Sepura Share Discussion Threads

[larva] 18/10/2016 07:50

THE LAW

All borrowers should be aware that a breach of your loan covenants could have drastic consequences, such as your lender calling in the entire loan or at least charging a penal rate of interest.

Moreover, a breach may also have direct consequences for your statutory accounts, as the loan will need to be recategorised as a current liability on your balance sheet rather than a long-term liability given that it can be immediately recalled. This will affect the liquidity position of your business and may even mean that you are showing a net current liabilities position, which will alarm suppliers and others interested in your accounts.

The accounting rules do not allow for any discretion. So, where a loan covenant has been breached and then rectified after the balance sheet date, the classification of the loan as a current liability cannot be changed retrospectively - even if the lender has decided that it will not be calling in the loan. However, an additional disclosure in the accounts stating that the breach has been corrected may help to alleviate concerns.

[knobbly] 18/10/2016 07:50

SEPU is not going broke. Larva is a fool.

Plenty of value in the Company, but very poor sentiment recently with nothing evident to trigger an improvement in share price Recent modest contract wins haven't perked up interest.

Might see an uplift approaching 22 November with the interims, but that is over a month away. My re-entry price is closer to 12p than 15p. Might not happen, and if it doesn't then there's plenty of upside to catch when sentiment does return.

[apfindley] 17/10/2016 23:00

I think LARVA is broken. Or at least his ring is.

[junglist] 17/10/2016 22:26

The only things that is going broke is you muppet.

[larva] 17/10/2016 20:03

This is from the statement on 14 September

"
The revised revenue expectations may require Sepura to discuss with its lenders a possible waiver of certain of its covenants from March 2017.
"


OMG Christmas is here soon, if they cant refinance before everyone goes home for Turkey and trimmings, this is broke

[hays1] 17/10/2016 19:08

The derampers like LARVA makes me chuckle as they forget that people who engage in catching falling knives usually have above average intelligence to sniff out a bullshiser.

[sh1984] 17/10/2016 15:01

The recent contract wins will also help too :) the market cap is crazy for a company this size expecting a re-rate up on the 22nd when the results are in.

[tsmith2] 17/10/2016 14:00

Lower sterling will definitely help

[apfindley] 17/10/2016 13:52

"Our strong sales pipeline continues to give us confidence in the Group's longer-term prospects."

[apfindley] 17/10/2016 13:50

Haha LARVAYou are one desperate saddo loner.They raised £65mill not long ago.They have plenty of cash.They have already stated they are comfortable upto next April, and that's without any upturn.Administration is a long long way off.This will be bought out for about three hundred million quite soon. £300,000,000.

[larva] 17/10/2016 13:10

How they gonna do that. They have run out of moolah.








this is the worry seed

May have breached bank covenants at last review. High risk of administration imho

This is from the statement on 14 September

"
The revised revenue expectations may require Sepura to discuss with its lenders a possible waiver of certain of its covenants from March 2017.
"

[garking31] 17/10/2016 13:07

Larva.....tell me, will you close your short before or after the company start their share buyback?

[garking31] 17/10/2016 13:06

LARVA......that worry is already build into the share price ....ever heard of Contrarian Investing?

[larva] 17/10/2016 10:15

this is the worry seed

May have breached bank covenants at last review. High risk of administration imho

This is from the statement on 14 September

"
The revised revenue expectations may require Sepura to discuss with its lenders a possible waiver of certain of its covenants from March 2017.
"

[larva] 17/10/2016 10:14

gone red, L2 weak

[tsmith2] 17/10/2016 08:45

Larva infestation; pest control anyone?

[larva] 17/10/2016 08:41

May have breached bank covenants at last review. High risk of administration imho

This is from the statement on 14 September

"
The revised revenue expectations may require Sepura to discuss with its lenders a possible waiver of certain of its covenants from March 2017.
"


OUCH!!

[garking31] 15/10/2016 15:59

Well put Long.

[investment dave] 15/10/2016 15:49

Lol this company is about as far from administration as Tesco. Unless they are lying about their accounts

[l0ngshanks] 15/10/2016 15:46

This company manufactures outside the UK, does most of its business outside the UK, does most of its R&D in the UK and has most of its Admin costs in the UK and reports in Euros. Putting all these together, the UK Referendum and negative Balance of Trade impacts on exchange rates should not adversely affect Sepura and may be marginally beneficial.

The trading update on the 22nd will hopefully allay short-term fears and result in some improvement in the share price. However, there can't be any more bad news, if the share price is to ever recover and there must be some demonstrable progress and convincing management/board action before the share price rebounds. Longer term, Sepura has to explain how it will continue to grow when the TETRA market starts to decline, and this is probably imminent, if it hasn't already started.

I hope this helps genuine investors and followers of Sepura.

[garking31] 15/10/2016 14:53

LARVA.....do you have access to the Companies profit and loss / casflow forecast to backup your Administration comments?Do you think they would have been awarded there recent contract if Administration was a possibility.....the awarding Company would have also done their homework.You are clearly Short here and that's fine but scaremongering and spouting fabricated rubbish to try and profit is pretty poor and says volumes about the type of person you are!Lets hope you close that short before the next Rns come!PS: It will be before the 22nd.

[larva] 15/10/2016 14:24

The UK Referendum vote to leave the EU has resulted in a sharp increase in component costs due to the impact of exchange rate movements.


This could warn on profits soon

because illiquid you won't be getting out
could easily halve imho


May have breached bank covenants at last review. High risk of administration imho

[johns6] 15/10/2016 14:04

Also agree. This company will grow from strength to strength. My average is still more than double that of the current price but I feel confident. I too have spoken to the finance team and it really is business as usual. Unfortunately for us private investors we are the victim of higher forces keeping the share price here but patience will pay off.