Silverdell Share Discussion Threads

[tdpix] 02/7/2013 20:28

dasv, I agree, it does seem like working capital.

Also just to add that it wasn't just an under utilisation, but a SIGNIFICANT under utilisation:

"significant under-utilisation of both the UK labour force and the related capital assets"

It was so "significant" that it pushed an apparently rapidly growing company into a half yearly loss, which was worrying.

I'm definitely concerned for the employees; you'd hope that they have a decent idea of what's going on, but I fear not.

[kimboy2] 02/7/2013 20:25

Do we know Kitsons is in administration ?

[dasv] 02/7/2013 20:06

It's got to be working capital hasn't it.

There was talk of under utilisation of the UK work force in the latest report.

Kitsons making up 30%+ of revenue couldn't even pay a creditor a 5 figure sum.

I think in order to pay wages they have not been paying their bills.

you think it's bad for us share holders? I pity the employees.

[glasshalfull] 02/7/2013 18:38

I concur woody...hope it works out well for all SID holders.

Regards,
GHF

[woodcutter] 02/7/2013 18:34

bb i wouldn't disagree with you at all and you're right there's still a lot more to come out before we have good understanding of what can be delivered. And i too have suffered in similar circumstances many years ago with yorkshire grp. fortunately it was a very small holding.

But having been fortunate to have gained a fairly broad business experience across a number of industries in large and small companies cost control has to be driven hard and be a strong part of the business culture, i've seen a number of cases were it has been lax and changing that attitude takes strong management.

I made the point on cost control as it would appear that either the directors new about the kitson problem and chose to hide it from investors or they didn't know untill recently, in which case what more financially don't they know. You often find these traits are part of the business culture stemming from BOD style or approach.

But as i said having looked at the last statement the figures weren't sufficiently odd to cause concerns so again i agree with you something doesn't quite fit other than the superficial points i made.

I hope it works out for you and the others who are invested, i can see how it would knock ones confidence and i know how it hurts.............good luck.

Woody

[bookbroker] 02/7/2013 17:47

Wood. - I still think you are missing the point, the issue here is with Kitsons, not the whole business, until the co. makes a statement I think we are all shooting in the dark, the debt was not excessively onerous, it is simply too soon after the statement for the banks to cry wolf, figures have been stated over the amount with regard to the petition, I just don't know, as a going concern the business seemed in reasonable shape and prospects positive, I find it baffling that despite potential funding issues mentioned as regards W.C., never did it appear that a cash raising seem inevitable. I've had enough of commenting as resigned to a significant loss, until there is more detail have to confess that my faith in equities somewhat shaken, been here a few times before but to be honest not had a total write-off since Harland Simon back in 1992.

[phoenix1234] 02/7/2013 17:39

Scoop: Silverdell – Shares suspended – Management appear to have breached AIM rules big time -

[woodcutter] 02/7/2013 17:33

The Kitsons news seems to have by passed most investors but there were some superficial signs, nevertheless the directors non disclosure is scandalous imv.

Signs

Problems with cost control on the Shaw contract supposedly rectified by new operating procedures. If you've got cost control problems in one section of the business then it's likely to be replicated elsewhere.

Significant discussion on working capital requirements and constant reassurances that it wasn't a problem unless SID reached 15% growth or more. The fact that WC was being discussed at all was a cause for concern imv.

The order flow announcements were for pretty small sized orders by comparison to their total revenue expectations imv.

From recollection the net debt had increased.

There seemed to be siginificant discussion about the possible need for adjustments and exceptionals for non recurring costs which eventually appeared in the interims.

Something about the manner of Nutley's exceptional enthusiasm..........can't describe that any better just gut feeling that something wasn't 100%. Just had the feeling he wasn't on top of things.

Having said all that the H1 accounts didn't look that shabby so as i noted only superficial.

It all depends on what can be salvaged from here and you can be sure the legals and accountants will be crawling all over it looking for fees. Such a sad state affairs, the directors should be ashamed of themselves.

Woody

[rat attack] 02/7/2013 16:55

Found this on the SID website!!

AIM Rule 26 Compliance

Silverdell is fully compliant with the requirements of AIM Rule 26 as listed below:

Description of the business See About Silverdell PLC
The names of the Directors and their biographical details See Key People
Directors' responsibilities See Directors' Responsibilities
Board committees See Board and Committees
Country of incorporation and main country of operation See Investor Relations
Current constitutional documents See Documents
Details of other exchanges or trading platforms Silverdell PLC is not listed on any other exchange or trading platform
Number of securities in issue See Investor Relations
Major Shareholders See Major Shareholders
Details of any restrictions to the transfer of securities There are no restrictions on the transfer of securities
Financial Information See Financial Summary and See Company Reports
Admission Document See Documents
Company Announcements See Regulatory News Service
Advisors See Advisors

[rat attack] 02/7/2013 16:50

If it is HSBC who put the administrators in I cannot be too hopeful because something has really p..... them off for them to go to this extreme, it is not a decision that would have been taken lightly even in todays credit starved world - Kitsons is just the smoking gun! Looks like most likely outcome is business will be flogged off to competitor for a pittance!!

[kinbasket] 02/7/2013 16:47

The one thing you can guarantee on ADVFN is the there will be plenty of people who are wise after the fact....

[cockneyrebel] 02/7/2013 16:40

yep, not saying there isn't dasv - ADVFN has a lot of dishonest types imo, more than its fair share actually.

My only point was that when write ups are done in such an authoritative way, almost like a broker note, it also can mislead the reader into thinking the author has done all the research for them, when it may well be lacking - if unintentionally.

With ADVFN you know what your getting, you treat everyone as a liar and occasionally you get pleasantly surprised :-)

All just my opinion.

CR

[mechanical trader] 02/7/2013 16:39

A post by barkinglad on iii on 12-6-13:

1. The downgrading of Kitsons Rating by B & B following a winding up partition by G.P.M. Group on the 10.05.13
2. A warning of winding up action issued by HMRC in April
3. Suppliers claiming that they have not been paid for services/goods supplied late 2012.
4. The resignation of a number of senior directors.

[...]

[rat attack] 02/7/2013 16:33

Unable to find either date of administration or who administrators are? London Gazette seems announce them about a week after appointment actually made.

[mechanical trader] 02/7/2013 16:26

Missing the point though you should have
got out a lot earlier than the date of the
winding up petition on the 13th of June.

[bookbroker] 02/7/2013 16:12

CR may well be right, but this seems not an operating issue, more an unresolved legal issue!

[dasv] 02/7/2013 16:10

. [double post]

[bookbroker] 02/7/2013 15:49

I think the c/e should alter his name to 'Nutter' as opposed to 'Nutley', he's got nearly 6mln. shares riding on this one, has the bloke gone off the rails!

[sirmark] 02/7/2013 15:45

I hope they get this back on track as a great little company I know well, but it's not often they do....but I sit and hope.

[bookbroker] 02/7/2013 15:44

I for one have taken a hit here, am clueless as to the precedent set here, but I still believe that as extraordinary as this situation is, it can be resolved through the due processes, I would be staggered if the work in progress would simply grind to a halt where Kitsons are concerned, although it remains to be seen how Silverdell will emerge from this debacle, that is why the co. needs to elaborate on the exact nature of the existing situation, sooner rather than later. What concerns me is a break-up of the constituent parts, and frankly we all have an opinion as to the outcome, but only Silverdell can provide those answers.