Tex Share Discussion Threads

[aleman] 04/6/2019 18:40

Well, its the first time I've been sent an attendance card and have no results to consider!

I'd have gone down for the AGM on the 24th, too, but have an important prior engagement. Does the lack of RNS breach listing rules? My notice of AGM does not seem to have given me the legally required 3 weeks notice under the Companies Act 2006, though I'm not certain it is applicable. I don't suppose it matter if I can't make it. At least it's a sensible time which many don't arrange.

[tuscan4] 29/5/2019 12:11

I believe the pension deficit has been almost eliminated

[charo] 29/5/2019 08:36

The pension regulator needs step in and insist group sold to eliminate shortfall.Redhall.Goal centre.Tex,regulators asleep.

[pictureframe] 21/5/2019 08:49

still no news

[charo] 13/5/2019 12:07

Problems must be severe.Unless ploy to take off market then buy on cheap.

[charo] 07/5/2019 16:26

No rns but filed at companies house.Thia group have no idea and chairman out of his comfort zone.

[tuscan4] 07/5/2019 14:34

Hi Charo. Interested to see that Christopher Varley is no longer a Director. Did he resign. Was this an RNS as I can't see any mention anywhere.

[charo] 06/5/2019 12:00

Palmer tompkinson should be next.

[charo] 06/5/2019 11:58

christopher varley terminated as director 30th april 2019

[charo] 06/5/2019 11:32

Apologies i gave board more credit than they deserve according to accounts meet 4 times per year.Outrageous.

[charo] 01/5/2019 08:21

The reason for discount is the board,crony governance at its worst.The board has been at best asleep meeting 6 times a year and doing the bidding of the major shareholder.
A merger with a competitor or takeover is best for majority of shareholders.This is a small conglomerate that needs refocusing.

[aleman] 30/4/2019 22:27

I'm just looking at the balance sheet from last year: £6.6m property&equipment, £6.8m stocks, £11.4m receivables.

I presume current liabilities are not affected by the covenants but are £8.2m payables, £1.7m overdraft and some loan payments of £1.0m.

I presume the bit affected by covenants is non-current liabilites which were pension and £2.2m interest-bearing loans and borrowings. On reading notes, I find £1.2m is finance leases and only £1.0m is secured bank loans. Is the covenant breach on a £1.0m bank loan? Note that receivables exceeds payables by £3.2m. If business quietens down, it might generate enough cash to pay the loan off!

At the interims, P&E rose by £0.6m and receivables by £1.1m. Payables rose by £1.7m and the overdraft by £0.4m but, crucially,non-current interest bearing loans and borrowings (which is about half finance leases) fell £0.7m to £1.5m (while the current equivalent rose £0.1m to £1.1m). There must be hardly any debt there to have covenants on and it looks paltry compared to assets.

If I look closer at year -end assets, land&buildings cost £4.5m but have been depreciated to £2.3m. Plant&machinery cost £16.5m but has been depreciated to £4.1m. I bet there's some hidden value in that lot. They added £3.0m new p&m in the last two years!

(Back to year end numbers:) If the company downed tools tomorrow, the balance of receivables and payables (+£3.2m) and finished goods out of stocks (£2.5m of £6.8m) would more than settle all the current and non-current debt (£2.7m +£2.2m), leaving shareholders £0.8m cash, £4.2m of stocks and £6.4m of (undervalued?) fixed assets to settle about £1m of pension deficit, provisions and tax. On paper, at last year-end, there's over £10m of (undervalued?) assets left there against a market cap at suspension of £4.6m.

If there's little debt to carry covenants, just what is going on here? Will they just factor the receivables (sell some off at a discount) to pay off a bit of debt and carry on as if nothing had happened? Refinance debt at a slightly higher rate? It has the look of a storm in a teacup or trying to pull the wool over shareholders eyes. Am I missing something? (e.g. Someone explain to me why finance leases are on the balance sheet but larger operating leases are not. Do these go onto the balance sheet under the new rules?) To be fair, it must be pretty annoying to directors when the company has consistently traded at a big discount to a pretty solid asset base but they failed to get support to take it private years ago. Shareholders wanted the status quo.

[charo] 30/4/2019 22:18

Perhaps now some long needed changes will take place.pension fund regulator should step in to ensure le bas investment is being independently managed,been a terrible case of crony management.
The new advisors are not capable?

[charo] 17/4/2019 11:53

Is this board in any way independent of mr burrows.

[rburtn] 16/4/2019 12:46

We seem to have been here before - wait now for another MBO attempt.

[aleman] 16/4/2019 09:05

At the same time, receivables are 40% higher than payables. If business quietens down, it releases cash that is tied up in working capital.

[pireric] 16/4/2019 08:49

The problem with the balance sheet is that it's stacked with receivables and payables

And the moment you get a whiff of a small supplier having trading issues let alone covenant issues then suddenly they start looking for shorter payables terms and take longer to pay

[ramellous] 16/4/2019 08:38

Got a small trade filled for 85p. Showing as a sell.

[ramellous] 16/4/2019 08:13

Can’t buy online

[aleman] 16/4/2019 08:08

So one tiny sell has gone through at less than half NAV. We should really be buying at this level. You could buy the company, break it up, and double your money. The "modest loss" is just an accounting change. Nothing else is new in the latest update.

[aleman] 16/4/2019 07:50

It's worth remembering that NAV was 168p at the finals and higher by more than 5% (though unspecified) at the interims. After a "modest loss" and 2.5p dividend, NAV is still probably close to 170p - with no intangibles.

[aleman] 16/4/2019 07:42

The introduction of the new accounting standard (IFRS15) affecting the recognition of revenues has had an impact on certain projects.

From the interims:

2. Significant accounting policies

The condensed consolidated financial statements have been prepared under the historical cost convention.

The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the preparation of the Group's consolidated financial statements for the year ended 31st December 2017, with the exception of the application of IFRS 15 and IFRS 9 which had no significant impact on the results.

What's a shareholder to do? It had no effect then it had an effect.

Other companies that have seen IFRS push revenue recognition back indicated it had NO effect on cashflows.

[battlebus2] 15/4/2019 18:59

Profits warning and breaching bank covenants. Dividend also gone.