tito Tettamanti, the Swiss corporate raider, has been aggressively
increasing its stake in Amey over recent weeks -- from 10 pct in December
to 14.3 pct last week.
European construction companies Vinci, Bouygues SA and Skanska AB were
previously rumoured to be interested in buying Amey.
Meditor Capital Management Ltd, which owns 15 pct of Amey and is believed
to have links with American billionaire George Soros, is understood to be
seeking the break-up of Amey's business.|
|crate: I have a concern which may or may not be relevent. I would be happy for someone more informed to tell us that it can not be done but;
If Tito & Soros intend to take their combined shareholding over 51% and then launch a bid to fully take over the Company, could they do this at a nominal increase on the current share price, say 35p, and guarentee success.
Once they take over they could sell any assets that were possible and use the proceeds to reduce debt. Leaving just the Tube PPP stake. They could then buy back the rights to this stake, £60m, and sell the PPP stake to another party, assuming the PPP stake is worth far in excess of £60m.
It may leave the rest of the shareholders with not much gain but themselves with any premium.|
Coverage in the Daily Mail for one under the headline "Break-up may double Amey's share price".
Now that would be a nice start to the New Year :)|
|jonkentgb: I just follow Evil! I saw that he made those three comments about Amey's business and he said he remained short of a large number of shares (usually he invests 250,000 to 750,000 at a time)
I'm more of a techy than a fundamentalist but whoever is harping on about Amey not being affected should check out their share price chart!
|cheesemonkey: A week after building up its stake in hapless Amey investment group Meditor Capital Management has begun to make waves; nevertheless, there is little so far to justify this morning's rise in the share price.
Amey (AMY) has added 2.5p to a still pitiful 29p on news that Meditor fund manager Talal Shakerchi met Amey chairman Ian Robinson yesterday to urge him to sell or break up the facilities management company. Amey has refused to comment on the meeting other than to say it sticks by its strategy.
As we reported last weekend Meditor has raised its stake in Amey from 3% to 15% after its shares tumbled from 413.5p to a low of 23.5p. Finance director Michael Kayser quit last week just one month into the job after reportedly clashing with chief executive Brian Staples.
The group is trying to find a partner for its private finance initiative projects, sell its technology companies and extract itself from its London Underground contract.
It is possible that Amey will attract a takeover bid from a predator seeking to buy it at a depressed price but investors who buy on such hopes are taking a considerable risk.
If nothing comes of Meditors initiative the shares will probably fall again. I would rather think of today's share price as a selling opportunity rather than an invitation to buy.|
|terry91: from the times. I do not hold but am watching.
Share of the week: Amey
INVESTORS in Amey, the support-services group, have had a torrid time. The share price has fallen from 417p to just 25p this year and has been hit by a series of profit warnings. Amey’s board is standing behind Brian Staples, the chief executive, but investors remain nervous about accounting issues and are concerned that bank covenants could be breached. To address these issues the group is to hire a senior Deloitte & Touche audit partner on a six-month secondment. The partner will prepare the figures for December’s trading statement and year-end results. If the accounts are signed off, it will restore confidence but this stock is not going to be re-rated quickly.
Amey hunts for the perfect partner
THE managing director of Amey in Scotland has claimed the firm can still form a new joint venture or partnership with another company and increase its exposure to Private Finance Initiative (PFI) contracts.
Amey, which manages large-scale state-school contracts in Edinburgh and Glasgow and maintains the motorways in the central belt, has seen its share price tumble from 413p to a mere 25p after accounting problems and the abrupt departures of two finance directors.
Amey wants to sell off equity investments in its PFI portfolio to spread the cost and the risk. A number of firms, including construction group John Laing, are interested in the stakes.
However analysts have claimed that ongoing accounting and boardroom uncertainties at Amey — some analysts claimed the position of chief executive Brian Staples was now untenable — could delay or thwart any joint venture deal.
The chairman of Amey is Sir Ian Robinson, who is also chairman of Scottish Enterprise and a former chief executive of Scottish Power.
With its market value currently at only £63m, Amey is also extremely vulnerable to a takeover. Analysts said that potential buyers may want to wait and scrutinise Amey’s next set of accounts in March before making any move.
Charles McLeod, Amey’s managing director in Scotland, maintained: “We intend to set up a strategic partnership with a financial investor, to allow us to do more PFI projects.
“We are currently trying to indentify a partner. People are bidding and it is a competitive process.
We can’t say who they are. The intention would be that we end up with a new vehicle and continue with what we are doing.
“We are totally committed to our existing projects in Scotland. They are our core business, our bread and butter. We are just trying to find a clever way of doing more.”
Amey announced last week that its newly appointed group finance director Michael Kayser had resigned and would be replaced on an acting basis by an unnamed partner of Deloitte & Touche. Sir Ian Robinson said: “We are both surprised and disappointed that Michael has chosen to leave Amey so soon after joining us.
“His departure is all the more disappointing since, following the recent changes resulting from the group’s strategic review, the board believes that a period of management stability is required as we implement our plans.”|
Amey share price data is direct from the London Stock Exchange