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It was a good decision
a seller about, clearly.. damn.. looks like you're right or going to be right dibs.. no idea how low this can go but if there's even decent sized ongoing selling then it can of course go much lower, alas.. wish I'd sold out now... instead i'm in here for a year more or much more now, I guess.. assuming the co doesn't capitulate completely .. oh well. c'est la vie..
Hi Nice I think you make a good synopsis and I largely agree with you. However, the gp and health centre part of the business I don’t think was any longer core. Neither is F1m, that’s still very small. So my main concerns are twofold:
1. Their core business has gone
2. They have large debt to service which, with a core business was probably serviceable
So, there is way too much uncertainty about how they scale up the business at all from here.
All that said I accept my wording may be interpreted as deramping but I just say it how I see it. I wish you and other investors good fortune and success here.
they have a 33.33 per cent share in partnering health ltd with is front line GP services orientated in Hampshire and is looking to expand and will need hopefully new buildings etc going forward.. also they have a long history in primary care facilities builds including NHS builds so its far from a new area for them dibs...indeed its their core prior to this ederly care journey...and that elderly care facilities jouney has been somewhat of a mare for years now because of lack of contract closure.. and had complicated funding requirements that ate into any potential profits too.. as councils for eg were cash strapped forever etc .. so they've walked away from it and taken a decent bunch of money from MS in the process too and downsized staff nos - without redundancy - decently too..
I guess, you or I don't know the co. well enough to say with any authority what their prospects are in this primary healthcare facilities sector..and not really either in F! modular. ...so you using 'so poor' is akin to deramping imho...you may of course be right to sell up, only time will tell.. and I do understand why you chose to sell up.... (I sold a quarter my holding towards downsizing my exposure here and will hope for the best with the rest.)
This, imho, is troubling news. It’s something of a distress move, forced on them.
This has removed the rump, potentially £200m pipeline, of their business. What’s left? Not a whole lot. They’ve effectively got to build the business up again from scratch. I would take with a pinch of salt the idea they are going to gain any NHS business from MSI. So that leaves F1 modular.
But the biggest concern has to be the lingering £1.5m worth of debt so the debt gearing is over 60% at this valuation. Maybe it is serviceable short term but this cash boost, in their own words, is short term. That is the most worrying statement.
So yep I was out earlier today and doubt I’ll be back with the current prospects so poor.