Northbridge Industrial S... Share Discussion Threads

[smithie6] 15/6/2021 09:37

41% !!!!!

wtf !!!!

[robertspc1] 15/6/2021 09:33

An excellent update this morning. Clearly the business had some expensive debt with onerous terms, but it's now gone and with not too much dilution. No point looking back. Going forward there is great upside for shareholders from Cresthic and the Tasman sale will release funds for US investment at some point. Adding 50% production capacity is a real statement of intent. Once that starts to feed through to hire fleet utilisation the shares will really motor

[smithie6] 15/6/2021 09:32

"Stockdale Securities Limited, consider that the issue of the LNs to GHAM are fair and reasonable insofar as the Company's shareholders are concerned"

so Stockdale reviewed the deal & agreed that 25% to pay off the loan at the expected date was fair & reasonable.

2 year loan at 8 % + 25% on 4 million
total amount to repay £5.64M
cost 1.64 million

% = 1.64/4
= 41% !!


I hope that there isn't a Ferrari parked tomorrow in the drive of any director, with a silk bow around it & a card saying

"Best wishes & thank you.

Gresham House"

!!

[smithie6] 15/6/2021 09:29

the £4 million of conv. loan notes were issued in April 2018

The GBP4 million of LNs have been issued at a fixed interest rate of 8%. The LNs are due for repayment in July 2021, if not previously converted to equity, and include the option to extend the term of the instruments by two one-year periods on the consent of Northbridge and the bondholders. If extended, the interest rate on the LNs post July 2021 would increase to 10% per annum. The LNs are secured, through a second charge over the Company.

GBP3,237,000 of the LNs are convertible into 10p ordinary shares in Northbridge at any time at the discretion of the bondholders at a conversion price of 125p per share. The balance of GBP763,000 will become convertible on the same terms subject to the passing of a shareholder resolution to grant authority to allot equity securities.

GBP3,950,000 of the LNs were issued to funds managed by existing shareholder, Gresham House Asset Management ("GHAM"). Of the LNs issued to GHAM, GBP3,187,000 are convertible into ordinary shares with the remainder becoming convertible subject to the passing of a shareholder resolution as noted above. The balance of GBP50,000, which are all convertible, were issued to another investor introduced by GHAM. Funds managed by GHAM currently holds 3,191,717 shares in Northbridge, representing 12.32% of the total voting rights.

Iwan Phillips, Finance Director, commenting on the announcement said:

"We are pleased to announce this new funding package with our senior bank and a substantial, supportive shareholder as it marks another key step in the Group's return to growth.

Whilst the Directors remain committed to using cash to further reduce debt, the extended facilities contain lower fixed repayments which will allow the Group to invest for growth when appropriate opportunities arise."

Graham Bird, Head of strategic equity at Gresham House Asset Management commented:

"We are pleased to be able to support Northbridge by providing long term, secure funding in a way which has enabled the Company to simplify its banking arrangements and provides greater flexibility to invest in growth as the industry recovery gathers pace. The investment is a good example of our flexible and constructive interaction with our investee companies and we are excited about the future potential for Northbridge."

Related Party Transaction

GHAM is a substantial shareholder of the Company and a related party under the AIM Rules. The issue of the LNs to GHAM constitutes a related party transaction under the AIM Rules. The directors of the Company, having consulted with the Company's nominated adviser, Stockdale Securities Limited, consider that the issue of the LNs to GHAM are fair and reasonable insofar as the Company's shareholders are concerned.

For further information

Northbridge Industrial Services plc 01283 531645

Eric Hook, Chief Executive Officer

Iwan Phillips, Finance Director

Stockdale Securities Limited (Nominated Adviser and Broker) 020 7601 6100

[deanowls] 15/6/2021 09:23

Did you ask the questions about this Paul? Or is it a paid for piece?

