Of course the other worry is that its been primarily left to the exec team to sort out and they have fumbled things.. |
I guess they have been holding off on the hope that they can announce a rescue deal at the same time as a trading update. But whatever they are working on is proving difficult to close. I just cant see that any trade or PR savior would take so long. So does the delay lie with getting an inter creditor with Liverpool sorted or because the rescue is coming from the state in some other way. Odds still on a private sector party doing it (if it gets done) but it really is dragging on.. |
Still no update. It is now four months since the interims. Companies should not be expected to give a running commentary on trading ( and cash) but there should be an obligation to give more frequent updates when things are on a knife edge. SCE is either bust, or worth a lot more than this. The next RNS will be incredibly price sensitive ( either way).
IMHO, this leaves a false market for a long period and Mr Market has too little information to make any kind of informed decision as to valuation. This is unacceptable. |
Someone getting and someone reducing first thing. All finely balanced... |
Interesting announcement on Cornish metals of a strategic investment by the National Wealth Fund. I guess a strategic investment by them here can't be totally ruled out. Albeit unlikely I guess. |
 As for the value of a assets don't forget they have debts and someone has claim to get repaid so the potential value is a lot less than you think . Add to that the equipment is bespoke it has very little resale value .
The job vacancies could be people leaving the business as it's a sinking ship but that just one possibility and we won't know just what's been going on until there is an rns .
I doubt GM would want the headache of trying to sort out this mess given the experts who developed it couldn't sort the issues out in 2-3 years plus 50m approx in funds .
I suspect GM are securing their orders until an alternative solution can be put in place possibly . The lack of update on any front suggests things are very touchy and conversations ongoing . There are a lot of moving parts in this detail and any one of them could scupper any rescue deal . One thing I have learnt is you don't get something for nothing anymore so I don't expect a phoenix from the ashes just yet until terms of any deal are announced and even then I wouldn't like to have too entrust the future to the same bod who oversaw this disaster
As for six sigma this only works if you invest time and money into it ,neither of which sce has . I have ran successful teams using such techniques and knowing what it takes so I don't see this being any benefit here . Listening to the talk from the shop floor months ago it's not setup for this . All imo of course we await news |
OEM stands for "only extra money" for those that have invested at below 1p.
Anyone remember Ratners.
The only way is up for these shares. IMO. |
Remember that OEM 10 is a 100m contract. Assuming this is GM and it's for the new Corvette ZR1, deliveries are expected early 2025 so my guess is that it's been all hands to the pump on this one. They've probably already been paid for the first few batches or are expected to be. All those of little faith might be surprised by the next update. |
Waiting to conclude whatever strategic initiative they are working on I think. But if that's drags on much longer may feel the need to do a TU. But not sure they can reasonably do that without sorting out medium term funding and funding to normalise working capital (assuming they have been supported by an OEM whilst the strategic plan is finalised) |
Probably a TU on Monday or the next one. Most likely waiting for some expected payments to come in, which isn't unusual. Might be a few cheeky surprises after that ;-) |
JS - hah nothing compared to the sunk funds position. |
GM will take this ,,, it’s an obvious choice to me … their own brake manufacturing plant allready set up ..imho |
Cash position?
Debt position more like |
Last year the trading statement was 8 Jan, giving guidance as to how the second half of the year had turned out, and giving guidance how the year had started. So far this year, nothing.
SCE used to delay announcements, and it seemed the thinking was “well, if we delay, things may have improved by then”.
At some stage they are going to have to RNS something, on yields, revenue and the cash position. |
What’s the market cap atm? £5million? £6million. I think it could be bought for less than £20million, more like £12 - £15million. Which would be depressing. Still, better than bankruptcy. |
I can see this being a possibility ,, that’s a takeout price of about 1.5-2p |
The IP and equipment / stock must be worth £20 mill to GM ?? |
Re departures, I wondered if that might happen under the new six sigma regime. Essentially it can be quite all-encompassing, almost like having new management. I don’t mind myself as long as it works, but I did wonder if it might not be for all tastes. That or combo of that and people worried about job security. Hopefully a big client coming to the rescue at least highlights value in the tech and company. |
Best outcome here is without a doubt ,,,is let their biggest customer ( presumably GM),, take the whole operation over,and let the American engineers sort it out . It’s a feasible and viable option imho |
The advertised roles are not newly created but are being filled due to recent departures (stats on LinkedIn). The nature and timing of these departures could raise questions, particularly considering the roles being advertised. It’s worth exploring whether these are indicative of broader challenges within the company. |
10 jobs advertised. Is that another increase? |
Everything could be manufactured on a strictly PRO FORMA basis … a great idea and should be taken up with many other business ‘s |
It's potentially only an earlier payment against terms and perhaps COD going forward. Rather than a loan. That would be different. Also as this is all very sensitive/existential I guess the company has pushed hard to get all it's ducks in a row before any rns. |
It would be surprising when, say, a director loan for £2m has to be RNSed, but a supplier advance payment of £2m doesn't. I mean they are both potential life savers for the company, so surely 'material' to the share price? I've certainly seen less significant development than that RNSed over the years. Who knows. |
Major. I think that an ID line may be part of the package but wouldn't sort the revenue shortfall at the end of FY24 (and avoid a GC qualification). Thats going to need a more material solution IMHO.
They have managed to avoid RNSing whatever temporary liquidity support that had been keeping them afloat presumably because it is advanced payments on existing debts and they have pushed not disclosing to maintain confidentiality.
We know they haven't put an ID line in place yet because there is no new security registered at companies house.
Given the circumstances of the company I expect that an ID facility even in isolation would be RNSd.
But as I say I personally expect something a bit more substantial than that. Albeit I remain of the view that as time goes by there is an increased risk that whoever is
the sponsor of that deal backs out because something comes up. |
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