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The first tranche of the placing is necessary just to keep the company afloat while paying off the residue of the H & W purchase price, a few bridging loans and ongoing working capital. That takes the BOD to the limit of its raising authority. Nothing more!
JW speaks about continuing meaningful discussions with the UK Government, the NI Executive, and the project partners but thats how his rhetoric has gone for almost a year now. He speaks of the ML being achieved "as soon as practicable" which is pretty unenlightening, but that's how it's been for a long time!
Clearly the company is skint and it hasn't been able to issue any unequivocal news for a very long time. I'd like to see something factual in relation to how H& W is trading.
I'd also like to have droderick's take on this latest turn of events. He's well researched and invariably practical.
Not the news we were expecting. Or was it!
Exactly ,thats why i think we will see some more news on contracts imho
Clear the decks ready imho
Well that's the thing with government contracts they take time , lots of people to sign it off, but its still a long term hold for me
Hi Setanta,
I spent the day reading the RNS and the circular and was reflecting on this Placing. Any dilution hurts all existing shareholders and JW and team are also shareholders so they too have been affected. So we are all in the same boat.
The fact that the Board has raised £9MM in this environment and at a sensible discount tells me that the IIs like the business and can see the vision of the management team. The fact that Harland has been open for business through the worst of the pandemic is admirable and clearly demonstrates JW and team mean serious business. It is a fantastic optic for clients who will appreciate the perseverence.
I posted a news article from Splash a couple of weeks ago which said the ship repair market is going to explore in Q3 and Q4 with rates doubling. We can see that happening now, hence the requirement for additional working capital becomes totally relevant.
Harland has three Viking vessels moored and there is more business out there. This is effectively downtime for cruise operators which they will most certainly utilise for repairs and refurbishments. We don't have to go looking for business. It is already in the yard!
Spud's comment on IM on the back burner is not correct. Harland is generating cash. The company needs to be generating revenues and so the focus to keep that momentum is fully justified. Even with the best will in the world, IM revenue generation is 3 years away. So naturally the focus has to be on current revenues and the ability to stand on our own two feet. I fully support the strategy.
I have posted through the technical docs for the marine licence and there is nothing in it that I believe is controversial. The science stacks up. The fact that DAERA are slow in moving things is something completely beyond JW's control. I am sure he and JT are really pushing hard, but there are limits. I am convinced that the ML will come through but it is a matter of process. I can only hope the NI ministers realise the economic potential of this project and speed things up. In this economic climate, that's the least that they should be doing.
I do believe that this placing will unlock a lot of value for the company. As much as all of us now detest the word "patience", that is what we need to have over the course of the next 12 months.
Ultimately, the reality is that we are all invested in a complex business that takes time to come to fruition. JW and team are probably one of the most efficient management teams I have seen in many years; highly skilled, deeply motivated and highly strategic thinkers.
Now more than ever they need our full support and backing. I shall be voting in favour of all the resolutions.
droderick,
An articulate post, as always.
One point of note, however: the proposed placing has not yet raised £9m; the majority of this sum is subject to approval by the shareholders (even if I see this as another fait accompli).
AGREED... Mr D .. All comments about the team spirit augur well for us .To raise £6m in one morning and now £9m in a very tight and difficult market shows how much esteem we are held despite no ML. As others have said eloquently today when Blue Chip companies like Viking or Vitol are dealing with us they will want to see capital clout to back up performance guarantees.. this is what today achieves !
At least the GM is to be held at the Company’s offices not at Field Fisher ( rather plush ) .. will be interesting to see how big JW’s desk is and how many plates are still spinning !!
Quite right BlairPeach,
The bulk of the placing is at the GM.
Dawski: We won't have the opportunity to attend the Gam in person. It will be done through proxy voting and electronic voting prior to the GM.
One of the downsides of the current social restrictions I suppose.