Sig Share Discussion Threads

[pugugly] 19/11/2008 13:38

taners:> My take on debt was slightly differnt to yours: I thought they said they were on target to reduce to £640 million, thus implying that at the moment it was above this figure. Worry to me is that some 75% is in €'s so have taken a £50M currency hit - against which profits in the euro zone will be increased when translated to £ but so far as I can see this will not be any where near enough to compensate.

do you agree?


Also there was (I thought) a hint that the dividend could be reviewed.

[simon gordon] 19/11/2008 13:36

Tanners - you look to have a good short here. I can see them down at 50p. The recession/depression has barely started. With such a huge debt pile it does have the ERGs about it. Market Cap. c.200m - Debt c.600m. No chance of a rights issue. Looks screwed to me. Remember, they were taking over others at the top of the market. Why do these British businesses keep blowing up in mad buying sprees?

[romi2nikki1] 19/11/2008 12:38

House Broker Cazenove fcasts 102 m pre tax for 09. This is of course sharply down on the downward revision to 140 m for 08.

[beaufort1] 19/11/2008 10:33

Interest cover was pretty healthy as I recall, and even on reduced forecasts, divi is covered nearly 3 times

[tanners] 19/11/2008 10:00

Inetresting - could have been a lot worse, but something hints to me that they might be applying a bit of window dressing to the figures at the moment.

They have stated that cash conversion has increased to 100% (mainly due it wouldd seem to squeezing working capital), yet despite this they have still not managed to pay any debt down, as it reminas at the same level as the interims, i.e. 640M

They then add almost wistfully that they hope to reduce this next year.......hmm!

The main difficulty they face tho, imo, is trying to integrate all these acquisitions in a stalling market place whilst also cutting 7% of the workforce.

I'm surprised they haven't decided to cancel the divdend!

[pugugly] 19/11/2008 08:11

Conference call:
There will be a conference call for analysts and investors at 8:30 this morning, hosted by
Chris Davies and Gareth Davies. The dial-in
number is +44 [0] 1452 555 566

Enquiries:
Chris Davies, Chief Executive SIG plc 0114 285 6300
Gareth Davies, Finance Director
Faeth Birch/Gordon Simpson Finsbury 020 7251 3801

[tanners] 18/11/2008 12:12

It's the cash flow statement that is the eye opener to me......despite trading conditions being largely favourable in the period up until interims in June, they were still cash flow negative, ignoring the acquisitions/financing.

If tomorrow's trading statement reveals that they've begin suffer in line with others in their industry then this could end up going the way of Erinaceous Group who blazed a similar acquisition trail based on debt until the music stopped and realisation dawned that they were not generating sufficient cash to even cover their interest payments.

Obviously SIG aren't in that boat yet, but it's a slippery slope when your profits start falling and there's a heavy debt to service.

A small punt on the short side for me!

[romi2nikki1] 18/11/2008 11:16

Interesting that so many broker est, ( 6 between Davy 25.08.08 and Numis 11.11.08) for 09 eps are clustered, with an ave of 77p. Virtually no spread. Numis fcast 11.11.08, is the outlier at 49p for 09. A case of follow the house broker?

Does anyone know how much debt becomes repayable in 09? I understand that 180m. became repayable in 08. Can anyone help. Clearly if 09 repayments are very low, then working capital aside, should be some upside_ if revenues are maintained.

[rosco3009] 17/11/2008 19:35

Lets just hope the interim mgmt statement on Wed is better than expected. Someone seems to have a downer on this company. RBS have apparently started covering this company and put out a buy note with a target price of over £4 (I can't remember exactly how much above £4).

I bought at £5.70 in Sept and agin about 2 weeks ago at £2.38. NOT HAPPY!!

[mrt8] 17/11/2008 16:30

Price keeps dropping, but no news! Only possibility, in my mind, apart from market sentiment, is the breakdown on contracts. Looks damaging whatever. m8

[mrt8] 17/11/2008 16:07

How much of the business is directed at housing market? I thought it was mainly industrial/corporate. Personally I think it's another top-up opportunity. m8

[pugugly] 17/11/2008 12:08

Sems to be worrying the market.

Could be worry about gearing combined with the total seisure in the housing market.

[mrt8] 14/11/2008 16:55

Should it? m8

[dobcroft] 14/11/2008 10:39

RNS Number : 1794I
SIG PLC
14 November 2008

Interim Management Statement Notification

SIG plc advises that it will announce its Interim Management Statement at 7.00 a.m. on Wednesday 19 November 2008. An analyst conference call will be held at 8.30am on that day to discuss the update.




Mmmmm, why does that worry me?

[mrt8] 11/11/2008 11:27

Still dropping, so doubled up at under 257.5 - next move was down further!
KingL - I don't think CEO's ever retire, they just take on more directorships. m8

[kingl] 07/11/2008 09:12

I note with interest that the Chief Executive who "retired" 3 months ago has found himself another job.

[mrt8] 06/11/2008 16:28

Komfort have, Slogsweep, but not sure about other parts of the group. Not too sure who is affected, as none of my family are on the list - maybe it's just opportunist selective lay-offs (best time to get rid of excess staff). Bought some more! m8

[slogsweep] 06/11/2008 08:11

Has Sig announced redundencies? if so anyone know how many?

[mrt8] 05/11/2008 16:12

Unfortunately, s34icknote, Komfort are also making redundancies. That in itself is not necessarily a bad thing, as the company is still relatively busy. Much more upside than downside IMO. m8

[qs9] 04/11/2008 19:35

Cheers sicknote ,glad you are in for the ride past £3 as well...

[s34icknote] 04/11/2008 19:07

i,m still in.Think this is lagging recovery of tpk.!
These will maintain the div and be back to £4.00 in no time.

Komfort had record turnover for first 6 months !

Sicknote

[qs9] 04/11/2008 16:37

Continued rebound,....continued post to self...haha, hope a few have shared in rise.

[qs9] 03/11/2008 20:48

Good solid day. LEts hope sentiment to builders and all things "Building" like continues next few days.....

[qs9] 03/11/2008 06:37

If BoE do cut by anything like 1%, double whammy hopefully for SHI: lower debt costs (?) and changed sentiment towards building stocks? SHI is driven as well is it not by EU regulation making its services a must have? Have tucked a few away as a short-term play...