Severfield Share Discussion Threads

[incorrigible] 19/3/2013 12:43

what price are the rights?

[arabstrap303] 19/3/2013 10:33

Thanks! Nobody's fault but my own. However, I appear to be right about the rights issue - the Nil Paid rights are now in my account, and in effect it's up on the day I think, despite looking bloody awful.

[owenski] 19/3/2013 10:07

Genuinely sorry to hear that. I hope you make up some winners elsewhere.

[arabstrap303] 19/3/2013 10:00

Oh no - definitely not! It's just one of a catalog of disastrous purchases I've made. And I myself am not sure that I'm correct with the rights issue thing as there's no broker note in my account asking if I want to take it up/nil rights to trade there - yet.

[owenski] 19/3/2013 09:55

Arab, I forgot about that, not a holder here, but was reading the Billington results this morning and thought what effect would it would have on SFR, must admit that I was surprised at the drop, on reflection the rights does explain that drop better. Still dont think this is out of the woods though.

Regards

[arabstrap303] 19/3/2013 09:47

I don't think it's actually tanked - I think it's repriced because of the rights issue shares supposedly becoming available today (though the nil paid rights haven't yet appeared in my account - have any holders got details yet?).

[spaceparallax] 19/3/2013 09:39

This is looking very worrying. So sad

[owenski] 19/3/2013 09:36

Billington results out today, same business, same grim results and outlook, probably why this has tanked. Could go a lot lower still. Sorry for folks who are in this one.

[roddyb] 19/3/2013 09:07

wow! At least I don't own this one - what a cluster-f%ck of a situation!

[waldron] 14/3/2013 10:49

Swiss SNB Reiterates Minimum Exchange Rate at CHF1.20/Euro
PrintAlert
By John Revill
ZURICH--The Swiss National Bank Thursday reiterated it would intervene in currency markets to prevent the Swiss franc from strengthening above 1.20 against the euro, and warned the Alpine country would face sluggish economic growth going forward.
The central bank also maintained its target range for the three-month Swiss franc London interbank offered rate at 0% to 0.25% for a seventh consecutive quarter. The decision was widely expected by economists.
The SNB said it was prepared to buy foreign currency in unlimited quantities to maintain the floor, which was introduced in September 2011 after the franc neared parity with the euro as investors seeking a safe haven from the euro crisis pushed up the value of the franc.
It also did not rule out "further measures" to maintain the rate, which was launched to prevent deflation and protect Swiss exporters.
"An appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy," the SNB said.
The minimum exchange rate is an important instrument in avoiding an undesirable tightening of monetary conditions, the bank said.
"The SNB will therefore enforce this minimum rate with the utmost determination and, if necessary, is prepared to buy foreign currency in unlimited quantities for this purpose," it added.
The central bank said it expects the Swiss economy to expand 1% to 1.5% this year. In 2012 GDP rose 1%, according to early estimates.
This means Switzerland is likely to outpace the rest of Europe as the region is only slowly starting to emerge from the deepest financial and economic crisis in decades.
The European Union, of which Switzerland isn't a member, is expected to expand at a 0.1% pace this year, while the 17-country euro zone may contract 0.3%, according to the latest projections from the EU Commission.
The SNB expects a negative inflation rate this year of -0.2%. In 2014, inflation should come in at 0.2% and stand at 0.7% in 2015, it said.
Write to [e-mail]

[tricky1992000] 13/3/2013 21:08

been a death at the plant today

[manabo] 13/3/2013 13:07

No new CEO yet?

Ex rights soon!

[edmundshaw] 06/3/2013 12:42

Funny, everyone is making similar calculations that the share price is way too high - maybe even twice fair value - but the share price keeps holding, even rising a bit.

I am watching if for no other reason than to see Why... or When...

[eswr] 06/3/2013 12:05

It is a recovery play. The share count will increase from 90m shares in issue to around 300 million. The debt will be gone. What is it worth? Let's say they do revenue of £275m vs £256m in 2012 and they achieve their target operating profit margin of 5 to 6% (say 6%) then the business would make say £14 to 16m EBIT or after tax (at a normalised tax rate) £10 to 12m after tax = on a PE of 10 x it would be worth say £100 to 120m = 30 to 40 pence per share BUT how long will shareholders have to wait for it to achieve those returns - 2 years?

[itchycrack] 05/3/2013 20:29

Well the order book remains strong at £209 million.

[edmundshaw] 05/3/2013 17:30

The cynic in me says this cannot go bust - the owners of the Cheesegrater, for example, might lean on the lenders to keep SFR afloat for a while yet. I know I would. Call that an unknown known. But what it will be worth - and to whom - is a known unknown. More worrying yet, are the unknown unknowns to come...

Dang, I knew I should have been born stateside! :-)

[albertedwin] 05/3/2013 17:05

Quite agree jadeticl, what should PIs do about this rights issue ? Should it be taken up in whole or in part ? Should even more shares be bought prior to the Record Date despite substantial losses hitherto already incurred ? I know very little indeed about this Company save that it seems to have got some of its major contracts seriously wrong, the CEO has left in short order, the COO is also departing very shortly, and its Bankers are apparently insisting that it must pay back the entirety of its debt without leaving it with any meaningful working capital beyond what the Bankers are prepared to extend, and then only after all the debt has been repaid from virtually the entirety of the proceeds of the Rights Issue. So on paper at least, especially in the present difficult economic and financial climate, the outlook would not appear to be very promising. But perhaps I am missing something significant and there are other material considerations militating in the Company's favour of which I am unaware. Is anyone able to offer any constructive enlightenment upon the overall situation particularly since despite copious searches there appears to be an unusual dearth of informed comment or available discussion on the usual threads or in the familiar financial press.

[jadeticl] 05/3/2013 15:52

Quiet thread for such a significant time in the life of the company!!

[eswr] 28/2/2013 13:47

Also if you look at the shareholder list there is a very long tail of smaller holders who are being asked to nearly double their investment in SFR through the Rights Issue.

[eswr] 28/2/2013 13:45

I have done a lot of analysis of the rights issue pricing and while the rights issue will wipe out all current debt the new share count post rights issue will be around 300m shares (up from current 89 million). It is also clear that they will need to use their new debt facility for working capital.

They are only targeting an operating profit margin of 5 to 6% "over time"(Company guidance) in a year or two and IF the revenue rebuilds to say £275m revenue it would equate to PAT (at say normalised 30% tax charge) of around £10 to 12m. On a PE of 8x = around 26 to 31 pence per share post rights issue vs a rights issue price of 23 pence per share.

For every £100 of equity value today (at circa 70 pence per share) shareholders are being asked to invest an additional £80.

They still need to hire new management and improve risk management processes; it is not expected to a fast turnaround in the construction market.

[spaceparallax] 28/2/2013 13:22

Sometimes, but only when the future shows promise - so much is without SFR's control.