Interserve Share Discussion Threads

[fenners66] 02/10/2018 07:24

"The Transaction will result in a loss on disposal of circa GBP8.4 million"

That suggests it was not already provided for.

More disposals, more losses to come ?

[aendjo] 02/10/2018 07:18

International support services and construction group, Interserve Plc (“Interserve”), is pleased to announce that it has entered into an agreement to sell its Infrastructure and Industrial access and hard services business (the “Business̶1;) to Enigma Industrial Services Holdings Ltd via Interserve Industrial Services Limited (“IISL”) for cash consideration of approximately £3.6 million payable upon completion of the transaction (with the potential for further cash consideration of £1 million subject to the Business achieving certain financing targets for the financial years 2018 and 2019), (the “Transaction”).

Together with the closure of IISL’s power activities earlier this year this concludes Interserve’s exit from its industrial contracting activities. The Business comprised Interserve’s provision of scaffolding services to housebuilders and other contractors as well as its SIP (Scaffolding, Insulation & Painting) services to large industrial sites. Scott Hardie will continue to lead the Business as Managing Director.

For the year ended 31 December 2017, IISL reported an operating loss of £4 million and had gross assets of £47.3 million. The Transaction will result in a loss on disposal of circa £8.4 million. The sale proceeds will be used to reduce the Group’s indebtedness.

Debbie White, Chief Executive Officer at Interserve, said,

“We are pleased to announce the sale of the access and hard services business as part of Interserve’s strategy to focus on core customer segments.”

[danboris2] 02/10/2018 07:07

Nice to see a disposal of a loss making business

[cfc1] 01/10/2018 19:04

cc - 150K shares !! so what?! that is the square of nothing! We simply need NEWS and since August Irv have not announced anything of substance and until they do we drift. I wont sell here. I do really expect disposals and some major news in Q4

[aendjo] 01/10/2018 15:35

Work is finally set to start next month on Hoskins Architects’ redevelopment of the Scottish National Gallery – with the cost ballooning to £22 million

The long-awaited project will transform the landmark Edinburgh building with a suite of new galleries directly accessible from Princes Street.

[...]

However, despite the cutbacks, extra design and project costs mean the scheme is now priced at £22 million.

Work will get under way within weeks, with completion scheduled for 2020. The gallery will be open as usual throughout the building programme, which will be led by main contractor Interserve.

[aendjo] 01/10/2018 14:53

No volume whatsoever today.

Meanwhile, Peterborough city council has called in Interserve as replacement builder for a new city primary school that Carillion had previously been signed up to build.

Small fish, to be added to the buttered bread. When it comes to insolvencies and their effects on IRV, it’s not just builders that went bust, but Carillion itself - a direct competitor - being out of the picture.

[cc2014] 01/10/2018 13:57

L2 is interesting. 2x 77k sells loaded on the book. They were at 58.0 and now at 57.75

Either a) they are real and the share price is about to fall
Or b) they are fake and someone is using them to scare people into selling as there is a large buy order out there.

The timing of them coincides with the horrible 30pt red candle on FTSE 10 minutes ago.


About 80% of the time these large orders are fake...

[fenners66] 01/10/2018 12:57

Technically insolvencies are a good thing for those that don't go insolvent, but are Irv a builder or someone who just hires builders ?

With less builders in business , prices should rise , but is that a price IRV charge or are paying?

[fenners66] 01/10/2018 12:57

Technically insolvencies are a good thing for those that don't go insolvent, but are Irv a builder or someone who just hires builders ?

With less builders in business , prices should rise , but is that a price IRV charge or are paying?

[dontworrybehappy] 01/10/2018 12:21

And your point is? You say you sold and lost £44k, then you say you'll buy back in again when they sort themselves out! Why not just wait until they sort themselves out and then sell, probably would have saved yourself £44k!

[losses] 01/10/2018 07:20

Insolvencies in UK building firms rise 20% after Carillion collapsHttps://uk.finance.yahoo.com/news/insolvencies-uk-building-firms-rise-060115771.html

[aendjo] 29/9/2018 20:47

That’s my play, sbs, with a comfortable margin of safety here.

[sbs] 29/9/2018 19:45

It's all risk and reward here.Any fallout from Brexit and the Government will be spending like there's no tomorrow - which there will be of course.

[aendjo] 29/9/2018 07:02

Thank you cc. Very strong figures and a good case for investment.

Of course the worst case scenario should consider risk and liabilities - do they have any EfW project? - just joking of course.

Thank you and good luck!

[fangorn2] 28/9/2018 20:45

Quiet as well! :)

[cfc1] 28/9/2018 15:45

bloody quite on the msgboard these days! Infact quiet from the company too!

[cc2014] 28/9/2018 09:15

I think it's very difficult to work out TOP due to the number of unknowns. How do we separate all the one-off costs from the underlying ones and how do we make a prediction where IRV is going as there are so many things going on.

Here's a guess. We know the debt at half year is £614m. We know the debt forecast for year end is between £575m and £600m so that's an improvement of £14-39m after the £40m interest.

That implies a TOP of somewhere between £54m and £79m for the second half

But then we have to adjust for the one-offs.

We know the insurance receipt is in the second half and it's value is around £32m
We know the London Construction withdrawal will cost £6m and we can assume most of it will be spent in the second half of the year. Call it £5m
Surely they must have budgeted some more disposals in the second half. Let's call that £10m although that's complete guess.

If we adjust for all these we get 54-32+6-10=£18m-£43m. TOP for first half was £40m so that seems consistent, albeit if the business is making progress it should be going up.

It's at this point I give up of course, because any small movement in working capital will skew the analysis.


I prefer companies where I can do some proper analysis and therefore de-risk my investment. I thought I'd share with you my analysis on CTO. The point being really I can do some scenario planning based on a set out outcomes that have few unknowns and thus my chance of success is very high. We have discussed before I like low risk trades with high probability of success

[aendjo] 27/9/2018 21:51

What is the consensus here on TOP and earnings for 2018?

[losses] 27/9/2018 21:24

Good luck... Still my watch list... will buy back in if and when things clear up and are heading in the right direction.

[aendjo] 27/9/2018 19:04

I’m sorry Losses. It’s tax deductible- but that’s the only silver lining. I’m staying long. My average buy in is 122p.

[losses] 27/9/2018 18:50

Lost 44,000

[losses] 27/9/2018 18:49

Sold out at 72p a while ago at a massive loss,

[aendjo] 27/9/2018 17:41

It’s all very, very quiet.

[cc2014] 24/9/2018 09:53

Friday's large trades and large price move was due to options expiry.

We will back to normal volumes today.