Costain Share Discussion Threads

[minerve 2] 12/3/2020 17:22

Agreed.

At the moment they are effectively asking shareholders to pay the Corona Virus premium which is unacceptable seeing as they have known these changing dynamics in the sector for at least 18 months plus.

[wilksey1] 12/3/2020 11:16

no because it will be a taxable deduction

[ltcm1] 12/3/2020 10:11

Will the red diesel change hit these guys hard??? Muckshifter says ground works use really big amounts of diesel.

[minerve 2] 12/3/2020 09:51

Well, take your time BOD, as the virus and fear spread why not get ahead of the curve and do the raise at 20p!

LOL

Bunch of incompetent idiots.

[escapetohome] 11/3/2020 22:45

This crowd is COSTing shareholders a packet.

Its time to let these gentle folk on huge huge salaries go.

My impression of the CONstruction industry is that the boss folk are not worth the money.

[trcml] 11/3/2020 17:53

Plenty of good businesses do not necessarily make good investments. Imo COST is not a good investment. Generally, the share price only goes up substantially when an analysis or tip sheet plays with the numbers, whereupon pis pile in. I anticipated the divi would be lower (contrary to someone's subsequent comment) so cut entirely is not surprising. To keep up appearances, through thick-and-thin, ups-and-downs, COST needs substantial reserves of capital. The arbitration bothered me: I read the contract is now loss-making. The order book was £4.1BN which assumed £1.1Bn for HS2 before the Government announced the go-ahead which meant that really the book was £3BN. It seems to me that COST needs the capital injection otherwise it is unlikely to impress blue-chip customers into providing more work. Shareholders that stump up or buy in are being rewarded with a nominal interim div later in the year. Life at COST continues as it has done for yonks: to provide jobs for the workforce including directors.

[minerve 2] 11/3/2020 16:13

-- An agreement with the Company's lenders to extend its existing bank facilities from June 2022 to September 2023, conditional on the completion of the Capital Raising;



I don't like the sound of this. It isn't something I would want to put as a large bullet point.


I could have misjudged this one for sure. Sold half my holding for a 20% loss.

[minerve 2] 11/3/2020 16:11

Why haven't the idiots come out with a price?

It is not helping....

Honestly, talk about director incompetence.

I've seen directors lose the jobs for less than this.

[onjohn] 11/3/2020 16:05

Cash levels remained positive in 2019, with the contractor showing average month end net cash of £41.2m. This was lower than the £77.1m it reported in 2018, however. The lower liquidity level was blamed on the arbitration losses and the impact of reducing the contractor's average payment days from 58 to 34 over the year, which drained around £15m in cash. The company reported average month end borrowing of £93.7m out of its total available facility of £187m.

Costain’s order book stood at £4.2bn at the end of 2019, which was the same level as in 2018.

[onjohn] 11/3/2020 16:03

I’ll tell I in 30 min

[skinny] 11/3/2020 14:42

Now concluded?

Costain today announces:

-- A proposed new equity capital raising of up to GBP100 million (the "Capital Raising") in the coming weeks;

-- The Capital Raising has been fully underwritten by HSBC, Investec and Liberum on a standby basis;

-- An agreement with the Company's lenders to extend its existing bank facilities from June 2022 to September 2023, conditional on the completion of the Capital Raising;

[w1ndjammer] 11/3/2020 14:40

ok at what price was the capital raise....

WJ.

[onjohn] 11/3/2020 14:19

capital raise now concluded

helpful biudget


bounce coming this week imho

[wall street trader] 11/3/2020 12:45

still think Costain will be a big benefitted from the infrastructure spending plans from the Government - Will be taking a much larger position via a spreadbet with guaranteed stop once this settles

[flyfisher] 11/3/2020 12:13

Bank debt extension conditional upon a fund raising.

Both the CEO and FD should be booted out.

No position.

[w1ndjammer] 11/3/2020 10:53

looks like those participating in the fund raise want their pound of flesh,

pointless buying until we know what price the issue will be at.......

WJ.

[ch1ck] 11/3/2020 09:43

OptimisticI held these and sold a month ago this looks like a good entry point.I'm glad you are happy to be out.This crisis is serious but it will generate massive stimulus. Who will gain? Look at Kier up 16% today

[onjohn] 11/3/2020 09:34

One must react and take measures response at every event dodgem

Now target raised to 160 ahead of budget stimulus

[optomistic] 11/3/2020 09:28

"Numbers are solid"
I feel lucky to be out of these Chick.

[ch1ck] 11/3/2020 09:24

You are wrong new stimulus of 100 billion announced by the BOE will push this higher Numbers are solid