|you surely don't think that today's 'approval' of 3rd runway actually changes anything.....to quote the BBC
Heathrow expansion has been in a holding pattern over west London for decades, and confirmation that the UK's largest airport has been given the go-ahead to build another runway does not necessarily guarantee its arrival any time soon.|
|Approval of Heathrow third runway may give this a boost.|
|The overall index is holding its high level. Today Begbie. Traynor says business is holding up well in the 3 months following the referendum. SFR appears well placed to recover but Rivaldo's hope of moving from 60s to 70s was not achieved, rather a fall to lower 50s.
Why are we revisiting this downside?|
|The Government has now approved the £56 billion HS2 project - and industry is pushing for British steel to be used:
SFR have already noted HS2 as a "Major UK pipeline project" in their presentations, along with Hinkley Point, CrossRail, Heathrow etc.|
|Canaccord have a Buy and an 80p target here:
|Into the 60p's now - let's hope for the 70p's soon then :o))|
|prob goto 70s now|
|Yep - only last month the CEO said re Hinkley:
"The next big ones for Severfield are the currently paused Hinkley Point power station (“it’ll happen when it happens”), and the third runway. Frankly he doesn’t care whether a new runway is built at Heathrow or Gatwick — he just wants politicians to say yes"
SFR must be in prime position for work on this enormous project.|
|Hinkley goes ahead, worth keeping a close eye on SFR. Not a holder yet.|
|Cash in a box catches on as Swiss negative rates bite
07/09/2016 By Le News Leave a Comment
Brought to you by Investec Switzerland.
It’s a sign the world is getting used to negative interest rates when what once seemed bizarre starts looking like the norm.
© Robyn Mackenzie | Dreamstime.com
© Robyn Mackenzie | Dreamstime.com
Consider Switzerland, where more and more companies are taking out insurance policies to protect their cash hoards from theft or damage.
“Because of the low interest rate level, we note increasing demand for insurance solutions for the storage of cash,” said Philipp Surholt at Zurich Insurance Group AG, among underwriters reporting a surge in such requests. “We’re seeing demand for coverage for sums ranging from 100 million to 500 million francs.”
The Swiss National Bank imposed sub-zero rates in early 2015, effectively charging banks for excess deposits. Many lenders including UBS Group AG and Credit Suisse Group AG have passed on at least some of the burden — they don’t disclose how much — to cash-rich clients like asset managers and big companies.
While the central bank is seeking to rein in the franc, negative interest rates have side effects that over time could outweigh the benefits. That risk may be on the minds of SNB officials when they meet next week for their scheduled quarterly monetary policy review. Economists expect they will keep the rate steady at minus 0.75 percent, the lowest among major central banks.
“The SNB’s dilemma is that it can’t make everyone happy,” said Alexander Koch, an economist at Raiffeisen Schweiz. “In its attempt to get the best deal for the Swiss economy, it also has created losers and collateral damage.”
Helvetia Holding AG said it charges about 1,000 francs ($1,020) a year to insure 1 million francs, a fraction of the 7,500 francs a company would pay to park the same amount in a bank for a year — assuming the lender passes on the full charge. But that amount doesn’t include the cost of logistics such as transport or security features like reinforced walls, guards and alarm systems.
Companies need to save a lot on bank fees for cash storage to be economical because, in addition to insurance, they have to assume the costs of managing the money, said Roberto Brunazzi, a spokesman for Baloise Holding AG. He said the company has long offered such coverage “but there has been a noticeable increase and now it’s becoming more commonplace.”
Switzerland’s continued use of high-denomination banknotes adds to the appeal of self-storage: About 1 million francs worth of 1,000-franc bills can fit in a small box.
The SNB’s rate applies to sight deposits — cash that commercial banks hold at the central bank — that exceed 20 times a bank’s required minimum, an amount set by the SNB and that varies from lender to lender. Private banks, which have lower thresholds because they are less active in lending, exceeded their exemption limit almost from the start. For other bank categories, deposits stayed either under or just above the threshold for much of last year.
By Jeffrey Voegeli (Bloomberg)|
|Great interview with the CEO - encouraging stuff:
"Deals for Wimbledon and Tottenham Hotspur give bosses confidence
BRITAIN’S largest steelwork contractor has seen orders hit a six-year high with bosses predicting its fruitful haul will provide a post-Brexit tonic.
