Silverdell Share Discussion Threads

[pj 1] 14/8/2013 08:29

So the whole group is in Administration, is the way I read that wording

[m1das_touch] 14/8/2013 08:25

"The Group is currently assessing the impact of the administration on its trading performance and therefore the capital requirements of the business for the remainder of FY2013 and for FY2014 in order to work towards lifting the suspension from trading of the Group's shares."

What the incompetent board don't seem to realise is that every day the suspension isn't lifted, the negative impact of the administration on its trading performance increases. Who in their right mind would sign or renew a contract with Slverdell or any of their subsidiaries until their financial position is fully clarified?

No sense of urgency, no remorse, no apologies for the inept way in which this has all been handled...what a disaster. I guess we'll be lucky to come out of administration at above 3p or 4p a share at best.

[roddiemac2] 13/8/2013 18:00

How many of you would say that Sean Nutley was justified in having a personal chauffeur, paid by the company ?

[kimboy2] 13/8/2013 10:41

However the £8m is broken down into the various components SID is still needing to raise this when it comes to pay for it.

They say;
The deferred consideration is intended to be satisfied from the Group's banking facilities at that time

This implies the cash will come from increased bank facility, reduced working capital and/or a placing.

Personally I think reduced working capital will be the largest element, unless the decide to look for financing some sort of ambitious expansion.

[adamb1978] 13/8/2013 10:13

Kimboy - I'm basing my estimate of what the cost will be on my prior experience of having worked in corporate finance (ie M&A, equity raisings, restructurings etc) for 15 years! There is not a chance that the administrators fees will be as high as some of the recent posts have said (though I've just seen that its 6-7 weeks rather than 4 since this happen so my 100k would need to be scaled up a bit)

[pj 1] 13/8/2013 09:45

Sometimes it is an agreed set fee.

However in this case I suspect it will be time driven, but has to be reported in the Administrators Report and agreed by Creditors (as if they have a choice)

Worse case scenario....say £500k

Depends if you call that peanuts or not

I don't.

[kimboy2] 13/8/2013 09:44

These things always cost more than you think, or reasonable.

The liabilities at y/e were £5.6m and the administrator is getting £8m. This difference is presumably split between any increase in trade liabilities, bank debt and the administrator.

I would presume that Kitsons is going back into the company debt free. I would expect that as the creditors position expands the amount that needs to be raised (if any) will reduce.

That was my point.

[adamb1978] 13/8/2013 09:24

Kimboy - what administrators do you know who would charge £1m for, what is it, 4 weeks work?!? If a firm charged that they wouldnt ever have any work to do!!

[adamb1978] 13/8/2013 09:23

Seriously, some of the scaremongering on here is ridiculous.

The administrators bill is a rounding error in the overall scheme of things - it will be around £100k. And administrators have to justify (ie itemise) every last penny so it wont be over-stated

[kimboy2] 13/8/2013 09:22

Absolutely I do.

However creditors were about £5.6m at y/e. I would perhaps expect bank debt to have increased to £1.5 with another £1m for blood sucking administrators.

That would add up to £8m.

[pj 1] 13/8/2013 08:45

The Administrators bill will be adding up

Guess £200 per hour for basic Admin, upto £1000 per hour for Management/ investigation/ reporting.

Plus fuel, accomodation, sundries, paper, ink, phone calls, wear and tear on shoe leather

If you get my drift....

[kimboy2] 13/8/2013 08:33

Well AISI the only real question is how much they need to raise and at what price.

The £8m that SID has paid for Kitsons has basically replaced trade debt with bank debt, or potential bank debt as it seems to be deferred while they are getting some sort of valuation.

ISTM that the longer this process goes on the more trade debt will be restored to normal levels, as confidence returns hopefully, and the less cash will be required in a placing.

[pj 1] 13/8/2013 08:10

Only a comment but from previous experience the ''delay'' could point to the ''creative accounting'' being extremely difficult to unravel.

Just opinion thats all

[rovers2] 13/8/2013 07:57

And still no news, ridiculous.

[hvs] 08/8/2013 15:43

Equity raising/placing - don't know

Says it all

ONther disaster.

[adamb1978] 08/8/2013 15:26

Thanks ERB2008 - not quite sure what we do with the information though!!!

[alter ego] 08/8/2013 15:01

yes, big thanks here too

[rat attack] 08/8/2013 14:37

ERB2008 - update appreciated, thanks.

[erb2008] 08/8/2013 13:50

Don't know exactly however it was implied imminently- i am thinking to myself maybe get bad news out on a Friday - but i do not know other than we are almost there.

The deal with HSBC is done regarding banking facilities.

Regarding personnel and new/current business - yes it has been tough and of course it hasn't been plain sailing but they (i mean the staff not necessarily PLC BoD) have done a very good job in my opinion - alot of personnel and clients have been loyal to them - obviously there have been some casualties but no game changers i believe.

Equity raising/placing - don't know - reading between the lines i think there maybe be a underwritten placing under the guise of "we would have to have done this anyway to grow the business internationally therefore have decided to do it now."I know they said the didn't require additional funding but if they do it now it would not be a bad shout - i would not be happy either but we are where we are.

[adamb1978] 08/8/2013 13:27

ERB2008 has been right through most of this charade - I dont want to know what he does for a day job or where he gets his information from!!

ERB - how soon are your sources saying? Today? Tomorrow? Monday?

[rat attack] 08/8/2013 13:05

source?.....

[erb2008] 08/8/2013 13:02

RNS and suspension to be lifted shortly.

[adamb1978] 06/8/2013 15:37

Clearly shareholders will lose part of their investment however the question is simply how much of an equity raising will be done and what the value impact of that is plus how much you should discount the company due to management's credibility being shot to pieces.

The fall in the share price leading up to the suspension meant that it was only trading on a PE of about 6x going into it which partially limits the fall from here. However first we need to know the scale/price of equity raising, adjust for that and also assume that the share price falls to the placing price. Only then can anyone judge what the new SID looks like and whether it would be worth a punt, worth hanging on to or should be sold

[hippo] 06/8/2013 14:32

^if it turns out you have lost most of your investment, which is highly likely at best, will you still feel the same. Shareholders are going to be taken to the cleaners here, why certain parties have a field day.

re. admin error, a business does not go into administration on the back of an admin error, there are numerous stages in the court process, where this should have got put to bed, if the Company were in a position to do so, and it appear they weren't.