Fountains Share Discussion Threads

[fillipe] 24/7/2008 14:06

As they made £650K pre-tax in the first half ,it's a big turnaround to end the year at breakeven or thereabouts; i.e losing £650 in the second half. That means the current business is loss making and it'll need a fair old turnaround, in a difficult climate, to get back to where everything was, profitwise, six months ago.

Without some hot newsflow I'd be expecting the share price to drift quite a bit further if there aren't many buyers.

Also a bit of loss in confidence in view of Mr Haddon's mention at the time of the interims "I am confident that 2008 will be another successful year for the Group." (!)


All imho.

f

[praipus] 24/7/2008 09:33

Better that the management are honest. Suppliers shareholder and employees can deal and plan based on honesty deceit and lies are the things to watch for IMHO.

Though you may have a point if they are incompetent.

No mention of the dividend perhaps thats for another profit warninng...time to short perhaps?

Fountains Trading Statement

RNS Number : 7593Z
fountains PLC
24 July 2008


Press Release 24 July 2008


Fountains plc

("Fountains" or the "Company")

Trading Update


Fountains plc ("Fountains" or the "Company") wishes to update its shareholders on its
current trading.

At the time of the Company's interim announcement on 20 May 2008, management had received
indications from some customers that their
lower ordering patterns would reverse in the summer months. As the Company nears the end of
July it has become clear that this reverse has
not materialised. Reduced levels of contract spend are continuing in Rail, Highways and some
Utilities contracts which reflects the wider
economic uncertainty.

The Company is reducing costs to lessen the impact of the decrease in turnover. However,
the Company is negotiating a number of new
large scale contracts that will support ongoing turnover growth. It therefore needs to retain
sufficient resources to mobilise these
contracts swiftly.

Management are of the opinion that the Company will fall significantly short of market
expectations of sales for the current financial
year. As a result, the Company anticipates a final result close to breakeven for 2008.

The Company expects to report net cash at the year end, and to maintain its strong balance
sheet from which to win and commence new
contracts. Fountains last year had a record performance of £44.7 million turnover and £1.8
million operating profit. Turnover growth of 27%
has been achieved over the past two years.

Richard Haddon, Chief Executive of Fountains said: "We have not lost any customers this
year; however we are experiencing a delay of
work orders on some of our contracts which will affect our year end performance. I am
confident of continuing the strategy for growth that
we have followed.

- Ends -

For further information:
Fountains plc
Richard Haddon, Chief Executive Tel: + 44 (0) 1295 750 000
[e-mail] www.fountainsplc.com

Nomad: Collins Stewart
Mark Connelly Tel: + 44 (0) 207 523 8350

Media enquiries:
Abchurch
Charlie Jack / Stephanie Cuthbert Tel: [phone]
[e-mail] www.abchurch-group.com

Notes to editors

Fountains plc (AIM:FNT) is a leading environmental support services provider. The Company
delivers a diverse range of integrated managed
services for its broad network of clients, in the UK and the US, which include local
authorities, rail networks, energy providers, national
parks and corporate and family landowners. In addition to its traditional service, Fountains
has developed sophisticated geospatial
technology software that creates high quality maps to predict future vegetation growth,
enabling Companies to proactively plan.

Headquartered in Banbury, Fountains was established as a forestry management operation in
1957. The Company listed on the AiM market in
1995 and has since developed into an extensive environmental support service company. Today
the Company employs 800 staff

For further information visit www.fountainsplc.com

This information is provided by RNS
The company news service from the London Stock Exchange

END

[pugugly] 24/7/2008 08:37

Yet another profit warning - Management appear to lack control of their business - Seem to have profit warnings every couple of years or so - Last set in 2006. Previous 13/3/03 when price fell to 75/78.

Will the dividend be cut??

[praipus] 15/7/2008 10:18

From a BB on the "Oil" symbol

briarberry - 14 Jul'08 - 20:13 - 219 of 219


wood in the USA...


As Oil Prices Rise, Demand For Wood Pellets Skyrockets

At New England Wood Pellet, orders increased by 200 percent in May and show no signs of letting up. Niebling said dealers want more, but the plant is running at full capacity 24 hours a day.

"We are only shipping to them a percentage of what they are asking for," he said.

Demand is so high that stove business owners are describing it as a kind of madness.

