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Hayward Tyler Group Share Chat (HAYT)



Share Price: 44.50Bid: 43.00Ask: 46.00Change: 0.00 (0.00%)No Movement on Hayward Tyl
Spread: 3.00Spread as %: 6.98%Open: 44.00High: 44.50Low: 44.00Yesterday’s Close: 44.50


Share Discussion for Hayward Tyler Group


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flundra
Posts: 467
Off Topic
Opinion:No Opinion
Price:44.00
RE: Vote
12 Jul '17
I don't think we know yet.

I've just realised there's a separate website for takeover announcements:

http://htg.global/investor-relations/takeover-code-requirements

Amongst other things it confirms Mr Sneller is voting in favour
 
dannatt
Posts: 13
Off Topic
Opinion:No Opinion
Price:44.00
Vote
12 Jul '17
Does anyone know when we vote for the Avingtrans bid.
poole
Posts: 17
Observation
Opinion:No Opinion
Price:46.50
An alternative suitor?
10 Jul '17
Just a thought on seeing that TP Group has today announced plans to raise around £24m to add to existing cash resources to fund existing business and make acquisitions.
flundra
Posts: 467
Off Topic
Opinion:No Opinion
Price:46.50
RE: flundra
8 Jul '17
Hi Shareminator

On the cash issue, you may be right about the need for recapitalisation and directors resisting dilution, but I’ve always seen it more positively, and think revenues and settled debt/overdraft facilities are achievable and will suffice, and enable continuation of the dividend even. The difference in monthly payments between servicing £22m of debt and a more conservative pile cannot be more than a few £10ks. That is entirely manageable, surely, until revenues pick up, which they should be doing by now anyway. But I agree it’s becoming more difficult to form a view, the longer this radio silence goes on.

I’m not sure how many PIs there are but I think everyone posting on this BB is voting against the deal. That might represent the general view. Hopefully other PIs are informed and perhaps read the BBs even they don’t post. There seems to be little or no commentary on the deal out there in the press, for sure. It would be good to see some. Richard Sneller’s direct phone number is on his disclosure forms. He owns 6%+. He’s maybe a nominee/trustee for a third party (he’s a fund manager by profession), but what’s his view I wonder?

I’m still hopeful the deal will be kicked into touch. It really makes no sense, unless the debt burden cannot be refinanced on reasonable terms imo. That question is price sensitive info, and as we are being told that RBS is supportive and we have not heard refinancing is impossible (we’d know by now if it was imo), I would assume we can refinance, and the only reason for delay is heel dragging by the BoD pending the vote on merger. On balance the other business pointers are also clearly positive.

The nuclear sector is rightly becoming very significant, and the opportunities there are vast. China and India alone represent a huge burgeoning market, even if one were to take Japan USA Korea and Europe out of the equation.

The BoD seem to have donned their tin hats and retreated to their bunker, presumably to tough it out till the vote. But the deal might fall through, HAYT is still a business, and they should come out and deliver on their ongoing duties to shareholders and stakeholders in the meantime. They’re surely legally bound do this despite a pending merger, and even if they’re pulling in different directions on the deal, or not wanting to be diluted etc. They should get on with the refinancing and/or other fund-raising, keep the order and other news coming, and agree and announce the dividend policy. I think they’re playing a bit fast and loose atm tbh imo.

Regards
the_shareminator
Posts: 10,701
Off Topic
Opinion:No Opinion
Price:46.50
flundra
7 Jul '17
From what I gather the Board have not proposed a rights issue because they would be significantly diluted unless they could cough up a lot of the cash themselves. With the exception of MC I don't think the Board or their relatives are in a position to pledge that kind of money to retain their current positions. Instead ELB will continue on with AVG as a non-exec I believe if the deal succeeds.

How to gather enough votes and engage enough people invested here that this deal is bad for them? Without knowing address or telephone numbers of smaller pi's we only have the chat sites and social media. Possibly a share magazine could sponsor an article on such a move but we would likely need to pay a fee for that and hope the writers are not AVG shareholders.

The cash on hand was less than I expected but the results have a few glimmers of hope. We had £1.2m cash end of March and net assets improved since the half year point. We are more than 3 months into the new year and it might be useful for all if we had an update soon rather than leaving it until October when they will announce an Interim trading update. I do expect the cash position to have risen but we are in the dark until the company inform us. Or if the deal fails and a refinancing takes place, HAYT may then inform holders that they have paid a sum of cash to the bank - this would suggest cash on hand has increased substantially as they would not otherwise be in a position to reduce their cash (vital for the companies day to day business). All those trade receivables mounting up, expect some of those are being dealt with in the first half. Also the fact the order book is at a record £49m suggests we are in a good position to turn much of that into cash short term.

