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Real-Time news about Silverdell (London Stock Exchange): 0 recent articles
|hedgehog 100: From the 10th. January 2014 "Investors Chronicle" (extracts only) -
"Silverdell bows out
After losing the support of its banker, Silverdell has been bought by turnaround specialist Rcapital partners
... Silverdell issued an update on New Year's Eve admitting that trading conditions in the group's subsidiaries had been extremely challenging, reflecting the impact of one of the group's operating arms, Kitsons, entering administration. This, in turn, led to a serious deterioration in the group's working capital position. ...
The IC first tipped shares in Silverdell on 6 January 2011, at 7.25p, and over the next two years the share price more than doubled. We renewed that advice on 31 January 2013 at 17p, when the shares were still modestly rated with an earnings multiple of eight. Gearing at that time was 29 per cent, and there was nothing to indicate that the group's business model would not continue to drive better returns. Then came the resignation of the finance director, following serious accounting issues, but it was the decision of HSBC not to support the group that finally precipitated its downfall."|
|extrap: Misinformation or, possibly, disinformation, is clearly an issue here. See what Shares Mag was writing as late as June '13:
The summary at the end of the article goes:
Analysts remain bullish on the stock and haven't found need to reduce their forecasts. FinnCap's David Buxton says: 'The shares have drifted on fears of a cash-call: management is adamant that it can achieve current forecasts with existing cash resources, with no need for a fund raise, unless an opportunity to "turbo-charge" growth arises. We therefore believe there is scope to move back towards former share price levels and for progressive medium outperformance' Stephen Rawlinson at Whitman Howard says he remains a 'strong buyer'.|
|pyemckay: I lost a few K too but it was a very small part of my portfolio.I am very angry for the holders losing a lot more than me. Hearing fellow investors losing tens of thousands is sickening. Silverdell have misled us all. I personally couldnt sleep at night if i was Sean Nutley.
Although the majority of us subscribe to a capitalist society, it is becoming ever a more selfish society and Sean nutley was not equipt for this job.Lying to investors to keep his position and share price higher than it should have been before suspension. Even more galling is the fact he has now the chance to invest in the new venture. Sickening, he has took from us all.
The lesson I have learned from all of this is that I now have news alerts set on all my companies and their Subsiduaries. Kitsons was highlighted as in trouble before Silverdell suspension and that should have been the red flag.
luckily this year has been good for equity markets and hopefully we can absorb this loss and learn some kind of lesson form this shambolic episode.
|adamb1978: "conducting a review to further understand the cash requirements of the remaining Silverdell Group"... I missed that bit in my figures above.
So re-hashing my numbers.....
H2 EBITA last year was about £3.3m (trading statement said EBITDA was £6m) - looking at the full year is meaningless given H1 didnt have anything from EDS
So previous run-rate EBITA: £3.3m * 2 = £6.6m
EBITA sold: £1.5m
EBITA left: £5.1m
Assume the business declines by 20% due to reputational damage - leaves £4.08m EBITA
Previously traded on about 7.5x EBITA. Lets say that drops to 6x
Means an EV of £24.48m
Debt of £10.5m however thats too much so assume that RCapital subscribe for 300m more shares at 2p, so raising £6m and in order that debt comes down to less than 1x my EBITA figure above
313m shares current rises to 613m
Debt drops from £10.5m to £4.5m
That leaves £20.0m equity value
However the increased number of shares implies a share price of 3.3p!|
|stevenlondon3: Apologies if this has been mentioned before but Marwyn(major shareholder) reported its interims on the 29th august.
On SID it commented
"In early July, the Company requested a temporary trading suspension of its shares on AIM, following one of its subsidiaries (Kitsons Environmental) being placed into administration. The Company has subsequently announced that the trading business of Kitsons will be transferred to another group subsidiary and the Company's bank has provided its continued support to the group prior to seeking a lifting of the suspension from trading of its shares.
During the six month period to 30 June 2013, SID's share price decreased from 15.1p to 13p. The Company was valued at the Master Fund level using the last available share price as at the 30th of June 2013, prior to the temporary trading suspension."
