Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Sadly Dr Gerhart, **** is about to get real with this very nasty virus, which as yet has no treatment or vaccine and which is very obviously transmitted easily.
So if behemoth companies on the FTSE100 are having a hard time, how does one expect a company such as KIE to fare, a company who have failed so far to make the planned disposals?
Thanks for sharing uamalik
How do you know how the plans going??
So the overall summary is exactly the same information as that provided to the market in the rns titled "Strategic review and indebtedness update"
Which was issued on the 17th June, 2019.
So after 7 months they still have the same plan.
The market is going to want to know how that plan is going , tolerant as it has been so far to the lack of achievement in the stated goals and vague statements such as "progressing as expected, in line with expectations "etc etc
I have the presentation to hand.
Key points raised were some loss making contracts, acquisitions not fully integrated into the buisness, Growing too fast, Lack of unity in company due to multiple policies etc..many other points raised.
Going forward a minimum of 9bn order book to date,This will most likely increase as kier are winning contracts every month including the 150 million highways in the north west.
Focus on construction, Highways, Utilities and infrastructure part of the business. Focus on improved cash flow,Reduce costs and improve profitability by ensuring no loss making contracts are taken on going forward, Disciplined finance reporting within 5 days.
The vision is to be the leading contraction and infrastructure company in the next few years. Hence going back to basics.
1. simplify the buisness
2. improve cash generation
3. Strengthen the balance sheet
This is an overall summary there are some more specifics.
Did your friend give any specifics on how they plan to deal with debt or was it just general info.
Same here I plan on holding for the medium term. a Close freind of mine works for kier and just this week they have all had a regional presentation talking about the future of kier addressing the debt issue. This is not a company that is going under and has potential for huge growth. I will be happy with £4-6 by the end of the year
Enough to make it worthwhile.
PE of 2, will deleverage significantly in due course, new management, Hs2 and a conservative government - the tailwinds are absolutely there for a business that's only valued at around £200m
Do you have a large holding invested Nickel?
The other way to look at it.... FTSE down over 200pt and KIE up 2%. Extremely bullish .... why? The VALUATION!
Buyers mopping up the dips here and totally makes sense!!!
Draw, the vast majority of cases are in northern hemisphere countries - where it gets cold in the winter. including Iran. The Tenerife cases are all in the same part as the Italian doctor. Don't think there are any cases in southern hemisphere not traceable back to the north.
The point is that the enterprise value is expected to adjust to something like £250-£300m very soon.
The 2nd largest construction firm in the uk , that's turning itself around and now keeping cash in the business (i.e. £60m vs £55 cost savings) won't stay on that EV!!
Meta - seriously mate? You know the score...
KIER LIVING is in the process of being sold and capital is being released from property which massively cuts the debt!! On top of that, they are only taking on high margin contracts now!!
The shorters are covering because they know this and the fact that this trades on a profit multiple of only 2!!!
Of course debt is a problem! The board itself acknowledged after the strategic review:
"the Group today has debt levels that are too high"
Note it does NOT say:
"the Group today has debt levels that are too high, but that's not a problem"
Not sure where this thing about a weather change will kill off the virus comes from but apparently there is no evidence for it. People are catching it in hot countries as well as cold ones even now. In tenerife the temperature is in the 20s.
It's not a problem!! The net debt position is in the last accounts and as conveyed before they have almost $1bn of liquidity they can tap if they want it.
"Well I don't know all the detail of the debt or where it's at right now,"
Nobody knows the detail, that's the problem!
Well I don't know all the detail of the debt or where it's at right now, or how good or bad the results will be. And I suspect they are being brought forward just to allow the company to "move on" as soon as they are out of the way. So I expect a clearing out of bad news too. But also show the company is going to be managed more efficiently in future.
Alos while there is a lot of talk of recession at the moment, due to the impact of the No 45 Chinese thingie - and some company profits are going to be hit hard. Just think of how many peeps might cancel flights around Easter alone. Easy Jet and Ryanair especially have a lot more pain to come. So what sort of Co would be good to invest in. What about one with lots of contracts with guaranteed local and central government funding here in the UK. Especially when you're involved in a very high profile project that the gov have a big vested interest in seeing a success. I think that is why, even if the results are just reasonable, then bigger funds will flow here.
But hopefully with the northern hemisphere spring and warmer sunshine just around the corner, the lovely Corna will disappear like spring snow!