Yu Share Discussion Threads

[sparky333] 29/4/2021 08:30

Good energy moving higher again now higher MC than YU and they have 38m of debt

[sparky333] 28/4/2021 15:02

Just will not let it go will they with these bloody trickle sells

[sparky333] 28/4/2021 13:17

Sector or good energy specific ?

[divine1] 28/4/2021 12:55

M&A chatter

[sparky333] 28/4/2021 08:21

Interesting to watch good energy who are hitting all time highsTurnover 130mDebt 38mMC 40mSlight loss last year like YUCash 18m Very similar metrics to YU who will probably push 130m this year but the bonus is YU have no debt and service SMEs not a combination.

[sparky333] 21/4/2021 14:56

Presentation was a damp squib then lol.

[sparky333] 21/4/2021 09:36

Really tight spread 272 to 273.4

[sparky333] 21/4/2021 08:41

Agreed a very important year for YU and finally break the shackles of the 2018 debacle. I personally think several deals are already on the way it sounded like they had to quickly change slide 3 prior to the webinar. YU are increasing their warchest through the office deal again which sounds imminent.The question is what if they manage 12 deals would this take the order book up to ? We can speculate on this but I would guess 200m to 250m and I will add this is a pure guess. Coupled with natural organic growth So this leaves them a solid medium sized challenger The big question is how they move up to 500m turnover. I have always had dual energy in the back of my mind, and this is mainly due to the smartest element.Thoughts ?

[seagull222] 21/4/2021 08:14

Sparky, to grow the business to £500 million they may well need to raise extra funds to fuel growth 2/3 years down the line but, that's a debate for another day. It's an important year for the group and the higher they can get above £125million the closer they are to achieving it.

Seagull

[sparky333] 21/4/2021 08:00

Thanks Seagull I didn't actually know that.My view is 3.5m or what ever the figure can be far better put to work buying out the smaller companies.Actually thinking out the box which I like. If the ambition to hit 500m turnover in the 5 years which I think is doable, is to be hit they need a war chest.Especially with 12 potential companies on the radar if the previous buyouts are anything to go by the amounts we are talking are not huge to take them over so makes me think are we closer to some deals that we think ?

[seagull222] 21/4/2021 08:00

Big point is there will be no need for a rights issue in next 12/18 months at least and shareholders aren't going to be diluted, they are doing their best to grow turnover and increase margins and it should be a profitable year. After a rocky couple of years the future looks alot brighter for YU in my opinion.

Seagull

[seagull222] 21/4/2021 07:51

Good point Sparky but, bearing in mind Bk owns Nottingham office and YU pays him £120k per annum in rent it seems likely. I haven't got a problem with it, if it's done at arms length, market rates and is a transparent process. It makes good business sense for all parties in my opinion.

The holding company could rent out space not required and keep YU rent lower as may not need the whole building.

Seagull

[cocker] 21/4/2021 07:51

I guess if they are sitting on a prime site, here on AIM all to often back door deals are done. As I said clarification on him definitely not being part of some consortium to buy it, would put minds at rest.

[sparky333] 21/4/2021 07:41

It was never stated who was buying the offices why assume BK?

[cocker] 21/4/2021 07:39

Bump3r, that comment is out of order and is an insinuation that he will make substantial money at cost to both the company and shareholders of which he has a large holding. However, here on AIM anything goes and none of us should be surprised if it did happen. Clarification on this bizarre transaction is needed imho

[seagull222] 21/4/2021 07:25

I agree Bumper, downside is it will increase overheads,plus side is keeps company in a solid cash position in the short term at least. Will be a good test to see if board is strong or Bk does what it wants and gets it below market value and charges above market rent, they spent at least 3 million on it plus fit out and site will also have appreciated over last 2/3 years so, must be worth upwards of £3.5 million now in my opinion. Good to know balance sheet is strong.


I guess the staff will be p*ssed having to go to Leicester every day if based in Nottingham! So they will probably keep the Nottingham hub also just have to see.

Seagull

[sparky333] 21/4/2021 07:24

Interesting debate on this I can see the logic but I am sure other will have different views.Anyone know the value of the site ?

[bump3r] 21/4/2021 07:07

I wouldnt be surprised if BK set up a holding company to buy the property then lease it back to YU.Good way of raising funds for YU and great way for BK to make some money from the lease

[seagull222] 20/4/2021 22:42

Sparky, they were committed to the new head office before covid and they are clearly able to grow the business using a hybrid model and the office in Nottingham so, they probably don't need the office in Leicester. However, if BK and the board thinks they will benefit from the new head office it seems nuts selling an appreciating asset to lease it back.

Seagull

[sparky333] 20/4/2021 20:17

Is the future big offices ? Maybe the digitisation is reducing the need ie lower overheads. So why not if you believe in the strategy of home working etc.Lots of companies have discovered you actually get more out of not being in an office environment , it works and in most cases more productive and significantly less overheads. I am sure more will come out in this topic but after investors questioning the Leicester offices now they have changed tactics questions as to why ? Makes sense to me if it has been proved to be More cost effective.

[cocker] 20/4/2021 20:06

I to am puzzled as to why anyone would contemplate selling a purpose built head office only to rent it back. Other than that seems as if 2021 has legs already and agm next month should confirm.

[sparky333] 20/4/2021 19:45

Mark my words they will smash share price Angels numbers for 2021.

[sparky333] 20/4/2021 19:44

I got the feeling a few takeovers are very close, as they had to water down slide 3.

[seagull222] 20/4/2021 19:31

It's a good strategy but, the main growth will be from getting customers from the big 6 as they clearly have the main market share, the small 20 companies they are waiting to fall into distress is a gud policy but, some of them only have 5000 meter points so, not going to get us to the 500 million target. I liked the way he dodged the question re ebit on £500m with Mr Rawson sitting next to him , saying shareholders should be able to estimate that as if it's something he didn't know.

Was very informative but, need to read between the lines sometimes, he did say expected turnover £125 million this year , which was slightly lower the share price angel.

Seagull

[seagull222] 20/4/2021 19:24

Selling a potentially increasing value asset the new head office which they own to pay rent is abit of a puzzle. Property has shot up in value so, if they do do that they should be getting a significant premium on the cost. Next question is who would they being paying rent to? Would it be BK like the Nottingham office which costs £120k per annum?

Seagull