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"Further details will be announced in due course".
40 day deadline 28th July
TPK: yes the KSA JV could come up with some rather nice contracts and i do have high hopes for it.....just that after 7 years here i'm never optimistic that things will get done quickly.
PF said 30-40 days for Ghana, i mentally noted 2 months. anything else without a state deadline is not something i'm banking on....look at Iran and Africa. Just from PF's body language i think we could well be in for a waiting for buses situation.....after Ghana i could see more contracts dropping...that may just be my glass half full attitude (that's optimism towards positive outcomes, not rapid outcomes!).
Re: Saudi, if I remember correctly, the RNS said that conversations had already taken place re: new contracts. Although we don't know, optimistically this could mean that the talks had reached a fairly advanced stage and the customer said something like "right, set up a JV and we'll get this done" and thats what we did.
So, something may come from the JV sooner rather than later. Appreciate this is all speculation though.
to me other contracts are no more or less likely to come in the next couple of weeks than they were in the recent past.....so i'd be surprised if Ghana wasn't the first to land - simply based on the fact that we are expecting that in the next few weeks for sure. The African one could be any time (no specific reason for it to be this or next month), Iran ain't happening for a long time and the new JV will take some time to bear fruit.
another contract could be a catalyst for a placing, but i don't think Ghana will need one...it may just facilitate one since it will push the SP so high.
Or another contract other than Ghana signed this week or next? or is that not possible in your view?
Or if they have revenue and back payment...will they need to raise? I am now in mixed minds. The contract has to get signed. If not all credibility for the company will fade. If they do sign and they do not raise, you are then looking at a company which has changed its ways.
Cheers Aim. Its going to go one way or another. Either placing, or Contract signed then placing at higher SP. I am hoping the latter.
Invest: I hope so, but again, I don’t think it will be a very large amount as I think we’ll have a contract long before the scannings really ramp up
Agree. Do you think that the work that is being undertaken by WSG will be paid in a lump sum once the contract is signed. For the work already done?
Invest: civil sounds good. I honestly don’t think we’ve received any revenue yet. I think we’ll start as soon as the terms are finalized and I think we’ll get an RNS telling us that as soon as they are.
Also i think that he container ships are pretty small fry currently and the real revenue comes over the next few months when the port ramps up and hey can take some of gargantuan ships.
I hope I answer this one correctly.
I would hope no revenues from container screening as yet and that we won't be screening any further containers until the terms are finalised.
As for all the Standard Operating Procedures and management policies etc and getting things up to speed I would expect them to be getting paid for bringing them to the party. Either seperately or spread amongst any container screening fee.
The BoD are not as stupid as you think.
DHC, well yes that was my point...
Then comes that internet sensation they call FOMO.
Enjoy things whilst they are relatively quiet.
aiming, how much revenue do you think that WSG have earned so far from the Tema port. No arguing today. Shall we be civil?
"According to this article "All containers arriving or leaving the port will be screened with revenues to start accruing as soon as terms are finalised".
If you are not getting paid then there would only be a limit of containers you would think that any company would scan for free until the terms of the contract were finalised.
Say 2000 for instance ? (Ring any bells!!)
You would also think that you wouldn't be completing the training of the other 154 recruits either unless the terms were close to being finalised ? Let your staff take some annual leave.
If they want a good quality company performing the security scanning and management of operations without any corruption, containers going missing, missed revenue and a professional service then you will have to pay accordingly.
I will give them their dues for I think they have shown WSG in an esteemed light in the joint Scanport / WSG proposal earlier. Well worth reading from half-way onwards.
You'll be holding or not when it drops. Good luck with the auction and ensuing scrum as it will certainly be one to be spreading the word about.
i think you're misunderstanding accruals slightly. Accrual does mean that you're taking account of income that you have earned but not yet received. so you can recognise the revenue even if you haven't been paid the cash yet. that is correct. but it means that if we're not accruing revenue until the terms are finalised then not only are we not receiving the cash, but we are not reciving the recognition of the revenue....i.e we ain't gettin' paid yet.
but as i said, no issues as it's a tiny fraction of what is hopefully a huge contract.
Yup, agree mate, a mute point so long as we get the contract which I strongly believe we will.
Accruing is an accountancy term where you take account of income that is guaranteed and so we should still get paid for services from the start but not accrue them until we get the signed contract.
With CC hopefully out and with so many sticky shares I'm really excited at how far and fast this would re-rate on Tema and other contracts.
Just general musings while we wait. Sorry if it's boring peeps.
HB, that article could be misreporting the facts I suppose. In any case I hope you're right ;)
HB: i agree with that logic. i accept that they may not be able to transfer money to WSG for services rendered without the contract being finalised, and thus accruing the revenue would make sense. it's just that the wording in that article (and what PF said at the AGM) specifically imply that WSG will not accrue revenue util the terms are finalised.
to me it's a mute point......a few weeks of the port ramping up will have little impact vs a long term (hoping >10 years) revenue from a fully functioning port.
to your second point, i have absolutely no issue with them starting work without contracts finalised....especially given that the initial LoI was reportedly so detailed and they have subsequently exchange draft contracts.
i'm not worried
I have to disagree on this one. The draft contract is being finalised with the terms but when completed I would expect those terms to start from the date responsibility for the scanning services commenced.
I have completed hundreds of multi national contracts and when time is tight and the lawyers haven't had time to finalise the minutia of the agreement we have ALWAYS commenced services pending the contract being signed.
that wording does imply that WSG are not getting paid yet, and in fact revenues are not accruing yet as the final terms have not been finalised.
but i agree that the contract should be coming soon.....i'm guessing next week, but it's nothing more than a guess.
According to this article "All containers arriving or leaving the port will be screened with revenues to start accruing as soon as terms are finalised".
If that's true then they must be signing the deal very soon.