||EPS - Basic
||Market Cap (m)
Management Consulting Share Discussion Threads
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|Circular with proforma b/s is here FYI
Net cur assets £32m indeed strong vs market cap £26m, but pension liability £17.6m, ongoing losses, and wind down costs of KS business to consider.
I find it kind of interesting at this price but think I want to see evidence of turnaround of AP.|
|Thanks WJ, just found the proform.|
Post capital return and at 5p share price the figures are
mkt cap 25.6mm
Net Cash 52.694mm
Net Current Assets 32.448mm
Net Assets 66.835mm|
|WJ - Your cash/market cap. figures may be right but what about the other liabilities within the business?|
|Probably will a little later down the line when it'll be worth more.|
|Why wouldn't they look for a buyer for the remaining business (or whole company) and just complete the job?|
|Perhaps, but with Richard Griffiths now holding over 7%, I suspect it will be more difficult to splash the cash as opposed to selling up and returning it to shareholders.|
|What will they do with cash...normal process buy another company at a premium saddled with debt or problems & the merry go round starts again...|
|What's with the sudden drop ?|
|Lol. Added at 5p. Check back in a few years when the remaining business is profitable.|
|Really? Net cash is £52.5mm versus mkt cap of 29mm. Assume Proudfoot loses £5mm this year and there's still a big cash cushion. Even using net current assets rather than net cash gives a surplus.
I suspect if they can't turn round Proudfoot in the next 12 months, they'll be pressured to sell it and wind up the company.|
|Waiting for 3p...|
|Also joined with a few....|
|Thanks, yeah missed the $8m costs - FX rate has improved since that announcement so it is more like £124.5m @ 1.26. So about 18p/share net of all liabilities.
They won't pay all that out in cash. Admin costs are about £30m/year so think £10m max restructuring cost, US service industry restructuring isn't that onerous. If we also took off £15m to balance working capital (in reality they can probably run negative NWC just not as much as they had at the HY) & £15m into pension fund they could still return c15p/share and be left with a debt-free £50m+ turnover performing business after turnaround.
I've bought a few now to keep on my radar with the option to add if it goes much lower.|
"MCG is expected to receive net cash proceeds of approximately $157 million (equivalent to approximately £121 million) after the deduction of estimated transaction costs of approximately $8 million (equivalent to £6 million). There will also be non-recurring expenses and cash outflows associated with the Disposal, principally relating to share awards and employee remuneration and tax expenses arising on the Disposal. After deduction of non-recurring costs and tax expenses the net cash proceeds are expected to be approximately £116 million."
Then "Following Completion, the Group will retain certain assets, obligations and liabilities of the existing Kurt Salmon business, relating principally to back office functions in the United States. Some of these are required to support the transitional services agreements in place with Wavestone (formerly Solucom) and ECG Management Consultants, the acquirers of the French and related operations and the healthcare operations of Kurt Salmon respectively, and the transitional services agreement with Accenture. Following the Disposal, and as these transitional services arrangements with acquirers fall away over time, the Group will need to make changes to the existing back office functions to reduce costs, in the United States in particular. The Group is also likely to make other changes to its cost base to reflect the reduced scale of the continuing operations of the Group following the Disposal. The Group intends to retain sufficient cash resources to support the ongoing costs of these obligations and liabilities and any related restructuring requirements following the Disposal. "
So your numbers are probably too optimistic IMO but your point that a £50m t/o consulting group might be worth £50m to someone when returned to profitability (and theerfore MMC might be cheap here) is valid IMO. Not cheap enough for me yet but I'm getting more stingy every year!|
|Interesting that assuming they got the $165m on completion in USD and didn't hedge this is now trading below net cash:
Sale proceeds $165,000,000 FX 1.26Sale Proceeds £130,952,381 Cash £7,983,000 Debt £6,063,000 Pension Deficit £17,685,000 Payables £24,263,000 Receivables £8,462,000 NWC -£15,801,000 Other liabilities £1,258,000 Net Cash £98,128,381 Shares in Issue 507,794,065 Net Cash/Share £0.19324
So if you buy today you are getting a c£50m T/O business for free. This is probably still slightly loss-making but the other business sold for c. 1x sales so could be a c50% upside with little downside given the cash backing.|
|Quite some uptick here today (!!!), after this morning's RNS.
Any views anyone, on where we go from here.
|Breakout?...or a bid?..|
|CSG got the bid...anybody for MMC?....|
|Something is brewing here...|
|Something going on here...|