Vt Group Share Discussion Threads

[ssords] 27/8/2009 17:19

Does anybody know does VT still have involvement with the Carriers project and more importantly what is Gov't view - going ahead with them or not
Any info welcome
Ssords

[barbudo viejo] 24/7/2009 10:51

No reason to doubt the solidity of services contracts and ongoing business, and progress still looking good on divestment of JV with BAE. Expecting further recovery of share price as this picture becomes clearer.

[tourist07] 13/7/2009 18:41

What is not clear to me is whether the "working capital injection" is a loan or a permanent adjustment to the share price.

It seems to me that for it to be a permanent adjustment, it would need to be a permanent increase in the working capital requiements of the JV which I imagine would be quite hard to calculate/prove.

Agree with you marvelman, its a horse trade ... but no doubt VT will close the stable door behind them .... :)

I think that a share price drop of 30% since Jan is overdoing it especially when the prospects for govt outsourcing are arguably stronger. Once the share prices stops sliding, I will be looking to add below £4.50. Meanwhile, a divi is a small compensation.

[marvelman] 13/7/2009 18:13

BAE are clearly playing hardball regarding the working capital injection they require to be put back into the business. I am sure this is the reason the share price is floundering at these levels.This could reduce the proceeds significantly and certainly wont leave them with the £380 million that is reported.However they have certainly exited at the right time.

[dwinter74] 30/6/2009 07:58

Or in Peston's blog on the same site:

"And it could also put in jeopardy plans for BAE to acquire VT Group's stake in BVT, which employs over 7,000 and was created to be a near-monopoly in the construction of warships in the UK.

However official sources say there is little prospect of the project being dropped, because 40% of contracts relating to the carriers have already been placed and ministers are said to be impressed with the way it has been managed so far."



I prefer to think that the second paragraph will stick and common sense will prevail.

[barbudo viejo] 30/6/2009 06:50

Navy carriers '£1bn over budget'


'A £1bn cost over-run is threatening the future of the publicly-funded project to build Britain's biggest aircraft carriers, the BBC has learnt' etc

This will make it dificult for VT to crystallise its shipbuilding investment.

[cockneytrader] 29/6/2009 20:41

BBC just reporting possible threat to CARRIER project.

[tradertrouble] 29/6/2009 12:14

indeed, there are still some bargains out there I'm sure. Would be a good time to invest some of that cash.

[trexpert] 29/6/2009 11:53

Or acquisitions?!

[tradertrouble] 29/6/2009 10:14

That sounds like good news.

Am I also right in thinking that if VTG sell their 45% stake for £380 million, then they could use that money to effectively pay of long term debts. When you include current cash at bank, it gives the company a strong balance sheet, together with a PEG of less than 1.

Looking good IMV.

[trexpert] 29/6/2009 08:54

The Following in the Independant on Sunday might help the share price.

BAE Systems, the Ftse 100 defence giant, and the Government, are aiming to secure a 15-year shipbuilding agreement by Parliament's summer recess next month.

It is understood that the parties want to sign the deal by 17 July. The contract would see BAE supply the UK's naval shipbuilding needs until 2024. The deal will allow VT Group, the Ftse 250 company, to exit BVT, its joint venture with BAE.

VT has agreed to sell its 45 per cent stake in the company for £380m, once the Ministry of Defence and BAE have agreed their deal. VT is the old Vosper Thornycroft, which will be exiting shipbuilding after 150 years. Its chief executive, Paul Lester, is keen to concentrate on support services work, and held a presentation for analysts last week on opportunities in the UK's burgeoning nuclear power sector. Lord Mandelson, the Business Secretary, in a presentation to the meeting, said: "The government's ambition for nuclear is clear, and it is unwavering. We are committed to the clarity and regulatory framework that the industry needs."

[barbudo viejo] 26/6/2009 17:28

been in and out of this one, and back again. Price seems reluctant to move north of 5 pounds, despite good results and positive broker sentiment. Slow on the newsflow, but steady and stolid with a good business plan. Barring any contracts falling through or some balls-up on the divestment of the ship-building, we should be able to look forward to steady share price growth, even with a correcting market. In the short term, hoping for a gentle rise into ex-dividend date in early July.

[tradertrouble] 26/6/2009 13:18

Well just bought in. Seems like a good company. Quiet thread though.

[barbudo viejo] 13/5/2009 09:04

excellent results, as anticipated.
Company well-positioned for growth, and a safe defensive play in volatile markets. Undervalued. That is just my opinion.

[topvest] 09/5/2009 08:40

A bit of under-performance by VT, then again defence stocks under-perform at such times. Seems to be a bit of uncertainty over the BAE deal.

[barbudo viejo] 08/5/2009 10:15

thank you marvelman

[marvelman] 08/5/2009 10:09

Read the last BAE RNS......dispute re the the sale of their interest in the JV which I assume may result in a reduction of their proceeds.

[barbudo viejo] 08/5/2009 09:14

Any ideas why the drop pre-results?

[topvest] 19/4/2009 12:04

I bought some last week. Positioned quite nicely this company for the medium term.

[andy] 19/4/2009 11:36

Holders should find this article interesting!