Severfield has hailed its resilience against EU referendum challenges, saying contracts for sports stadiums, retail centres, industrial sites and road and rail improvements provide fertile ground for growth.
Earlier this year, Severfield, based at Dalton Airfield Industrial Estate, near Thirsk, North Yorkshire, revealed it would supply steel for Tottenham Hotspur’s new 61,000-seat football stadium and a roof for Wimbledon’s No 1 tennis court.
However, Ian Lawson, chief executive, told The Northern Echo the business, which previously worked on Wimbledon’s Centre Court roof and Heathrow Airport, was primed to go further.
He said its order book, which stood at £268m at August 31, typified its market strength, adding officials were bidding for further work.
Mr Lawson said: “I’m pleased with how the year is going.
“The order book is at a record high for the last six years and what is pleasing is that we have not seen any fall-out from Brexit.
“The order book and pipeline of opportunities is looking very positive and, at the moment, we are really optimistic about the remainder of this year.
“We are probably in a better place than I thought we would be after Brexit; we are very busy.
“In terms of what we can see, the next two to three years look very positive.
“If we were to have any caution (because of Brexit) it is going to be 2017-2018 or 2018-2019 but we cannot predict what might happen.”
Mr Lawson said the company, which previously worked on The Shard, London 2012 Olympic venues and the Gateshead Millennium Bridge, was benefiting from strong demand.
He also said Severfield’s Indian division, founded as a joint venture in 2009, was beginning to find its feet, with orders of £37m tipped rise as the country’s economy improves.
He added: “There is a lot of opportunities with industrial distribution sheds at the moment and also extensions of the big shopping centres or new ones.
“In India, we think we’ve got the business to a level where it is stable and can move forward.
“There is a lot of foreign investment going into the country and we’re hopeful we can benefit from that.”
Earlier this year, Severfield revealed it wanted to double profits after securing its Tottenham and Wimbledon deals and revealing revenues for the year to March 31 were up 19 per cent to £239.4m.
At the time, Mr Lawson confirmed the business would continue using UK steel on its contracts.
Severfield previously used Tata Steel’s Long Products division to fulfil contracts.
Mr Lawson said that arrangement wouldn’t change in light of Long Products’ takeover and subsequent renaming as British Steel by new owner, Greybull Capital, saying Severfield remains committed to the UK supply chain. "|
|Yes bought on the bell - a new stock for me
Cracking balance sheet - only slight concern is pension deficit as far as I can see
|New recent highs now and stretching upwards.|
|Excellent AGM statement today - looks really solid, with the order book increasing slightly overall to £305m. H1 results are coming on 22 November:
With its strong order book, continuing profit improvement programme and our ability to work across a wide range of market sectors, including infrastructure, the UK business is well placed to continue to meet expectations. The Indian business continues to perform steadily and is well placed to benefit from any improvement in the Indian economy. Overall, the Group is on track to progress as expected over the remainder of the financial year."|
|SNB's Zurbruegg defends negative interest rate policy - paper
The Swiss National Bank is committed to negative interest rates because the policy is working, the bank's vice president Fritz Zubruegg said, according to a report by Swiss newspaper Corriere del Ticino.
Switzerland would be a worse situation without the policy, Zurbruegg said at a meeting in Lugano, southern Switzerland,
"The decision of the National Swiss bank to introduce negative interest rates has been criticised a lot recently," Zurbruegg was quoted as saying on Friday.
"But I defend this policy, it is necessary and it is working," Zurbruegg said.
The Swiss National Bank has charged a negative interest rate of -0.75 percent on deposits it holds for commercial banks beyond a certain threshold since January 2015. The policy is designed to relieve upward pressure on the Swiss franc by making investments in the currency less attractive. (Reporting by Giulia Segreti and John Revill, Editing by Angus MacSwan)|
|Best wear a hard hat if you intend going to Wimbledon ....|
|SFR win work on a £70m contract for the new No.1 Court at Wimbledon:
"Greg North, commercial director at Barnshaws Metal Bending, said the firm would be working with the steel work contractor on the project, Severfield. The two have frequently worked together, in particular on the Centre Court project.
