Galliford Try Share Discussion Threads

[typo56] 11/4/2018 08:51

Yes marksp2011, I'm afraid too many directors are empire builders, egged on by corporate advisors who make fat fees out of acquisitions. And out of rights issues too!

[marksp2011] 11/4/2018 08:37

It is excellent long term value if the management sort their lives out, allow the company to shrink if there is nothing worth bidding for and keep enough financial control to know what is actually happening

Seems pretty simple but the list of firms in this space that have failed to do this is probably longer than the number of names in the sector currently

[highlands] 11/4/2018 08:34

Taking up rights was a no brainer!

[value hound] 10/4/2018 18:29

Same here; looks excellent long term value to me.

[careful] 10/4/2018 18:02

took up rights.
money just taken out of my nominee a/c.

[typo56] 10/4/2018 17:23

mikeindevon, letting your rights lapse isn't quite that bad. For one thing, contrary to what you say, you don't have dealing costs.

I've just received 74p per share for a few lapsed JLGN rights. They were placed on 26th March (the first day of trading fully paid) at 251p, so I didn't get slapped with any charges, just deduction of the 177p exercise price. Of course, with hindsight I'd have been better off taking up the rights but I still got a better price for the lapsed rights than I would have done selling them 10 days earlier.

I'd expect the GFRN rump will get placed next Monday (16th) and the price announced during the day. Currently you'd get about 298p selling GFRN (before costs). Up to now the bid price has been in the range 238p to 325p.

Yes, it will be interesting to see the lapse price, but it has as much to do with market moves between now and Monday 16th as anything else. I'm not really suggesting letting your rights lapse is a great idea, just it's not a disaster. e.g. you might be on holiday for a few weeks and have missed out.

[pj fozzie] 10/4/2018 10:59

After waiting until the last moment - have taken up my rights today. Am still confident in GRFD long term and happy to put a bit more cash in.

Cheers,
PJ

[dr_smith] 10/4/2018 09:42

Speedsgh:
Thank-you posting re joint venture.
Me knees are a knockin'.
It's that "Joint" word.
I hope that respective roles and responsibilities are separately defined and they are not "Joint and severally liable" for each other re any third parties as was the case in ..cough discretely here.

mikeindevon.
Interesting to know, suspected this but didn't know detail and aware there can be different processes, you can't generalise/assume from other co's rights issues.
So.. my post 4474 on not taking chance on default was justified. ;-)

Folio is already overloaded with GFRD but sold some rights Friday for 3.19 and took up remainder yesterday...atleast in nomination, if not in broker processing payment.


DaveinDorset

[micos] 10/4/2018 08:38

I got £2.88 per share for my rights last week

[mikeindevon] 10/4/2018 08:29

Lapsed rights are likely to be a particularly financially inefficient way of proceeding.

If you let your rights lapse the shares will drop back into the company, who will then sell them at some point in time and distribute any difference between the offer price and the price obtained to the shareholder concerned.

But this will not be devoid of costs. Firstly there will be the usual dealing costs and then the additional administrative costs of the allocations and payments. The company will most likely appoint an agent to handle the whole thing for them and they will want their pound of flesh. Alternatively the shares may be sold en-mass to the underwriters and much the same applies.

The price obtained is unlikely to be attractive from the sellers point of view.

And finally the market makers and jobbers know that these shares are going to be coming to the market and will mark the prices accordingly.

If you're going to sell your rights, I wouldn't leave it for the company to do it -- if you do can you come back to the BB and let us know how you got on?

Mike

[speedsgh] 10/4/2018 08:21

Galliford Try targets family-home build-to-rent -

Galliford Try’s expanding partnerships arm has signed up to its first collaboration to deliver large-scale family housing schemes for private rent.

It is joining with Sigma Capital Group, a leading provider of to deliver family homes for the private rental market, to develop projects in the West and South West of England.

The regeneration specialist will use its expertise to source appropriate sites for Sigma to acquire and take each site through the planning and construction processes.

