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Sorry, ban4118, I and everyone else that can not attend greatly appreciate your feedback, I was just a bit miffed that anything that could help should be communicated by INFA to the market, and clearly things were presented that could help.
Sorry again as what not meant to be disrespectful.
Not sure what you want me to say....I made the effort to attend the AGM and now I am sharing what I learnt with you. Responses like that is why I tend to stay off the boards.
And just to further flag that I did ask at the AGM and noted down about E.U. Money ..."due and expected February" ..also about asset backed loans to tie us over the delays at IM and with FID ..."being sorted for February on JW's chart presentation" --so one sorted the other imminent with Costain supposedly happy about the delays or at least informed and bearing with us. The H&W development team are "bedding down " and in formation mode ..No one likes the choppy seas now as reflected in the SP but at least we have enough to ride the waves til the end of April or further by which time ...........!!
ban4118, My question is why is JW not RNS ing that type of information, In the current circumstances I would deem that price-sensitive if H&W has plenty of work so much they are employing contractors, don't you think LTH and the wider market should know that? Beggars belief and obviously I have to take your comment with a pinch of salt as not shared to the market !
Droderick, Mr T. I echo your sentiments and prefer to look positively that short term debt payments are covered allowing H&W to proceed on negotiations with the UK Gov / Bab**** (re: type 31 frigate contract) and Navantia (re: FSS contract competition restart). These are the "big fish" I'm sure H&W are aiming on catching asap.
Just to flag, in terms of work at H&W to date, the workload at H&W was 72% for end of 2019 and 119% in January hence the additional contractors I referenced in my AGM notes. There was no indication this wasn’t to continue.
I think you have hit the nail on its head Mr T.
Its all well and good to criticise JW and the team. The interest rate is not great, that's for sure. But where is the track record and the three year cashflow history to negotiate a better deal? Let us not also forget that H&W was acquired formally on 05 December. That makes it 44 working days since the acquisition (yes I counted).
So in 44 days we have had vessels come, repaired and go and we have had a debt facility in place that provides for some cashflow in the interim. I would like to see another management team that has been able to achieve all of the above in a span of 44 days, notwithstanding the public consultations for IM in the middle of all this.
Question is: What are other shareholders expecting the management team to create in literally 44 days. The comment that JW should bring in contracts from day one is incredulous. Even with the best contacts in the world, these contracts take time to negotiate and come to fruition.
If the objective is to deramp the share price and get in even cheaper, people are surely succeeding at the cost of genuine long term shareholders.
I had a client recently, with Lloyds Bank for 25 years and kept an overdraft facility of £100K which they had for many years but had never used the full facility. Then in 2019 they requested their bank to uplift to £150K because they were concerned that over the Christmas and New Year period they may need access to an overdraft primarily to finance salary payments. Their income is via the Public Sector and they sometimes have to wait up to 90 day’s for payment and therefore with salaries paid early over the festive period, the main cost of the business, they asked Lloyds for the facility to be extended?? The answer was, yes but can we have up to date figures, accounts for the last 3 years, and a cash flow forecast for the next three years!!!! Without all of this the answer is sorry NO!!! After looking after this business for 25 years and also they had access to the bank account to see that credit balances were maintained almost for the entirety of that period!! You couldn’t make it up, but, as I say banks are basta*** at this point in time and will not loan or grant large sums in particular to SME’s . I have many more examples of this type but won’t bore you all with the detail. My point is finance at the minute is a ball ache to achieve!
Therefore yes the finance acquired by Infa is not the best, but, I suspect without any historical records at the moment and also basically Infa is a new start business acquiring a previously bust company the terms of any financial loans etc were always going to be punitive. Once as someone pointed out H & W is up and running, hopefully it is, then these terms may be amended or refinanced. Someone on here mentioned that the assets of H & W were valued at 20M, I have no idea where that nonsense came from, that is plain wrong. The assets are currently worth what we paid for them i.e. the cost on the Balance Sheet, no more, no less.
I do wish people would stop being experts!! And deal in the facts available.
I agree JW needs to up his game significantly this year both on H & W and IM and deliver some half decent news along the way. I expect him to do this over the coming months. In the meantime I’m afraid it’s a case of sitting and waiting patiently, or the alternative of course, offloading and taking the hit. I’ve done that in the past with other shares only to note one or two years later the sp has shot up!!! Not a good move.
