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Share Name Share Symbol Market Type Share ISIN Share Description
Low & Bonar LSE:LWB London Ordinary Share GB0005363014 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.95p -5.44% 16.50p 16.05p 16.95p 18.30p 16.60p 18.30p 466,431 16:35:15
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 446.5 -19.7 -5.9 - 54.46

Low & Bonar Share Discussion Threads

Showing 1751 to 1775 of 1775 messages
Chat Pages: 71  70  69  68  67  66  65  64  63  62  61  60  Older
DateSubjectAuthorDiscuss
17/12/2018
13:24
thanks Typo - this is in fact the only concern i have re mr Dayan - he is a highly capable man but maybe a bit of an empire-man.
baner
14/12/2018
15:58
Good point baner. Too often companies appear to be run by directors with an eye on empire building for their CVs, rather than serving the best interests of ordinary shareholders.
typo56
14/12/2018
15:33
this is a disastrous investment for the Stelring camp - rest assured they will try to sell some assets swiftly in order to avoid a placing. if LB sell one of their better units a placing will be unnecessary and the shares will bounce back substantially. but again - will the BOD accept to run a much smaller L&B than what they were recruited for?
baner
14/12/2018
14:48
If it's just a placing (or mostly a placing with a token open offer via clawback), it's in the interests of the placees to get a low price because it enables them to snaffle more of the company for the same outlay (i.e it dilutes PIs more). We'll be lucky if it's 10p IMO. Time will tell.
typo56
14/12/2018
12:38
Indeed. PIs always get stuffed. But what I meant is that sterling and LWB directors couldn't buy up a placing at an artificially low price just for themselves, and exclude other IIs - the others wouldn't allow it. So the placing would more or less find its market price amongst the various IIs, which Id guess would be about 15p. The big problem comes if nobody wants in at the price (eg Kier), or the underwriter demands a very low price - but that seems unlikely here, especially with sterlings very large percentage and vested interest in not being diluted too much. To my (economists brain, granted, not an accountant) - it doesn't matter that much if PIs don't get a look in, provided the placing is successfuland it keeps the wolf from the door.
time_traveller
14/12/2018
12:24
time_traveller, I think that's exactly what does happen sometimes (probably more AIM because PIs are simply there for the shafting). When you've got a few big holders they can ram through a placing, often with a token open offer for the plebs. One reason to look for a company with a good ditribution of holders. I'm not saying it will happen here.
typo56
14/12/2018
12:24
L&B´s problems are not so much operational as financial. there is too much debt in the balance sheet and this makes it difficult for them to obtain enough time to turn the businesses that suffer, around. but there are some excellent units in there, with very high ROS as well as return on capital. they could sell one of these for a price approaching the net debt - leaving L&B as a smaller but financially very sound company - albeit at the expence of profits. but no doubt the pro forma would underpin a share value higher than 15-20p. however - will they be given the time and does the BOD accept to shrinken the group accordingly, making it a less prestigeous group to run?
baner
14/12/2018
11:59
Yes, Typo56, those resolutions go to the heart of it. (Not a holder and, apologies, hadn't bothered to look up the resolutions.) I was at the agm, btw, and several before that, too. Sterling had flown their person into London for the agm. This would be unusual for most large institutions, who normally don't attend. Sterling, however, only have a small number of holdings and are closer to those businesses - hence the attendance. I spoke to Sterling's person, LWB's CEO and some non-execs. Nothing material is ever disclosed during such chats. From memory, I had sold the bulk of my shares ahead of the last agm. Obviously, I'm watching here. I have experienced several years of managements trying to improve things at LWB. All managements were genuine, I'm sure, but none of them succeeded. Maybe the business is too spread out across the globe - different local markets and cultures, far from the potentially supportive HQ. I could liken LWB's CEO's to circus performers, trying to keep a dozen plates spinning on sticks .... always seemed to be one or two falling.
ed 123
14/12/2018
11:39
Ed123, what do you make of resolutions 12 and 13? My reading is they might be able to get away with a large placing, but that would need shareholder approval. With a mix of shareholders they might not obtain that approval, because they'd demand pre-emption rights.
typo56
14/12/2018
11:38
I remember a bit of a hoo-haa about several recent share placings, including patisserie Valerie, andIthought the FSA were cracking down on misuse. Im not aware of a percentage limit. However, I think it cannot practically be limited to just one favoured II (eg sterling), because the others would intervene, so the incentive remains to keep the price as high as possible, provided it can be underwritten. PIs make up quite a small percentage here, so the outcome I think would be similar to an RI (unless we wanted to buy into the issue (which I probably would).
time_traveller
14/12/2018
11:36
The 10% rule is the requirement for fully listed companies to issue a prospectus when fund-raising which is very time-consuming and will cost £500k plus just by itself.I would expect Sterling to be deeply involved in the process as they will be the cornerstone investor and they have their nominee on the board. Timing wise I'd expect an announcement in Jan/Feb of the share issue before last year's accounts are signed off to avoid an emphasis of matter or worse in the audit report. I actually think we are near the bottom for the share price but there'll be plenty of time to get in when all the details are known.
danny baker
14/12/2018
11:33
HUR is an AIM stock, whereas LWB is fully listed. There are more shareholder protections with fully listed companies. CVR was also an AIM stock.
