Share Name Share Symbol Market Type Share ISIN Share Description
Interserve LSE:IRV London Ordinary Share GB0001528156 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 62.55p 63.15p 63.50p - - - 0 05:30:33
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 3,250.8 -244.4 -176.0 - 93.65

Interserve Share Discussion Threads

Showing 10176 to 10198 of 10200 messages
Chat Pages: 408  407  406  405  404  403  402  401  400  399  398  397  Older
DateSubjectAuthorDiscuss
14/8/2018
10:42
Looks like £ rose on unemployment figures , but then fell back again despite them so the risk is still there for the US debt
fenners66
14/8/2018
06:43
NHS Building for Wales has named its line-up of contractors to deliver a new healthcare building framework. Four firms – BAM Construction, Interserve, Kier, Willmott Dixon – secured the lot covering major projects worth more than £12m, which is expected to be worth over £224m during the next four years across Wales.
aendjo
13/8/2018
22:50
Justifying a bonus perhaps ?
fenners66
13/8/2018
22:33
Wwhy I completely agree. Why is she "fixing" something that isn't broken?
the juggler
13/8/2018
18:36
RMD Kwikform has had an initiative underway since 2017 called "Vision 2022" - a plan to double in size. There has been substantial investment, not least in some highly paid individuals, to make sure it happens. As I understand it, it's been a case of, "so far so good" until now, with the latest interims showing RMD, for the first time in ages, slowing down. No coincidence I think, that Interserve has recently got far more "hands-on" with RMD and is stubbornly insisting they fall in line with the "One Interserve" / "Fit for Growth" initiatives. Might be best to just leave them to get on with it Debbie?
whyyy
13/8/2018
17:18
An astute observation! What do you want for that...a paper hat??? LOL
da vinci1
13/8/2018
16:45
Price down another 3.2%
fenners66
11/8/2018
10:51
All the following imho dyorDo we think that investors chronicle is been fair or do we think they have an agenda. It seems that whatever IRV do then investors chronicle want to be negative on them?
dandanactionman
10/8/2018
23:14
I also think that cable will strengthen. Now I have to hope it really will, and fast.
aendjo
10/8/2018
15:03
CC2014 The challenge is that if you run this line of thinking then the profitability in equipment services is being flattered by the exchange rate That is my point 3 above So DID they mention the FX in the overseas work ?
fenners66
10/8/2018
14:17
Hi guys. I am about and about so will be brief. I think but can't check right now the 8m usd is on the usd loan. What we also need to appreciate is that much of the overseas work will be priced in usd or other local currency. The profits on this when translated into Pounds are benefitting massively from the weak pound So there is a balancing number in the divisional performance which partly offsets the usd loan. It might even exceed it! The challenge is that if you run this line of thinking then the profitability in equipment services is being flattered by the exchange rateAs an aside it is my personal view that long term cable will not stay down here. I see cable as strengthening which would help
cc2014
10/8/2018
13:45
unclejr - I knew that they were forced out of the swaps - it was discussed at the time that it would leave them exposed a risk that is (at the moment) coming home to roost. Again they awarded themselves huge bonuses for "sorting out the finances" - however this is now starting to show as not sorted at all but merely kicked down the road on a prayer. However what I do not know yet is 1, why there were US $ denominated loans in the first place 2, when re-financing the whole package especially given the FX exposure - why not translate them into GBP ? I could speculate (as I have not looked this up) that some financial genius thought that middle eastern sales in US$ perhaps would fund the US$ borrowings without translating ? Maybe they bought middle eastern businesses in US$ ? Perhaps they believe that future middle east income would mitigate - however have they declared a FX gain from this source ? If you only highlight one side of the FX then its either 1, a mistake, 2. or it was a mistake in thinking it was effectively hedged , 3, you want to shunt cost to not underlying - whilst hoping to hide the gain in underlying 4, they don't want to say explicitly that the forecast income / receipts are way lower and things have worsened. 5 I could have that all wrong.......
fenners66
10/8/2018
12:44
Fenners, the US$ debt was already in place but Interserve had hedged the currency risk with cross currency swaps. These swaps were heavily in the money following the depreciation of the GBP (post brexit) and the banks forced them to close the swap to bring down leverage as part of waiving covenants. I can only suspect that none of the lenders were willing to take on new cross currency swaps as part of the refinancing as these can take up huge limits (if Interserve defaults and the currency has moved in the wrong direction the bank effectively takes the hit on the out of the money swap position). So the net result is that Interserve finds itself holding a huge naked position on the USD and, while forced upon them, it is now jeopordising any potential turn around. What's worse is that they have limited options to mitigate this risk in the short term as 1) banks are probably less likely now to double down and take on cross currency exposure 2) purchasing long dated GBP/USD put options would be incredibly expensive and they simply dont have the cash to fund these. In my view, the only thing interserve and shareholders can do now is pray the the pound does not keep falling.
unclejr
10/8/2018
10:39
£ down to about $1.2775 so the reduction from $1.32 continues (it was lower ) So on $350m debt that equates to another £8.8m as of today. The " Group secured committed borrowing facilities of GBP834 million in April of this year (including $350 million denominated in US$)" Once again why in US$?
