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Bid is coming it seems.
'Subject to shareholder approval of the change of strategy, the fund will not make any new investments and will only make further opportunistic investments in existing holdings where, in the view of the board and investment manager, such investment is considered necessary to protect the interests of shareholders and/or provide the investment manager with additional influence to maximise value and facilitate and accelerate an exit. Any such investment will require the prior approval of the board and will only be permitted where it is not expected to compromise the timescale for realisations.' The fundvis projected to divest and close by 31Dec23..so there must be some scope for an offer here else why buy more?
Crystal Amber now over 16%, with Shroders, Aberforth, etc buying they must see a bid on its way. Crystal Amber are winding down their find so can't see them buying this now unless they see an exit of sorts soon?
Let's hope so 102p, but not today.
Surely the 33p lows are in already... onward and upwards ... adding
Last time they bought at the placing lows in 2020 they flipped a good chunk after a recovery, they're hoping for a repeat? Will be using portion of their funds from Hurricane Energy sale. The fund is in windown mode so can't imagine this will be that much of a long term investment.
Now own 15% having bought Brandes' shareholding. What is their game plan?
Buys £86k, not a bad figure
I listened to the presentation webcast this evening, congratulatory back slaps all around which all seemed very cosy I must say. They clearly need to target and win a big contract to have any hope of turning this around properly but I don't see the vision there. The CEO failed to even answer a basic question if what the addressable market size was for GRS...should have known this instantly, unstead got a load of waffle.
The assets are worth way more than mcap in the right hands imo so as you say needs a buy out I think, which may well come given they have basically bought themselves 2 years more time in my view from what I calculate.
If you want to know how broken it is check the para on Enabling Function Costs in the report. Its up 7.6% year on year at a shocking 9.4% of revenue vs 8.1% last year. This exec team (and please note they are all still in place despite destroying shareholder value) can't even get HR and Finance department costs under control. On the plus side, if the chair has any guts, bringing these bloated functions back to the right size for this shrinking business will deliver some upside.
tragically with no sign that the business can generate cash any time soon its another zombie company which must surely be bought or die. Hope its bought as I didn't sell when I should have done :-(
I think the main positive I saw was the fy24 currency contracts are in place so limited downside..it's finely balanced but a tempter
Credit where it's due, there is some recovery here. No material uncertainty a win of sorts, although looks like only because they've kicked the pension can down the road.
Currency still in decline and hard to see that picture changing but authentication revenue growing a bit in the period unexpected. The snag is that £29.6m loss and the business still not projected to be generating cash in 2024. With hefty liabilities that can't continue forever.
They have taken huge hits on tax (despite the losses) and pensions (despite parcelling out a lot of risk to an insurance company). Totally unclear to me if this is kitchen sinking or just unintelligible accounting.
Surprisingly little 'pain' in the accounts...if so easy why the delay? Currency market improving but they halved FY 24 operating profit guidance from £40m to £20m.
Going Concern issues evaporated? Expect shares will have a massive relief rally but I literally don't trust these guys
Proable today as results and outlook relatively good , following years of bad news!
So (see today's two RNS) just before results announcement two CFD brokers have >10% of the shares tied up in financial instruments -- someone is making a significant bet on the price moving tomorrow and presumably these positions will be unwound pretty quickly
..... and what they say about future, if its another "turnaround plan" led by they same exec team + the retailers/funeral directors on the board I would be surprised if that gave enough confidence for a material upwards movement in the share price.
The instrument purchased by Richard Griffiths (whoever he may be) is pretty close to Odey's equivalent number, looks like he must have bought straight from that firesale. If market sees Odey overhang gone would explain the sudden change in sentiment.
All eyes on tomorrow now though. Particularly interested to see how they're doing cash wise, those banking covenants (were they granted and at what cost?), where they are with the pension deferral, and auditors' wording around going concern. Should be lively.
Thanks, I read that, and also this:
https://www.investopedia.com/terms/f/financialinstrument.asp
Confirms that these financial instruments are indeed derivatives of some sort, but not sure they explain why the share price rises if actual shares are not being purchased...
Up 14% as I write.
RNSs today say that Spreadex Ltd have upped their holding to 4.29%, again via 'financial instruments'. At the same time Richard Griffiths, investor, has bought 4.26%, also via 'financial instruments'. I don't understand these things. Can anyone explain what these 'financial instruments' are and, if they are derivatives and not real shares, why they are forcing the share price up? Unless buyers are purchasing real shares in sympathy?
Surely not :-o must have been something else driving that late rally, anyway only three days until we see results....
Turns out joke may be on me, looks like market decided this afternoon it approves of the undertaker
More like they will have lacked a wide array of suitable talent because the best potential appointees will have been aware this is a poisoned chalice, and there is only so much they can pay these days with a battered kitty.
Plus you never know, with Cineworld facing wipeout perhaps that experience will come in handy here. And undertaking experience may be even more handy the way this is going. Who says HR don't have a sense of humour?