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If non-essentials shops are going to get to reopen sooner than most had thought, will they need the full rumoured £500M?
thanks x66rjp and others who have chipped in on the previous RI, im going to stay on the sidelines for now until further details are know on future financing. I like the recovery story here due to the domestically focused outlets in rail and US so hopefully they announce something soon then the sp can rebuild from there. Have a good weekend all. C
Placing in March 2020 was at £2.50 so would assume that is the floor for this drop. Based on the previous raise being £200m and this one likely to be £500m - the dilution will be higher so hard to see how the sp can drop much further before an announcement on the RI terms.
As per the RNS below from the 9th - Report of partnership shares at £3.35
Is it likely that any RI would be at the same or similiar level?
If so, what would this mean for the SP in the near to medium term?
Cheers
"The UK SIP is a share plan available to all of the Company's UK employees, subject to qualifying conditions. The UK SIP is administered by Computershare Trustees Limited, a UK incorporated company, who is the registered holder of the Shares.
This announcement, including the notifications below, is made in accordance with the requirements of Article 19(3) of the Market Abuse Regulation (EU) No 596/2014.
1
Details of the person discharging managerial responsibility
a)
Name
1. Simon Smith
2. Jonathan Davies
2
Reason for the notification
a)
Position/status
1. Chief Executive Officer
2. Chief Financial Officer
b)
Initial notification/amendment
Initial notification
3
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)
Full name of the entity
SSP Group plc
b)
Legal Entity Identifier Code
213800QGNIWTXFMENJ24
4
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)
Description of the financial instrument, type of instrument
Ordinary Shares of 117/200 pence
b)
Identification Code
GB00BGBN7C04
c)
Nature of the transaction
Purchase of Partnership Shares and allocation of Matching Shares under the UK SIP.
d)
Currency
GBP - British Pound
e)
Price(s) and Volume(s)
Partnership Shares
Price(s) per share
Volume(s)
1. £3.35
2. £3.35
1. 37
2. 37
Matching Shares
Price(s) per share
Volume(s)
1. £0.00
2. £0.00
1. 18
2. 19
f)
Aggregated Information
- Price
- Volume
- Total Price
Partnership Shares
Price(s) per share
Volume(s)
Total Aggregate Price
1. £3.35
2. £3.35"
Must admit, I bailed first thing this morning and managed to get £3.05 for my 5500 shares which was painful, but not a terrible result. Until the RI is settled, im staying out here but will definitely consider getting back in and subscribing to the RI if the terms are good. To raise 500mil based on an sp that is likely to fall further they are going to have to dilute heavily here like IAG did. I do think by mid to late summer things could be looking up for SSP and i do like their reopening strategy.
The year end presentation from December is well worth a listen to and their CEO, Simon came across really well and I wish them well. Now the cat is out of the bag, whatever they do, they will have to do it quickly as the futher tbe sp falls, the more shares they will have to issue to get their 500mil. I'll be keeping a keen eye on this one. Stay safe all. C
If the new shares were issued at say a quid each, they will fall below that. Even when the whole country has been vaccinated, there will still be restrictions placed on travel to prevent new variants. Places like Airports will not return to normal even this time next year, this will hurt SSP.
Welcome arthur,
I believe the RI sell off has just offered an oppurtunity to get in at a discount.
Berenberg just a couple days ago with a bit rating said "that despite the near-term risks, it does not change the fact that it remains a well-run company with compelling growth opportunities"
I agree with this, and hopefully we will do ok as vaccines and travel outlook improve from the summer onwards.
Will be keeping a close eye on this over the next few weeks. Hopefully management will announce what they intend soon, which should stabilise the SP. it's the absence of a plan which make markets trash the SP.
It is now.... has come down to a level where i'm comfortable getting in at. GLA.
Ouch....this is a steep drop. How far is this going to slide? Let's wait for news on rights issue.
BoE CCFF offered a loan facility that it was going to withdraw in February, of course a company will make full use of it whether it ultimately needs to or not.