[praipus] 09/7/2008 19:18

Being the share price drop is in the afternoon I think it represents $ earnings related write down. Again the $ earnings here arnt that hefty so its not the whole story.

[praipus] 09/7/2008 17:55

See what you mean 85% Rail, Utilities and Maintenance.

None of which are obvious candidates for a kicking in fact I would say they are verging on recession proof and more likely to rise.

Nice growth in turnover over the last ten years and a low but reasonable profit.

With the type of services they offer and their comparitively low value inflation related increases provided they are controlled (cost side) and passed on accordingly should make this recession proof IMHO.

They can go as low as they like I'm not a seller of this or utility stocks. In fact when the pay cheque comes through I'll buy a few more.

[charliecharlie2] 09/7/2008 16:55

Had shares for @ 12 years, been through rough and smooth with them, sold a few, bought a few to many by the looks of things, this is becoming a bit of a trend with them,alwys around the middle of the year. Lumber is a small part of their turnover, @ 3m, isn't that too low to effect the share price - maybe I am being naive?

[praipus] 09/7/2008 16:34

Dunno really but may be lumber prices just comming off a low or just sentiment.

This is a link to the ishares ETF for wood though most of its in the US.



What made you buy FNT?

[charliecharlie2] 09/7/2008 16:14

Dropped again today, anyone know what is going on??? I am getting concerned, any pointers????

[charliecharlie2] 07/7/2008 17:15

Thought it may have been, rallied a bit today though

[praipus] 07/7/2008 14:29

charliecharlie2 possibly a link to oil, lumber, interest and exchange rates.

[praipus] 07/7/2008 10:13

And another "Acorns of interest in forest funds can grow into oaks"
By Sharlene Goff

[praipus] 07/7/2008 10:09

Mention in this weekend's FT in an article entitled "Forestry funds leave others in shade" By Sharlene Goff.

[charliecharlie2] 03/7/2008 15:48

Anyone shed any light on the drop in price? Seems to be consisitent ove rthe last few weeks, more so this week though!

[tday] 03/7/2008 15:23

A number of shareholders, some quite substantial, are unhappy about the way the company is being run.

They aren't keen on the CEO or the Chairman and the FD seems totally out of his depth.

I attended the EGM and it was a farce.

Unfortunately a lot of AIM companies, seem to be being run by mediocre people, who want to rip off the company, by paying themselves large salaries and getting shedloads of share options, at mickey mouse prices. Meldex is a classic example.

[praipus] 03/7/2008 10:04

So 9degrees I assume you are on the bear tack. What was the attraction to FNT?

New web site looks good IMHO

[9degrees] 03/7/2008 08:13

ah yes the ones that were previously terminated in Dec 07

[praipus] 02/7/2008 20:33

few months ago if you look through the RNS

[9degrees] 02/7/2008 14:41

what bid rumours are these ??

[praipus] 02/7/2008 10:19

Homeserve seem to be moving into some of the same markets I wonder if they were behind the bid rumours. If not I it woulsdnt surpsise me if they come snooping around at some point.

[praipus] 15/5/2008 13:24

There is little or no volume so I suspect this is the MM's doing a pick up to fill a larger size order. IMHO.

[woozle1] 15/5/2008 13:05

Outsourcing IT is a perfectly sensible thing to do.

A number of key people may be leaving but don't forget these are the same key people who bid for uneconomic business and got the company into the poor shape that it was.

I'm pleased to hear that the positions are being filled by people from FM as this is an FM business. How difficult is it to clear thickets and weeds?? Not something that requires rocket science!

I fear that some disgruntled ex-employees are posting on this board!

W

[praipus] 06/5/2008 08:49

Typo56 - apparently the cost of transfering to certificated with selftrade is £10.

CocoDot...outsourcing non core activities is not unusual, sometimes a sign of beautification prior to sale IMHO.

[charliecharlie2] 03/5/2008 13:12

Fountains IT Department - never heard of other companies doing that before, maybe they are outsourcing to cut costs, but that wouldn't be a suprise...

Word on the street is they are losing a lot of key staff, managerial and operational to their competitors.....

The order book is strong having been awarded some large contracts recently but they have no staff to manage or carry out the work. Apparently the senior management are not from within the vegetation management industry, but from facilities management...... British Gas, Mitie Group anyone know of anymore???