Work on the Number 1 Court reconstruction started after this year’s championships, and the retractable roof is due to be first used in 2019"|
|Banking and Financial News | Sun Aug 28, 2016 5:00am BST
SNB's Maechler currently sees no scope to lift negative rates - interview
* Remains committed to negative interest rates
* Sees no room to lift negative rates at present
* Says franc would have been stronger without negative rates
* Rules out helicopter money in Switzerland
By John Revill
ZURICH, Aug 28 The Swiss National Bank remains committed to negative interest rates and currently sees no opportunity to lift the policy, governing board member Andrea Maechler told Swiss newspaper Sonntagsblick.
The Swiss franc, where many investors seek safety in a crisis, has remained stubbornly strong in recent years. The central bank gave up an attempt to cap its value in 2015 and has since used deterrent measures such as charging banks for holding franc deposits.
"The financial markets expect a further easing of monetary policy in Britain and in the euro zone, and even in the USA the increase in interest rates goes only slowly," Maechler said in the interview published on Sunday.
Interest rates globally will therefore remain low for the foreseeable future, she said. "As long as that is the case, the SNB has no scope to raise interest rates."
Maechler gave the interview before Federal Reserve chair Janet Yellen told a global monetary policy conference on Friday that the case for a U.S. rate increase had grown stronger, leaving the door open for a hike as early as next month.
The SNB currently charges domestic banks 0.75 percent on deposits stored with the central bank that exceed 20 times their minimum reserve requirement.
Most Swiss banks have so far refrained from passing on the rates to retail customers, but charges have been passed on to institutional investors such as insurance companies and pension funds, drawing criticism.
"We have always said we would lift the negative interest rates as soon as it is possible. That still applies," Maechler said in the interview. "We cannot change the international environment."
Switzerland is different to most countries that are using negative interest rates to ease access to credit and support their economies, Maechler said.
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"We don't have a credit crunch," she said. "We have introduced negative interest rates to maintain the interest rate differential with other countries and so reduce the overvaluation pressure on the franc."
Negative interest rates remained an important instrument to achieve this, she said, adding she was convinced the positive effects of the policy outweighed any problems.
Without negative rates, the Swiss franc would have been "clearly stronger with the corresponding negative effects for the Swiss economy," Maechler said.
She also ruled out the SNB using 'helicopter money' - printing money for government spending to spur inflation.
"For the SNB that is a no-go," she said. "For the central bank to give money to the government is against the law."
Sonntagsblick website: www.blick.ch (Editing by Ruth Pitchford)|
the grumpy old men
|Good interview with the CEO - he aims "to double profits in four years and push into other markets as well":
Hinckley and the third runway would be big for SFR, but should be additional big gains rather than fundamental to the business. IMO Hinckley will never happen (though substitutes might), but there will be a third runway somewhere relatively soon as a decision has to be made.
Encouraging that he's prepared to publicly state he's hopeful of getting some of the Cheesegrater money back.
"Looking ahead, things seem brighter; more than £13 million in profits and an order book of £270 million — the highest for six years. Half Severfield’s turnover is in London and that includes the steelwork for Tottenham Hotspur’s new stadium — quite handy as Lawson is a season ticket holder."|
|The chart seems to have found a rather nice uptrend line.
Some more strength today with the bid moving up to 55.5 having recovered the dividend and more.
Wonder if it can get through 58 in due course|
|Unfortunate phrase..'contracting business'...|
|I bought back in here this morning having just re read this from the results;
"The Group's business model supports strong cash generation, as has been demonstrated by the rebuilding of a good net funds position over the past three years. This cash generation will support future investment in the growth and expansion of the business, whilst maintaining a strong return on capital discipline, along with the progression of the core dividend. It may also support supplementary dividends without diminishing the good net funds position which is being built up, a position which we plan to maintain to help manage the financial risks inherent in a contracting business"
This neatly addresses my concern , which was that the dividend yield was insufficient compensation for exposing myself to the UK construction sector. I can see a 5p a share special dividend being easily affordable. Castings recently did something similar for example.
Anyhow let's see|
|Thanks for that. BILN's trading statement will definitely help sentiment here even more.
I do believe SFR's share price upturn is primarily due to the solid prospects for this year and beyond given the high order books and visibility for revenues and profits going forward.|
|Yes the read across from BILN would be helpful to the Severfield share price. Have to hope that bolts don't fly off their structures and get them into hot water again.|