Silverdell Share Discussion Threads

[kimboy2] 22/8/2013 08:47

It seems to me that basically what has happened is that Kitsons has been stripped of its working capital by having to pay all its creditors immediately. This has been done via a bank loan.

The more time that goes by the more time they have to build up their creditors and reduce any potential funding that may be required.

[pj 1] 22/8/2013 08:40

Open your eyes. Creative accountancy gone wrong at Kitsons. You can bet your bottom dollar there will be some knock on effect to SID, hence HSBC and Administrators currently controlling SID accounts.

[begorrah88] 22/8/2013 08:10

Surely that in itself is a clue to the competency and intentions of the board?

They could update if they wanted to - they choose not to.

[cestnous] 22/8/2013 08:09

NO. So it can make decisions. All the venders of doom here know as much as the rest of us about what is going on.....zilch.

[cnx] 22/8/2013 07:59

PJ

is that the administrators of kitson (which is the main operating subsidiary, I understand)?

is SID also in administration?

[pj 1] 22/8/2013 07:50

Wayne.
I think you could be missing the point. SID Management cannot make those decisions currently, the administratorHSBC and possible other creditors can!

[waynesoton] 22/8/2013 07:47

I wish people would stop complaining. Yes the board made a big mistake by allowing kitsons to go in to administration.I believe the board are now being smarter as we all know relisting will hammer the share price so by delaying it until they have 100% certainty over finance and contracts is a smart move as it will help to reduce the hammering we get on shareprice.As we all know if they relist without all the certainty it will be heavy losses.If they relist with everything in place then the drop could be a lot less as markets react positive to certainty.At the end of the day the board may have made a huge mistake but at least they they are now rectifying that for the benefit of all

[m1das_touch] 21/8/2013 16:48

Another day passes, another bit of shareholder value destroyed by the incompetent board of Silverdell...

[bookbroker] 16/8/2013 11:09

More annoying is the fact I cut my holding in Blur by half after the announcement to cover further mishaps in remainder of portfolio, the missed gains subsequently more than would have covered any shortfall from SID.

[pj 1] 16/8/2013 10:41

bookbroker 16 Aug'13 - 10:24 - 1901 of 1901

Can well understand your sentiment. Sometimes its easier to look at worst case scenario then anything else is a bonus. Most discussion here is fair comment in my view, as I welcome all prospectives.

However, to call this nothing more than a ''NUISANCE'' is plain submission. The Directors here blatantly lied to a group of PI's, and Institutions imo, days before the ''nuisance'' manifested itself.

Powers above me will decide if these ''Directors'' did anything illegal and immoral.

[bookbroker] 16/8/2013 10:24

More alarmist talk here on this thread, haven't most of you guys already written off your investment here, I have, but I'm relieved that the prospect of a re-listing is likely, to say the least, it's just a case of biding one's time, to receive anything back here is a bonus; and I assume that the re-listing is unlikely until the half-year statement is released, suspension is a nuisance for holders and creates uncertainty, however it does not mean that the company is unable to operate, too much clutching at straws here in many of the posts!

[adamb1978] 15/8/2013 10:08

Looking again at the RNS from yesterday, there's almost a contrdiction in it:

"EDS is currently in the process of novating Kitsons' customer contracts and site operations continue with minimal disruption"

but then

"The Group is currently assessing the impact of the administration on its trading performance...."

The first implies all is fine, the second that there is some impact. My guess is that perhaps all existing business is fine but that the pipeline has been as current customers are too knee deep with SID that they cant switch but potential customers are looking to alternatives in case SID are no longer around.

Neither is good and have always thought that a placing of c50% of existing shares is inevitable - would just been nice if they could get their fingers out and clarify everything so that shareholders can assess the situation and trade their shares again. Its crazy that its been around 7 week now

[rat attack] 14/8/2013 19:08

M1das_Touch - ...HSBC may well insist on some changes in view of their significant exposure...

