The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
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:
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 Members are members that have a premium subscription with London South East. 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.
Hi Gerry,
Excellent post's mate. Always enjoy you well informed comments. I also agree with you.
IMHO, STOB are a good long-term hold, buy now and come back in 5 years time, you won't go far wrong. LSA being the jewel in the crown, with great growth prospects. Forget any negative discussion board comments, come back in 5 years time, you can thank me. That is the best advice I can give anyone. Just my opinion of cause. GL all.
TF - more on debt / cash / bond.
STOB's RCF is £80M and debt in Aug stood at £51M ( headroom of £29M - add in cash on a/c at £7.7M and that's £36.7M available ).
The review of the facility is not until Jan 2022 - two years away, though based on the speed of developments, perhaps STOB will attempt to renegotiate it earlier.
The reinvestment of the div, will also assist cashflow and allow further capex will it not ? STOB paid out 15p per share in divs in the year to Feb 2019. This year to Feb 2020 this has been reduced to 3p, which provides, a massive additional boost to capex projects.
The Bond - its not repayable till 2024. STOB have several options, at this moment in time the value of the ESL holding cannot be assessed for spring 2024, can it ? In addition it could be rolled over, to a replacement bond - possibly underpinned by other assets. Do you not think the Airport will have been independently revalued at that time? It could be repaid by free cash- should growth expectations come to delivery. Or it could be repaid from the sale of non core assets - could it not ?
Surely your comment around "eating cash " is based on your bearish view built - I would suggest on your initial confusion here. We want STOB to expand , we want capex, we want growth. From Feb through to Aug a further £19.7M was invested in Southend Airport, and there is more to come. lol
I accept, STOB is still on a journey and whilst it develops its two main divisions, over the coming months and years, we can continue to debate, though I'd ask that you balance your concerns around intangibles, ( quoted wrongly ) with the re valuation of the Energy Division,let's see what the NAV is in the year end account to Feb 2020 end.
Turing to cashflow, I'd kindly ask you to acknowledge the RCF headroom and cash on account, together with the increased revenues, and div savings.
As to Carlisle, if you think you need to mention you feel its a joke as fine. It's your view. What are your views on the 3 phrased developments, at Carlisle to the warehousing and distribution centre / hubs ?
gla
G
TF - Thought I'd respond to your latest bearish post, they seem to come through quite regularly, ever since your confused first post here back in Aug.
You continue your mantra ( cash / debt / Bond / intangibles - linked with your view on Carlisle Airport ). Whilst all these points have been covered by myself and others to you several times in the past few months, I guess as another few days have passed and you have raised them again -I'll respond again with a bullish view on STOB. I'll remind you that my comments are based on a medium to long term viewpoint. looking forward to 2024.
In the meantime whilst STOB develops I'm happy to debate matters with you, monthly, weekly or even daily basis. Though it may become somewhat boring to others here if I just have to cover areas of concern that you have already raised as opposed to any RNS updates or new news !
Surely STOB is to be commended on developing two major divisions, Energy and Aviation, in such a short time frame. The latest interims demonstrated, the potential for future revenue streams, based on the expansions declared in the recent figures.
The group has spent £170M on developing Southend Airport alone since its purchase. How else to you create such a "jewel" without expenditure my friend ? We know of the future planning applications recently submitted, to develop the airport further.
Capex to create present and future income streams requires financing. Debt is not a bad thing, is it not when it is applied to achieve growth, with increased future revenue streams which then also create asset revaluations, as we have seen with the independent re valuation of the Energy Division.
I notice you never mention this revaluation in your posts. To remind everyone its been re vaule at £237M from £100M three years ago. But you seem to have an almost paranoia over intangibles. Perhaps when quoted them you'd kindly provide this bb, with the correct figure, following the write down in the Aug 2019 interims - it's not £100m as you keep mis posting.
I'm not going to provide you with the correct figure - i'll leave you to read the latest financial report, for that info. You will if you have fully read the financials, understand that STOB has already written down its ESL valuation, not once but twice this year, taking account of the ESL sp drop from 100p - 71p before suspension, and then later by a further 10% on top.
gla
G
The latest financials for Southend Airport (London Southend Airport Company Ltd) came out over the weekend on Co House. Not good. From revenues of £26m, the net loss was £38m. Something seriously wrong with this company.
Last message from Warwick Brady when he dropped the dividend was "We can deliver far more value to shareholders from investment and believe the share price should go up." Share price has dropped every day since that statement.
After all the big build up over Southend Airport I hope that this BOD are not a bunch of liars like the ESL Cumbria Mafia. The ESL situation is perhaps the cause of the drop. IMO
I love this company but its a bit depressing watching the share price fall every day. There are lots of positives going on within their business, I just wish they would share some of of the good news a bit more often.