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I read through all the details. Here are my thoughts:
1) HY results are way too vague and do not break down the balance sheet components.
2) HY vs HY flat for the year.
3) Interest expense is painful.
4) Sale of Petrel likely forced on them, in order to renew invoice discount facility. (Read the going concern).
5) Wont the exceptional profit incur tax? which will be really unhelpful. We only left with 1.1M cash from sale already.
6) Investor relations non existent.
7) No director buying from either Kevin.
8) I wanted them to sell Petrel, instead of keep coming back to the market for money. But 'that's it now'. There is nothing left to sell.
Cavendish released a new broker note yesterday - which was totally pointless IMO. It contains only snippets from the RNS, and the FY24 earnings are now under review. I didn't expect these HY results to move the share price. I had hoped they would be more impressive than they were. It would be nice if / when Cavendish release next broker note, they could break down the liabilities better, post sale and we could see what we are left to deal with. These guys seem to be very adept at hiding debt, for example the Dilapidation liability on the sale is a liability that wouldn't be listed as a liability because it wasn't due. The HMRC liability could be more transparent. This level of reporting is really unhelpful to get an idea of progress. I can only assume (since either Kevin wont buy) that we are no where near out of the woods yet. Maybe one more raise this year? Wouldn't surprise me. We need a big order here, and I'm concerned that they are talking about investing further in both facilities, like it is needed to get a decent order.
With no PR, or in depth accounts and 30% discount placings I am feeling frustrated with the treatment investors are getting. I still think this will eventually end well, but I think that is far off for now, and those wanting a happy ending will need to continue the journey, at further expense.
Rivaldo
1) You've got the market cap wrong (at 2p/ share it's 3.6M)
2) The debt reduction is not on top of the 3M sale price, its's because if it: they haven't magically generated 2.6M out of thin air.
Encouraging to see the sale of Petrel completed quickly as per today's RNS. This is a transformational deal.
£2.75m is now coming into CMH's coffers, with a further £0.25m deferred consideration.
The pension deficit is reduced to a paltry £0.4m.
On top of the £3m sale proceeds, CMH's liabilities will also be reduced by a further £2.6m, and the results to 31st May will look good with a £2m exceptional profit.
Per the interims, with RDC improving its operating profit by 43% year on year and CHC looking better for this H2 onwards, the core business is in good and improving shape.
A £2.8m m/cap gives a very decent risk/reward imo given the turnaround being achieved.
No use , ive given up on aim, im so underwater everywhere i might as well at the bottom of a seaworld aquarium
Draft, re your Hmmmmm post of 7 December 2023, i suggest you take a look at CREI, COYB....
1.3M difference between the trustees valuation of the pension, and the IFRS17 valuation.
I wonder how that will eventually get resolved.
The proceeds of the Disposal are expected to both reduce the Group's liabilities by approximately £2.6 million and contribute an exceptional profit of no less than £2.0 million, in FY24.
As well as satisfying Petrel's statutory liability to the Chamberlin DB Pension Scheme, the net proceeds of the Disposal will also be used to pay £0.65 million to HSBC to reduce the Group's debt (namely its asset finance loan and invoice finance facility) and release certain charges over the shares and assets of Petrel, with the balance of the net proceeds, assuming the deferred consideration is paid in full, of approximately £1.1 million being applied to the Group's growth strategy and working capital. The Chamberlin DB Pension Scheme deficit has been reduced from £5.5 million in March 2019 to approximately £0.4 million following completion of the Disposal with the deficit recovery plan reduced from 13 years to 4 years.
I’m out at the moment so will have to read through these RNSs properly when home.
Wasn’t expecting the sale of Petrel. It releases some much needed capital which is definitely a good thing. Obviously we’ll lose Petrel’s income but with some of the sale proceeds being used to expand other areas of the business, then that should make up for the loss with some on top.
Thoughts on that news?
£3m cash & profitable
To net current liabilities (or, worse current assets - all liabilities) puzzles me
I'll wait and watch....if the turnaround happens as mapped out, I'll take my chances of paying more for greater clarity
I wish I had spare funds. Nice chunky buy yesterday, I believe of 150k.
Share price today was 1.925p below the last placing price 9th January 2024 at 2p
Totally agree.
Absolute nonsense.
Fully get the sentiment.
A lot of trading activity this morning. Everything being marked as a sell but I believe there’s also a couple of big buys in there too.
Should get the HY report by the end of the month. Generally we know what to expect but it will still be interesting to get the report and have a look in detail.
Losing the will with this one
NB, that equivalent number was 432,000 in the 2019 report, and jumped most from 2020 to 21, which is consistent with what they say about it being associated with BorgWerner cutting ties.
For the PAYE liability, I am assuming that it is actually I cluded on the balance sheet on the 2023 annual report. In note 15 (current liabilities), there is 2,188,000 for under trade and other payables, for other taxation and social security. Anyone have a view on this. I'm not clear.
As long as we were net equity -9000, as stated, and not -1.7M as of that report, I guess it's not really that troublesome a revelation.
You are right.
The PAYE liability has been buried in the last few final year results, about halfway down the report. It’s only mentioned once in each report.
To me, that’s not good enough at all. Owing £1.5m to HMRC is a massive deal and one that shouldn’t be buried deep within a report. It should be a lot more prominent than that! Poor form by the company IMO
It was kind of announced...
Look in the going concern part of the last couple of FY results, it is mentioned. Though its not made obvious in the liabilities section. Best way is to Ctrl-F for HMRC. That is how i found it.
I’ve also posted on here that I wasn’t aware of the PAYE liability either. I haven’t trawled every document released over the past couple of years to look for it. However, I don’t believe it was announced previously. It’s disappointing to say the least!
That is still annoying me is that £1.7m PAYE arrears that suddenly appeared. I can find no mention of this beforehand and it seems like just as they are reducing the liabilities and putting some cash in the bank, there is suddenly a huge new liability to clear and we are back to square one again. Surely there can't be any more of these?
Good point re dilution.
Hopefully this is the floor in terms of SP and we can start moving up. If we start consistently recording profits, then we can’t stay down here forever!
I was thinking that it might have been them selling at 2p on the day of the placing. However Chelverton have not sold any shares, I just checked after the previous placing they still had 9,000,000 shares. So the position is just reducing due to dilution. The position is worth £180k at 2p. Seems an odd use of their funds when the trust is a dividend trust. Perhaps the old adage of 'its only a loss if you sell' is in play here. I suspect they bought in the old days of 80p+ per share.
So of the 30,000,000 placing shares:
Miton 3.75M
Raglan 7.5M
First Equity 11M
----
22.25M out of 31,350,000
---
So there is 9.1M knocking about... (and possibly First equity bought another 1M).
---
That isnt that many really. £182,000 worst case that could be flipped. Lets hope they all find homes. We may have even bought some unwittingly already. Ideally if there are no sellers down at this price then we might get back to 3p over the next few weeks.
Should be issued within the next 6 weeks. We pretty much know what to expect but should still make for interesting reading
So Dartron was right about Chelverton