Nmcn Share Discussion Threads

[dorset64] 23/7/2021 09:02

I feel for shareholders here but after dealing with Mncn for many years in one of my co's, they've had this coming to them for years. I can honestly say they are, in the water industry, one of the worse payers, most underhand co's we have ever dealt with.

On nearly every single project they employ on site QA's who, it would always appear do everything in their power to find fault, be it a little scratch during transportation, don't like the look of it, delay the delivery so they can delay the payment then accuse us of being late, and change the spec half way through construction only to then try and demand that we had the spec wrong, and its all to our cost all the while they sign off the original drawings prior to placement of order.

I also know of one of a current & possible legal battle with them for nearly £1m including costs which again, has yet to be paid to the company who produced the goods.

We have for past 12-18 months turned down all work from them as it really serves no-one to produce items for them, only to know you won't be getting paid for everything you should and when you do, it will be after a fight and months late.

Costain were the same and look what happened to them.

[cc2014] 22/7/2021 09:57

I'm not getting this at all.

Tinkler/Svella are paying around £24m for around 80% of NMCN (I can't be bothered to work out what the exact number is).

For this they are getting a company which broadly speaking has never made any money in the last 10 years and has recently been very poorly managed picking up loads of bad contracts.

For sure the company has a decent sized turnover and some long term contracts, but the success of the new venture will depend on it's ability to finally turn a profit, which generally speaking depends on the skills of the staff.

Given the huge recent losses, it appears they can't bid the right price for work and just as likely they can't run jobs very efficiently.


I'm not sure how far the £24m will go either...
The first £5m gets gobbled up by a reduced bank facility to Lloyds
Shall we say another couple of million for the extra losses from the RNS 2 days ago
£10m minimum to pay the suppliers who are screaming for money else they won't continue working for NMCN
Shall we say another £3m for redundancies to appropriately right size the workforce


From what I can figure Tinkler/Svella are paying £24m for something which without their intervention goes bust and is worth almost zero. Of course unless they put in £24m it goes bust anyway.

[jaf111] 22/7/2021 07:51

well below 50p surely.....unfortunately existing shareholders will be virtually wiped out even if nmcn can complete a refinancing.....sub 10p I would have thought!

[stoxx67] 22/7/2021 07:42

north midland constriction or north midland destruction?

if they are to survive , they have to kitchen sink the restated results, and that really isn't going to look good.

below 50p when recommences trading.

[jwball] 21/7/2021 09:51

Disaster zone, can't see the point of trying to rescue them. The ship has already sunk.

[cc2014] 21/7/2021 07:45

Another update yesterday.

Losses will be significantly larger than £24m for 2020, although NMCN assert most of it is already in their capital projections.

Results now expected in August.



What a mess Homer and Taylor made of this. I hope Tinkler knows what he's got involoved with. It looks pretty challenging to me

[jwball] 13/7/2021 10:19

This is a little concerning, are they saying that the share is overpriced?

1. Loss of assets
Section 656 of the Companies Act 2006 (the “Act”) sets out that if a public company’s net assets
fall to half or less of its called-up share capital, the directors of that company are required to
convene a general meeting to discuss whether any, and if so what, steps ought to be taken in
relation to this situation. On 27 May 2021 the Company's board of directors (the “Board”) became
aware that the Company’s net assets had fallen below the threshold set out in the Act and the
General Meeting will be convened to comply with the statutory requirement.

[cc2014] 29/6/2021 14:30

"A further GBP10.0 million has been raised from Svella, initially in the form of the Bridging Facility which will be provided to the Company immediately. The Bridging Facility principal, fees and accrued interest will convert into up to 62,400,000 new Ordinary Shares ("Bridging Conversion Shares") at the Issue Price at the time of completion of the Equity Subscription."

It would be my interpretation that NMCN have already recevied the cash for the bridging loan.

It's not clear to me whether he can walk away, but if he did he I doubt he'll see his £10m back.

[camlor2] 29/6/2021 14:08

Nmcn are losing £100,000 allergy per week on a contract they took on where I work, Trouble is the get out clause is millions.the company wasn't big enough to deal with the contract in the first place.

[jwball] 29/6/2021 14:00

"The Company continues to work with Svella Plc and its advisors in order to conclude the required documentation to convene a general meeting to seek shareholder approval to complete the refinancing at the earliest opportunity."

So the refinancing hasn't even gone through yet? Could Tinkler walk away possibly?