A refinancing of debt would have solved this and still can if the company can prove they are actually turning a net profit now. If things are tight and despite cash on hand rising it doesn't enable the company to repay the short term borrowings, I would favour a rights issue to reduce the debt and provide the company enough room to trade it's way out of danger. We still need favourable refinancing terms though. GL
flundra
Posts: 467
Off Topic
Opinion:No Opinion
Price:48.50
RE: AVG Interims
5 Jul '17
Agree shareminator. Perhaps time for an activist shareholder to take a stance with MC and derail this offer.

I'd also be perfectly comfortable servicing the debts for a while till revenues build back up. The debt was reasonably to be expected, and the whole point of all that investment was to improve performance in the operational facilities, grow revenues and shorten the revenue cycle! And it's working! Can HAYT really not manage £100k or so a month for a short while? I'm sure they can. Revenues are over £60m+ pa and improving! We've done all the hard work, now we seem to be trying to snatch defeat from the jaws of victory! Now is not the time to lie back with our legs apart.

HAYT should be refinancing right now, or come clean and tell us that they have tried but been unable to secure terms with RBS or other banks.
the_shareminator
Posts: 10,701
Off Topic
Opinion:No Opinion
Price:48.50
RE: AVG Interims
5 Jul '17
flundra - I completely agree with your sentiments in your previous two posts.

"I think it is perhaps the BoD preserving the status quo in the hope the merger proceeds and the issue can be buried."

With the offer hanging over us I don't think a refinancing will happen, there is little incentive except by MC who is alone in this regard it would seem, to come to new terms with our lending partner. If the offer is rejected, you would expect a refinancing to follow shortly after maybe with higher yield terms but pushing the repayment dates further out. Might that depress near term annual results? Yes in comparison to a takeout and AVG paying down a substantial sum of debt with it's cash (assuming that happens). But shareholder value could recover post successful refinancing if the company demonstrate an ability to organise it's finances efficiently and pay down loans when they becomes due.
flundra
Posts: 467
Off Topic
Opinion:No Opinion
Price:48.50
RE: AVG Interims
4 Jul '17
Sort out the refinancing now asap please BoD. I very much doubt it is in HAYT's interest to delay refinancing any longer. It probably never was. The BoD must be careful not to breach their duties here, for example to us as shareholders, to act in the best interests of the company. I cannot believe this inordinate delay is down to any difficulties obtaining reasonable terms from our supportive bank, or other bank. I think it is perhaps the BoD preserving the status quo in the hope the merger proceeds and the issue can be buried.

I wonder what level of shareholder support this merger would get, if refinancing occurs now, and the curious recent silence is filled by good contracts and operational news. Might support fizzle out?
the_shareminator
Posts: 10,701
Off Topic
Opinion:No Opinion
Price:48.50
RE: AVG Interims
4 Jul '17
poole - There are only two Board members with sizable holdings and one has intentionally decided not to recommended the offer. Why do you think that is? This offer is not the only option, there are other viable alternatives not least a proper refinancing that has been in the making these past 5-6 months. I can see your point of view that HAYT are somehow backed into a corner but why can't this company deal with the banks alone? They should be able to negotiate a longer term financing deal. I would even back a placing at this level to cover short term cash-flow and help repay the outstanding sum. We do not need to sell up for 48p. You only need to read through the latest results to know we are not in a weak negotiating position. Look at the order book and outlook. AVG do not deserve to mop this up on the cheap. The Board should instead focus on cash-flow issues and come to an agreement with regards the refinancing. I keep hearing about combined operations being a good thing for HAYT but point to me where AVG have any expertise in this area. Perhaps certain board members need replacing rather than a hostile takeover bid succeeding, I think we all know who...
flundra
Posts: 467
Off Topic
Opinion:No Opinion
Price:48.50
RE: Bid
4 Jul '17
Very shabby stuff from HAYT.
The Annual Report basically seems to be saying we’ve weathered the storm of a difficult year, taken the astute risk of making significant investment in Luton and PB, but despite a supportive bank, improving market conditions, and these investments starting to bear fruit with a record order book....we’re throwing the towel in, and selling you all down the river for peanuts.

It makes absolutely no sense at the moment, and is the worst possible thing to do, just as the orders are flowing in and the investment about to pay back. Well done Maurice for resisting. I’ll be voting against.

The driver for the deal seems to be the weakness of the HAYT balance sheet (and the strength of AVG’s), but that weakness is fully explained, and with a supportive bank and all trends positive, success from here seems almost nailed on.

“In providing its [independent] advice to the HTG Directors, Akur has taken into account the commercial assessment of the HTG Directors” That makes me a bit suspicious of the BoD, because the commercial assessment (as opposed to the financial assessment) in the Annual Report seems wholly positive going forward.

The more I see of AVG the more I like it as a company, but would want to see HAYT remain as HAYT, with a gutsier BoD now.




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