Costain Share Discussion Threads

[ammu12] 15/4/2020 10:06

Paying over the bid.Looks like shorters closing

[babbler] 15/4/2020 09:56

Nope given it to end of week.

[ammu12] 15/4/2020 09:53

Can't be sub 100p surely after the news...

[farrugia] 15/4/2020 09:27

'We cannot delay': government's formal go-ahead for HS2 work to begin

[gooner1886] 15/4/2020 08:55

They may not even cash raise but more than likely will

[babbler] 15/4/2020 08:49

Yup get that sorted above £1 ASAP and it will rise a lot. Only think keeping it down where it is... For now.

[gooner1886] 15/4/2020 08:48

Lets hope the country slow gets back to work, safely first though obviously!

[ammu12] 15/4/2020 08:47

Yup This will be multiples of current share price medium term...Don't forget construction is probably the only sector that still relatively busier!!!

[gooner1886] 15/4/2020 08:45

Not even bothered if they need a cash raise aslong as its anouve a quid, smallShares in issue could be positive a cash raise for the longer run

[babbler] 15/4/2020 08:35

Separately, Costain has been awarded a GBP210 million design and build contract by Highways England to upgrade an existing section of the A30 north of Truro, CornwallI was wrong yesterday being cautious but bought today at 65p

[gooner1886] 15/4/2020 08:34

It should do bud

[ammu12] 15/4/2020 08:30

Strategic partner for hs2. Billions in contracts...This should recover nicely....

[gooner1886] 15/4/2020 08:28

I should have got in yesterday at 50 but never did , never mind inlan holding these for 2 years lots coming up for them

[ammu12] 15/4/2020 08:27

Good buy gooner.This is a good 12 month hold for a recovery back to 200p

[gooner1886] 15/4/2020 08:15

Took £20k at 65 in here today, this will re rate massively this year. Good luck all

[farrugia] 15/4/2020 08:11

rather what goes down must go up! this has gone down massively!!! and the company is in a much better position than mnay others.

[davwal] 15/4/2020 07:59

What goes up must go up...

[sweep stock] 15/4/2020 07:55

There's a hole in the bucket, dear Liza, dear Liza... Call Henry!

So where we going today? News now priced in in the short term? Normally I'd be confident of a good rise but after yesterday and this market who knows.

[davidlloyd] 15/4/2020 07:14

So there was no leak yesterday of today's news..??....sheesh!
DL

[philobeddoe] 14/4/2020 14:48

RogerRail - if you look at AA share price it's exactly the same plateau. Started exactly same time, looks exactly same. It's nothing to do with any placing leak.

[imastu pidgitaswell] 14/4/2020 14:30

How so?

It is a bit convoluted, but does make sense to me:

They believe they are a going concern without the capital raising, but it's a bit tight. To ease that, and to take advantage of opportunities currently not possible because funding is tight, they want to raise funds.

The capital raising is not entirely within their control (underwriting clauses), and because of that, the accounting convention is that this constitutes a material uncertainty on the capital raising and this ordinarily may raise doubt about the business being a going concern.

But they believe they would have other options available (if the capital raise did not go through) and therefore there is no going concern issue.


Bear in mind, almost all of the wording will have been written by their auditors...

[cerrito] 14/4/2020 14:08

Page 130 of the AR
Going Concern statement
The Board has concluded that it is appropriate to adopt the going concern basis, having undertaken a rigorous assessment of the financial forecasts and with consideration of the anticipated net proceeds from the announced equity capital raise which the Board is confident will be approved.
Material uncertainties The Board considers that the Group and the Company have adequate resources to remain in operation for the foreseeable future and therefore have continued to adopt the going concern basis for the preparation of the financial statements. In assessing the going concern assumptions, the Board has reviewed the base case plans, identified reasonable worst case downsides and anticipated receipt of proceeds from the capital raise. Applying these reasonable worst case downside scenarios the Board concluded that, while there is liquidity headroom, absent the anticipated net proceeds from the capital raise, in a reasonable worst case scenario, while the headroom on committed facilities is adequate, the headroom on the leverage covenant is limited. The Board has concluded that to provide greater flexibility and headroom, and for the Company to take advantage of market opportunity, it would be prudent to take steps to conduct a capital raise to strengthen the balance sheet of the Group. The Company has entered into a standby underwriting agreement to support a capital raise. While the Board has a reasonable expectation that the Company and the Group will be able to operate as a going concern for the foreseeable future, in undertaking their assessment, the Board has considered the fact that a shareholder vote is required to raise additional capital, and that the standby underwriting agreement is subject to certain specific conditions which, although customary in nature, are outside the control of the Company. Under accounting standards these events and conditions indicate a material uncertainty on the completion of the capital raise which may cast significant doubt about the Group’s and Parent Company’s ability to continue as a going concern. However, in the absence of the capital raise, there are a range of alternative actions that would be available to the Board, including entering into discussions in respect of an alternative financing plan with the Group’s lenders if required. Therefore, the financial statements do not include any adjustments which would be required if the going concern basis of preparation is inappropriate. The Auditors’ Report refers to this material uncertainty, and their opinion is not qualified or modified in this regard.