Interserve Share Discussion Threads

[aendjo] 14/6/2018 07:02

Thank you Cerrito.

[windrushg] 14/6/2018 00:39

So why is Cerrito favoured with information from AGM that is not officially announced into the public domain. That would be tantamount to insider information and we must be highly sceptical of his/her probable fictitious account IMV. He must think we were all born yesterday to be so gullible. IMO, It is total BS !!!

[jeffian] 13/6/2018 23:49

Cerrito, a very useful summary, thank you, but it confirms my view that the continuing uncertainties over EFW and the long-term refinancing of the company will result in this trading sideways for some time to come. For investors, the issue isn't so much about survival but when the market becomes convinced that profits can be stabilised and growth restored. IMHO that isn't for a while yet and my money can more usefully be invested elsewhere until the clouds lift from IRV.

[fenners66] 13/6/2018 23:32

Cerrito - thanks - I appreciate the effort you went to reporting the AGM

[cerrito] 13/6/2018 22:10

A delayed AGM report.
I thought a good meeting and was surprised that only 5/6 private share holders there. No aggressive questions asked. Chairman was open and gave clear answers. What was good was that he, the CEO and the CFO all appear to be comfortable in their own skins- in fact in the results webcast I thought they came over very well and it seems the CEO and the CFO have a very good relationship- something very necessary to resolve the situation but of course in no way sufficient.

Only 43 m out of a total of 149 m shares voted and apart from 17 pc against the remuneration report it was virtually unanimous- ie for all the problems the company has, the shareholders seem to be on side.
There was no presentation or prepared statement- I guess they would say no change since when the prelims were announced six weeks ago; for those who have not caught up with it I recommend the informative webcast of the presentation of the full year figures to analysts.
A question on EFW and indeed I was reminded afterwards the decision to do these goes back to 2009/2010. He reminded us that Derby was producing electricity but there were to use his words non trivial steps to be undertaken before full commissioning and that the subcontractor who failed in Glasgow was a key one. He confirmed that discussions had not started with Pennon about the final financial settlement for Glasgow and thus had to keep their mouths shut.
Chairman said that Coltrane were a supportive shareholder who had had meetings with the CEO/CFO. They saw value in support services companies like IRV and their interests and the company's interests were aligned. While I appreciate that given the way they hold their 25+ pc holding they may not be able to vote all their holding I am assuming they did not vote at all given low turnout.

Asked why it had gone pearshaped so quickly given that reading his statement last year would give one no inkling that we would be where we are today he said that at last year's AGM they had not fully taken on board the EFW issues that had occurred: that they had been banking on a hockey stick pick up on profitability in late 2017 which had not occurred and then when in the eye of the storm on talks with the banks, Cerillion had come along.
In reply to a separate question the CEO said the mantra was standardisation, simplification and focus.
The Chairman was asked to comment on comments made by the CEO in the webcast that debt even if all the Fit for Growth goals were achieved would be too high and that strategic options are being looked at to delever the Group. This was confirmed by the Chairman who commented that not only was the debt too high it was also too expensive. The options being looked at included the obvious debt for equity swap, sale of a business, and/or fresh equity. He said that a decision on which way to proceed would be made at the end of the year. This is all very sensible and logical; that said it will be hard to avoid the vicious circle of a possible debt for equity or new equity offering not keeping the share price depressed for the next year.
Obviously the first Half's results will be important but not sure in reality how much scope there is for an improvement in the trading that can move the dial. Of course if they can meet their goal of getting final clarity on EFW costs by year end that will lift a cloud on the share price .do not know if it is realistic to expect negotiations with Pennon to have finished by then.
PS
I have held since 2009. My instincts tell me this is attractively priced but not sure what short term catalyst there is to drive the price higher and talk of a capital reorganization will keep a lid on the price.
PPS
The Chairman said that EFW was the cause of the current situation saying that £250m will have been paid out plus the extra £50m for fees for the financial restructuring. That said listening to the CEO in the webcast clear that there are many operational inefficiencies which are being rectified.
PPPS
There is a tendancy on these boards for people to be rude about the contribution of NED' s but speaking to one of them I was struck that over the last year they have had to do far more than they signed up to when they joined.

[sap312] 13/6/2018 19:00

I think the few left on some contracts are really struggling. Contracts could be at risk, not a good time in the PFI world.

[jeffian] 13/6/2018 17:20

"EFW now out of the way"

Says who? Not IRV in their last comments in the AR.

"...Despite this progress, risks clearly remain and we continue to expend every effort to bring these projects to a satisfactory conclusion....

.... We expect to complete substantially the construction of the projects in the first half of 2018, though significant uncertainty remains on the timing of commissioning.

While significant risks remain, we are making good progress towards final commissioning."

[ph1ts] 13/6/2018 16:14

Yes, I would Lego of that idea!

[fenners66] 13/6/2018 14:28

windrushg - I think that idea is full of holes !

[windrushg] 13/6/2018 11:09

They should takeover Meccano. It would make a great bolt-on acquisition😈

[cfc1] 13/6/2018 10:58

i think we are at price where a predator will be looking to buy Interserve. Massive forward order book and EFW now out of the way. Either a merger or acq or major deals emerging

[da vinci1] 13/6/2018 10:29

Then 83% did not vote against level of executive pay which is even more massive, Also, as a shareholder, there is a lot less fear and uncertainty as there was a couple of months ago! It's frustrating times but I'm staying long as I feel this will come good in the fulness of time.IMV, on a forward p/e of about 2,the share price is oversold and undervalued.

[whyyy] 13/6/2018 09:36

So 17% of shareholders voted against the level of executive pay - that's massive, what was it last year 2%?

The lack of any update yesterday worries me as does the becalmed share price.

The noises I hear coming out of Ingenuity House are real concerns that the depth of the cuts is leaving people wondering how on earth the work is going to get done. There is fear and uncertainty.

Ms. White needs to concentrate less on feathering her nest and more on getting her workforce onside. An "Us and Them" is rapidly developing.

I've got a friend at RMDK, I'll see what the mood is like there.

[da vinci1] 12/6/2018 19:35

The silence is deafening !

[cc2014] 12/6/2018 19:03

Company no longer giving a trading update on the date of the AGM tells you everything you need to know.

[jeffian] 12/6/2018 17:27

Indeed.

See my #8945 and 9322.

[windrushg] 12/6/2018 17:03

Zombie company????????

[cfc1] 12/6/2018 12:08

going into a meeting...anyone got AGM feedback????

[cj62] 12/6/2018 12:05

CC.
It's a very good move really because they weren't good.
In London their are numerous large construction companies that eat that work.

[cfc1] 12/6/2018 11:57

now THIS IS NEWS!
#
hxxp://www.constructionenquirer.com/2018/06/12/interserve-hopes-for-170m-prison-start-this-year/

[losses] 12/6/2018 11:45

INTERSERVE WINS £10MILLION CONTRACT EXTENSION WITH SOUTHWARK COUNCILby Interserve Press Office | Jun 11, 2018

[losses] 12/6/2018 11:36

No point doing it if there's no profit... good move

[cc2014] 12/6/2018 10:46

Interserve is pulling out of the London new-build market in the latest change under its strategic Fit for Growth streamlining plan.


James exits as Interserve ceases new build construction from London office
As part of the re-positioning plan the present Interserve London Construction team will now form part of the Paragon refurbishment division.

More here:

[gregpeck7] 12/6/2018 07:21

Sometimes it's released when the agm starts..

[cc2014] 12/6/2018 07:21

No AGM trading update?