Both companies envisage creating many hundreds of PRS homes through this arrangement.

The new rental homes will be taken to market under Sigma’s private rental brand, Simple Life.

Working with local authority and house building partners, as well as Homes England, Sigma has created a large-scale PRS model that aims to deliver thousands of new rental homes across the UK.

Galliford Try Partnerships will be joining Sigma’s proven delivery platform, which has already completed in excess of 4,500 houses across all tenures.

In its role as investment advisor to The PRS REIT plc – the first quoted REIT established to invest in family PRS homes – Sigma expects to invest £900m to create a large-scale portfolio of quality family rental homes across England...

[careful] 09/4/2018 16:19

It will take 2-3 weeks for the ex rights price to settle.
sorting out lapsed rights and placing them is fiddly.
GFRD is a small company so no problems.

I would guess that nearly all of us took up our rights.

[waspfactory] 09/4/2018 12:11

HSBC midday 10th April - just subscribed this morning :)

[latics2] 07/4/2018 17:37

IG 10am Tuesday.

[deb81e] 07/4/2018 16:41

Hargreaves & Lansdowne 12.00 noon Wednesday 11th

[gingerplant] 07/4/2018 16:40

Hargreaves Lansdown is noon Wednesday

[spudders] 07/4/2018 14:49

Barclays closes Tuesday 10th

[johnroger] 06/4/2018 15:25

Self trade closes today

[pj fozzie] 06/4/2018 14:55

Until the end of day Tuesday 10th April.

(At least that's what I have with Interactive Investor)

Cheers,
PJ

[ricer93] 06/4/2018 14:41

i haven't heard from my broker of the rights issue? should i contact them? how long do we have to take the rights?

[typo56] 05/4/2018 14:53

DR_SMITH, I suppose one minor advantage of letting rights lapse is not having broker dealing costs. Like you say, probably better to have control of when you sell rather than have to accept the price obtained on the day.

[speedsgh] 05/4/2018 10:35

Interesting to read in the RI prospectus what the company views as its competitive strengths (pg 101-2). This is in effect the company's defence of its 3 divisions strategy...

(a) Three complementary businesses
Through its three strong and complementary businesses, Linden Homes, Partnerships
& Regeneration and Construction, the Group has leading positions in its markets and a strategy to take advantage of the opportunities in each market. The Group’s
businesses operate in different markets and have different customers, with different sources of funding, which helps the Group to deliver resilient performance throughout the economic cycle. Linden Homes’ housebuilding business requires up-front investment in land and development, with cash received as the developed homes are sold. Linden Homes adds value through planning and promotion of these projects which supports strong margins. Partnerships & Regeneration generates cash from its contracting activities, which is used to fund cash-consuming, but higher-margin mixed tenure developments. These projects require less up-front investment than housebuilding and while the contracting revenue is lower margin, this cash is typically received and revenue recognised at regular intervals as the project progresses. The Construction business also receives regular payments from its clients as work on projects progresses and projects are typically cash positive. This mix of capital-light and capital-intensive businesses delivers strong returns on investment and allows the Group to balance this investment with the discipline of paying strong dividends.

(b) Well-placed housebuilding division
The UK housing market has been in a long-term position of structural undersupply as
the number of building completions has failed to keep pace with the number of new
household formations and the demand for replacement of redundant housing stock.
Demand for housing currently exceeds supply, with the UK market consistently falling short of the 250,000 new homes it needs each year, despite the government’s
commitment to increasing supply. However, despite increasing supply in recent years, positive mortgage availability, low interest rates and the stimulus of the UK Government’s Help to Buy scheme have continued to fuel demand in excess of the
available supply. The 2017 Housing White Paper offered some solutions to the issues
surrounding increasing supply, but focused mainly in peripheral factors such as
modern methods of construction, increasing density around public infrastructure and
encouraging self-build.

