Superglass Share Discussion Threads

[craffert] 06/9/2011 13:38

big debt for equity swap likely, but only if Clydesdale up for it....I doubt it though as the need for capex means more funding needed so its not just a case of swapping the £17.7mn. In a bad place.

[masurenguy] 06/9/2011 12:47

Somebody was really desperate to unload all or part of their holding here today. A Sell of 2,547,872 @1.5p, 70% below the Bid, went through early this morning. Since this represents 4.4% of the issued shares we should see an RNS identifying the Seller over the next few days.

With a market cap of just £2.5m, and bank debt of £17.7m, one has to raise serious doubt whether they will be able to successfully negotiate a capital reconstruction. Other possible options on the table could be a cheap sale to a predator or an adminstration pre-pack that will result in the Clydesdale taking a haircut as opposed to a 100% write off. In one way or another the denouement must be close to fruition !

[john09] 05/9/2011 15:06

Too much kidding themselves about cert.

[hosede] 05/9/2011 13:39

Sad, because I think this is fundamentally quite a good and well run company - just too much debt - where have we heard that before.

[john09] 05/9/2011 07:32

Yes this will drop like a stone and become an assetco type stock. A real shame. The point in buying this one was it's dividend and PE ratio but the divi went a few quarters ago and with a fundraise the PE will be shot to shreds unfortunately.

Could half today alone this..

[masurenguy] 05/9/2011 07:26

Looks like a very significant dilution is now in the pipeline !

RNS Number : 5856N
Superglass Holdings PLC
05 September 2011

Period-end Trading Statement, Banking Update and Proposed Capital Restructuring

Sales volumes are ahead of forecast in cured products, compensating for continuing underperformance in CERT-related blowing wool product lines. As a result, output in non-CERT-dependent product lines is running at close to full capacity. However, product mix, market weakness and cost pressures are all continuing to affect margins and, as a result, the Board's expectations as to underlying trading performance for the financial year just ended are slightly reduced from the trading update statement of 22 June 2011. Primarily as a result of the shortfall in trading performance and the acceleration of capital expenditure following the furnace failure just over twelve months ago, net debt has increased slightly from the previous financial year end at approximately £17.7m. The insurance claim in respect of the furnace failure has not yet been fully settled.

Banking Update

As noted in previous statements, constructive discussions with the Company's bankers, Clydesdale Bank plc (the 'Bank'), have continued with a view to ensuring that the Company's debt facilities remain appropriate to the Company's current operating performance. The Company has now agreed further temporary and conditional relaxations and amendments to its facility structure with the Bank, being (i) the deferment until 31 October 2011 of the capital repayment which would otherwise have been due on 31 August 2011; and (ii) a waiver of the requirement to test the financial covenants as at 31 August 2011 contained in the Company's existing facility agreement with the Bank.

Proposed Capital Restructuring

The Board has also been pursuing the options for a capital restructuring (the 'Restructuring') in collaboration with the Bank and has reached agreement in principle on headline terms for addressing the debt component of the Restructuring, including the conversion of a proportion of the current bank debt into an instrument or securities convertible into shares in the Company, subject to certain exercise or conversion criteria. It is envisaged that the Restructuring will (subject to the requisite shareholder approvals being granted at a general meeting proposed to be convened in due course) incorporate a substantial equity issue. Formal completion of the Restructuring, including the debt conversion agreed with the Bank, will be conditional upon successful completion of the equity fundraising. In the event that shareholder approvals are not granted, or the proposed equity funding is not otherwise completed in accordance with the Bank's requirements, then the Company may be unable to satisfy the financial covenants and/or comply with the debt service obligations within the terms of its current bank facilities.

In the Company's trading update statement of 22 June 2011, the Board stated that the Company had identified measures which it could take to improve its competitiveness if sufficient funding were available. A fundamental purpose of the proposed equity issue would be to provide the necessary financial resources to enable the Company to invest in and modernise its plant to drive significant operating efficiency gains. The Company is working towards finalising the Restructuring and a further announcement will be made as soon as practicable following agreement.

[dugganjoe] 25/8/2011 08:13

i spoke to an installer this week and he said things were crazy in the insulation sector with demand never so high

[nilip] 22/8/2011 18:23

"Insulation board specialist Kingspan rose as it posted a 24% increase in half year trading profit and upped its dividend 12.5% following strong growth across most of its businesses".

[john09] 22/8/2011 14:53

9p now. Could dribble down reasonably quick from here now 10p has gone twice

[dugganjoe] 17/8/2011 22:10

not me but watching closely

[nilip] 17/8/2011 12:00

duggy - is that your buy this morning ?

[dugganjoe] 17/8/2011 11:27

may be a bid coming the sudden nibblers know summat reckon nillipip

[nilip] 17/8/2011 11:22

sp looks very highly strung - a single buy seems to move it almost immediately !

Only 3 MM's so likely to move very fast as and when.

[masurenguy] 02/8/2011 20:19

I am - as stated in posts #530 & 543 !

[nilip] 02/8/2011 19:28

Masurenguy,

You seem to be keeping a very close eye on this one ?

[john09] 02/8/2011 16:33

Yes 10p may trigger stop losses . Keep watching

[masurenguy] 02/8/2011 16:19

The shareprice is now into single digits for the very first time with a Sell of 8500 @9.5p today !

[masurenguy] 14/7/2011 16:15

Well it took less than 24 hours ! A Sell of 4690 shares @10.05p went through earlier this afternoon - an new all time low ! Market cap has now gone from £105m on listing 4 years ago to £6.5m today - a drop of 94%. I wonder where it will go from here and how soon there will be a single digit share price !

[masurenguy] 13/7/2011 15:31

The shareprice is still heading down after todays 10K Sell @11.5p ! The ATL was a Sell @10.25p on July 1st - will it retrace back to that level again ?

[masurenguy] 11/7/2011 11:07

People still bailing out here below 12p. Increase in the midprice is very misleading as it is only due to MMs increasing the spread from 1p to 2.5p !

[hosede] 06/7/2011 11:37

Topvest
Not sure about that: if as the interims say the furnaces are running well, then no significant Capex is required in the next few years. The half year cash flow was negative because of the furnace rebuild, but should remain positive for some time to come, in which case the banks will remain fairly happy. A major increase in energy costs seems to me the biggest threat.

[topvest] 03/7/2011 12:30

For what it's worth I think this company has gone past the point of having a chance of recovery. It's either administration, a highly dilutive fundraising or a buyout. I can't see that shareholders will fair that well in any of these three scenario's - total wipeout is more likely than not. I've made money twice on these, but will certainly not risk another investment until and if things stabilise.

[napoleon 14th] 02/7/2011 12:34

I thought the furnace issue had been addressed, & used to explain low sales!
If I'm right, they have refurbished these at some cost & won't need to do any more to them for quite some time.

Anyway, I've not added to the small position I have.
I wonder what SCSW will have to say, if anything. They were talking about a high risk/high reward situation last time, but might change that to even higher risk!