Interserve Share Discussion Threads

[whyyy] 19/4/2019 11:57

no, on the toilet paper were the faces of all private shareholders.

[fenners66] 16/4/2019 13:46

maybe it was on the directors' toilet paper....

[whyyy] 16/4/2019 11:55

Are the stringent criteria that the piggies had to achieve in order to qualify for their bonuses recorded anywhere?

[fenners66] 16/4/2019 09:15

The Directors presumably refused to sell them in the 18m before administration.

They would have been aware that presiding over a "larger" business comes with a larger bonus !

£656k just a week before administration - talk about snouts in the trough !

They may say it was the same week as last year or something and it was merely a coincidence... but they will have known all along where the finish line was for those bonuses and done what they needed to do to get over it !

"Restoring shareholder value " .....I wouldn't be surprised if she grew up on a dairy farm....

[cc2014] 16/4/2019 07:28

Interserve’s construction business was valued at only £20m-£25m, the administrator’s proposals have revealed.

Interserve’s construction business was valued at only £20m-£25m, the administrator’s proposals have revealed.

As part of the pre-pack arrangement Interserve entered into last month, administrator EY commissioned an independent valuation of the group’s businesses from KPMG.

The quoted price excluded energy-from-waste provisions, as well as the cost of plugging a £55m gap in working capital to Interserve or a prospective buyer.

In KPMG’s worst-case scenario, these adjustments came to £124m, leaving the business with a net negative value of -£104m.

A best-case scenario estimated the adjustments would cost £69m, leaving the business with a net negative value of -£44m.

The valuation was made on the basis that a buyer would take the business free of any debt and without any cash in the bank.

However, a buyer could have insisted on additional writedowns and it would also likely have inherited a proportion of the group’s £122m pension deficit, KPMG warned.

Interserve’s other main businesses were valued significantly higher than its construction arm before adjustments.

Its equipment business, RMD Kwikform, was valued at between £310m and £375m, while the support services division was placed in a £360m-£410m range. Its international operations were valued at £100m-£133m.

In the report, EY claimed a break-up and sell-off of the individual businesses would have been hard to achieve in a short timeframe, which would have been essential to their ability to carry on trading.

A drawn-out sale process could have led to clients cancelling contracts and suppliers hardening their terms, thereby putting more pressure on cashflow.

There was also no real appetite in the market to buy Interserve or its subsidiaries, EY added.

“It was indicative of the lack of interest in purchasing the group that the widely reported press speculation in respect of the company in previous months did not result in any viable offers or significant interest being made for the group or its substantial businesses,” the administrator noted.

As well as hiring KPMG to provide an independent valuation, EY also drafted in investment bank Houlihan Lokey to provide a second opinion. It valued the construction business at between £42m and £54m before adjustments for worst- and best-case scenarios.

After adjustments, it estimated a net negative value of between -£88m and -£49m.

EY was hired by Interserve in January this year to make contingency plans in the event of its board failing to gain approval from shareholders for its deleveraging plan.

In light of Interserve needing £110m in additional cash by mid-March, the lack of extra support offered by its lenders and the likelihood of defaulting on its current financing, EY decided a pre-pack administration was the best option for the company if the deleveraging plan failed.

On 15 March, the deleveraging plan proposed by the board was voted down by shareholders and the assets of Interserve Plc were sold to its lenders in a pre-pack.

EY has estimated the cost to complete the administration of Interserve Plc will be £10.6m.

The Plc was the only entity to actually enter administration after its ownership of Interserve Group Holdings, which controls the various subsidiaries, was sold to the lenders in the pre-pack process.

Last week it was revealed that chief executive Debbie White and chief financial officer Mark Whiteling were awarded bonuses totalling £656,000 one week before the company went into administration.



I find the valuations of RMDK and support services way too high. But, if the administrators thought they were worth that much wtf did they let it go for nothing. Perhaps it also explains why the lenders and Coltrane were both so keen to get hold of it. They see lots of value. I don't. Time will tell.

[cc2014] 12/4/2019 09:56

The company carried on so I'd assume yes.

[fenners66] 12/4/2019 09:20

Really ?!

Did it get paid ?

[cc2014] 12/4/2019 08:34

Interserve execs awarded £656k bonus week before administration

[newtothisgame3] 12/4/2019 05:52

#IRV #Interserve chief harvests the grapes of wrath

[newtothisgame3] 12/4/2019 05:51

#IRV #Interserve chief harvests the grapes of wrath

[newtothisgame3] 12/4/2019 05:50

#IRV Regulator starts inquiry into #Interserve accounts
The accounting regulator has begun an investigation into the audited accounts for Interserve, which went into administration last month.

[newtothisgame3] 12/4/2019 05:50

#IRV Regulator starts inquiry into #Interserve accounts
The accounting regulator has begun an investigation into the audited accounts for Interserve, which went into administration last month.

[newtothisgame3] 12/4/2019 05:38

#IRV #Interserve Grant Thornton's audits to be investigated

BBC News - #IRV #Interserve outsource firm accounts investigated

[fenners66] 11/4/2019 13:40

Good lets hope they too find it odd that "exited business" costs which were therefore extraordinary , were around for 3 years.....

Took longer to exit than brexit ?

[cc2014] 11/4/2019 11:59

Three years of accounts of one of the UK's biggest government contractors, Interserve, will be investigated by the accountancy regulator.

The Financial Reporting Council said the audit for the years 2015, 2016 and 2017 by accountants Grant Thornton would be investigated.

[cc2014] 05/4/2019 08:49

Interserve’s joint venture partner on three energy-from-waste (EfW) plants needs to find £68m today or it risks collapse.

Sad to say this is going to cause even more losses for IRV. I hope those bankers who now own IRV really understand what they are doing.

[whyyy] 01/4/2019 13:31

Are all the incompetant BOD which and misled investors while the company slid into oblivion still in very gainful employment with the new Interserve?

[andrewdod] 30/3/2019 21:40

Can someone enlighten me as to the date a capital loss is incurred here (so that I can know whether to sell gaining stuff this tax year). They delisted on the 18th of March -- but does that mean that the loss is crystallised on that date - or does that happen later?

[swiss paul] 24/3/2019 22:16

Roger can you tell me then why it states that audits are not for the purpose of discovering fraud?

[roger clark fca] 23/3/2019 10:51

I am not an external auditor i.e. not the KPMG - PwC - E&Y - Delotte type of auditor (they have justifiably been in the firing line and justifiably been penalised). I am an internal auditor... focusing on efficiency and profit improvement. It is the prosperity of the organsiation driving us. KPMG - PwC - E&Y - Delotte make money most easily and profitably from administrations and liquidations: in other words they benefit greatly from the failure of entities. They can earn 1.25% of everything they sell belonging to the entity in administration. They can earn £10 million in one day from an administration such as Carillion or £1 million in one day from Patisserie Valerie going into administration.

[swiss paul] 22/3/2019 20:32

And your stating you are an auditor - I would keep that quiet if I was you - about as trustworthy as estate agents at the moment is your industry

[zztop] 19/3/2019 19:10

After patisserie Valerie