Maybe SeaEdge...
But the asset that can be converted to cash most quickly is the Verne earn-out, assuming that Ardian are interested. Little to no DD would be required and zero approvals needed from competition authorities, etc. Adrian would clearly come out ahead in that deal, however, if they sense that DGI are desperate for cash to pay off the RCF.
In any event, speculation doesn't change the fact that Elio and SeaEdge haven't been sold yet, and it's hard to think of a shareholder-positive reason for that. |
That they say "The Company expects to repay the remaining balance [£13m] using further sales proceeds and working capital surpluses by the end of H1 2025. suggests they are expecting to complete on the sale of Sea Edge within the next few months. |
Yep but still a gravy train for lenders No credit risk for PE level returns |
It is the lenders getting the fees, not management so I don't think gravy train is the right description.
I'm not sure the RCF renewal will tempt buyers when there is so much else going on. |
so another £3.5m in gravy-train fees just to get through the next 3 months?
[.......still looking for good news with this one...........] |
I suppose we'll find out today whether the RCF was weighing down the share price.
But "two further three-month extension period options, subject to lender agreement at that time" looks like another opportunity for the banks to grab more fees. Hope those EMIC proceeds arrive soon... |
No, the £1m needs including in the fee really.
Let's hope those disposal receipts come in. |
Looks like it's around 20% annualised cost plus £1m for being naughty - I've never seen a fee for the waiving of a past covenant breach |
That's a clear example of negotiations going right to the wire! |
At last. 425bps and a £1.3m fee, but it expires on Monday, £53m RCF, so today really was the day.
"The Board announces that the Company has refinanced the principal outstanding of £53.3 million on its existing Revolving Credit Facility ("RCF") which was due to expire on 17 March 2025. The renewed RCF, which remains fully drawn, has been made available to the Company for a committed three-month term expiring 17 June 2025, and if required two further three-month extension period options, subject to lender agreement at that time. The pricing for the initial tenor is at a margin of 425 basis points per annum over Sterling Overnight Index Average ("SONIA") in addition to the payment of £1.3 million in fees, comprising an arrangement fee for the new facility and £1 million relating to a duration fee applied in respect of the historical covenant breach reported in the results for the half year ended 30 June 2024." |
Yep - the answer is probably that despite disallowed losses and interest (which can only create an effective tax rate higher than the stat rate) they had huge upfront/expense relief on Capex which drove the effective rate below the stat rate It's just I think sloppy wording |
Even if there is a loss the explanation given is wrong as disallowing expenses always has a positive effect on any tax rate. It's a very sloppy attempt to explain something which has failed miserably. |
Reaching back into my memory banks of Basic Accounting from Business School, the difference between the actual tax paid and a simple P&L calculation of tax due at the statutory rate goes into Deferred Tax.
Presumably if there is non-deductible interest or asset impairment charges on the P&L, then there needs to be a note explaining why the P&L tax calculation doesn't appear to be using the statutory rate. |
Presumably because there is a loss, so its explaining why the tax relief on that is less than 25%? |
Please could someone explain the following statement which appears in Arqiva"s recent half-year results.
"The effective tax rate is below the UK statutory tax rate of 25% (30 June 2024: 25%; 31 December 2023: 25%) as a result of disallowed interest expense and the disallowed impairment on the loss generated in the period."
I would have thought that disallowing interest should result in a positive tax rate. |
Oh yes - absolutely - these boards are driven by share price movement at all times - not value! |
Agree but no nasties either which I'll take right now. Despite the thousands of words written here Arq/DOG9 is cheap, if the BBC licensees are extended and probably close to zero for DGI9 otherwise! Meters might save us but they have to grow PDQ. |
A bit meh. Nothing in there to get excited about however the real action is coming with smart meters etc.. |
hxxps://www.arqiva.com/credit-Investors-reports/2025/Financial-Statements/ABPL%20and%20AGPL%20Interim%20Financial%20Statements%20Dec-24.pdf
Arqiva Q2 |
Big volume and a keen buyer being matched. |
We won't see an RNS on the RCF until 13/14 March, maybe even the 17th itself.
There's no real incentive for lenders to push this into administration - they probably get a higher interest rate from a new RCF than whatever the existing RCF provides for as penalty interest. But there's probably no reason for either side to cave in on the price negotiation until the deadline is imminent.
Maybe we'll see a few more share buyers show up after that particular risk is dealt with. If the share price keeps trickling down to the 8s, I might pick up a few more the week of the 10th. |
What if it's 25%? ;)
But yes, actually concluding it is the main thing - and the fact it still hasn't been done/RNS'd. |
The interest rate is an irrelevance to some degree - whether it's base + 3% or +8% isn't going to shift the dial much. |
The radio silence doesn't appeal - feels like the longer no news on the RCF, the worse the interest rate could be. 17th March expiry. |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
