Silverjet Share Discussion Threads

[liquid assets] 14/1/2008 20:10

he ? dan is a brokerage firm - lol

[mpm] 14/1/2008 19:49

Well someone is not telling the truth. It seems strange that Daniel Stewart should mount such a vicious attack upon the Company. Has he taken a dislike to LH or is there some other agenda?
Time will tell and the credibility of one or the other will be in question. Unfortunately should Daniel Stuart be shown to have been less than diligent in his analysis the ramifications to him will be minimal. On the other hand, right or wrong,he has inflicted actual damage upon the Company.

[vision88] 14/1/2008 19:47

Current price extremly good value, this company has all the makings of a first class service and year on year rising profits going forward, for those seeking a quick profit over night you may do that in any casino, but this is a well organized silver plated service that allows every passenger to rest in flight at minimal delay/hassel and arive in a business meeting fully alert to win contracts gallore,
We there fore recomend these as a buy and note that the current price has unduly fallen over speculation that seems somewhat Bloated Ahgasterstated beyound any real sembalance of reason to the real reality of SILVER SEVICE TRAVEL.

I look forward to many miles of twin bed travel with this excellent company

yours vision88

Mile High Mile club

[cyberpost] 14/1/2008 18:18

Silverjet Response to analyst note




RNS Number:7569L
Silverjet PLC
14 January 2008




14 January 2008

Silverjet plc ("Silverjet")

Response to Analyst Research Note


Silverjet plc ("Silverjet"), the British airline offering a private jet
experience at a fraction of the price, notes the research published today by
Daniel Stewart which contains numerous material mistakes and inaccuracies, these
include notably:


*The current average cost per rotation is £75,000 rather than the
£135,000 quoted by the Daniel Stewart research note

*Liability for maintenance of £9.7m is payable over the ten year term of
the lease and not the majority in the current financial year as stated by
the Daniel Stewart research note

*The statement that Silverjet expects to be cash generative following the
current financial year is based on operating 5 aircraft and not 3 as stated
by the Daniel Stewart research note.


The Directors remain confident that Silverjet will achieve its first month of
profit before tax in the current financial year ending 31 March 2008. Cash flow
will be broadly neutral over the remainder of its current financial year ending
31 March 2008 and the business is expected to be cash generative thereafter.


The business continues to trade strongly with 5000 bookings being made last week
and 20% of customers are now repeat bookings.


The airline is in a strong financial position having just raised £22m, £12m from
existing investors and £10m from the Reuben Brothers as well as securing two new
aircraft which will be delivered by March this year.


The new Dubai route is performing ahead of managements expectations.


Silverjet remains very confident that it will continue to deliver on its
strategy and revolutionise the way passengers fly longhaul business profitably.

[mitzis] 14/1/2008 17:35

10p is my valuation.

[drewz] 14/1/2008 17:12

Depends how deep the pockets of its backers are. If they can see it through this rocky economic period it may survive.

Most fledgling airlines are touch and go in the early years. Virgin almost folded for lack of cash on more than one occasion in its early years.

It's certainly not an investment I could ever contemplate though. Risks are way too high and any possible rewards too far away.

[quidzinn] 14/1/2008 16:56

SIL appears to be following maxjet into oblivion

Q

[edcrane] 14/1/2008 16:02

25,000 shares just tradd at 24 ????? price on screen 34 / 37

[don muang] 14/1/2008 15:27

.... even George Bush is holding them up now...

Airline passengers and hotel staff hit by Bush visit:Dubai
.....A Silverjet flight was delayed due to "the unexpected closure of Airport Road," said a spokesperson.....

[shavian] 14/1/2008 13:46

Oops! Glad I was out at 91p!

[edcrane] 14/1/2008 08:49

this out this morning from Daniel Stewart

Likely to fail
· We are initiating coverage of Silverjet this morning with a share price target of zero on a 12 month view so the recommendation is a SELL. Our reason is that the business model doesn't work, we can't see that it ever will, and we expect the company will eventually run out of cash. Our forecast is for a pre-tax loss of £31m in the year to March 08, and about £27m the following year.

· The business case at the IPO was very simple - that you could operate a B767 on a London New York route for a round trip cost of about £67,000 so with a fare of about £999 return you only need to sell 65 of your 102 seats (a load factor of 63.7%) to break-even – anything beyond this level is profit. They were still using these figures when we met management in December and they repeated the claim to the Daily Telegraph last week.

· We reckon the claim just doesn't stack up. For a start, it excludes advertising, marketing, depreciation, and all admin costs. These can add up to quite sizeable figures. Also, since the IPO the sterling price of jet fuel, their biggest cost, has gone up by about 16% - you need to sell 4 extra seats for every flight just to cover that cost. If you add it all up, you can easily arrive at a theoretical break-even point for the company of as much as 85%.

· In practise, things have been a lot worse. In the half year to September 2007, the scheduled airline lost £11.7m on turnover of £12.2m– despite achieving a load factor in the period of nearly 70%. So load factor was 6pc above their claimed break-even yet they still made a big loss. The problem was its operating costs – at £135,755 for each return flight – more than double the claim of £67,000 in the IPO document. When you ask the company about this, they say that they are now re-working the model.

