Balfour B.10tqp Discussion Threads

[skyship] 27/3/2020 11:40

alter - well, if it's at a good rate, say 6%, then I suspect a majority would roll over.

Personally I think they should offer a Zero Dividend Pref alternative.

[badtime] 27/3/2020 10:18

Plus indrawn facilities of a substantial amount

[alter ego] 27/3/2020 09:57

agreed SKYSHIP but would they issue new ones at lower coupon to pay off current ones?

[skyship] 27/3/2020 09:25

BBYB is ludicrously expensive debt for BBY - they will be very glad to get rid of them!

[stemis] 27/3/2020 08:56

Compared to cash at 25 March of £395 million

[noslien] 27/3/2020 08:44

The cost of the July preference dividend will be about £6m. Repayment of the capital will be about £112m.

[cerrito] 27/3/2020 07:39

I see no mention of BBYB in this morning's RNS from BBY and I would have been flabbergasted if there had been. They are reserving judgement on payment of the final ordinary dividend which costs £40+m.

[briggs1209] 19/3/2020 14:26

picked up 10000 today. Just such an easy hold for three months.

[badtime] 19/3/2020 13:51

Should read "fears"

[badtime] 19/3/2020 13:16

Ords marked down heavily this morning ..I wonder if their are feats the government won't be able to afford go ahead with this massive infrastructure investment

[badtime] 19/3/2020 11:58

Good price Sky...u must be holding a fair whack now

[eeza] 19/3/2020 09:51

Also bt 10k this morning.

[skyship] 19/3/2020 09:19

Bt 10k @ 96.82p inc costs. That should give a return of 8.83% in just over 3months...

[skyship] 19/3/2020 09:08

BBY is the UK's largest construction / civil engineering company & crucial to the government's infrastructure programme.

If they need cash they will get it; but the recent stats show that BBY is now on a strong financial footing.

[stemis] 19/3/2020 00:06

No, I agree it's unlikely. Just looking at the downside...if it is one.

[boadicea] 18/3/2020 20:39

SteMiS - .... They won't.

However, I can see why the price may be suffering.

There will be those who need to sell something ... anything!.. and this shows them the least loss and limited recovery potential with an outside possibility of default... And we are currently running into 'outside possibility' territory.

Equally, there may be those that see such potential profit from temporary market mispricing of other panic-driven situations that they are eager to redeploy the funds elsewhere and forego a juicy fixed return.

[stemis] 18/3/2020 09:53

Offered at 97.6 inc charges. So that's an 8% return in 3.5 months. If they want to defer redemption and keep paying 11% yield that's fine...

[jaf111] 18/3/2020 09:48

97.02p now.....
where's the bottom???

[badtime] 17/3/2020 12:49

Can buy at 99.4

[nisbet] 17/3/2020 11:02

The following is from the company's recent statement:-The Group's average net cash in 2019 improved significantly to £325 million (2018: £194 million). The Group's net cash position at 31 December 2019, excluding non-recourse net borrowings, was £512 million (2018: £337 million). Non-recourse net borrowings, held in infrastructure concession entities consolidated by the Group, decreased to £302 million (2018: £309 million). The balance sheet also includes £110 million (2018: £106 million) for the liability component of the preference shares and £120 million for lease liabilities following the adoption of IFRS 16 (2018: £nil). Statutory net debt at 31 December 2019 was £20 million (2018: £78 million).The repayment of the preference shares in July 2020 will reduce cash without a corresponding reduction in the level of debt as the Group does not take preference shares into account in its measure of net cash/borrowings in line with the definition of net debt set out in the Group's borrowing facilities.

[badtime] 17/3/2020 10:57

Cheaper today

[coleridge4] 16/3/2020 23:21

Actually I calculated a rough 14.5% annual equivalent return too, assuming a fina divi is paid (haven't checked the prospectus on this point but seems likely). So, buy at 100.6 means cost per share, inc stamp duty, of say 101.1, give or take. In 3.5 months time receive 100 par value plus divi of 5.375 = 105.375. Profit is 105.375-101.1 = 4.275. And 4.275 over 101.6 is a return of about 4.2% (in 3.5 months), roughly 14.4% if annualised by a rough and ready 12/3.5 multiplier.
Obviously any business in the current environment carries credit default risk.

[alter ego] 16/3/2020 22:56

Maths was never my strongest subject but even I can see that a stock paying 10.75p per year per £1 share but which costs slightly more than you will receive when redeemed is not going to provide a 14.5% return in three months.