[smithie6] 15/6/2021 09:01

Mehta is a non-exec & has been so for years

so, we can't blame him for much
except phps the latest new options scheme
to enrich the directors if they manage to sell co. assets at a good price

which imo is largely out of their hands & surely depends mostly on the oil & gas prices

(what should happen before giving cash to directors is firstly give cash to shareholders, 4% per year for every past year without a divi
BEFORE giving more cash to dirs !!

shareholders own the co. but the cash goes to the dirs.; & paying off farcical loan conditions
(25% loan repayment fee ! wtf !!)

because the dirs. decide where the money goes !!

=====

I would expect a few sharp phonecalls or faxes to NBI about that 25% debt repayment fee.

If banks did that on personal loans it would be news headlines !!

[smithie6] 15/6/2021 08:44

how can it be early redemption ??
the conv. loan was schedule to end now !! (if not extended by NBI)

----

interest rate on HSBC loan ?
10% ?!
:-(

they don't tell us so we can't complain !!

[brummy_git] 15/6/2021 08:22

Following today’s upbeat AGM trading statement, Peter Harris, Exec Chairman of Northbridge Industrial takes me though the group’s exciting strategy and expansion plans.

Fantastic insights, & definitely worth a watch.

www.linkedin.com/posts/paul-hill-a5994116_qa-with-peter-harris-executive-chairman-activity-6810465891537498112-oK5W

[bookbroker] 15/6/2021 07:41

Equity Development = Spivs. But I agree these are too cheap, Crestchic a fantastic business!

[edmonda] 15/6/2021 07:39

A really positive update from Northbridge with activity at Crestchic much higher. A restructured balance sheet + redemption of loan notes means Equity Development ups adj. EPS projections by 5.6%.
The shares remain too cheap vs peers, as per updated research note here:

[senttothegallows] 15/6/2021 07:15

Excellent update company looks well set for year ahead they have done fantastically well managing through Covid and now looks to reap the benefits I expect a return to £1.60-£1.80 range Imho

[brummy_git] 15/6/2021 07:08

Since taking charge in March, Exec Chairman Peter Harris has literally transformed Northbridge Industrial Services.

Find out here all the commentary, forecasts & valuation wrt today’s very encouraging trading update. Marvellous progress against the group’s strategic priorities

www.linkedin.com/posts/paul-hill-a5994116_nbi-forecasts-sotp-150621-activity-6810446451827642368-ErGK

[bookbroker] 14/6/2021 15:47

Nice if you are correct!

[smithie6] 14/6/2021 15:43

semi conductors
as I understand it the supply problems are high tech chips for the brains of cars etc
I can't see any/many being used by Crestchic, who might use a laptop or PC to control any clever loadbanks where the clever chips are in the laptop & the loadbank is basically providing switching in response to commands from the laptop

(basic switches to turn high power loads ON or OFF (0V switching in the AC power wave) in response to commands are available imo from numerous suppliers so I can't imagine any supply problems)

(& if Crestchic did in fact use 1 clever chip per loadbank then I'm sure they could obtain them, paying more if needed; its a negligible part of the total cost, which is mostly labour imo, so fairly irrelevant imo
&....the co. stated that it stocked up to prevent being hit by supply problems during the Covid crisis :-) )

[bookbroker] 14/6/2021 13:49

Absolutely no reason why not, things have to be more promising than they were in late 2019/early 2020. Only possible blip could be semi-conductor supply issue for Crestchic. But oil price should certainly support confidence for Tasman, buyer or not for the business!

[senttothegallows] 14/6/2021 13:42

Lets see what tomorrow brings I assume they will issue a trading update at the AGM which should be decent. This is tightly held and not many shares in issue I can see this returning to £1.60+ on a good update Imho

[smithie6] 14/6/2021 13:36

on the negative side

:-(

it hasn't risen at all in the last hour
:-((

je je !

[smithie6] 14/6/2021 13:35

if it wasn't tipped at 11:30

producing ~1 buy trade per minute for 15 minutes !!

which isn't normal

it must have been 1 buyer making repeated buys, which you are not supposed/allowed to do

[bookbroker] 14/6/2021 12:59

No, I doubt it, it would have risen straight out of the gate, just grossly undervalued!

[smithie6] 14/6/2021 12:51

nice price rise today

tipped somewhere ?

[bookbroker] 14/6/2021 10:32

About time a move up, but the spread is just insane!