Severfield Share Discussion Threads

[leedskier] 19/2/2013 08:03

showing 65p in the extended auction.

[bookbroker] 19/2/2013 08:00

will be value at some point, one of few cos. capable of producing specific fabricated steel for large building projects.

[hastings] 19/2/2013 07:58

Looks to be a right old mess here,anyone's guess where this drops to early morning.

[bookbroker] 19/2/2013 07:30

At least half the current value, mkt cap. £70m., raise £50m., current price 78p, although too simplistic to look at it that way, as identified where problems exist and other contracts performing adequately, still significant dilution however you look at it!

[mirabeau] 19/2/2013 07:23

What a total mess but if the company's indicating to the market they intend to dilute then you can be sure that the uncertainty associated with that alone will cause considerable anxiety and raise the obvious question 'at what price'?

On the upside, at least they appear to have analysed all contracts and sorted out issues relating to them ie taken the hit, lanced the boil of under-performing contracts. How many times have we seen companies entering into contracts for the sole purpose of securing work rather than securing profit?

[knigel] 19/2/2013 07:18

Just hope this is the low point for shareholders. Could open circ 60p today??

[volvo] 19/2/2013 07:14

You can guarentee any equity fund raising will be discounted.

To raise 50m Severfield will not get more than 40p a share imo.

Classic short and close on funding details.

[edmundshaw] 18/2/2013 22:59

Some good discussion here now. I watch and wait...

[damanko] 18/2/2013 21:55

maroni - once again, I agree with your particular comments/sentiments.

Perhaps I'm a little blinded and biased. I was in India last year on a cricket trip, and nothing I saw persuaded me that that nation posed any threat to the West, anytime soon. The SFR JV may well take the best part of a generation to show real returns to their bottom line.

If the UK steel industry had more decent sized players, one would now take the opportunity to snap up SFR, at a bottom feeding price. Or a foreign based company would think about it.

Regarding Keller - it bombed mainly because of its US business bombing, and has now risen mainly because US groundworks has picked up so quickly. Funny old world, as we know .... D

[maroni tony] 18/2/2013 20:59

Damanko, but Keller's growth is on the back of their international business, probably North America, not UK. In fact the UK figures were so bad, they had them rolled into the European accounts. SFR do not have a North American outlet and India needs to prove itself. I may buy in, when new UK stadiumns, airports, and power stations start getting built, but not until the construction sector brightens up.

Although, investment rules dictate, buy low, sell high. Just want to be sure I have something to sell.

MT

[damanko] 16/2/2013 22:58

Manabo, I can't disagree with any of your comments about confidence, from whatever angle. You are definitely right.

Having bought some years ago on a drip-feed basis over many months, and topping up in the last few weeks, I'm only about 15% down. Am minded to hold for a while. Keller (groundworks) faced similar confidence problems 18 months ago, and has doubled in the past year or so.

I may well be wrong about SFR. We'll see. Though of course I hope not.

Regards etc.

[manabo] 16/2/2013 10:59

April 2007 - John Severs: "I leave my executive role knowing that in my Board colleagues Tom Haughey and Peter Emerson, in whom I have the utmost confidence, the future is in very safe hands and the outlook for the Group is better than I have ever known."

damanko - confidence in management is vital, whether its PIs investing in a company, or its Civil Engineers appointing contractors. The fact that the 2 men who took over the reins of the company from the previous MD have recently been removed from their positions speaks volumes about the confidence of either the marketplace or the banks / major shareholders, or both!

[damanko] 15/2/2013 13:08

W - thanks for the reply. I know I'll not find detailed financial information, which is why I asked the question. But apparently you had - which is why I asked.

In any case, a bloke - in fact a friend of mine - is working on a 500 million pound project in the City of London. He's a civil engineer, with good experience in steel. The steel tender was between Hare & Severs, and Hare got the job.

My mate is seriously disappointed, having worked with both suppliers over many years. He reckons Hare will screw up the job, whereas Severfield would have done a much better, more professional job.

