Interserve Share Discussion Threads

[cfc1] 26/10/2018 10:07

blimey Fenners -we agree again!
Capita's new CEO just brought in a borad level chief sales officer or title to that affect. Nope Capita have never had one!
Infact Mrs White or 'grey' is an accountant and her and the kiwi FD have ZERO real salesmanship.
IT companies are relentless in pursuing goals and targets. These 'non IT' companies have no such culture. Mrs Grey (I prefer that name) brought in a senior commercial/governance chap but thats NOT a role that owns and drives sales.

[fenners66] 26/10/2018 09:51

"dont even have a board level sales director!"

cfc1 if that is correct that is absolutely shocking !
I have known sales as the "giving away department" - but not having a sales director to point the finger at is unbelievable !

This has dragged on for months with no significant progress - so by now how much extra debt and interest is accumulating vs, the "plan" (if there ever really was one!) to raise money from disposals ?

What I can say is when the bonuses were awarded it seemed too much like more snouts in the trough and I asked then what had they done to deserve it. Months later and we are still asking the same.

[cfc1] 26/10/2018 08:29

me too Aenjdo - no choice really as ave price is 84p!
I want to see more leadership more relentless focus on deals and winning. I am not sure they really have sales 'rigour' in Interserve. Infact they dont even have a board level sales director!

[pundit1] 25/10/2018 18:43

Bertiebru - it's good we all have opinions and I guess that's what bulletin boards like this one are for. It's interesting to see the PDMR / director for the international business is now responsible for UK construction, and presumably also international? Must be a huge learning curve after so many years out of the U.K. and living the life. The International businesses must have a decent value, what else exists to create cash? Others (MITIE) got rid of health care and who would want to buy stand alone cleaning contracts. Where are the specialisms that add value (such as catering) within the business? What do you or others see as disposable assets that will raise the necessary cash to help pay the interest due?

[bertiebru] 25/10/2018 17:10

pundit1 - 10191

I think selling the International business would be a bad mistake. If we get a "no deal" Brexit the uk has to turn its semi permanent trade deficit around. All emphasis will be on improving international trade and the government will have to bring in monetary "sweeteners" to help that along. IRV would do very well in that case.

Even if we do not get a "no deal" Liam Fox will be going flat out to improve our trade with the rest of the world and IRV can be in the fast lane there.

[skyblue5] 25/10/2018 17:03

Yes Whyyy
Her bonus on back of cancelling Christmas for all staff and clawing back all unused holidays from staff, especially from front line staff.
Recruitment ban and we had to lie to clients.

[pundit1] 25/10/2018 16:07

Well I've been watching and watching and don't see the recovery. My shares like other investors have just reduced and reduced in value. What's to sell that's got any value? Only RMD. PFI investments already sold. Construction have a poor track record and FM is bottom end with too much involvement in cleaning. I just see CEO and other Execs making a good living whilst others suffer and take the pain. Selling the Internstional businesses would be a step forward in my opinion but do your own research and see what you come up with.

[cfc1] 25/10/2018 12:17

well I am staying the course. But Mrs White NEEDS to SHOW us WHAT she is doing to turn the ship around. Silly little RNS worth the sqrt of jack are not hacking it.
She is paid a massive salary package and I bet us little holders are not the only ones demanding MAJOR news!
WHERE is the so called "drawing a line under EFW" promised 2nd half!!?? WHERE are the BIG disposals and BIG deals?!
We demand 'fit for growth' news. NOT just headcount reductions and streamlining!

[obiwoncanary] 25/10/2018 11:41

Agree this is more worrying and stressful than March when waiting for funding agreement. As CFC says, we need news.

[whyyy] 25/10/2018 11:16

I'm losing faith, it seems like Ms White and co are doing nothing other than feather their own nests.

Still haven't forgotten the massive bonus they payed themselves after being in the post 5 minutes, for doing a job any half competent manager could have sorted out.

Clearly a woman who puts a very high value on her achievements and cares little for shareholders.

[cfc1] 24/10/2018 21:05

how do we share holders PUSH the company or rather demand some update?
I see this new CEO as commanding a big package and so far has delivered NOTHING but a loan eagreement and huge interest rates and then the 10p shares to lenders. NOTHING ELSE
WHAT BUSINESS deals of substance are being created

[aendjo] 24/10/2018 19:41

I haven’t sold CFC but I have to admit it’s kind of worrisome. I’m not selling at this point.

[windrushg] 24/10/2018 16:37

It would be crazy for ANYONE to contemplate throwing in the towel at this stage!

[cfc1] 24/10/2018 15:54

hmmmm Aendjo..is this u selling off the odd 47K ???

[aendjo] 24/10/2018 13:45

Just to add, the Sinfin Contract is part of a larger contract between Derby County Council and Resource Recovery Solutions. Even assuming the City Council Labour / UKIP opposition will be able to persuade the Tory minority-led City Cabinet to terminate the contract, they would have to convince the County Council as well, where Tories have a strong majority.

Details of contracts here

[aendjo] 24/10/2018 08:43

Morning Jeffian.

If the target of 450m debt can be met by 2020 whilst retaining RMDK and achieving margins of 5% on revenue (as per BOD statement), the company could service the debt just by trading (say ballpark 150m EBIT and 50m interest, 100m cash to be used to cover debt and restoring dividend). The margins improvement of 50m mooted as part of the FFG process would be enough to service a 450m debt.
2017 EBIT 116m
2016 EBIT 194m

Personally I would prefer a degree of recapitalization (when the share price has recovered) and further disposals. I see a scenario where construction + RMDK as a whole could be sold together, with Interserve continuing to trade as a deleveraged pure support services enterprise. Consider that combined revenue of construction + RMDK is circa 1b and revenue for support services is circa 2b.

I am more concerned about how we get from 650m to 450m, especially with the Damocle’s sword of EfW hanging over our heads.

[jeffian] 24/10/2018 00:05

....and explain where it's going to get the £450m?

[aendjo] 23/10/2018 19:13

Whilst the company continues to work on completing the EfW contracts, news of contract wins and good deliveries continue to come. Hopefully IRV will swiftly conclude its involvement with EfW and concentrate on its core businesses.

hxxp://www.rothbiz.co.uk/2018/10/news-5992-halfway-point-in-rotherham.html?m=1

[obiwoncanary] 23/10/2018 16:15

this has swung 5% today! Must be a day traders wet dream

[dexdringle] 23/10/2018 12:50

I'm sure that whoever it was at Interserve who thought heavy involvement in EFW, including design, was a good idea has long since ridden off into the sunset with a nice wad of cash and a big fat pension....

[aendjo] 23/10/2018 12:44

I agree the location of the plant is absurd. Having said that, the technology is not that new.

RRS are already out of pocket north of 150m for building the plant, with 50m due to be paid on completion. I really hope this can delivered before the end of the year (across all plants).

[dexdringle] 23/10/2018 10:10

Is the issue that Interserve promised that it wouldn't cause pollution and it does ? And had they not made that promise then the thing wouldn't have been approved to be built where it is ? In which case we are in a world of pain.

Having said that, how can Interserve possibly have promised zero pollution / smell unless the technology was already proven to achieve that ?

It might be cheaper to buy up all of the local houses affected and let them out !