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Morning All,
Only 8 weeks till the end of March tomorrow, so we haven't got long to wait, although it does feel like a lifetime at the moment watching the SP slowly fall away.
ML is an important part of our offer, and hopefully this will go through. I can't see the Government not allowing it- it is such a critical piece of UK (and Ireland) infrastructure, is private sector investment, UK company delivering it etc etc- so much to like about it. Is quite right that the technical work is given the scrutiny it deserves- and have said before on here- coming from a planning/ technical background within property- I've seen 'simple' housing applications take 4 years to get through the system- so the timings of this do not worry me, and I actually dislike arbitrary deadlines such as the end of March. I'd much rather a transparent exercise whereby we can see where the process is at- is it purely a resource issue (probably a big part of it), requests for extra info that our consultants are providing which may well be neccessary to re-consult the various experts on before making a decision. I would also add- I would 100% see this take longer now and have comfort that the decision making process is 100% squeaky clean so we do not get embroiled in a lengthy and costly legal battle post-decision.
With regards to current activities/ cash raises etc. I've always thought that we'll have a rolling cash raise as work is gradually ramped up, but hoping this will be on the back of a rising share price. A yard this size (and Appledore refurbs) carries a horrible amount of overheads and we must be woefully inefficient as a business at carrying out the work we are from a facility this size. Not saying the project work itself is inefficient- but our current overall business. 200 people having a pay cheque each month burns through a lot of cash, very quickly, especially when the contracts we're undertaking are relatively low value.
In my view, it is only the cruise market that is 'down' at the moment- ferries are still operating, defence is still crawling along but with a growing voice of investment, renewables are undergoing the biggest investment of all time and is only growing, oil and gas is still having investment albeit much reduced- but the decommissioning work will be ramping up in the coming years and of course post-Brexit is likely to see an increased need for other sovereign vessels . So- there is a lot out there and would actually like to start seeing some wins from these other sectors to be honest. The ML will do what it will do, but our yards should be teeming with activity from a range of sectors. This should be H&W's key selling point- and something JW has made noises about- time to see some of this filtering to the yard now.
Cheers
TheEast
Whatamess, abandon what ship?.......We haven't built any!
DAERA Retweeted
NI Executive@niexecutive The Executive Office has tonight confirmed that Gordon Lyons will be @daera_ni
Minister. He is to replace Minister Edwin Poots who is stepping down for health reasons. Gary Middleton will replace Gordon Lyons as a Junior Minister in @ExecOfficeNI
I have just checked the Belfast Harbour website and Stena Edda will now be staying in port for another week.
Tango1 In relation to your 07.08 post I noted the absence of the RNS as well. In any event as there was very likely to have been some impact on the company finances I am not sure that it could not be said that but for the outbreak of coronavirus INFA would have made a profit. Like you I would expect to see some evidence of contracts during this half of the year to solidify the progress shown in H1.
stokey- IF a £60m contract was SECURED, surely that would have been significant enough for an RNS??? I did not see any RNS.
they get an LOI' and release an RNS (LOI isn't SECURED).
I'm on the fence.
A number of recent posts have been critical of the bonuses paid to the CEO and CFO I am not going to say if I think the bonuses were appropriate. However, I would like to make sone contextual observations.
Firstly, for a third of the period covered by the annual report there was, and continues to be, a pandemic raging which had an impact on INFA. So the accounts may not reflect a period of normal trading.
Secondly, In its June 2020 report Cenkos stated 'InfraStrata are pursuing a number of ship conversion projects, and before the COVID-19 outbreak, had secured a c£60m+ conversion project with a major cruise conglomerate. However, as a result of COVID-19, many ship operators (including the aforementioned) have paused planned upgrade projects until the outlook becomes clearer.' The cancellation of the contract mentioned is responsible for the loss in this period.
