Rok Plc Share Discussion Threads

[tricky1992000] 09/11/2010 22:16

somebody is at fault

this is from the last interim statement.

Cash flow and net debt

Operating cash inflow before tax, defined benefit pension contributions and restructuring costs paid for the first six months of 2010 was £5.9m, (2009: (£9.5m)) which reflects the more stable business mix following the downsizing of our cash generative construction activities throughout 2009. Group net debt at the period end was £47.6m (2009: £57.0m) reflecting the changes referred to above. Average net debt during the period amounted to £64.2m compared with £65.1m during the second half of 2009. The Group has committed bank facilities totalling £81.0m on a three-year revolving credit facility expiring in March 2012. The facilities amortise to reflect Development asset disposals. All banking covenants have been met throughout the period.

[snaffleclamp] 09/11/2010 20:00

warned by banks in August!

£100m owed to subcontractors!!

[mrphil] 09/11/2010 16:33

kibes - doesn't look like your money is that much safer over here if ROK is anything to go by! :-(

[kibes] 09/11/2010 16:29

Moathunter - interesting picks but having a quick look comment as follows:

TON - market capitalisation is too small therefore mega high risk

CFC - yes looks interesting but currently it is going down

UKR - Couldn't touch it. Too much corruption in Ukraine. I've already lost a packet on RPT and have been absolutely shocked at the way authorities have behaved. Will never invest in anything Ukrainian until they have cleaned up their act. (Incidentally RPT is discounted around 90% from NAV currently - if that appeals!)

[mrphil] 09/11/2010 16:24

Have emailed the company.

[mrphil] 09/11/2010 16:24

All seemed to be looking positive right up until the appointment of pwc. Do we know what was the final trigger?

[moathunter] 09/11/2010 15:48

Only holding TON, CFC and UKR.
UKR is the cheapest of the three at roughly 30% below true value estimate of 42p.
Note- these are long-term investments, waiting up to 4 yrs to reach true value.
Otherwise holding 60% in cash as I can't find 50% discounted companies at present.
So many cheap companies have risen to full value lately.
(Avoid RCG- I estimate 1 in 4 chance risk of total collapse).

[kibes] 09/11/2010 15:43

Well I'd be interested to know your 7 dirt cheap picks! I have just pitched into NOP today which so far is going up quite well.

[moathunter] 09/11/2010 15:38

Certainly, Kibes- the filter is not for everyone. In managing all family savings, I split the capital 7 ways and wait for cheap companies (i.e. up to 7 companies), holding cash when none can be found.

The prospect of sinking 1/7th of entire savings into one company focusses the mind on risk. I recommend the filter to avoid future ROKs.

[kibes] 09/11/2010 15:30

Moathunter - well yes very wise no doubt but your criteria will probably rule out anything that is likely to shoot up fast. You'll be left with nice steady companies with flat share prices. To make a lot of money quickly you have to take real risk in my opinion.

[moathunter] 09/11/2010 15:18

Sorry for those that have lost today. We've all been there.

A personal rule stopped further analysis of ROK as an investment.

"Only invest in a company that has debt/ equity ratio of 0.4-0.7 (ignore all above 0.7), if all of the following are met:
# >10% director ownership (and valued at >3x salary)?
# >10yr operating history
# Debt is not bank debt (immediate recall @ worst time risk) but bond maturity debt?
# Debt net of cash/ equity ratio less than 0.5?
# Operating profit interest cover of 4x (i.e. cover on interest payments) and a high margin business with sustainable earnings?

ROK met just one criteria- trading for longer than 10yrs.
Of those companies with greater than 10% director ownership, very few will leverage up to beyond 0.5 debt/equity ratio, as the directors don't like to run the risk of killing their company (i.e. handing it over to the lenders).

[rcturner2] 09/11/2010 13:25

The worst is the directors loan thing that now goes on in a lot of small companies. Use to be limited to £5000 but now unlimited as long as "in interest of company" ho ho ho.

[slogsweep] 09/11/2010 11:35

Total right off then? On the bright side already made up 50% of loss on miners this morning:-)

[still waiting] 09/11/2010 11:34

CNT & ROK within a few weeks of each other, must be a few suppliers to those who'll be in trouble now.

with Xmas shut down and double wages etc still to come let the bloodbath begin.

[4505] 09/11/2010 11:32

levelhead - email me jl7273@gmail dot com

[chutes01] 09/11/2010 00:53

brechin,
Are you from the city ?

[grlz] 08/11/2010 23:26

if your stuck holding this lemon i'm looking for a very cheap private trade .. interested mail me at imo01@ymail dot com

[killieboy] 08/11/2010 22:01

serantel - any other dodgy cos we should know about

[serantel] 08/11/2010 21:11

Yes I,ve been involved with Rok contracts in the past , shocking standards of workmanship absolutely shocking.