These continuing levels of high demand benefit Linden Homes which develops high quality private and affordable housing, primarily for first-time buyers and families. The business has a presence in the South and East of England, East Midlands and the North. Linden Homes continues to see opportunities in the availability of prime sites in popular locations and with good rates of return. Linden Homes maintains an appropriate amount of land for future development or disposal in its landbank. Linden Homes’ landbank is sufficient to meet the equivalent of 3.5 years supply and to underpin a sustainable business model and Linden Homes is increasing its investment in strategic land. Linden Homes designs award-winning homes for the mid-market increasingly using standardised layouts, which helps it to build its homes as efficiently as possible without compromising on design or quality. Standardising layouts and processes is attractive to the business’ supply chain as it helps to build homes safely, quickly and efficiently.

(c) Strong proven offering in affordable housing and regeneration
The housing shortage in the UK is driving government intervention in the affordable
homes sector, on both the supply and demand sides. Registered Providers and local
authorities are increasingly relying on private sector partners to help them meet the demand for affordable homes across a range of different ownership tenures. The
Group works with Registered Providers and other partners to increase the supply of
affordable and mixed tenure housing and build sustainable communities. This
combination of development and contracting skills gives the Group a strong position
in the sector and allows it to capitalise on opportunities to address unmet demand.

(d) A major national contractor
The government remains committed to investing in and maintaining the UK’s
infrastructure. The sectors the Group focuses on have high market demand, barriers
to entry and capacity constraints. Regulated businesses produce steady work as
clients fulfil their business plans. The Group operates across the UK, offering clients the benefit of national strength with local expertise and delivery from its regional offices. The Group’s business covers multiple markets, with a focus on the public and regulated sectors, and the Group has a significant number of panel appointments under framework contracts, providing a solid pipeline of work.

Approximately 85 per cent of the Construction business’ order book comes from the
public and regulated sectors. The Group’s order book is conservatively stated with
projects only included when there is a high degree of certainty that they will generate future revenues. The Construction business is a key contractor for the water industry and defence sector and is also particularly strong in education and health projects.

(e) Prudent debt management and committed facilities
The Group is funded by ordinary shares, retained profits, a single bank facility and a debt private placement. The Group’s single bank facility of £450 million is committed to February 2022 with covenants tested twice a year. This mix of funding sources provides flexibility around the timing of investments in Linden Homes and Partnerships & Regeneration. The Group’s £100 million debt private placement is committed until February 2027. This new debt private placement diversifies the Group’s sources of funding and enhances its flexibility and resilience.

The Group’s business model reduces its reliance on external funding. Construction
generates cash, which helps to fund continued investment in Linden Homes and
increasing investment in Partnerships & Regeneration. The Group targets period-end
gearing of below 30 per cent, and has consistently met this objective. Net debt as at 30 June 2015, 2016 and 2017 and 31 December 2017 was £17.3 million, £8.7 million, net cash of £7.2 million, and net debt of £84.9 million, respectively, representing balance sheet gearing of 3.0 per cent., 1.5 per cent., nil and 15.0 per cent., respectively.

(f) Strong management team with considerable industry experience
The Group benefits from strong industry experience both at the divisional and board
level. The members of the executive management team have all worked in their
respective sectors for over 20 years and have been employed in the Group’s
businesses for between two and 22 years. The Group has a strong and experienced
management team with complementary skills across managing, developing and
investing in assets and a demonstrable track record of managing the Group’s assets,
including Peter Truscott, who has been Chief Executive since 1 October 2015 and
Graham Prothero, who joined as Finance Director on 1 February 2013.

[marksp2011] 05/4/2018 09:18

Interesting the disconnect between GFRD/GFRN pricing

[dr_smith] 05/4/2018 08:59

We can list countless occasions or market not behaving properly, ethically.
Even LIBOR rates, allowing bank assets to include sub-prime, even Bof E cannot ne relied upon, aside from middle agents taking big commissions, shorters doing behind doors deals.. market is rife with such dealings.
I am not aware of a financial advantage to await lapsed proceeds, and I will likely buy or sell beforehand.