Loosegoose, new and LTH's. Since JW came on board with his large shareholding and clear milestone strategy, I felt he was the man with the plan. Sensing reward around the corner inspired me to increase my stake. I maintained my faith inspite of the "slipped" Islandmagee milestones of ML, FID and split strategy into shipyards. You all know the story. So much has been continually promised, and yes, we have had profit for the first time and new business. No doubt JW and the team have worked very hard and continue to do so. I'm sure we can respect and praise them for that, but after record placings and losses this year, our CEO has surely made a mistake as notable as the recent one from the EU! In rewarding himself so extravagantly, before securing any major contracts, his credbility has been brought into question. Unless something happens soon to justify the remuneration I might just have to throw INFA into the bin with most other AIM wannabe bloodsuckers!
Who is going to occupy the Hawaii office??? I think they need to establish themselves at home before expanding!!
Agree Spud - fickle in terms of spin and results but not principles of the company’s leaders. I am never fickle when it comes to fairness and honesty. If contracts come, and I believe they will, I will be very happy and comfortable. I will never again be comfortable with the behaviour we have seen from RemCo and from the Directors in taking these levels of premature remuneration. Markets don’t quickly forget Director’s greed.
Private investors are a fickle bunch lol
It will be forgotten but only IF contracts are signed....
No meaty contracts mean another meaty raise I'm afraid
JW had better get it right soon; under current conditions, he won't be able to p!ss off to Australia this time.
Ban4118, to your comment. I wonder on what basis the bonuses were decided and paid. Normally it is linked to some sort of financial KPI such as turnover, share price, profit etc. I cannot see here how that would work. Last time I remember a clear KPI for bonus was announced was for John Wood achieving FEED and I think the number was 75k. I believe the RemCo has failed.
Even if they've been chasing contracts that are in the 10s or 100s of millions for the last few months the remuneration is impossible to justify until they have secured at least a couple of them in black and white so I agree fully there.
It's not just lowly shareholders but institutions that will be pee'd off if there isn't something substantial soon and I think they'll struggle to justify another hefty raise without something meaty to show for the last 2 raises.
No more LOI's or warm words from the PM or Mr Wood, it's big juicy contracts from the renewable sector, the MOD or even the ML award and FID that will only redeem JW now. Having said that they are well placed to transform the company and the next couple of month's will be critical. Maybe if they do succeed the remuneration in retrospect will pale into insignificance.
I’m glad others feel strongly about this. The remuneration was last financial year when we made a £10m loss! Not sure how that’s good performance in anyone’s book. To put all this into perspective, the CEO at FeverTree received less than JW and they had an mcap of 2.7b at the time.
spud,
Your humour had not passed me by.
Hopefully some shareholders here will be a little more circumspect the next time JW proposes the next dilution or dive into the deep debt pool.
Just seen this tweet about a charity walk by one of the execs. For personal reasons I will be making a donation.
I don’t and will not defend the Director remuneration. It is ridiculous, way over the top. They should have some common decency and taken share options or a form of remuneration that was linked to future success. The Directors got something wrong here. Anyway I do believe in the future of the company regardless. The strategy and business model are sound and I wont be lead astray by a little bit of greed and a non-independent RemCo.
I was taking the P1ss
A bit like the bod
bonus
noun
a sum of money added to a person's wages as a reward for good performance.
BlairPeach In relation to your 17.40 while not necessarily defending the bonuses at this stage I would observe that if when the interim results are published in April they are in line with what I suggested in a previous post then bonuses could be justified. The basis for saying that is in a year INFA would have gone from having revenues of around 500K to revenues of circa 15x that figure. Against a backdrop of a pandemic that is a good performance. Also if the LoI is converted into a contract that would further indicate that we have the right team in place to deliver on the 2021 objectives on page 15 of the annual report.
jfk9 In relation to your 09.06 post if you look at page 15 of the annual report it states
'2021 Key Objectives
1. Obtain the marine license and take FID on the Islandmagee gas storage project'
To those who support the payment of utterly indefensible bonuses at this stage of the company's (lack of) development, I would suggest that this reveals rather more about you than it does INFA...
Tango, it's a very good question and one I have thought of a few times. IL certainly be raising it at the next roadshow if no big contracts announced prior. As Blair points out, sadly we now know part of the answer
For those who wish to see it an audio copy of part of today's Defence Questions can be found here https://jmp.sh/NkYGlox. Please note that the copyright in this recording lies with the commons and you cannot edit.