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The 2 biggest shareholders, namely Exponent & Ravensworth own 60pc . Add in Hestia and that's 65pc. So little free float.
Exponent acquired the business in 2012 & floated it in 2015, & still retain a huge stake c 33%. Turnaround started by previous CEO & Ashmore, has been buffeted by of course Brexit, Pandemic, and now Cost of Living and hit to the sector which appears to be flirting with recession. While Ashmore has done and continue to do a good job, as CEO, he must wonder what Exponent & Ravensworth are up to...Some thoughts:
1. Private Equity Bid;:Exponent know this business really well, so must be tempted to ring cash registers a second time, i.e. take it off now at ridiculous price let Ashmore do his thing, and refloat a second time. BUT to do so will need ravensorth to play ball.
2. Trade Sale/ Merger: Originally this was the most likely scenario, but the blackswans of Brexit & Pandemic put paid to that and now we have tricky market conditions, so no trade sdale at depressed prices. BUT asier to control it if the company is safely tucked under PE wing - see 1
3. Business as usual: hope that SME listed companies revive and sp starts to grab investor attention......
It was RAVENSWORTH up to 29.5%. You know what comes next.
19516071 @ 11.5 (£2.2M)
It is just under 3% so may not trigger a RNS.
Encouraging.
22 mill?..that was chunky
Some meaty buys .
Very much in agreement. Relistened to the interims presentation, and was impressed by the confidence and clarity of teh management team. Well positioned going into tough period: strong balance sheet & cash flow; rewarding s/holders with progressive divi, and clear strategy. Share price doesn't reflect the quality of the business (now) or the management. IMO, an each way positive bet : markets recognise quality and share price responds OR market doesnt and Private Equity snaps it back up
I think those SWS articles are not very useful IMO. They are kind of AI generated, just looking at some key numbers. If you are going to invest in small caps and AIM stocks, you need to go deeper than a few headline numbers. Yes it has got a lot of debt, but sounds like it has headroom. Below is info from the RNS regarding the debt.
The debt facilities consist of a £70.0m senior finance facility and an undrawn revolving credit and overdraft facility of £25.0m, both maturing in November 2025 but with an option to extend for a further 12 months. Including cash balances of £36.6m, the Group had access to £61.6m of combined liquidity at 1 July 2023.
Nicely done. I should probably get some more here.
For clarity, my buy was the UT listed at 1635 for about £6k at 9.94p
I am in too with a first purchase at 9.99p, I think that is a good average?!
I am in.....A dividend paying,forward looking company,very well run....at a ridiculously low valuation.....I think must be worth more ,with fantasic management pulling all the right moves.....
Yes thought results were ok, and not surprised by recent outlook, seeing this again and again on many quality building companies. Now is probably the time to be buying. I would rather divi was cancelled though.
Full year EBITA expected to be between £23-30m compared to last year of £32m. Dividend is a sign of confidence.
That panic selling yesterday now seems pretty silly, particularly those desperate trades at 9.5p
I think management have done a fairly decent job even if the SP is at an all time low
In the context of the recent 33% drop in share price and the shape of the economy these results are not bad at all. They could probably hold back on some investment to support the outlook but they are looking to the other side of this mess and being prepared for the recovery. The increase in leverage is disappointing but there is a £10m payables outflow in there
Metrics going wrong way and trading has slowed considerably of late
Who read the rns yesterday then? Should be investigated with 3m+ volume
Well in present climate, seems a good set of figures.
A divi is a slight bonus.
Well done to management.
Gla
Tbh today's trading looks dodgy full stop. What is with all these single digit 'o'trades?
2 large trades for close to £100k at 9.5p at 1600 the day before results is pretty suspicious. Is it possible they are doing a raise? Surely not given the relatively low leverage. It price behaviour seems otherwise. Hopefully not an acquisition! Ah we’ll find out in the morning.
Market cap now £70m…
Only a few pence from the all time low in December 2020 after the rights issue. The issue was done at a price of 10p. So not a single holder in this company is up at this point in time. Since then they have grown sales and EBITDA despite making significant divestments, have introduced a progressive dividend policy and refinanced their debt at very favourable rates just before interest rates took off.
Current MCap of £80m is less than total debt, suggesting financial difficulties, although leverage at December was only 1.3x and should now be less. The covenant requires the ratio to be below 3x. They have a huge amount of headroom
Nonetheless, the SP is down around 33% in less than 2 months...are there insiders who have been given a hint about results tomorrow? For some reason a large holder has certainly decided to pull the pin in the last couple of weeks
They confirmed at the AGM in June that results are on track for H1 so is their nervousness about the outlook and strategy? The reaction tomorrow will be interesting, current trend suggests an all time low will be breached
1 day early this year!!
28/09/2023 at 07:00 (UTC+01:00
Half Year 2023 Results for HSS Hire Group plc
Results for the 26 weeks to 1st July will be released at 7am and available on the RNS feed on our website:
hTTps://www.hsshiregroup.com/investor-relations/rns/
Apart from the demise of Buckingham, and a higher than usual number of building companies going bust, the industry seems to be holding up well
Some good news about HS2 would no doubt be a boost but that seems unlikely
I'm reading several RNS's from building-related companies and not seeing anything in the outlook that suggests anything negative is expected. I've asked all my UK contacts in the construction industry and they report the same, they are busy things are OK. We shall see what HSS has to say soon.
I had not seen that note before, dont know if it is a new idea, but it is very handy. The whole sector is so cheap - for a good reason, but if you have the patience you can lock in some real bargains.