This will be a flyer IMO in 6 months time or sooner. DYOR
ncluded within this amount is £300 million from the Bank of England CCFF, which has been drawn down in full during February. The recent draw down is solely due to the scheme closing for further drawings from March 2021. As previously communicated, the CCFF commercial paper is repayable in February 2022. The Group noted in its preliminary results that its current monthly cash burn rate was approximately £25 - 30 million, and it is expected to remain in this range during the second quarter, which ends 31 March 2021.
Whilst SSP is confident in the medium-term recovery of the travel market, there remains significant uncertainty with regard to COVID-19 and associated travel restrictions. In that context, the Group continues to evaluate the merits of a range of funding options, both debt and equity, that would further strengthen its balance sheet.
OK, I threw caution to the wind on Monday and bought in, not massively but enough for this RI announcement to probably hurt quite a bit tomorrow. #facepalm
RI's if you play them well can be absolutely fine, I bought 90k IAG shares at 84p in September that are now trading at £1.51 so with the right existing shareholder deal in place, we could do well if trading conditions improve over the spring / summer. That said, what were the terms of the last RI in March 2020 as I can see it was a poultry 6% discount on the trading price at the time. Were there any 3 for 2's or anything like that as I'm sure this would have to be heavily discounted for it to be attractive enough for current shareholder? All the best, C
I'm looking at SSP Group however the concerns I have were raised in articles below & Net Debt (incl leases)
'Uncertainty aside, industry bodies didn't expect air passenger numbers to return to their 2019 levels until 2024, although those in rail might recover sooner.'
As well, it was "likely" that the firm would need to go cap in hand to investors again, as restrictions on HM Treasury and BoE's Covid Corporate Financing Facility increased in May 2021, and due to the reintroduction of covenants at FY 2021, rent deferrals, debt due in 2022 and the time needed to return to management's target level for leverage.
Quote
Overall net debt increased by £208.6m to £692.0m on a pro forma IAS 17 basis, with the significant free cash ou??low in the year of £394.9m offset by the £208.6m equity issuance (net of related fees) in late March.
Net debt excluding lease liabilies at 30 September 2020 (IAS 17 basis) (692.0) but Lease liabili??es (1,349.3) Net debt including lease liabilities at 30 September 2020 (IFRS 16 basis) £(2,040.6)m
GL
Hi, I like the look of SSP and having had really good success with National Express over the last 5 months, I'm looking for another good recovery stock that could breakout as the global outlook starts to improve. I'm looking for a stock not as out there in terms of risk as the airlines, but still has plenty of room to recover. I've downloaded the 2020 results presentation from 2020 and although there is a fairly high dependency on air travel, the US market is mainly domestic and there is a good mix of rail related locations which a domestic travel recovery should benefit from. I also see the cash burn is down to 25-50 mil, but what strikes me is the cash reserves of just over 500 mil. Is anyone prepared to put themselves out there and outline why they are invested here? All the best, C.
Even better day today than yesterday.
I am liking this share already.
Vaccines should get things open again.
It seems that way to me.
Directors are buying more - maybe pocket change to them, but still encouraging.
Rossef2 what were you saying?
Ouch..!
I thought the same as did quite a few others I expect
better top up some more, hard to see this going up any time soon
Norges Bank, HSBC & BlackRoc all increasing their holdings in SSPG in the last week is an eye-catching move. I've topped up - get in now before its too late!! GLA
oxford vaccine news today
What a day. I can't wait to see the gains after the vaccines start to roll out. I imagine the sp will drop a bit in the meantime as a 50% rise just on news of a 90% effective vaccine seems excessive. Unless insiders had extra positive news today on sspg.
Still risky to buy atm, but its so tempting.
Their last placing brought in 11 million when sp was around three pounds. Considering their own estimated loss is 25 million per month from last trading statement, I'm not sure if another RIssue at present time would do much apart from anger the shareholders. Depending on how much capital reserves SSPG require, i would think that they have enough until middle of next year or longer at present cash burn.