It would have been more prudent, I think, to mark it down to zero than using the last available share price - assuming they know little more than is in the public domain.|
|adamb1978: Clearly shareholders will lose part of their investment however the question is simply how much of an equity raising will be done and what the value impact of that is plus how much you should discount the company due to management's credibility being shot to pieces.
The fall in the share price leading up to the suspension meant that it was only trading on a PE of about 6x going into it which partially limits the fall from here. However first we need to know the scale/price of equity raising, adjust for that and also assume that the share price falls to the placing price. Only then can anyone judge what the new SID looks like and whether it would be worth a punt, worth hanging on to or should be sold|
|dasv: chronic investor:-
Shares in Silverdell
(SID) were suspended this week at the company's own request. There was no formal announcement explaining the move, but there are suggestions that the problem relates to one of the company's subsidiaries.
The latest development will no doubt have a corrosive effect on Silverdell's share price once the suspension is lifted, which is a shame, given the strength of the core business. Silverdell specialises in consultancy work and the treatment and removal of asbestos, and strict regulatory controls means that spending on asbestos is largely non-discretionary.
Only last month the company secured a number of contracts worth £12.1m, including a £3.2m demolition and decommissioning project for a large oil and gas company in West Canada, while remediation contracts in the UK worth £8.9m included public sector work on schools, colleges and hospitals.
SHARE TIP UPDATE:
Silverdell has made steady progress securing a larger share of what remains a highly-specialised market. The shares are down from our buy recommendation (17p, 31 Jan 2013) and will almost certainly start lower following the lifting of the suspension. Investors can do nothing until then. We retain our confidence in the company's core business model, but we will have to wait to see how much this has been damaged before deciding whether to retain our buy recommendation.|
|rat attack: Clearly we need to be reading all BBs given the issues were known by someone for the last month:
From a post by barkinglad on iii on 12-6-13
It was very interesting to read the notes of your meeting with SID and there is no doubt that there are some excellent opportunities for the group but it is beginning to read like a worldwide list of opportunities which is easy to develop for marketing prurposes but SID are a long long way off being an truly international contractor and will face severe competition in developing these opportunities. EDS do have expereience in working in Canada and have secured a contract in Austrlia but SID will need to be much stronger financilally and add to their experienced personnel to seriously challenge these markets.
I was most innterested to hear that Mr Nutley is saying that there is NO financing necessary for the flagged 15% growth, this is very comforting provided it is achieved but needs to be considered against other facts/ rumours and it would be interesting to know if any of the following was discussed.
1. The downgrading of Kitsons Rating by B & B following a winding up partition by G.P.M. Group on the 10.05.13
2. A warning of winding up action issued by HMRC in April
3. Suppliers claiming that they have not been paid for services/goods supplied late 2012.
4. The resignation of a number of senior directors.
Any information that you have would be helpful as I consider that if SID are forced to go back to the market for additional funding the share price could take a serious hit|
|davidosh: I am far from sure that Edison have actually been consulted other than to give notice that they will not require their services but not a party to such contractual arrangements ! Journalists at Shares magazine are supposed to be completely independent and chasing or researching current information. Directors only need to advise the market if there is a change to previously notified plans. I would agree that the distress in the share price may be worthy of company comment but that is for advisers to decide.
On a final note...As I purchased a large block of shares recently alongside Gervais Williams and attended the Agm and arranged a company presentation thereafter for 70 investors it would be inconceivable for me not to be advised about a placing and taken inside accordingly IMHO. I have heard absolutely nothing so to my mind SID just gets to be even better value and a placing even less likely at this price anyway.|
|rivaldo: Merry Xmas to all SID holders!
Cheers penpont. It's been a transformational year for SID, and a good year for the share price.
But if SID get anywhere near 2.8p EPS this year then we're surely looking at a doubling of the current share price at minimum.
At that rate of growth one could easily argue that SID deserves a growth multiple of 14 or 15, i.e a 40p or so share price.
I suspect an RNS of any success re those apparently pending contracts might see new highs here for starters.|
Silverdell share price data is direct from the London Stock Exchange