[squeamish1] 29/6/2021 13:10

The biggest mystery in the NMCN accounts is the £47m of unspecified ‘contract assets’ held at YE19. This has to be where the overstated profit has been being booked for the last five years. Presumably the new auditors are dissecting every contract to see if the future receivables really are likely to be what NMCN have been assuming based on work completed. Surprising they haven’t managed this in the last six months, especially since on 28-May the company released an updated view of YE20 profit which the auditors are still clearly not ready to sign off on.

Eezymunny - you called this 2 years ago and warned against putting too much faith in the cash balance held. Can I ask what you saw that others might have missed? Always looking to learn thanks.

[cc2014] 29/6/2021 12:08

Sadly it looks to me like NMCN can't provide appropraite justification with regard to revenue and costs on large projects.

Which is how they got in this mess in the first place as they didn't have sufficient financial oversight of their projects.

Given that they are being asked to justify the accounts for Dec 2020 and it's now 6 months on it's a pretty poor state of affairs.

One wonders how Tinkler can be sure he's paying an appropriate price, although I'm sure NMCN have been open book with him over everything and it seems likely he would have known the shares were going to be suspended.


Tinkler's getting a large company with alot of contracts and whilst he can fix the finance controls and oversight mostly I wonder about the underlying staff capability. Someone has to tender these projects which have lost loads of money, someone has to run them too and somewhere along the line something has been going very wrong.

[jwball] 29/6/2021 11:32

Maybe after the last auditors were forced to step down after turning a blind eye to discrepancies the new auditors have got to be whiter than white.

[cc2014] 29/6/2021 09:03

And another twist today. Shares suspended as haven't yet agreed the accounts with the auditors.

[eclair] 22/6/2021 14:19

Never fall in love with a share - I'll learn one day!

[cc2014] 22/6/2021 10:38

Got to agree with you there EM. I know a few. They also have the personality where they won't employ a stop loss on the way down until things get really painful.

Looks to me like someone has realised the sitution and wants out but is finding very low liquidity to sell into.

[eezymunny] 22/6/2021 09:42

There are a frightening number of dip-buyers about, who really don´t understand much. Suspect they´ve done OK post COVID as market has been very easy on poor trading statements etc...

[cc2014] 22/6/2021 09:18

And now not a buyer in sight!

[eezymunny] 21/6/2021 17:31

I think the big new investors can´t apply for open offer shares? So more available for the muppets....

[cc2014] 21/6/2021 16:53

Yeah I think so. 68p post#562

But...

70m new equity subscription at 20p
25m new OO at 20p
62.4m new Bridging loan at 16p

Exiting shareholders 10.4m at 160p !!!???!!!

total new shares after reconstruction 167.8m


Clearly Tinkler is happy to pay 20p as he thinks they are worth 30p,40p or whatever, but it's a long stretch to 68p

[eclair] 21/6/2021 14:31

Thanks CC, the penny's starting to drop now. So a post entitlement price of approx 70p would be breakeven for existing holders and anyone buying today who takes up their full pro rata entitlement?

[cc2014] 21/6/2021 13:20

"Up to a further GBP5.0 million will be raised through the Open Offer of up to 25,000,000 new Ordinary Shares in nmcn (the "Open Offer Shares") at the Issue Price" (£5m divided by £25m = 20p)


My interpretation is that the existing shareholders of which there are around 10.4m can apply for 25m shares in the open offer.

So, roughtly for every 1040 you own you can apply for 2500.

1040 shares are worth £1,976 at 190p per shares. You can apply for 2500 at 20p = £500



As far as I can see existing shareholders are getting diluted harshly unless the Moyle family do not or are unable to take up the OO and other investors can take up the excess)

[eezymunny] 21/6/2021 12:49

I don´t think it says eclair.

"Full details of the Open Offer will also be included in the Prospectus and Circular"

I´m only (slightly!) interested in the excess bit of course.

[eclair] 21/6/2021 12:40

Eezy, have you worked out how many new shares at 20p you will be entitled to buy for your 1 existing share? This is what I'm still struggling to work out. If I can't afford to buy my entitlement corresponding to my existing holding, then I need to sell some before they go ex-entitlement when the price will be somewhere in the 20's.

[eezymunny] 21/6/2021 11:08

Today´s price, CC, is a reflection of buyers v sellers as usual.

Post fundraise there will be c. 155m shares in issue AFAICS, so the current price would give a market cap of almost 300m quid. Bonkers one would think.

The full horrors will probably IMO ensue when shares are ex-entitlement to open offer. I bought one share myself today (just in case that´s a good idea).