Mr T
The way I look at this is the ii investors come in and an up and running h&w is worth at least 3 times paid ,
Having said that the stinks of interest rate , I reckon any of us could have done better , the fact is the bod have let us down in 2019 big style and need to prove up 2020 , delays ain't good enough , say what you like ml and eu payment should have been dealt with jw , now show us
I don't need to add much to the spot on comments of GTO 40 and kibuc.. This is a dreadful deal. My opinion is that JW is waiting on grant money which may never come, like all politically dependent finance.
I don't believe that when the Harland purchase was being made any investors believed we would be waiting into February for news of significant contracts,( the few days ferry clean ups in December didn't amount to much). and in the meantime we have a much augmented work force to finance as well as the day to day costs of the yard.
The fact that INFA could only secure " take this or go bust finance " is not encouraging. I wonder what the lately involved institutional investors are thinking!
Apologies that was dated February 6th.
The following is a reply, to a further e-mail I sent last week, from INEA with regards EU grant which suggests a conclusion sometime this month:
'Dear Mr XXXXX,
Thank you very much for your email.
As already mentioned in our e-mail dated 29 January, more information on the outcome of the Action will be published on INEA’s website in due time. According to the procedures in place, such information is published only after the administrative closure is finalised. The administrative closure for this particular Action is however still ongoing, and will be finalised in the coming weeks.
For further information on the Action, please consult the consult the following websites: https://www.infrastrataplc.com/ and https://www.islandmageeenergy.com.
Best regards,
INEA Communication'
The issue I have is that the mgmt team should have very clearly analysed how much capital they needed to acquire and operate the assets say for 12 months in a worse case scenario and planned accordingly.
It seems they bought the business by convincing investors the assets were worth £20m+ but made no plan on how to actually finance the ongoing capital needs. Now they have pledged those same assets for only £2m on pretty crazy terms. They have borrowed £2m and over the next 2 years need to pay around £600k on interest alone?!
Am not expecting some miracle funding at Libor + 1% but this is a very negative deal as far as I am concerned and I am very surprised that if the assets are truly worth £20m and there is a strong pipeline of revenue that they did this deal. In that case banks would absolutely provide asset back financing at much better rates.
Droderick, I am not slating the team, and understand the effort put in. I suppose for me I listened too closely to what was announced rather than what really was happening.
Because Tango,
People expect Infa to get a £10MM deal at a 5% coupon with zero incremental fees. The expectations are just not in line with the reality of the company.
You would expect to see LIBOR + a few percentage points for a company that is credit rated, not for Infa. The very fact that we have been able to secure a debt deal is a good starting point. Nothing stops Infa from refinancing in 12 months time and getting a better deal.
The more important question is why weren't the previous boards able to raise any corporate debt? It's all very well to slate JW and team and conveniently forget history that he and the team are battling with and trying to take this company forward.
I hope we do not test the historic all-time low of 0.245 but if it is going to happen it will be the next few weeks IMO.
Very strange to think with all our assets and businesses we are still lower than before FEED was concluded, I think there needs to be some creative thinking if we are not to hit the lowest ever sp. I still have faith but with limited exposure.
I have already reduced holding (instead of adding) and will await positive RNS's before getting more. We have been turning the corner for nearly 12 months, how much further to travel (May IMO before anything substantial with ML) and by the Droderick comments no contracts will be announced even if secured for H&W, The only thing left is EU and FSRU the latter I believe a non-starter. so just EU funds the only possible rise before May.
So effectively JW did something he had to do because he didn't do whast he should have done....as a result we're paying punative interest on a despiration loan. He had no option in the present, but he had better options in the past so is his judgement the issue?
So i was not the only one who thought the intrest rates was expensive . I GOT POWDER to buy but im waiting as coud drift to 0,27,5
kibuc- Well at least it ain't with riverfort and we needed it until the elusive money starts coming in to keep the lights on. well, that is two "choppy" episodes! any more?
Droderick fair point about ex-situ, Why do you think the market has taken badly to it?
Sorry @droderick, there's no Universe in which this is anything but a bad deal.
Effectively 13%+ coupon in year 1 and 17%+ coupon in year 2 with less than 5% LTV and all the assets pledged.
That is simply a desperation deal. Sorry but its true.
I would love to make 17% return on my Infa shares....
Well that’s the steak & brandy sorted for another few months, hope they get gout!
Sounds like a few on here are hanging on till the end of the month to see if EU funds are received?