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I thought that the RNS on 13th May was largely very positive. It was just a shame that on the 13th the US depressed the markets with their inflation worries and sell off.
Still have a Order book of $7.1bn, up c9% on 31 December 2020 with good growth in Consultancy and Operations.
Not a bad buy in price right now. This is definitely heading in the right direction which is up.!
GLA
Provisions only to be recognised
when: there is a present obligation as the result of a past event;
and it is probable that there will be an outflow of benefits;
and the amount can be estimated reliably.
Contingent liabilities to be disclosed unless remote.
A note to the accounts is sufficient.
A "provision" in accounting terms is laid down as a liability which is then matched with an expense from the income statement...It is merely moving an amount of money from one part of the blance sheet to another and thus making it unavailable for other use.
They are making it quite clear to the SFO that they accept no liability for anything....and as such ...their large cash amount stays firmly on the income side of the balance sheet.
The situation is clear...if the SfO has anything to say....say it..provide the proof in court
To think that they havent prepared for any such scenario is silly.....they just have cash on the income side rather than on the liability side
I never create a separate account and put money in it for Christmas...i am aware that Christmas comes and I may have extra expense...put I keep all cash in one pot and know that i might need it for.....i make no provision for Christmas..but it is daft to suggest that I may not prepared for Christmas
This idea that there needs to be a "provision" is... mis-understood
At Christmas I make one income withdrawl from my income and pay for Christmas...job done....no shuffling of money to another account liability...what for ?
FWIW my view on PFC WG.
Both going up.
PFC is recovering as the SFO tentacles seem to be going nowhere Markets are reflecting this and in the absence of news to the contrary thus will rise strongly and prudent to use the opportunity to improve averages by selling a few at they rise. Gives future protection. PFC non provision of SFO fines I read as company confident it will now stick or at least be insignificant.
WG. SFO sorted, markets did not appreciate being hit with extra provisions for payment. This has held in lower trading range sub £3 since. Feel thus will do an Aggreko sometime soon so increasing core and averaging down while opportunity is still there.
With the cdc stating
@CDCDirector
: "Anyone who is fully vaccinated can participate in indoor or outdoor activities, large or small, without wearing a mask or physical distancing. If you are fully vaccinated you can start doing the things that you had stopped doing because of the pandemic."
This can bode well for a rise which floats all boats.
DYOR
Wood posted a contract win on their website on the 12th May. 3 year EPC with BP in Australia. Don’t know why they are not “announcing” these wins more widely. I assume this is included in their backlog announced through the AGM release. There have been a few recently although some are JV’s and strategic alliances. None however seem to give any indication of the revenue associated with them.
4thtiger,
I think this is the sort of "emotional" nonsense that is peddled by posters who do not have information , just emotion
"no company in the right mind want to do business with crooks under investigation, it is not ethical nor companies do it"
The facts being that Petrofac are working with BP in a project announced on May 10th 2021 and detailed on their website ..if anyone interested in actual facts could read and find out ..as just one example...BP being a long-standing client of Petrofac
such posters appear I believe to be actually invested in BP despite their "no company in the right mind want to do business.." position
4thtiger
They have not made a provision in the accounts for any potential fine and have previously disclosed this in the Annual Report ....but in terms of "money set aside" ..yes there is money available in the business ...and ...should a thing ever happen ..then it may well be paid over a number of years .... as is normally the case ...." The company has not prepared for such a scenario"..is a personal observation, rather than what actually may indeed be the case ..
Often it isn't "emotional" attachment...more a case of having to dismiss what is largely "speculative information" and opinions put across as if they are facts...which generally are not the case
How much has WG earmarked to close their investigations by the SFO
I actually listened to the webcast of PFC. When one of the institutional investors asked the CFO if he has had money set aside for potential fine, he seemed to me very evasive and did not give a clear answer. The company has not prepared for such a scenario which prompted me to sell PFC shares making about 30% gain. There are many emotional PFC investors who get too attached . Good luck for these people. Investing is a risk people need to judge themselves.
we have a crazy psychopath here
Stockready1,
post reported .. totally unacceptable ...your behaviour is totally unacceptable and I have made an official complaint
4thtiger
Excellent comment, everything you said is correct pluse no company in the right mind want to do business with crooks under investigation, it is not ethical nor companies do it. What happen to PFC is a permanent damage to their business and soon they go down.
They are running out of steam.
But becareful we have a crazy psychopath here who might come here upset and throw his usual dummies out.
As with WG. I have added more and will continue adding if drops further, the RNS was good and absolutely no major surprises there, they kept the good news for later in JUNE/JULY
medium term this will make everyone loads of money specially at current entry prices.
I am invested here and will keep these till at least 400 which is achievable in less than 12 months.
GLA
IMHO
DYOR
When I looked into PFC and WG. , I like the latter better as it has c.9% up in order book while PFC does not seem to have anything clear in the near future. Now with continuous threat of a fine by SFO on PFC and CFO leaving, a larger client stopped service order from PFC, as PFC and WG. are competing for the same business, I would think it is obvious which one to invest. It was a bit dramatic yesterday after WG has not changed the guidance.
Order book of $7.1bn, up c9% on 31 December 2020 with good
growth in Consultancy and Operations
-- Q1 2021 slower than anticipated but with improving momentum:
relatively robust activity in Consulting and lower activity
in Projects and Operations
-- Q1 EBITDA down on same period last year but margins relatively
robust: high utilisation, successful delivery of Future
Fit programme efficiencies and improving project execution
largely offsetting lower activity
-- 2021 Outlook unchanged. Lower activity anticipated driven
by Projects, offset in part by strength in Consulting and
Operations activity. EBITDA margin to grow modestly
-- Strong progress on ESG targets: 8% reduction in carbon emissions
and over 30% female representation in senior leadership
roles