Interserve Share Discussion Threads

[leadersoffice] 20/2/2017 16:36

What an horrendous day!

[big bear billy] 20/2/2017 16:02

Come back at 150p !!

You need know when to run and to cut the loser.

[bookbroker] 20/2/2017 14:58

Dividend will be halved or cut altogether, you have seen a massive rise in debt, further cash outflows this year, and add in the uncertainty and you have a very dark and clouded outlook!

[essentialinvestor] 20/2/2017 14:41

I was at a loss to explain the share price recovery as previously mentioned,
it looked a very sanguine take.

Some probably did nicely buying the last dip and exiting before today.

[edmundshaw] 20/2/2017 14:25

Dividend should be halved, more or less (probably a bit more), in my opinion. This would allow the paying down of debt without causing a massive run for the exit from dividend investors.

At the current price, the existing business is on the face of it good value. The issue is the time-related value (negative) of the requirement for reducing the debt over the next 4/5 years, and the risk of a downturn in fortunes elsewhere in the business.

I understand people's concern with the "technically insolvent" balance sheet, but that ignores the value of the current contracts and the considerable (intangible) value of the existing business, most of which has been run very well. The company is still worth somewhere over £2 in my estimation, but where is hard to work out... and to an extent dependent on your investing timeframe.

[big bull billy] 20/2/2017 14:18

Hoping for 265p close !!

[bookbroker] 20/2/2017 14:16

The only reason the debt facility has been increased is because the banks know that without that extra leeway the company would likely run out of cash in everyday funding operations!

[bookbroker] 20/2/2017 14:14

Ur correct, debt now more than the value of the company, their overheads must be rising, and these contracts are so skinny!

[big bull billy] 20/2/2017 13:48

Book reversing ??

[leadersoffice] 20/2/2017 13:46

I said earlier I thought the divi would be cut...however since the conference call...I would be shocked if we get a divi for the next couple of years.

[big bull billy] 20/2/2017 13:43

Put my second toe in. Not ready to take plunge though. me very scare of losing my goolies !!!

[the juggler] 20/2/2017 13:42

It is time a few more of the Senior Management fall on their swords. They have taken massive salaries whilst paying their Facilities Management operatives a pittance, these are the people that are really generating income for the business. Goodness knows who would want to go in there and sort this mess out. The recent Chairman must be furious and surely demanding more heads roll? What a sorry state of affairs this is.

[bookbroker] 20/2/2017 13:24

Surprised that it employs 80K people in its various divisions, there is a heck of lot at stake for this co., and time is running short!

[bookbroker] 20/2/2017 13:19

This looks like it is almost on the rocks, debt has tabled over the last three years, it is a capital intensive business at best, and looking at the debt to equity it is actually insolvent with little hope of bringing down the debt in the medium term, desparartely needs to raise capital!

[pugugly] 20/2/2017 12:40

SECUNDUSER: Thanks for the link - A good summary of the concerns raised.

[jeffian] 20/2/2017 12:36

#3922

Boystown, "forward P/E and yield" considerations don't mean much if earnings and dividends are slashed! This may indeed be seen as a buying opportunity 3 years hence. Or it may not. Brave to be buying before the full implications are known.

Incidentally, there's a small but important error in that Forbes article. They refer to IRV terminating the waste contract. Of course, it was the other way around; the contract was terminated by the customer. This will have cost implications arising from the subsequent litigation.

[cerrito] 20/2/2017 12:28

Congrats to those who sold first thing this morning.
This year's AGM looks to be more lively than the only one I went to about 7 years ago which was very low key-like edmundshaw not impressed by people who increase the dividend one minute and then announce a further £90m write down shortly after.
I-and the market-did not appreciate the significance of the November RNS terminating the contract.
In no rush to buy more and will keep with what I have.
PS Thanks window784 and Pugugly for your conference call highlights

[seconduser] 20/2/2017 12:21

Might be worthwhile reading Forbes before dipping the rest of your foot in.
www.forbes.com/sites/roystonwild/2017/02/20/shares-in-interserve-have-crashed-26-what-should-you-do/#7cbd00d32421

[big bull billy] 20/2/2017 12:18

dipped my toe in.

[pal44] 20/2/2017 11:23

think this will have further falls for while .

[jamesryan123] 20/2/2017 11:13

I agree on the skeleton in CLLN. I suspect the Liverpool Royal project may be it. Delayed and overrun on costs, I suspect getting the asset available and receiving income will be a difficult process that may never complete.

[edmundshaw] 20/2/2017 10:34

I thought only smaller building cos got into this kind of mess. How did the lawyers not draw up contracts which clearly protected them from a contractor falling over, and in such an unproven area of construction?? And where was the BoD's expertise and oversight when it was needed? They get payed how much for this??

[prokartace] 20/2/2017 10:29

Been waiting for an 'in' opportunity on these for a while due to low rating and good yield. Think I will wait a while longer!!