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Managed to get some more at 260p. Whether a bid for this business or a bit more patience, we should be near 400p+ in 12 months time IMO.
Quoting Motley Fool is never a great idea.......
Bab results state 'Underlying operating profit excl. one-off CPBS adjustments was £222.4 million.'......
Vast majority of the impacts of the CPBS are one-off and do not change future cash flows
? Recurring CPBS adjustment to underlying operating profit of only around £25 million per annum
Pretty fair analysis...............
"Seeing a record-breaking loss on the income statement is never a good sign. But in the case of Bab****, the underlying cause was predominantly due to a write-down of inflated asset values by the previous management team. Ignoring the effects of these expenses, the firm still reported a significant underlying loss of £363m. Taking a closer look, this negative impact stems from a sharp reduction in the gross profit margin, combined with a 5.5% drop in revenue.
That’s certainly not a healthy-looking business. But the worst might now be over. Asset impairments are a one-time expense, so losses should be significantly smaller moving forward. And the previously mentioned company restructuring, while unpleasant, is expected to tackle declining profit margins. Assuming margins rise again, the Bab**** share price might do the same.
Like all unprofitable businesses, liquidity is a concern. However, after negotiating with creditors, Bab**** secured a new £300m revolving credit facility for the next three years. Using debt to tackle debt is obviously not a sustainable long-term strategy. But it does offer some breathing space. In the meantime, the business plans to dispose of an additional £400m of non-core assets. These decisions should flood the balance sheet with sufficient cash to meet near-term obligations. That should allow the management team to focus on bringing Bab****, and its share price, back to its former glory."
Unless he has already had takeover related discussions in which case he would not be able to trade... remember that absence of director purchases can sometimes be the most promising news of all....
Nice recovery after the mauling the other day.
Bad news out the way, share price is recovering so the markets have digested the bad info and hopefully looking to now move forward.
Would be happy to see it. Might be the best way to extract some money from this old dinosaur.
I think you are right it appears to be heading in a direction and prepping for a bid. The latest result again blame Avincis purchase back in 2014 but the reality is they bought a complex organisation and ran it into the ground. The appointments at board level to support this sector was lazy and incompetent and now it is worthless.
The best thing that can happen for all shareholders is a sale and cut the deadwood out that has seen this business dilute sectors which should have thrived. You can blame Covid-19 and downturns but they need to learn lessons in regards to why sectors were failing prior to these events.
I've been here before with Cobham and Inmarsat....had my bacon saved by a bid.
That's my rough guess
That would be an interesting development. They are bound to have talked together. £4?
Lockwood's PE mates will be along in a few months time......
Hopefully bounce in coming
I was going to hammer Bab**** but then I remembered they updated the market on the impairment back in April so this news had already been factored into the SP before today.
Im sure David Lockwood and co will be piling in soon nearer £2 ....... as sure as eggs are eggs .. These results aren't good , covid hit Bab**** very hard but its old news now ... The plan to recover is well under way ....
See one of the NED's has affirmed his belief in the business by buying a staggering 5000 shares! Think we might need more of these with a few "0's" added to the end to have the desired effect! ;-)
I see my posts in January were pretty accurate. Took a lot of stick at the time from posters who can't read Income Statements, Balance Sheets and the messages behind the directors statements. This company has a lot of work to rebuild investors confidence. Manipulating accounts massively just like Capita, Autonomy, Carrillion etc. The Directors are still not behind bars!
Not really surprised at the results. Should have sold earlier this week and bought back today as I believe in this management team to deliver good results some time ahead. The report is gloomy reading for anyone hoping for a fast improvement. Two more years of significantly negative cash flows expected due to IT upgrades, continued COVID costs , extra pension payments and redundancy costs. The divestments are probably going to be key here. Maybe they will achieve a lot more than the £400m assumed in all the numbers for FY2022. Seems in past the board did all they could to make the year end debt as low as they could only for it to balloon again straight after. I get the feeling that the current management are trying their best to explain how the companies finances work with full transparency. Bad or good news ahead this must be a positive step. However bad today looks this share was under 2 pounds for a short while in January so some progress has been made since.
Awful update but hopefully the worst now finally consigned to history...
They are going to roll out a new people strategy
And down it goes !
And down it goes !
We haven't got long to wait, but let's hope so!
Price rise in expectation of results tomorrow possibly??
At last the results and strategy will come out on Friday. Will be very interesting to see if the last business update in April was in hindsight optimistic or cautious.
Could someone explain the £2 Million + of buys in late trading today.