For reasons like this, I'll continue to hold. Quality (as my mate says) - will out.

Go well, and the best of luck.

[walthera] 15/2/2013 12:10

damanko:
You will probably not find any detailed financial information about William Hare as they are a private company.
Incidentally I note that they have recently celebrated the 10th Anniversary of their Indian operation, so are already well established there, while Severfield have only just realised that it is a step worth taking!

[damanko] 14/2/2013 22:07

maroni - would you mind putting some details on here about William Hare's accounts? As you say they are the number 2 in UK steel fabrication in the UK.

As a long term holder of SFR, I'm interested in the sector, but have been unable to source any accounts stuff for William Hare. Probably because I'm a bit too old, and a bit too stupid, but any help would be appreciated.

Regards. D.

[maroni tony] 14/2/2013 20:20

Manabo, you sound as though you are in the steel business ? Anyway, today, i've had a nose through the accounts of a few competitors to see whats happening elsewhere. Firstly, William Hare, the UK's 2nd steel fabricator, result... thumping great loss ! and Rowecord Engineering, same although recent profit from bridge jobs. Then Billington Structures, Bourne Steel, Caunton Engineering, etc, all either making a loss or zero. The fact is there is too much capacity in this construction market, even considering DA Green, Conder, Robinsons, etc have all gone bust. If Severfield have debt as mentioned, the only hope is the Indian business for genersting cash in the medium term.

What is the pension / Fishers debt situation ?

[weggis] 13/2/2013 09:03

Manabo
Without doubt Fishers is a disaster. They bought at the top of the market in cash.
You are forgetting with Wards ,they also bought the liabilities of a final salary pension scheme. The costs just escalate.

[manabo] 12/2/2013 13:55

Just looking back over company aquistitions. They bought Rowens, Tubemasters, Watson and Wards all for less than a total of £10m.
Rowens brought the London work and BAA jobs, Wards brought a licence for a Plated Beam, Watsons probably bridges and stadia, not sure about Tubemasters.
I mentioned Fishers last week, but without it (£90m) the company would be cash-rich. What a strange move!

[waldron] 12/2/2013 09:27

source:radiofrontier


SNB to keep 1.2 peg
News HomeMore from Local NewsMonday, February 11th 2013 11:18

Central Bank says it won't raise the currency floor


The Swiss National Bank says it will keep the 1.2 peg of the Franc with the Euro. The franc has weakened against the euro in the past few weeks, leading to speculation that the central bank may raise the peg to 1.25 or 1.3.
Although the bank says it is constantly monitoring the situation – there are no plans to change the peg. The bank decided on a floor for the franc after Swiss exporters said the expensive currency was harming their business.

[manabo] 07/2/2013 17:59

Jadeticl, no chance of me buying whatsoever. But good luck to you!
New CEO, probably promote from within, always the most cost effective option. Plenty of hangers-on from previous takeovers keen to earn 700k plus.

[maroni tony] 07/2/2013 16:58

Jadeticl, put a stop loss in place, or open a short position for balance. I heard from a competitor that SFR's profits on their London jobs were only health due to favourable material price flucuations against the rates set in their contracts. These contract profits have run their course. New contracts have no profit, and I'd wager my house on it.

[jadeticl] 07/2/2013 13:42

Manabo, your message is clear so we will not be expecting you to buy anytime soon. I will continue to hold.

[manabo] 07/2/2013 12:53

Troubled times ahead. The company made huge profits in the past from relatively straight forward projects, albeit some projects were massive. But recently some large, complex jobs looks to have cost the company dearly!
The company was probably too slow to react at the start of the recession- the 'were too big to go down' attitude, or 'we will come out of it bigger and stronger'!
We keep hearing about the JV in India, but does it actually make any profit? Any purchasing Fishers in Ireland for approx £90m? Value for money? Or just bad timing?
The company needs solutions now!