London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
yeah I know Crusty, that's why I hold quite a few shares, but sometimes you have to stand up and point things out (won't have any impact but makes me feel better!!) Just listened to Paul Hill who could actually use his platform but as usual dodges all the tough questions. 25% early redemption fee versus one more year of 10% interest might have been worth a question! Iwan Phillips and his grown up facility... go on Paul, think there is a bit of follow up there, or no that would not suit your narrative. Peter Harris can barely keep a straight face during these interviews!
Agree with you Lavenonews, but even a company such as this which seems to be run for the benefit of management might be a good investment. Going forward the stars are aligning nicely for Crestchic - pity about the name. Meanwhile any announcement about the disposal of Tasman could give rise to a surge of interest. Hope they have some sort of moat, but the next 12 months will be interesting.
I am a long standing shareholder based on the underlying two operating companies, both of which are standalone good businesses. However, that does not stop me from highlighting the unreasonable rewards at Group Board level (who rely on their NOMAD for cover - Shore also stated that the Loan Note actions were reasonable as well, so that fairness opinion is a waste of paper to any critical thinker).
We are handing out 10% of the equity upside to this group via the LTIP. Last year, this same group of directors (minus Eric Hook) waived through the extension of the Loan Note by a year. Any reasonable amount of research into the liquidity at corporate banks would have suggested it was worth waiting. Had they done this, the Loan Notes would have matured this July and there would be no 25% penalty as disclosed today nor any shareholder dilution at all.
It is noteworthy that HSBC managed to turn this around very quickly - hardly surprising given the asset backing and underlying prospects that left most critical observers scratching their heads at the Loan Notes, even at day 1 in 2018. This was always a bizarre set of terms on the financing, even in 2018, yet the FD is still here and now being rewarded with equity upside!
Whilst Crestchic and Tasman (and the share price) have great potential as operating businesses, it is wrong that this group of Directors is being handed equity upside for navigating their way out of their own errors. Crestchic has been starved of capital for years, and that was a Board level decision. Now we are handing upside over for the decision to realise the potential in this business. I know most people on here are traders but I cannot believe I am the only shareholder who looks at this in disbelief.
Options - more laughs at the Board level11 Jun '21
This really made me laugh (I've already given up getting worked up by the Board level lack of any accountability to shareholders other than Gresham at this company)!
The justification for handing 10% of the equity upside to a group of people who largely destroyed value for the last 5 years is:
"...to align and incentivise the whole Board of Directors to work collectively to deliver both growth and increased returns on investment..."
So, putting to one side that this is actually their job for which they receive a salary, I think what they are saying is that without this incentive the Directors would not work collectively and not be too worried about maximising returns for the shareholders they are meant to be representing.
Given that in the past they have so badly misallocated capital, signed up to ridiculous 10% financing costs for a secured line of credit and so on, that is not too unlikely! The conclusion can only be that this incentive will sharpen up their minds in a way that pride in their job or a salary didn't seem able!
On a serious note, I'm all in favour of sensible incentives that align the outcomes for all, particularly for Chris Caldwell, but most of these Directors should not be incentivised this heavily to redress their own past failings.
If they are having to work harder and commit more time to right the wrongs of the past, this should come through salary adjustment not greedy capital returns - none of what they are doing is rocket science, and therefore the upside to them of doing their job properly should not be structured in this way.
When they get the planning permission and announce this, I want the company to state the impact of the super-deduction tax relief on CAPEX. Investments into cranes, factory equipment etc should be set off 130% against Corporation Tax, so expect Crestchic to benefit from this. Note for that Paul Hill character - what an opportunity you have and you are not making the most of it. Calm down for goodness sake and ask some more detailed questions like this (or how about if Tasman's hard operating net assets are £14m with no intangibles into a cyclical upswing, is that a fair expectation for value of a disposal? If so, what would the company do with that cash - any element of special dividend?) and so on and so on. That aside, very interesting year coming up, if Management deliver on the vision then they have a lot of options for shareholder value creation.
Quite agree laveonews: In my opinion a significant re-rate is beginning. This is a company that exits the pandemic period in a stronger position than it entered it. Clearly there has been a stock overhang that looks as though it is close to being cleared. IMO a buy & long tern hold.
None of this was rocket science and finally NBI focuses on ROI, stops misallocating capital and gets out of the ridiculously expensive line of credit from Gresham (albeit by diluting all of us if they convert at the ridiculous 90p). Hopefully they can get an attractive offer for Tasman, it's time will come and NBI should get some reflection of that. Then expect them to change their name to Crestchic now Hook has retired. Northbridge has no meaning and Crestchic deserves to be rated on an altogether different multiple. It's all going to take time but investors with a decent time horizon should see £1 as a very attractive entry point.
New research on results and strategic review13 Apr '21
FY results read well + Board is now examining disposal of Tasman. Crestchic is set for further growth and looks cheap vs hire service peers. Scope seen for a re-rating as investors focus on prospects and a ‘greener’ NBI.
Hi Beza - because of the sectors or regions where they operate, there are still many listed companies not giving guidance on forecasts until the economic picture gets clearer. Given the speed of vaccination roll-out that hopefully wont be too long.
Looks like I’m alone on NBI. On a positive note anyone that wants a decent chunk is going to have to move the price quite a bit. Of course the reverse is true also. However I feel that this is a very under valued company so onwards and upwards. Possible T/O candidate too.
Let's Hook off the Hook on the debt. Er, sorry why are you paying 10pc on secured debt of 3m when the replacement cost of your assets is so high? And you have freehold land with planning permission? And bank debt is only 1m? And you dropped the conversion price to 90p ?Why oh why? You really do have some explaining to do here. And your FD must be hopeless in terms of capital management. As for the 4 non execs, thanks for representing all shareholders equally. I am invested here long term as the two operating businesses are great, there is value here but it makes me mad that the NBI Board is getting away with such an awful decision on the debt without far more criticism from shareholders and accountability.
Stable profitability, cash generative, asset backing and 20% gearing - congratulations to all Board Directors who analysed the situation carefully, did not panic mid COVID and dispassionately concluded that paying 10% interest on a SECURED convertible loan note (and dropping the conversion price) represented a good outcome for shareholders other than Gresham! Bravo and great work!