Shearwater Share Discussion Threads

[wormcatcher] 22/7/2009 16:41

Some chunky trades going through towards the end of the day.

[rik shaw] 21/7/2009 07:16

My understanding is that this AGM resolution is a rolling renewal of an authority which allows the Directors power to issues shares the main purpose of which would be to fund acquisitions. The Directors have no history of awarding themselves excess share options. Don't know where you read anything else into the resolution as worded.

[indomie] 20/7/2009 17:04

Has anyone had the AGM details yet?

"Annual General Meeting: Scott House, Alençon Link, Basingstoke, Hampshire RG21 7PP.

Meeting is due to start at 10.30 a.m. on Tuesday 1 September 2009".

If I understand this correctly the directors want to renew the authority to give approx 5% of the company to management in share options - presumably these will be set based on the current share price - so they will get massively rewarded for any improvement in the share price - back to what it was a year or two ago!

SURELY SOMEONE MUST BE TEMPTED TO MAKE AN OFFER AT THESE LEVELS! - IF NOTHING ELSE, MGMT SHOULD BUY BACK AND CANCEL SHARES AT THESE LEVELS.

I JUST HOPE THE INSTITUTIONAL HOLDERS ARE PUTTING PRESSURE ON THE BOARD AS PER THE WALKER REPORT RECOMMENDATIONS.

[indomie] 14/7/2009 18:49

The research notes I have show:

SWG

May 2007 - £247m - £3.31 per share
May 2008 - £167m - £2.19
July 2009 - £42m - £0.58

HYC

July 2007 - £201m - £5.61 per share
April 2008 - £151m - £4.00
June 2009 - £55m - £1.45

These figures show a clear underperformance of Scott Wilson, even with HYC's well known exposure to the Middle East. Management have shown no signs of giving the city a strategy which brings benefits ahead of a general global economic recovery.

[rik shaw] 12/7/2009 14:02

Indomie not sure what you base your remarks on, but at peak in 2007 HYC and SWG had almost identical market caps at around £220-250M, they still have similar mkt caps at this stage of the market cycle as you note.

Moving to become a plc allowed SWG to expand by acquisition, unfortunately they expanded by buying firms with a strong commercial property market element which looked as if it was bringing balance to the business away from quite heavy reliance on public spending. In fact it is these elements that appear to have been hit hardest in the downturn.

The firm aimed for growth of 10%+ pa with plc status to support acquisitions but have had to scale back as have every other similar firm in the current climate.

See link below for latest update from the CEO:

[indomie] 12/7/2009 10:11

I'd rather see the current management forced out than profit from a strategy which appears to have positioned the business much less favourably than competitiors to deal with the recession and cuts in UK public spending.

I e-mailed the Chairman to question his future strategy but unsurprisingly got no response.

The problem here is that the firm is still run as if it is 100% owned by its employees. The change in business model to a plc dealt with a pension deficit problem but was this the best solution for the firm and its stakeholders. No doubt management were dazzled by the prospect of fat share option payouts for short term (and unsustainable) returns. I dare say a fair few more of the staff would have kept their jobs if they hadnt supported the move to the stock market too.

Scott Wilson 07/09 £42m Mkt Cap
Hyder Consulting 07/09 £55m Mkt Cap.....last year SWG was worth considerably more than Hyder!

[hitchinhoncho] 10/7/2009 18:32

Or a management buyout.

[indomie] 10/7/2009 18:03

It has to be vulnerable to a takeover at these levels!

[gyau] 07/7/2009 20:00

thanks bluey. that would be a useful £267

[blueliner] 07/7/2009 10:24

XD 9th Sept for 2.67pence p/s
so plenty of time

[gyau] 07/7/2009 09:32

when does it go ex div

[zangdook] 06/7/2009 15:50

trebled up. hope it pays off.

[bantam175] 06/7/2009 14:43

Save a few pennies and top up. At these levels yr laughing. All imho of course ;-)

[zangdook] 06/7/2009 14:01

General market sentiment - a lot of shares are down for no apparent reason.

[wormcatcher] 06/7/2009 13:18

My question is what has changed since 30 June when share price went in to 70s on results and today where we are back in to the 50s? Reasonable set of results with strong order book, much of it on projects which will not face cuts due to Government spending (crossrail for example) - so I would say not a lot.

[simon gordon] 03/7/2009 13:21

Jon Moulton reckons govt spending needs to and will fall 20% over the coming years.

How will, EAGA, CNT, MER, SWG, IVR, MCHL, MAYG, et al, cope with that?

A big dark cloud is hanging over the UK public sector outsourcers.

These guys had a great run under the Bonkers Brown Boom.

The madness of 10 Downing Street:

~Gordon Brown = Dr. Evil

~Ed Balls = Mini-Me

~Peter Mandelson = Number Two

~Harriet Harman = Frau Farbissina

[indomie] 03/7/2009 13:14

Surely with the concerns over govt spending (and 70% of their order book in the UK) the board should be looking to a merger to accelerate diversification of income and sell the city the synergie benefits for the next couple of years until their markets improve?

[wormcatcher] 01/7/2009 09:21

Bit disappointing after yesterdays initial rise, though these are tucked away in my ISA for the long term.

[raggedglory] 30/6/2009 20:24

A great firm doing all the right things in tough times. No bullsh*t in the Chairman's or the CEO's statement - just a straight account of how things currently stand. I'm still in - the upside will be worth waiting for.

[davebowler] 30/6/2009 12:11

Brewin's latest;

[goofball25] 30/6/2009 10:20

all good, one day this will fly past 100p!

[wormcatcher] 30/6/2009 08:19

On first glance look good.
Debt appears under control, restructuring on track, strong order book and divi up.

[dickbush] 30/6/2009 08:09

Net debt well down on forecast and an upbeat statement.

[ukinvestor220] 29/6/2009 13:43

another new contract see RNS

[rik shaw] 26/6/2009 17:00

Personally I'm very cautious around results time with any construction firms at present. Apart from results it will be interesting to see if there are Directors buys next week.

rik