Interserve Share Discussion Threads

[bertiebru] 23/10/2017 10:54

Hi jeffian. Very sorry to see you selling out. I've held shares in the Company since the RM Douglas Construction days and have always appreciated your sensible comments on this board. I wish you all the best.

I'll still be holding on as I think this really is the bottom and that things will improve by Spring 2018.

[ebomber] 23/10/2017 10:35

cfc1
My thinking is just that"...a company going bust......" in the medium term. Hence reduced my risk and £250k exposure.

[cfc1] 23/10/2017 10:29

fair comments Jeffian. I will simply hold here. I think you make sense BUT I think the underlying business is strong. You are right one big contract in Scotland screwed everything but a massive order book is the reason I remain a holder.I think there will be restructuring and cuts but I think the lenders will agree new terms with a 24month window.
This is not a company going bust! selling at these prices would imply you think its going bust.

[ebomber] 23/10/2017 10:23

Shares your considered views jeffian and sold my entire 10 year holding on Friday.

[dexdringle] 23/10/2017 10:20

Surely they have sufficient rolling 'contract' income to cover costs ? It's a service business for goodness sake !

[jeffian] 23/10/2017 10:11

Sad day for me. Just dumped my holding built up since 2001, including taking IRV shares for the Maclellan t/o in 2006 and subsequent share purchases. Just too many red flags for me - no divi, EfW contract running out of control, breach of banking covenants pending, balance sheet shot to hell, likely refinancing, 'external advisers' all over it like a rash..... I was a fan of Adrian Ringrose and I'm sorry that his many years of good work were undone by one disastrous contract (perhaps that's in the nature of a contracting business?). IRV found themselves in something of a Perfect Storm, particularly with costs being squeezed on every side by things like the increase in statutory Living Wage etc., but I think they could have come through that. The hammer blow was the EfW contract and we can't be confident even now that, despite upping provisions many times, they have capped their exposure. That feeds through into any banking/refinancing as pouring more capital in at this stage would be akin to trying to re-fill a bath while the plug is still out.

Hindsight may show that I sold at the bottom but I fear there are still risks to the downside and recovery, if it comes, may be slow. I'd rather be in something going up than hang around to see if this survives and recovers. Good luck to those who take a different view and continue to hold.

[cfc1] 23/10/2017 08:55

I would bet the lenders et al are also noting all these contract extensions and wins over the past THREE months with interest too!

[fenners66] 23/10/2017 08:43

What difference does the time of day make to research?

[fenners66] 23/10/2017 08:42

What you doing here?

[cfc1] 23/10/2017 08:32

fenners - so what you doing here first thing in the morning?? just 'watching' sorry but you a re full of sh&y

[fenners66] 23/10/2017 08:30

Cfc - No I ain't - but I do like good research

[glenkaz] 23/10/2017 08:30

🔥😱 heeeeeeeeeelp my g strings on fire 🔥

[cfc1] 23/10/2017 08:29

Losses...yep lots of good wins...remember the order book is £7.4B!! so whatever the outcome of the biz review this is a solid business....redundancies, restructure and get rid of non profitable business and renewed loans for 24mnths.

[cfc1] 23/10/2017 08:26

fenners - you're a shorter - at least Glen and entertaining ....you just come across as someone trying to be clever and oh so smart but really your just a nob!!!!

[fenners66] 23/10/2017 08:15

If that lot is B*llocks Glen, lets see your well researched alternative....

[fenners66] 23/10/2017 08:14

A debt for equity swap IS wholehearted support

[losses] 23/10/2017 08:06

These contracts keep coming... so can't see banks not supporting.

[losses] 23/10/2017 08:05

Interserve PLC £140m contract extension with major broadcasterSource: UK Regulatory (RNS & others)TIDMIRVRNS Number : 2677UInterserve PLC23 October 2017INTERSERVE WINS GBP140 MILLION CONTRACT EXTENSION WITH MAJOR BROADCASTERInterserve, the international support services and construction group, has won a GBP140 million contract with the BBC to continue providing facilities services until 2023.

[robizm] 23/10/2017 07:46

It is an existing contract extension. Are you short?

[mirabeau] 23/10/2017 07:29

It seems the British State is working hard to keep Interserve afloat. The DWP and now the BBC. Is this company a nationalised entity now? You may as well use taxpayers money to directly subsidise Interserve ffs. A scam

[glenkaz] 23/10/2017 07:12

Wow 75%!! Bolox 🤡🖕

[wolfhound1] 22/10/2017 21:34

Debt for Equity swap is a high probability IMHO - 75% dilution likely.

[fangorn2] 22/10/2017 18:27

Interserve faces Herculean task in cleaning up its house

Last week Interserve, employer of 80,000 cleaners, carers, probation supervisors and construction workers, warned things were awful. So bad that second-half operating profits would be half what they were last year and the business was likely to breach its banking covenants. The shares fell 25 per cent.
The group is worth less than £100m now. It looks to be in a worse state than Carillion, its fellow construction-outsourcing business that has become a byword for the sector’s habit of borrowing heavily, over-bidding for contracts, aggressive acquisitions and opaque accounting.

Carillion’s shares have fallen from 350p to under 50p in three years and its net debt is three times the value of its equity. Interserve’s net debt will be £500m by the year end. That is five times the current value of its equity. 

On Thursday, Interserve’s new brooms presented a picture of a sprawling business trading on below-average margins brought ever lower by rising costs and plunging revenues. Employment costs are rising and inflexible, made worse by increases to the National Living Wage. Margins have been hit by heavy start-up costs on contracts — so-called “contract mobilisations”. The building division has been hit by delays and penalties.

One thing missing from Interserve’s statement last week was a reference to the impact of new accounting rules — IFRS15 — on booking revenues, which come in force in January

However, Capita’s big reveal last month surprised everyone. It said IFRS15, which will force companies to smooth revenues and match them to services provided, would have reduced 2016’s earnings by a third and wiped out net assets.




"Impact of new accounting rules look ominous"

[dalailama] 22/10/2017 14:41

Still holding a few but if they do a placing what will it be at?