fenners66
10/8/2018
01:21
"aendjo 9 Aug '18 - 21:30 - 9741 of 9742 Fenners, with all due respect, your figures are wrong. Finance costs for the year are going to be be 80m in 2018 - the peak net debt was in the first half of 2018 so that cost should start to reduce from that figure." Look again aendjo I already illustrated the circa £100m figure. Whilst the company has INCREASED its estimate of the finance cost for 2018 to £80m for the year the first half was only £31.1m So the second half by definition is £48.9m. Therefore a full year run rate is circa £100m - notice they do not give a forecast of next year's finance cost. Also this is higher in the second half - because the high rate finance deal was implemented during the first half - not at the start of the year so the second half has a full 6 months. Whilst we can speculate at the loan FX movement between now and whenever - we do know what its costing at the moment - another £8m so all things being equal that is where it is. I did ask the question - and have not looked it up yet - but why was the debt raised in US$ in the first place ? We all believe there will be further restructuring and cost cutting to come - so more cost before there is any benefit. Companies love boxing off these costs as not underlying or exceptional and to be ignored - however they cost cash and are real losses to apply to the balance sheet. It is also a well worn route trying to shunt costs into the exceptionals pot and explain losses away - whilst a closer scrutiny could find they are not always one-offs.
fenners66
09/8/2018
21:30
Fenners, with all due respect, your figures are wrong. Finance costs for the year are going to be be 80m in 2018 - the peak net debt was in the first half of 2018 so that cost should start to reduce from that figure. In regard to the exposure to USDGBP fluctuations, clearly there is a possibility that the GBP will continue its free fall but I don’t think that’s particularly likely. On EfW - all plants are burning, with cash coming in as milestones are met and we are being told with some confidence that a big lump of cash is coming in through insurance receipts. The 46m are restructuring costs - mostly redundancies rather than consultant fees, if I understand correctly cross referencing fy2017 results and hy2018 slides. As of January 2018, assuming trading continues to be “in line with management expectations” - the company will be sitting on 575m net debt. If the 15-50m of margins mooted in FFG can be achieved, then cash flow will be sufficient to trade and reduce principal over 3/5 years. The bit that I struggle with is how you get it from 575 to 450 from December 2018 to June 2020. DW kept her cards close to her chest on the subject.
aendjo
09/8/2018
18:17
5% margin on £3bn = £150m Finance cost run rate £100m Cost of FX on US $ debt - £8m so far Cost of EFW ? Cost of restructuring? Any shortfall from £3bn ? No dividends for ..... Clock ticking on the debt or what another £46m agents fees... ? So not even that gets them anywhere at all.
fenners66
09/8/2018
17:10
Jeffian, it is a possibility that selling parts of the business and a dilutive rights issue may become a necessary in the next 12-18 months. Especially if the many pies-of-tomorrow we've heard about come out half baked. It's also a possibility that achieving a 5% margin on a 3+ billion revenue may allow the company to trade out if its debt. There are huge possibilities in target markets following the demise of Carillion. Either way, when I look at the value of Interserve's parts and subtract its debt, I estimate fair value at least twice of current valuation. Potofgold, congratulations on your position. I am holding but will be keeping a close eye on progress. I believe this is going to be an epic turnaround story. It still is a very high risk proposition.
aendjo
09/8/2018
16:32
aendjo, I promised not to stick my nose in here again but I must come back on this - "evidently shorters are still betting on the prospect of the company collapsing under the weight of its debt." It's not a question of the company "collapsing", it's a question of the terms of the necessary refinancing and what will be left for existing shareholders. As I kept saying before, if the company 'recovers' it won't look anything like the company we see today - it will have sold off substantial parts to repay debt and it will have significantly more shares in issue, and issued at an unknown price at the moment.
jeffian
09/8/2018
16:20
Aendjo, are you still a hold and do you still have faith in the turnaround? Currently have a similar number of shares as you at 71p. Thanks
potofgold1
09/8/2018
16:19
Aendjo, are you still a hold and do you still have faith in the turnaround? Currently have a similar number of shares as you at 71p. Thanks
potofgold1
09/8/2018
15:50
Dear Obi, evidently shorters are still betting on the prospect of the company collapsing under the weight of its debt. I have mixed feelings about HY2018 results. Many positives but as of today debt is still too high, with guidance for year end net debt of 575m. Cash generation is expected to be 45 to 70m in second half. A big chunk of that money should come from insurance receipts for Glasgow and Derby (32m). There was also mention of a business being sold, in reference to a non-recurring 15m impairment of assets. So cash generation is thought to be ok. In terms of cost efficiencies, 1300-1400 redundancies and 40 less leases on buildings are going to deliver some significant improvements. Change in pension indexation generated 67.8m of non-cash gain that will be realised beyond 2022 - but effective immediately and for at least a couple of years there will be minimal outflow of cash for pensions. I was very pleased with mobilisation of the largest ever contracts for DWP and DfT - with both contracts already margin positive 3 months in. Finance costs are very high (40m cash and 40m non-cash). It is important to bear in mind this is not all interest. An aspect that could be reasonably easy to fix is improving the efficiency of the balance sheet - the have 194m of cash on which they are paying 10% of interest. So overall good improvement but still a very risky set of numbers. Time will tell, but there is not much of it to significantly strengthen the balance sheet.
aendjo
09/8/2018
10:39
We have not mentioned short tracker for a while - but you are right its showing shorts back up to 8.31% In April it got down to 5.16%.
fenners66
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