Interserve Share Discussion Threads

[cfc1] 30/4/2018 13:50

well they cant be saying theyn are ALL focused on Brexit!!!!!! another excuse of them to to fukc all!
There is a massive backlog of contracts in the proc frameworks and about £12B minimum!
It should actually be easier to IRV to negotiate with govt now..or get BDMs are Directors who can!!!!

[gregpeck7] 30/4/2018 13:36

Agree and I think the minimum wage ramp up is well and truely out the bag... which will be priced in future contracts.. govt has offloaded their higher wage commitments to fixed price contracts.. Last thing govt wants is to have these in house, they will just end up costing more and hey can't pass the buck.. public finances improving .. they will start spending more imo.

[gregpeck7] 30/4/2018 12:59

Think you may be right about that.. govt won't have many competitors to choose from soon on bids and will have to start paying more...

[cfc1] 30/4/2018 12:57

well analysts all reiterated buys today. Its now a waiting game - good price to get in . THE most interesting thing the CEO hinted at during the webcast was STRATEGIC decisions in next year! When asked how she could pay back debt she wouldnt be drawn on her "there will be strategic decisions"....... I think the outsourcing area is RIPE for a merger ....thats my bet for next 12months.

[cantrememberthis2] 30/4/2018 11:37

Well short it now to 70p
Oversold due to shorts today

[cc2014] 30/4/2018 11:35

Here's my take.

I think IRV have been a bit naughty here. It appears there are additional rights attached to the loans which I think it would have been appropriate to disclose earlier. In addition they don't tell us what the racket is on the loans on future years. It also transpires that there are considerable costs to achieve the £50m savings per year. I suppose I should have realised this but I do think the company could have been more transparent. To say you will save £15m this year when you are spending £15m - well I'm not impressed. I appreciate one is recurrent in perpetuity and the other is one off so I think they could have been more transparent.

However, putting that aside, they do provide enough detail in the RNS to persuade me the £50m is do-able. Sounds like Debbie inherited a right mess and much of the £50m is just doing things right and not reliant on super clever risky schemes. All good.


I was surprised at how the write downs occurred, I thought goodwill would get cut dramatically but instead we find the companies issues in construction weren't limited to EfW. Easy to fix though (or at least get to a position of not losing money) and they say clearly they will cut turnover and risk in this area.

So, we are left with net equity of £63m of which £427m is goodwill and intangibles after the write downs. I've mixed feelings on this. It's still alot and I question whether it's all "real" but it is being amortised year by year and even were it £100m too high it's not going to make much difference in the scheme of things. Not great really and puts the covenants under pressure. The goodwill number isn't so large though and it's all non-cash anyway.

The EBITDA number is OK, within a broad range of acceptable given the circumstances and I take heart from the level of account trade payables which does suggest/confirm they are paying their suppliers appropriately which will provide confidence by the supply chain.

I haven't managed to unravel all these fees yet. They seem large. Very large. I need to spend more time on that.


Finally, net borrowings are £647m as they can't set off all their positive bank accounts as some of the money is ringfenced due to joint ventures. They need to find a way to get at some of this cash even if it means selling off some of those joint ventures. That would help alot.


so, it's bad. We knew it would be bad. But there's alot of detail of what they are doing to put it right. Fairly balanced at a share price of 90p I'd say. both risks and opportunities.

I'm still sitting on the side of pessimism here although that's not a clear decision. If the share price had popped up this morning to 120p I was ready to short it.

[cfc1] 30/4/2018 11:33

buys outweigh sells yet share price down 17! LOL!

[leadersoffice] 30/4/2018 10:25

Just a short squeeze. Will be back over the £1 line in the next day or so.
Can see a rights issue coming this way though, may need some stabilisation first in the share price

[southernman] 30/4/2018 10:04

cant ..
"Intraday shorts.... This is likely to close higher imo"

So achieving a 20%+ short intraday doesn't count for some obscure reason?

[cantrememberthis2] 30/4/2018 09:53

Intraday shorts.... This is likely to close higher imo

[fenners66] 30/4/2018 09:52

And someone said the shorts were wrong again at 106?

[cantrememberthis2] 30/4/2018 09:50

I'm in oversold

[gregpeck7] 30/4/2018 09:41

Grabbed a few.. they are taking the pee with this drop..

[southernman] 30/4/2018 09:24

Talking of transparency, how will we know when 10p share rights are taken up?

[fenners66] 30/4/2018 09:19

£33m of interest is going to be added to the balance sheet this year....

on current shares issued that alone is about 23p/share.....

Nice

[fenners66] 30/4/2018 09:16

The LIBOR quoted does not say which.
Overnight , one month, 12 month?
The difference is 0.5% so interest is somewhere between 9.25 - 9.75%
on the largest borrowing they ever had.....

[fenners66] 30/4/2018 09:11

What is this phrase "Payment in kind" supposed to be with the financing charge ?

[cc2014] 30/4/2018 09:09

Do you understand the Q4 VAT liability statement Fenners? VAT is normally payable by the last day in the month but I would have thought Q4 VAT was payable at the end of January not the end of December?
Doesn't make any sense to me. why would they pay it so early in the month unless it is late and window dressing the accounts?

[eodfire] 30/4/2018 09:06

If someone has a long term pessimistic view towards a company they aren't going to be long.

[fenners66] 30/4/2018 09:04

Whose idea was it to represent the note on pensions as a positive number for a liability?

The amount included in the balance sheet arising from the Group's obligations in respect of the various pension schemes is as follows:


2017 2016 2015
GBPmillion GBPmillion GBPmillion
Present value of defined
benefit obligation 1,064.1 1,044.6 880.9
Fair value of schemes'
assets (1,016.1) (992.2) (898.1)
============================== ===========
(Asset)/liability recognised
in the balance sheet 48.0 52.4 (17.2)
============================== ===========


That looks to me like a deliberate attempt to confuse .... the first time I skimmed that I saw the number (positive ) as a surplus - because I did not believe it I went back and read more closely.....

Making accounts plainer...... hahaha

[fenners66] 30/4/2018 09:00

Professional adviser fees

Professional fees incurred in connection with the strategic review and the short term refinancing secured towards the end of the year totalled GBP13.9 million in the year (2016: GBPnil).

Towards the end of the year.....

So how much for the current refinancing that of course is in 2018?

[scemer] 30/4/2018 08:59

Fenners you short?

[fenners66] 30/4/2018 08:43

I know that the results on advfn does not format very well - but some of these tables have been particularly badly laid out.
Add to that the P&L being buried so far down - really looks as if they do not want us to read these.