ed 123
14/12/2018
11:30
Also Resolution 12... Under the Companies Act 2006 (the 2006 Act) the Directors may only allot shares, or grant rights to subscribe for, or convert any security into shares if authorised to do so by shareholders. The Directors consider it desirable that their authority to allot relevant securities and to allot equity securities for cash without first offering them pro rata to existing shareholders should be renewed. It is common practice for directors to seek shareholder approval at an annual general meeting for authority to allot shares should the need arise, subject to certain limits and within a specified time period. The Directors propose seeking shareholders’ approval to renew authorities granted in previous years. Resolution 12 is proposed as an ordinary resolution to authorise the Directors generally to allot shares up to an aggregate nominal amount of £5,496,566 representing approximately one third of the existing Ordinary Share capital of the Company as at 20 February 2018 (being the latest practicable date before publication of this document). Such authority will expire at midnight on 12 July 2019 or, if earlier, at the conclusion of the next Annual General Meeting of the Company. The Directors have no present intention to exercise this authority but consider it appropriate to maintain the flexibility that this authority provides. As at close of business on the date of this notice, the Company did not hold any treasury shares.
typo56
14/12/2018
11:29
Ed123, I think this is probably relevant, from the last AGM held Apr 13th 2018. All resolutions were passed, including resolution 13... Renewal of Directors’ authority to allot shares for cash other than to existing shareholders (Resolution 13) Resolution 13 will be proposed as a special resolution which if passed will give the Directors power, pursuant to the authority to allot shares for cash pursuant to the authority given in Resolution 12, to allot equity securities (as defined by section 560 of the 2006 Act) or sell treasury shares for cash without first offering them to existing shareholders in proportion to their existing holdings, up to an aggregate nominal amount of £1,648,970 being 10 per cent of the issued share capital of the Company as at 20 February 2018 (being the latest practicable date before publication of this document) and otherwise to allot shares in connection with rights issues. The Directors have no present intention to exercise this authority which will expire at midnight on 12 July 2019 or, if earlier, at the conclusion of the next annual general meeting of the Company. The Directors intend to adhere to the provisions in the Pre Emption Group’s Statement of Principles (Pre-emption Principles) as updated in 2015, not to allot shares for cash on a non pre-emptive basis pursuant to Resolution 13 in excess of an amount equivalent to 5% of the total issued share capital of the Company without prior consultation with shareholders other than in connection with an acquisition or specified capital investment which is announced contemporaneously with the allotment or which has taken place in the preceding 6 month period and is disclosed in the announcement of the allotment. The renewed authority will expire at midnight on 12 July 2019 or, if earlier, at the conclusion of the next annual general meeting of the Company. The Directors have no present intention of exercising this authority but consider it prudent to retain the flexibility that this authority provides. In accordance with the Pre-emption Principles, the Directors confirm their intention not to issue more than 7.5% of the Company’s Issued Share Capital for cash other than to existing shareholders in any rolling three-year period without prior consultation with shareholders.
typo56
14/12/2018
11:19
Ed123, I'm not sure about that. There will be restrictions on how large a placing can be without shareholder approval. Without checking I'm not sure of the % in the case of LWB. I'm not aware of a restriction of 10%, provided there's been shareholder approval. Some companies have a few major shareholders, which means between them they can ensure placings get approved and the poor little ordinary shareholder gets diluted. Sometimes they'll be a little sweetener of an open offer, but even these can get withdrawn. Look at HUR a year or so ago. Wasn't the CVR rescue, if it happened, going to be in the form of a massive placing, in order to save time?
typo56
14/12/2018
11:02
Can sterling or another II underwrite an RI (as I would imagine they would want to take as many as they could get, and then some more)? Third party underwriters (eg HSBC) got burnt with Kiers RI, so yes, they would demand a low issue price.
time_traveller
14/12/2018
10:51
Afaiaa, London fully listed companies can only place up to 10% new shares. Above that level it has to be a rights issue.
ed 123
14/12/2018
10:43
Ed I am not sure what form the fund raising will take but all shareholders should be given the chance to participate. There are no rules as such as the fund raising will require shareholder approval at a general meeting. Sterling will want as high a placing price as possible so I stick with 15p.
danny baker
14/12/2018
10:25
It won't be a placing or open offer at 1 new share for 2 existing. Needs to be an actual rights issue - Stock Market rules.
ed 123
14/12/2018
10:15
I doubt rights would be pitched as high as 15p, not with underwritters these days. 10p perhaps. The rights price doesn't really matter much. If you take up in full it costs you the same, whatever the price, and you don't get diluted. If you don't take up in full you get cash to compensate for the dilution.
typo56
14/12/2018
09:57
I guess insurance covers the cost for repairs to the Czech plant.
time_traveller
14/12/2018
09:54
£10 million for the CE division is very optimistic. They have already written the goodwill down to zero and are likely to have to take a measly offer well below asset value to get rid of it. I'm assuming a placing/open offer equivalent to a 1:2 rights issue at around 15p a share to raise around £25 million before expenses.My guesses are :- Dividend will be slashed to 0.25p but paid on the new shares as well. Forecast total dividend of 0.75p for next year giving a yield of 5% on the placing price. For FY19 £20m of profits and a proforma market cap of £75 million and the shares are going to be a strong buy at the placing price. DYOR.
danny baker
14/12/2018
09:23
Dividend cut & possible equity raising...not a good update.
imnotspartacus
14/12/2018
09:16
Raising £20m, plus say £10m from Civils would bring debt/EBITDA down to about 2.5, compared to the old covenant of 3 times. Then, hopefully, CTT improves and the ratio falls further. Yes, definitely should have acted sooner, but a relatively new CEO having spoken somewhat optimistically ...... could he easily deliver bad news?
ed 123
14/12/2018
09:15
Am I correct in thinking this is trading somewhat below the net tangible asset value? I guess a lot hinges on the valuation of property, plant and equipment. Might a US company have a sniff? Perhaps waiting for sterling to fall further?
typo56
Chat Pages: 71  70  69  68  67  66  65  64  63  62  61  60  Older
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