There was a very positive article on Gibraltar post Brexit in the FT a few days back...Gib remains the dog that has not barked at Modern Water...A £22mn contract which could, in theory, be signed at any time and which is certainly no longer in the price after years of political procrastination. What we do know is that salt-water is corroding pipes and untreated effluent is no longer acceptable in the waters around Gib; at some point, the government has got to upgrade. A Brexit-related… Read More
you forget the reference to a new trade finance facility in the year-end results...these guys have got more flex on day-to-day financing than they ever had (and the trade finance deal means a finance house is happy to take the credit risk, which is an additional +ve indicator for us)... There's no cap raise here, not down at these price levels and with this degree of cost control. However, I can imagine a cap raise in 18months time when there's a bullish narrative to tell about need to fund… Read More
I'm not to sure about a cap raise. As the monitoring division increases sales so will it need to purchase stock and pay for the various processing procedures so even when it goes into pure profit it may not be cash generative for a year or so.
All three of the other arms, Aquapack, Advent and bilfinger-babcock will need to spend cash when they receive orders before they raise invoices.
So, no cap raise needed, the monitoring division already ebitda +ve, and the membrane division with significant order momentum...
The CEO and new management team have done a great job on cost control and repositioning. And Gibraltar, worth £22mn to MW, remains a free option (in fact, if Gib doesn't go ahead, MW gets hundreds of thousands of £ of bidding costs back). I don't know what this business is worth, but it's a damn-sight more than 7p a share now the dilution risk from a… Read More
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