Silverdell Share Discussion Threads

[pj 1] 04/7/2013 10:19

dasv, lol

Applies to most of us I suspect

[dasv] 04/7/2013 10:11

I think if the company does survive we can expect a radical shake up of board and internal processes.

The working capital and cash flow information is for the group as a whole. it would be very interesting to see Kitson's numbers in isolation. I suspect that's where the cash crunch would be more glaringly obvious.

I am much better at researching this company post suspension: note to self - do research before buying not after administrators called.

[adamb1978] 04/7/2013 10:06

dasv - I agree. The multiple was very undemanding however I do think that this episode will put a ceiling on the multiple which is achieveable for a good couple years, til they've made some changes and the smell disipates. And I say that as a shareholder and therefore someone who wishes it wasnt true

[pj 1] 04/7/2013 10:03

I am unsure if it is just Kitsons in Admin, as to what that would entail for SID. However for a stand alone Business if Administrators are appointed then the BOD (and all staff) are there to aid the Administrators in their investigations and summaries. In effect the Administrators are running the Company, usually and cash is prevented form leaving the CO (paying creditors etc). The Administration does not become official until after 7 days of appointment.

The BOD effectively have their hands tied and mouths clamped shut, unless authorised by the Administrator.

I have been involved in x3 similar situations, and is my understanding of events (although none were subsiduries)

[cestnous] 04/7/2013 10:00

Appalling behaviour towards shareholders if true that only Kitsons and not SID is in administration; an announcement should be made immediately to clarify this.

[dasv] 04/7/2013 09:59

Adam - in my view the trading multiple was already fairly limited - forward PE was undemanding. But I guess there is no number which can't be halved.

[adamb1978] 04/7/2013 09:53

Unless there has been some gargantuan fraud, I dont see that the company is toast at all. They were trading profitability, moderate levels of debt, working cap wasnt horrific at all, particularly for the sector and you always expect some cash outflows from working cap when the topline is growing. There was nothing suspicious there....unless as I said it was all fabricated.

The biggest issue is their credibility with clients (quesiton being whether they will carry on getting siezable contracts) and with investors (their trading multiple will inevitably be limited because of this).

I simply cannot believe that 48 hours on they havent been able to update the market on whats happening

[pj 1] 04/7/2013 09:43

If the Administrators are in then any RNS will have to be authorised by them (the Administrators)

The bod are powerless if SID is under threat

[caradog] 04/7/2013 09:41

duplicated

[caradog] 04/7/2013 09:41

AlunMorris
A shareholder has to phone administrators to find out whether a major subsidiary of his company has gone into administration. Hard to find a better illustration of how the feeble regulatory framework of AIM allows directors to treat their shareholders with contempt.

[pj 1] 04/7/2013 09:40

The opposite.
Holders need to hope the BOD are kept mainly intack and trade as normal

If the entire BOD disappears then the Co will be broken up and sold to highest bidders, or auction

[drewz] 04/7/2013 09:28

Shareholders should call for an EGM and sack the entire board.

[poley] 04/7/2013 09:23

hxxp://www.constructionenquirer.com/2013/07/04/administrators-in-at-silverdell/

Demolition, scaffolding and asbestos removal specialist Silverdell is in the hands of administrators.

The Enquirer understands that administrators from Zolfo Cooper are now running the company following suspension of trading in its shares on the Stock Exchange on Monday.

Company sources told the Enquirer that staff are confident the business will continue trading with Zolfo Cooper set to unveil a turnaround plan.

[drewz] 04/7/2013 09:18

Madness. The Plc board seem to have taken leave of their senses.

[alunmorris] 04/7/2013 09:17

I phoned Zolfo Cooper just now. It's the subsidiary Kitsons (who trade as Silverdell) in administration, not the Plc.

It's irresponsible of SID to not tell the market this. Trade confidence in the group is being eroded more than necessary.

Do they have to compound their terrible error? What is the matter with them?

[davr0s] 04/7/2013 09:06

Agree TDPIX - and surprised more hasn't leaked out as to what is going on. Surely there has to be a statement soon - it's not as if anyone can buy/sell shares at moment.

[tdpix] 04/7/2013 09:03

Amazed that it is actually Silverdell PLC (not just Kitsons) in administration!! How the CEO/CFO got a growing group into this position is.. odd.

Also still no official statement from SID...

[rivaldo] 04/7/2013 08:55

From the above - hmmmm. I assume there can be no return for shareholders from here?

"Demolition, scaffolding and asbestos removal specialist Silverdell is in the hands of administrators.

The Enquirer understands that administrators from Zolfo Cooper are now running the company following suspension of trading in its shares on the Stock Exchange on Monday.

Company sources told the Enquirer that staff are confident the business will continue trading with Zolfo Cooper set to unveil a turnaround plan.

A winding-up order against the firm's trading subsidiary Kitsons Environmental Europe is believed to have caused the current problems.

One insider said: "A supplier took us to court which had had a knock-on effect.

"We have masses of work and people are confident that we can get through this.

"Zolfo Cooper have been in for a couple of days and are due to announce their plans for the business shortly.""

[kieranf] 04/7/2013 08:45

hxxp://www.constructionenquirer.com/2013/07/04/administrators-in-at-silverdell/

[dasv] 04/7/2013 07:55

Unaudited March 2013 balance sheet:-

£49m Current Assets
£42.9m Current Liabilities

(working capital £3.1m)

working capital and cash flow are not brilliant it has to be said but not terminal - there is a modicum of breathing room.

net cash/equivalents at end of period in cash flow statement is £3.6m

So you'd think they'd be able to pay a creditor 50-100k without issues.

[pj 1] 03/7/2013 21:57

Rememeber it is actually illegal for a Director of a Company to trade knowing they cannot meet their financial obligations

Bit like AIM though, non-complience is rarely prosecuted

[pj 1] 03/7/2013 21:55

If he took it into Administration then effectively he cannot run the Company so that would be normal procedure