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JV�s
Sneaked it out before the close. Carillion effect �12m annual revenue, �2m receivables write off. Less whatever was to KV�s Better than I feared - not material effect on full year results
Looks like not too much damage done (hopefully). But good example how share price can over react on bad news - 10% yesterday seemed madness
Not good news but could be worse we will finish today as we started around the 60p give or take 0.5p
Liberum have just said although this news is "unhelpful it is not as bad as first feared. Despite the potential write-down of receivables that will result we believe the long-term impact on financials will be limited. This reflects the likelihood of JV Partners and other third parties taking on much of Carillion's workload, as well as the flexibility within Speedy's own operations" the broker adds. The broker added it sees Speedy's immediate share price reaction as overdone.
The other issue to consider is the amount of equipment that is likely to vanish! Also, any contractors picking up any Carillion jobs may well be signed up with others such as A Plant, Gap etc The RNS ought to eliver some news today one would hope given the gravity of the situation with such a prominent customer to give us all an accurate insight to their plight
Speedy Hire were Carillions preferred supplier - and had been for at least 9 years afaik. They will clearly have a bad debt write off which will be significant. I wouldn't be massively worried about the long term hit on revenue, the margin will have have been rubbish & they will pick some of it up with re-tenders. If the bad debt is as bad I expect, they should really be making a statement today or tomorrow - it would be pretty remiss not to know the exact number already.
Surely many of these contracts now in limbo will be re-tendered pretty quickly with Government help, otherwise its going to backfire quite spectacularly on the Conservatives. I note other companies like AHT and even HSS haven't reacted negatively at all.
I think 10% fall over plays it, but just another example in a long line where SDY look back on track before either scoring an own goal or suffer from external events. My guess is close today around 56-57p
To be honest, I'm very surprised its only �8m. They talked about 8 months ago about a 3 year extension with Carillion that was worth up to �45m over 3 years. Lets say, �13m per year, probably 60 days terms but extended recently more like 4 months, �4 - �5 m hit to bottom line ? Might be mitigated if some of that debt is to Joint Venture and they have joint & several written into contracts. Might be worse depending on how many small subbies take the knock as well. Just thankful that they moved away from the strategy of focusing on the big customers.
Dreadful news about Carillion - I’m reliably informed this customer is probably Speedy’s second or third largest customer at around £8m per year. Whilst any debt will be a concern, replacing the revenue will be the biggest hurdle - not good :(
I Dont think this will be the only one there will be a lot of other firms involved
Yes, it would be very interesting to know how much Carrilion are in debt to Speedy. Are they defaulting on current payments when due but are still able to hire equipment meaning the debt increases every month ? Anyone?
There will be a big hole in revenue credit if Carrilion goes down they must owe Speedy millions.
getting there little by little. A penny rise a week will do nicely. This to me feels like the last Q4 2014 when we marched up from low 60's to high 70's before things went awry (again!).
Good morning nohearts and all sdy investers can see this going a bit more this month +66p {:-))
Happy new year to you all. Some big transactions yesterday and and a further 1.6 million just now which ostensibly look like sells, however 61p still holds firm. I expect to see a quick ascent to 66p if the bullish momentum does continue.
Good morning Maccaroo, good morning all Speedy followers. Edging up nicely - may see 65p by mid month. Increasingly confident that its broken out of its mid 50's range
Good morning all {:-))
Merry Xmas to all investors here. If SDY can pass its final test demonstrating real organic growth then the SP this coming year should prove a lot more dramatic and rewarding than the last.
Merry Xmas and a prosperous New Year to all Speedy followers.
Good morning Nohearts {:-))
Good morning Maccaroo and good morning all speedy followers. {:-)) Lets hope we have broken out of the pennies either side of 55p range. Looking good
Adjusted EPS will be 3.5p for the year - and while I don’t like to see exceptional items, I don’t think Share price reflects progress made over last 18 months. Net asset value and dividend makes it pretty limited downside. 80p looks too much - but a 10p rise from here seems fair over the next few months. Sentiment and construction sector holding it back, plus we need to see evidence of organic growth
Fingermouse. I base these figures on gut feeling and natural optimism. Having said that, I am surprised that the SP has not risen faster than it has. However, thank you for reading my posts, let us hope for continued improvement.