· Current traffic levels are dire; load factor for Q3 was just 55.2% and now that we are in the real low point for UK airlines (Jan-Feb) Silverjet, like all the other airlines, has launched a sale with price cuts of 20%. Although the company raised £21m last month we reckon its H2 loss will consume about 84% of these proceeds.

[lbo] 12/12/2007 13:34

And neither was this worth waiting to see your investment fall! How much money did you lose before you engaged your brain?? ;)

[stluke] 11/12/2007 11:25

Well it took you over two months to respond and it wasn't worth the wait LBO, the reason for my late reply is ive been and gone on this one back in september, i like to visit my old haunts to see how there doing in this case i agree things do not look promising!

[drewz] 11/12/2007 11:07

Just came back from a weekend trip to Dubai to try this out.

A friend who runs a US hotels booking website had tried the New York run on SIL a few weeks ago and wasn't hugely impressed.

Have to say I think it will be touch or go whether it survives, although I hope it does win through as the big airlines need some small niche player business class competition.

Had a chat with Lawrence Hunt on the flight. Seems a nice enough chap but the overall impression was that it is a bit of a cobbled-together not terribly slick operation - young inexperienced staff, new to the airline industry, that sort of thing.

The Luton terminal private lounge and dedicated check-in/valet parking is a big plus.

The much vaunted flat beds weren't very comfortable compared to best in class and too short for me to stretch out without hanging off the end - and I'm 6', so don't know where they get their 6' 3" claim from.

Food & wine was OK/good for a limited offering. Cabin crew service pretty amateurish but friendly enough. Inflight entertainment was pretty dire, imho.

All in all I'd say it was good value at the prices they charge, but less impressive/comfortable/special than I'd hoped it would be as expectations were raised by the promise of a "private jet experience".

It is really a pared down regular business class service at a low price.

One thing is for sure, they must be spending money at a much faster rate than the trickle they have coming in so far.

Load factor was only 29% on our return flight and they weren't all paid for. But it is early days.

They will probably start Joburg or LA next, probably LA.

I expect a lot more money will need to be raised before it generates positive cash, however.

Arden's forecasts for 2009/10 look way too optimistic.

All imho, dyor etc.

[lbo] 07/12/2007 10:46

Maxjet shares have been suspended so perhaps stluke you should heed your own advice and "engage your brain" before the same thing happens here!

[shavian] 22/11/2007 18:26

Oh, joy! Read the qualification tucked in right at the end of the accounts...

"Without modifying our review conclusion, we have considered the adequacy of
disclosures made in note 2 to the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 September 2007
concerning the Group's ability to continue as a going concern. These disclosures include the uncertainty of the group being successful in obtaining approval of the company's shareholders concerning the proposed placing of £12 million shares together with the proposed issue of £10 million of convertible loans.


Uncertainty relating to the going concern


Having taken into account these material uncertainties, the directors consider
it is appropriate to prepare the interim condensed financial information on the
going concern basis. These conditions, along with the other matters included in
note 2 to the condensed financial information, indicate the existence of a
material uncertainty which may cast significant doubt on the Group's ability to
continue as a going concern."

Also note that the placing was at 60p. I can't see what the share price is still doing at 71p, or does nobody read accounts these days?

[pietenpohl] 18/11/2007 22:04

*RUNWAY CLOSURE AT LUTON DUE SNOW. FLIGHT DUE TO DEPART AT 2315

[the mullah] 18/11/2007 19:13

Did it take off?

[pietenpohl] 14/11/2007 16:27

Dubai 18 nov 07

[the mullah] 14/11/2007 12:57

When can we expect the Non-USA destination to be operational?

[the mullah] 30/10/2007 16:40

Third plane getting close to being airborne?

[whiteboard] 21/10/2007 08:30

Interesting that they changed the music in the ad last night to "swing low sweet chariot" music, but kept the graphics the same.

I wonder if this ad was scheduled before they knew who the finalists were. If so, then the costs may have been lower, and they had a high number of viewers, thus could be money well spent in the long run.

[take_that] 18/10/2007 12:29

Have to disagree Weemonkey.

Although the advert is quite cunning, the net effect is that the viewer goes away thinking of BA. I appreciate that Silverjet are appealing to consumers of a more affluent background who may think this is quite cleaver but the majority go away humming the BA tune and subliminally register it as BA.

The other issue is the fact that as a small company they should stay well away from agrevating the enemy camp. They are far better using stealth tactics and staying off BA's radar screen than they are by waving a flag under their noses.

I wish the company every success. A number of former colleagues work for them but I think this sort of advertising does not do them any justice or achieve the results they are looking for.

[weemonkey] 13/10/2007 20:44

have you seen the tv commercial. it is awsome. takes a very subtle swipe at BA. the best way to check how this bunch are doing is to go and try to book a seat for the next day. you can then see whether you are offered a discounted flight or not . I wish this outfit well though. they deserve it despite what appear to be a few teething problems. (the legal action is a bummer). the tv commercial is truly wonderful very witty (a little obtuse maybe) but I hope it pulls in passengers by the truckload. (hope it did not cost too much). for a look got to