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Northgate refinancing adds £1m to interest costs Date: Wednesday 20 Apr 2011 LONDON (ShareCast) - The finance director at light commercial vehicle hirer Northgate can sleep a bit easier now that the company has concluded a comprehensive debt refinancing. The group has secured a new eight year £100m term loan facility from the Prudential/M&G UK Companies Financing Fund. The loan is repayable in three equal chunks in October 2017, April 2018 and April 2019. The pricing on the facility is 4.25 percentage points above the London interbank offered rate (LIBOR - the rate banks use as a benchmark when they lend to each other). The group has also agreed a substantially changed committed bank facility with an extended maturity of September 2014. This will initially have a ceiling of £470m which will be lowered to £395m in November 2012 to reflect the group's expectations of its cash flow and resultant debt-reduction. The interest costs under this facility are projected to save the group £1.3m in the year ending 30 April 2012 compared to the facility it replaces. Taking into account the £173m of the group's loan notes in circulation, the group has a total of £743m of committed facilities up to the financial year end of April 2012, after which the total drops to £620m the following year. These amounts provide the group with substantial headroom above its forecast debt requirements, Northgate said. The group has also made changes to its currency and interest rate hedging portfolio to reflect the new structure of the facilities. Based on current debt levels, interest costs in the financial year ending 30 April 2012 will be around £1.0m higher than if previous rates had prevailed. ---
http://www.investegate.co.uk/Article.aspx?id=201104200700092231F
Northgate continues recovery Date: Friday 18 Mar 2011 LONDON (ShareCast) - Light commercial vehicle hirer Northgate says that it is trading slightly ahead of its plans. The trading statement covers the period from 1 November 2010 to 18 March 2011. Net debt is continuing to fall and the company is reviewing its financing facilities, which last until September 2012. In the UK, hire revenue per vehicle has continued to improve with an increase of around 3% since April last year. Utilisation rates have been maintained at 91% even though the size of the fleet has increased by 1,000 to 61,700 vehicles. Residual values are holding up and the restructuring of the business is progressing. The new IT system roll-out should be completed in May. In Spain, a reduction in the size of the fleet has helped utilisation levels to rise from 86% last year to 91%. Hire revenue per vehicle is unchanged. The bad debt charge of €3.3m for the 10 months to February 2011 was much less than the €8.6m in the same period last year. The Spanish business now trades under the Northgate brand.
http://moneyam.uk-wire.com/cgi-bin/articles/201103180700101762D.html
this for some time but not yet in. Have noticed lots of NTG vans around lately. Price has doubled since June so I'm perhaps a bit late in. Latest IMS looks impressive hence rise since Late Nov
nyone know when the next interim statement is due?
A new trading range above £3. Buy rating in tonights evening standard with a broker target of £3.75.
It helps that it one brand name now and that there is actually signage on more vans now. Lets see if it can hold 300 this time, 3rd time lucky.
management have done really well here. New advertising has gone well. Ive seen more northgate vehicles in the last 6 months then i did in the last 10 years.
Small dip over the last week which reflects the market generally. Must be good for medium /long term with Leaseway pushing customers to return as the bank reposess vehicles, will they see February out? Maybe, but will be closing doors by the end of March as still no buyers
Leaseway staff apparently told last week they are moving towards closure by the end of March as the only buyers are wanting to cherry pick, would be cheap way for NTG to increase fleet buying just profitable portions of Leaseway customer base and newer fleet, if money available. HSBC target price ought to be achievable all considered
Rebates were exchanged for increased discounts - They are buying at very good prices!! :)
Just found out hire companies do not get rebates from the maker of vehicles any more, this is how ntg used to make there money as they got aroung 6-8K back per vehicle, Its going to be interesting to see if they can make this back in hires, I dont think they will so 4.50 a share in time would be rite
Push 300p!! Hopefully rerating on the way...
Thanks for the info by posters below. HSBC raises Northgate PLC price target to 460P from 260P
OK We i think silkpete is rite, Leaseway have broken contracts will there customers and have a week to hand back vehicles, They have given them 48hr then breakdown, repairs, tax etc etc r cancelled, Not alot off happy people, More for the northgate gang, Think its buy buy leaseway dont think they have an buyer
Should have read there are NO signs of Leaseway coming out of administration whole. NTG now up 50% since the start of December and there is no reason now 300 broken that it can' t be pushing 400 in the next month with most competion out of the way. This will tighten the fleet at what is usually the quietest couple of months with Scotland having most potential for growth
just ticked up, Can it hold this time, will runaway if it does as there are now signs of Leaseway coming out of administration as a whole company leaving lots of customers with nowhere to go if looking National
Anyone knows when is NTG planning to announce the next trade figures? thanks and gl everyone.
There will be quite a few vans going through the auctions over the next few months as the last of TLS go through along with NVR & Leaseway who are defleeting heavily and are likely to be stepping up the volume. Come the end of March all ought to be gone leaving NTG on their own
At a northgate yard today, looking full in there yard again, think it will be hard over next few months but yes will improve in time 2 yr i can see £5, Also Manhiem has said prices have dropped over last 2 months so going to be a bit bumpy but good long term share
Next 3 months should be a piece of cake "Sharetime" NTG will be able to put out anything they get back at higher rates, won't be able to supply enough with about 20k rentals from TLS, NVR & Leaseway. Can't see cut backs being anything less than a bonus as high mileage customers with low rates. Still a lot of gains to be made here
Think NTG might find the next 3 months hard, all the del companies will send back vans that are not needed and alot of cut backs will start with companys in jan,
TLS close the doors today, Newtown closed theirs 2nd Dec, Leaseway in administration, that's the 3 closest competitors almost gone. 300 can't be far off, can't see any reason for retrace esp as big holders won't be doing any selling this side of New Year. 40% increase in 3 weeks makes up for a lot of pain for many holders
to see this share at a good price now sold today at a nice profit as always patience pays of.gla regards mike.