Firstgroup Share Discussion Threads

[joestalin] 09/11/2020 11:22

FirstGroup plc
Statement re: Covenant amendment and liquidity update

As previously indicated in the trading update of 15 September 2020, FirstGroup plc (‘FirstGroup’ or the ‘Group’) expects to report a small adjusted operating profit for the seasonally weaker first half of the current financial year. This result would be ahead of the base case scenario outlined in the full year results announcement earlier this summer. As also previously stated the 30 September 2020 covenant tests are expected to be comfortably met when the accounts for the period are finalised. However, whilst the Board is confident that the balance sheet is now robust in a range of downside scenarios, as a matter of prudence the Group determined that it is an appropriate point to secure enhanced financial flexibility from its lenders for the next two covenant testing dates, covering the typical period of twelve months.

The Group has therefore agreed covenant amendments for the 31 March 2021 and 30 September 2021 tests with its lending banks and USPP investors on similar terms. The net debt:EBITDA covenant has been amended to less than 5.5 times and then 4.5 times for the March and September tests respectively (compared to 3.75 times normally). At both testing dates the fixed charge covenant has also been amended to greater than 1.0 times (compared to 1.4 times normally). The Group has agreed that net debt including rail ring-fenced cash will not exceed £2.0bn and minimum liquidity levels of £150m will be maintained during this period.

The Group’s free cash (before rail ring-fenced cash) and undrawn committed revolving banking facilities has remained broadly stable at c.£810m as at 6 November 2020. The Group has ‘investment grade’ long-term issuer credit ratings from both Fitch Ratings and S&P Global Ratings.

The Group will continue to take all prudent and appropriate action to ensure that it emerges from the pandemic in the most robust position possible

[joestalin] 09/11/2020 10:41

If it hits 50p, then a very happy Monday!

[roughandtumbleone] 09/11/2020 08:12

A robust statement and proving a strong cash balance and savvy adjustments to 2021 convent tests. The fact they returned a profit during a global pandemic is testament this share price demise is a disgrace.Now for the news on the North American parts of the business. Happy Monday

[joestalin] 31/10/2020 09:52

So I was right then?

[level 4] 30/10/2020 23:28

At this rate of daily decline..evidence will be looking at you in 3 weeks.

[joestalin] 30/10/2020 14:45

Which, presumably, still remains in your imagination?

[level 4] 29/10/2020 22:00

The evidence is in my buy orders at 27p, 25p and 6p respectively

[joestalin] 29/10/2020 11:23

I think we need a bit more evidence than that.

[level 4] 29/10/2020 02:09

Like I said, it's heading for that 25p double bottom.

[crowshott] 28/10/2020 08:24

another 5% down over all 10% since Monday?

[level 4] 27/10/2020 22:12

If it hits 6p before then..I'll be in!..either way, should be testing double bottom at 25p

[roughandtumbleone] 21/10/2020 14:12

Standby for the news of the North American sale...

[captain stock] 19/10/2020 14:36

6p that ticked me.

[joestalin] 19/10/2020 12:26

Good luck with that.

[level 4] 18/10/2020 21:38

I'll show you them when it takes my buy order at 6p

[joestalin] 18/10/2020 19:41

You have some cheap cards.

[level 4] 18/10/2020 18:44

Struggling at high 40p's..
Lockdown??...must test single digits..
6p on the cards???

[captain stock] 14/10/2020 15:11

Any news leak?

[captain stock] 14/10/2020 08:31

Another 25k buy via someone associated with the board. Follow the money.

[captain stock] 09/10/2020 16:42

Nice finish. Have a good weekend all.

[roughandtumbleone] 09/10/2020 15:57

1,250,000 shares purchased at 50.85...decent chunk ahead of a disposal announcement?

[captain stock] 09/10/2020 15:45

Looks like some strong buys ahead of the weekend.

[roughandtumbleone] 09/10/2020 15:31

This one line from 15th Sept trading update says it all:- * Stronger than expected financial performance, with adjusted operating profit and cash from operations ahead of our expectations during the period, driven by better revenue recovery and strong cost control

[captain stock] 09/10/2020 15:14

A little bit of resitance at the 50p limits to sell. Onwards and upwards, 10% today would be nice...

[roughandtumbleone] 09/10/2020 14:57

1,220,702,233 shares valuing the total business at just 600 million GBP and the book value of the two parts of the company up for sale is 2GBP per share...go figure! Currently 50p!