focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
"Is it not £90m net assets after debt?"
........................
It's all of those in round terms (and, as WB, the man, said, "It's better to be approximately right than precisely wrong").
Net assets are around £90m, having halved from 2021's £180m, so that's a £90m loss, and the debt's roughly £90m.
So the book value per share has also halved, from 80p to 40p, in a year….
What a nightmare…!
So, I put my hand up to say that I am a past sinner, in that I have owned Inland shares but baled out at a loss when they were priced at around 50p.
A potted history might be useful here…?
The Inland boys ~ Wickes & Malde ~ have been around the block before with an outfit called Country & Metropolitan.
Formed in 1990, they took it public in 1999 at an offer price of 68p and sold out later in 2005 @ 300p ~ so that’s a six year share price gain of 340%.
So, the boys had my vote of confidence based on that as, to my mind, a good track record trumps most things.
But, in the light of experience, I now see it differently.
Inland was bought by an Italian character, Remo Dipre (now there’s a name to conjure with..!).
His vehicle, Gladedale, also bought Furlong (the old Telford crew) and Bett Bros (a stellar but small Sweaty house builder who’s loss to the market was disappointing to say the least) around the same time.
Sadly, it seems old Remo wasn’t up to the job of surviving & thriving ~ Gladedale crashed & burned in 2009.
So, my take on things now is:
Perhaps my faith in Wickes & Malde was misplaced..?
Maybe they just got lucky when old Remo came along at the right time ~ just before what was coming down the pike starting 2007, and maybe they would have otherwise similarly become toast thereafter…?
I guess we’ll never know, but it underlines my prime personal rule in investing: Never invest in heavily leveraged companies ~ even if they do look like a bargain at the time.
That was an expensive lesson ~ and I’m not intending telling you how much it cost me to learn that one, though, courtesy of Barratt 2007/8.
But it was a lot..!
Strictly
At least investors had a few days to sell up after the CEO departure as the red flags were certainly waving at that point.
it's clear that they have failed to get a handle on the construction problems after all this time- a huge management failing .Severe reputational damage and now longer not fit for purpose.It's just a case of how this unravels You have to scratch your head how they have manged to stack up so much loss
It also begs the ? why havent they got shot of some land before knowing that the £100m was likely to get tested?
Is it not £90m net assets after debt? being written down from a previous position in
September of £145.9m to cover the new provisions.
Sorry, should have said £90m accounting loss, not specifically debt.
Hard to see a way out of this mess. Two breaches of covenants so its in the hands of the creditors really. Only £90m of assets to cover £90m debts, if the creditors call in security then forced sale of assets or just give up and enter administration.
Difficult to see someone looking to take them over as creditors will need to approve, and why would anyone stick their neck out for a troubled business.
Recent CEO must have been shocked at what he saw when he arrived, prompting a quick exit.
Next couple of months will be key. Shame, but once Wicks was decided to get out, the writing was on the wall.
Excuse gibberish fat finger no edit
Looks like site sales to raise some dough Nobody is going to enter into any sort of partnership with them relying on their construction capabilities Sounds a situation for someone like Morgan Sindall to cast their eye over the rump Assess the construction liabilities on the construction delivery contracts A steady hand on the rudder to give assurance to the ose who have invested in the projects
to investors some worried investors who willbe ableto assessteh constryction sityaion relayvely quickly
I think they've got enough sites with a consent to keep the lights on (by selling them) Flying Higher but I'm not sure what the future holds.
Tbh - wicks might be best coming back -he's a deal-doer (knows everyone).
Could this go under? That's a really poor update
A rather poor show from the board members involved over recent years. Still taking a nice salary each I would imagine though. I had always hoped to be able to re-invest in this company one day having sold my stake at circa. 80p but since Paul Brett departed things have fallen apart somewhat.
Not great is it ; everywhere you look, there are issues, loads of issues. But......they are right on one thing. Consented land is in massive demand. It doesn't matter whom owns it or how much grief they've had in capturing the consent.....all they are interested in is the consent. That's the one ray of light in all of this.
Might look at the Z shares and have a think about them.....can't see much value in the actual shares.....unless a buyer comes in and pays near the 40p valuation......
No mention of the departing Director which is worrying Looks like he took one look at the continuing and future consntruction cost losses and thought I dont want any part of this None of this is going to sit well with the lenders
No news yet on the matter.
This company always seems to flatter to deceive if that's not being too harsh.
Impression is of a private company disguising itself as a public company as run on private lines.
Suggest the next interview for a CEO is done by Alan Sugar as he usually gets things right.
Cannot afford to drag out the uncertainty much longer.
more likely board room bust up , donagh probably had big plans in the building route but the board/big investors probably said nah , weve lost enough on building already...lets drop building or at least reduce it significantly ..and rightly so
as part of the strategic review, maybe they decided to wind down the building section and dont require donagh's skill set anymore , building is low margin high risk best to avoid..stick to what their good at ..planning and property sales.
Quite possibly a boardroom bust-up over the strategy.
Non kosher saveloy! Please don't blaspheme Worst! :) INL need to put something positive out pronto to allay investors fears imo.
3 billion, not 3 million..
If there isn't anything fraudulent, these look good value. 3 million landbank in the southwest where their is demand and over half has already got planning permission. 118 million debt, is a drag in these markets though. These could easily be worth at least 4 times current share value, providing no shekletons in the background...
It has the looks of something fishy going on in the company, after this happening
The bluntness of the RNS leads me to suspect that he found something not strictly kosher (a non kosher savaloy?) hence the need to make a report or disclosure to officialdom and the company might be unable to give more insight at the present time. The board would have expected the share price to dive on the announcement but couldn't offer a sweetener to go with it. Maybe a suspension at 7am tomorrow.
totally agree. If it's carnage internally....we need to know. But if it's not.....we need to know. It's not difficult.
Extraordinary news today and the company needs to let the market know asap what's happening. If bad news, the share price will correct to a lower value and if nothing bad then it should rise back upwards. Being dumb is not an option here for the sake of the long suffering shareholders.
Hopefully that's because he's been given an epic alternative offer rather than, what I suspect is happening; he's realised it's carnage and he's bitten far more off than he can chew. (yes, I'm a pessimist)