Galliford Try Share Discussion Threads

[eeza] 07/11/2019 10:15

Removing the 90p from BVS would give a value ps to GFRD of 619.41p currently.

[dasty1] 07/11/2019 10:11

What the bod need to do is answer some basic questions. What will the net cash be post deal completion (my £150m is a quote from an interview months ago and could be wrong); what are you going to do with the £300m?; where are we with Aberdeen?; have you flushed out all the exceptional items?; what’s your approach post deal?; what eps do you expect or target?

[dasty1] 07/11/2019 10:06

Profitaker - I think you have forgot to factor in the fact gfrd shareholders will not get either the bvs bonus issue or bvs dividend. We’ll get ex-dividend ex-bonus. Which I work out is 90p ish. So you need to knock 90p off bvs share price as it stands today, because that’s the true price of the share for gfrd purposes.put another way, if bvs share price was frozen from now until early Jan, it will be defrosted at 1080, not 1170 as I type. So gfrd gets its 0.574 bvs shares at 1080 not 1170. Not getting that 90p per share is quite a significant and somewhat hidden negative for gfrd shareholders

[profitaker] 07/11/2019 10:06

Currently valued at £56m !

[nori_wasabi] 07/11/2019 10:05

"Whats the remaining construction side worth"

This depends on what the new GFRD company will do with £300m from Bovis, how much they will receive from the claims (£75m - £100m ?), the amount of business assets , debts plus cash flow forecasts ? . It will be excellent if its intrinsic value is provided for review before voting. If not, we should ask for it @ 12th Nov AGM.

[careful] 07/11/2019 10:00

The remaining GFRD 'rump' with £300m cash injection is an interesting prospect.
There must be opportunities in that sector after past problems.

Currently valued at very little.

[profitaker] 07/11/2019 09:52

Dave

The £675m offer you quote was based on the BVS share price on 9th September. Based on BVS closing price last night the offer is worth £741m or £6.67/GFRD share.

[dr_smith] 07/11/2019 09:43

I can't see a per share price of offer, but see from advfn shares in issue 110.96m, and see you say same Profitaker, so £675m offer = £6.08 per share, plus construction rump which dasty1 reckons £150m net cash (plus various fixed assets, plant/ma/c, buildings?).

If gfrd construction side is disolved (not saying probable, just accounting value calc) then £150m would be £1.35 per share holder plus whatever remaining assets are worth - bearing in mind book value may well be different from reality, could be lower or higher.
On top of that, for share sp, there is the premium for going concern/outlook/goodwill to brand name.

I still haven't seen any proposal from GFRD BOD on the forward direction if BVS offer was not to be taken.
I find that shocking. S/h's are to decide is the offer better than going it alone, but BOD haven't said how they would go it alone!!

Even if you accept they are effectively throwing the towel in, they have zero comment on how the £300m could be used.
GFRD BOD have seemingly given the whole deal zero thought.

GFRD BOD efforts is to grunt out a "yeah ok" to the legwork done by BVS, they haven't done anything constructive themselves, apart from rollover!

Have I missed something? I don't like saying castigating remarks, especially about someone I don't know, I can only go on what appears mainly through rns.

(Deflated) Dave.

[profitaker] 07/11/2019 09:29

Buy 1000 GFRD shares, sell short 574 BVS shares for a £518 debit. Cover the BVS short when the transaction completes, leaving you holding 1000 GFRD shares at a cost of (£518/1000) 51.8p/GFRD share. The £300m cash consideration alone is worth £2.70 per GFRD share.

The risk is that the deal doesn't complete. But if it does, it's a no brainer.

[highlands] 07/11/2019 09:28

The deal will depend on rhe votes of large holders. Not sure what their take is on the deal but Bovis / GFRD management must be pretty confident of their support to progress with it.A counter bid would be nice!

[ken298] 07/11/2019 09:08

Before I vote for this I need to know what the £300m translates to and the current state of the construction business.
Whats 300m worth in low margin over-running contracts?
Scotland resolution in our favour would be a good start!

[riverman77] 07/11/2019 08:58

Surely at least some of the 300m will be returned to shareholders through a special dividend?

[profitaker] 07/11/2019 08:52

With 110.96 million shares in issue, the £300m cash consideration from Bovis is worth £2.70/share. Hardly "nothing".

[dasty1] 07/11/2019 08:48

It’s a bit complicated but taking share prices as I type, and discounting about 90p from bvs share price for the dividend and bonus shares that existing bvs share holders will get but gfrd will not, then I work out gfrd construction will trade at about £1 or be worth £100m, with I think a net cash in the bank of £150m after £300m cash paid by bvs. So, is gfrd construction with nil debt worth £100m or so? Kier is worth not much more for a much bigger company albeit there’s a mystery over what kier true debt is. Overall I don’t like the deal, but I’ll hold for now and buy more if this drops to mid 650 sort of area.

[morgoth1] 07/11/2019 08:34

Going by past performance nothing.

[ken298] 07/11/2019 08:29

Whats the remaining construction side worth ?

[morgoth1] 07/11/2019 08:15

They will only get this through if we vote for it
i will be voting against.

[bookbroker] 07/11/2019 08:09

Selling the Crown Jewels never a good move!

[highlands] 07/11/2019 08:08

Ex-div today too.35p to be paid on 4th December

[eeza] 07/11/2019 07:43

RNS - Sale of Linden

[underhill] 30/10/2019 17:50

Oh yes, sold half at £9. Prior to the spike to £18.

[underhill] 30/10/2019 17:49

LTH here - bought at 50p (prior to the consolidation).

[spudders] 20/10/2019 13:02

Bit of info on CEO engineering a move to Bovis 🤔 in the times!

[dr_smith] 17/10/2019 12:16

Bidmsa:
You never know..but today it's all about Brexit stuff hitting markets from around 10.30 a.m. Housebuilders all up similar amount.

Link to BBC business live:

[bidmsa] 17/10/2019 11:41

Is there another bid coming?