Clearly it isn't a CP to the additional HSBC banking facilities otherwise any/all BOD would have exited already. Also dont expect a change via facility CS as this would be negative and disruptive. Although I would have thought a change of FD would have been required as a minimum it looks increasingly likely to be business as usual on any relisting!! As a shareholder I have extreme concerns that a head is unlikely to roll as this gives off a negative vibe from a business ethic perspective, but then when were business ethics high on the list of priorities for AIM companies?

[m1das_touch] 14/8/2013 16:33

Angora7, I don't think I'm overestimating the negative impact...if you think it's been 'business as usual' from a week or two after the initial suspension, then you're ignoring the simple facts and I'm afraid you might be in for a mighty shock when further details are revealed and the suspension is lifted.

They're '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'...so they can already tell that this will impact on trading performance and, therefore, cashflow for 2014!

I'm a holder, so I have no interest in trying to talk Silverdell down, but I'm also a realist. This is a complete disaster and it will take a long, long time to rebuild this company and to re-establish credibility with suppliers, customers and shareholders.

If the existing board survives this intact, I'll be amazed...HSBC may well insist on some changes in view of their significant exposure.

[hippo] 14/8/2013 14:41

^Yes. Board changes afoot imho.

[stegrego] 14/8/2013 12:20

They will be seeing how much cash they need to raise from a cash call. Id expect to see a discounted placing for that amount plus a bit extra.

Placing probably at 6p.

[angora7] 14/8/2013 11:59

Midas Touch, I think you're overestimating the negative impact (of ongoing suspension) on the trading front. Maximum trading impact of the suspension would have been in the first week or two after initial suspension. When the sky didn't fall in then and it was business as usual, the negative impact will have subsided. (There's even an argument for saying that the company is taking its time to get un-suspended to allow the trading to recover to some 'normal' levels).
What is undoubtable is that this is an unusual situation and exit from suspension, so I'm not surprised that its taking time/they're taking their time. I'd rather they get it right than rush and do a misstep. I can wait.

Cheers
Angora

[pj 1] 14/8/2013 09:33

If their Customers have got too nervous it could prompt a Sale of the Co,

[adamb1978] 14/8/2013 09:26

People might rush for the door immediately and there's going to be clouds hanging over the compayn for a couple years, however I do expect this to trade on a PE of 5x-6x by christmas despite that. Only question is what the 'E' is, which depends on teh sale of the equity raising and impact on the business.

I think EPS forecast was for about 2p before this happened and an equity raising of 50% of teh capital would then take this to 1.33p. Then allow for 10% hit to the business from repttational damage and you have 1.2p. PE of 5x or 6x give you 6p or 7p

[m1das_touch] 14/8/2013 09:03

PJ 1, yes I think you might be reading too much into it. I'm reading it "The Group (Silverdell) is currently assessing the impact of the (Kitsons) administration..."

[pj 1] 14/8/2013 09:00

Midas, yes that was my understanding, but the wording in todays RNS indicates otherwise?
Maybe im being too exacting with the wording

[m1das_touch] 14/8/2013 08:36

PJ 1, no the whole group isn't in administration, just the trading subsidiary, but of course the administration will impact the whole group and it's trading/financial performance.

Adam, yes I was thinking possibly 6p or 7p a few weeks ago...but I now feel that the board have lost all credibility and I can only think that as soon as the suspension is lifted everyone (including some major institutional holders) will be rushing for the exits.

Resignations are in order, seeing as this whole sorry episode will destroy so much shareholder value.

[adamb1978] 14/8/2013 08:29

M1das Touch - agree with you about the apparent lack of urgency and the impact which it must be having on the business.

6 or 7 weeks since this happened now and the announcement today suggests that we're probably looking at another week or two given the 'current assessing' wording and once they've sized any equity raising, they still need to get the documents ready, spend 48 hours going to shareholders etc

Regarding where it will open, am still hopeful of getting 6p or 7p by year end at least though these antics really arent helping at all