Van Elle Share Discussion Threads

[jwball] 11/4/2019 09:07

The problem with the new staff is that they aren't new at all. Pete Handley (Strategy and Business Improvement Director) left the company around ten years ago and came back, as did Mick Mason Senior Group Director)went to work for McNicholas as their HS Manager and John Bullock (Divisional Director, Specialist Piling) has worked in oil and gas for six years in Asia so is totally out of the loop, so to be given a directorship in the Piling division is madness.

[citizen_kane] 11/4/2019 08:39

Rail, although a part of the organisation is not the main focus of VE. Large Piling is, and they are struggling, you only have to drive passed the VE yard to see all the masts standing idle.

I agree with everything you say, though it is the various other divisions within VE that are also struggling.

All the plant and equipment has been bought on HP so the repayments will be crippling the firm of the money is not coming in.

CP6 will prove difficult for the reasons you have stated, though I fear for the company as a whole.

The newly appointed staff will quickly jump ship when they realise it is sinking.

[redartbmud] 11/4/2019 07:42

And so the share price spirals downwards.
Ypu left out boardroom 'issues' that magnify the situation.

[learos187] 11/4/2019 07:38

The rose tinted view of shareholders never ceases to amaze me in trying to justify under performing companies in what seems blatantly obvious

Some points;

Market leaders in their field - self proclaimed as were Carillion and Interserve

Invested in a lot of machinery - that is not being used

Set up a training academy - looks good, but is probably to rain in spiralling training costs

Foundations specialists - CP6 has been set out as more maintenance bias in replacing old worn out infrastructure not as in CP5 massive projects requiring foundations.

Talent on the tools and talent in the office - they are leaving for companies with a healthy workbank.

There is no money to be made by Tier 2 contractors on the railway as they are being screwed by Tier 1s. Projects are poorly planned by NWR in terms of timescale and budget. Then they are screwed even tighter by the Tier 1 contractors who pass all risk onto the supply chain in delivering works which are guaranteed to be over budget and over time. Money is withheld for any reason that can be thought of no matter what payment charters are in place. The SMEs are now struggling with cashflow which leads to their own supply chain refusing to provide them with the necessary equipment, labour or materials to function which in turn affects the performance for the Tier 1s and the circle continues until one of them goes bust.

The railway industry as it is at present is dying and the majority of companies will die with it.

[gavbro0] 10/4/2019 18:09

Interesting point.For me the positives are that they are market leaders in their field (that's what their website says anyway), have invested a lot in machinery. Also, have set up a training academy to train up their own skilled workers ( which is the way forward for front line technical progression).Overall, the outlook for foundations specialists like them don't look too crash hot with Brexit uncertainties, HS2 uncertainties and maybe, just maybe, the top brass they have employed.At the end of the day though, you don't need really need top of the line corporate types to run this company. I mean, it's just a niche building company.You just need good, smart clever engineers who are on the tools in the front line and the same sort of talent the office.

[citizen_kane] 10/4/2019 16:40

“jwball: Yes twinks I see what you mean. I think they have a director of cleaners :) Director in name only a lot of them. In the old days I think it was a thing that Ellis did, give them a fancy title and then not pay them as much.”

The Director of Cleaners will be the busiest man in Van Elle.

What with all the mopping up of the mess which is being made within the company at present.

[creditcrunchies] 10/4/2019 16:02

£40k of stock in an entire day can move the price of the company 5% for a market cap close to £50 million. Some blue chips I've got I sell that amount in one click in seconds at the quoted price. That's the AIM market totally illiquid, the sales have been small relative to it's cap moving the stock from 80p to 40p

[creditcrunchies] 10/4/2019 15:54

The tone is following the share price which has got a liquidity problem small sales triggering large declines

[muckshifter] 10/4/2019 13:36

I remember Jarvis well Diku, but don't see any similarities with Van Elle. The excessively downbeat tone on this board is interesting to me, although I'm just watching Van Elle at the moment and haven't bought any yet.

It reminds me much more of the posts about Laing after their fall from grace years ago, where posters were calling for the head of Sir Martin Laing. Laing shares (LNGO) recovered well in the following couple of years.

[creditcrunchies] 10/4/2019 12:31

The spread on this stock is huge you make a -10% loss as soon as you buy them, certainly keeps buyers away a bit of a dogs dinner. Another AIM dog candidate

[twinks1] 10/4/2019 09:39

Most sold between 85 and 95p

[diku] 10/4/2019 08:13

Brings back memories of Jarvis...anybody remember?...

[creditcrunchies] 10/4/2019 08:13

if they did well it was overvalued so now we're seeing it getting towards its market value of say mid 30s possibly

[twinks1] 10/4/2019 08:09

Although lots of them did ok from the IPO but most of them have already sold their shares..

[creditcrunchies] 10/4/2019 07:37

you just see a drip drip of small sell orders every day with the share price plunging from 70p to 40p over that period

[jwball] 10/4/2019 06:38

Yes twinks I see what you mean. I think they have a director of cleaners :)
Director in name only a lot of them.
In the old days I think it was a thing that Ellis did, give them a fancy title and then not pay them as much.

[creditcrunchies] 10/4/2019 01:01

This is a valid question then:
Is Van Elle Holdings plc (LON:VANL) A Smart Pick For Income Investors?

[twinks1] 09/4/2019 18:41

Which one? A fake paper one or a proper one? Literally every man in a managerial position is called a director!

[citizen_kane] 09/4/2019 15:04

Another Director ‘left’ the company this week with more to follow before the end of year results.

[creditcrunchies] 09/4/2019 07:54

this stock is dive bombing a classic penny share now, potential for recovery though but hard to gauge when it just collapses like this.

[twinks1] 08/4/2019 10:51

Citizen Kane thats correct, they said no to JF returning.
Currently they are renting their offices out on Summit Close and the VE staff are in portacabins...read into that what you will. The current CEO took a massive pay increase and the company has nose dived. Most people with industry expertise have jumped ship, the few that remain have no corporate background at all.

[citizen_kane] 08/4/2019 07:50

Ellis was pushed, JF left for family matters, handed in his notice, changed his mind and wanted back in. Was swiftly told ‘No’.

Is my understanding.

I bet they wish they had accepted JF’s offer of return now.

[jwball] 05/4/2019 08:14

Exactly, why leave so soon after IPO if everything was rosy?

[blueliner] 04/4/2019 17:47

Then Ellis/Fenton left the company after IPO.

[jwball] 04/4/2019 14:32

I didn't say it was recent but it gives you an idea of the background of the company, including a Chairman who can't remember what the award they won was for, who also only wanted more money.