Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
I think this lot know what they are doing CW. They will deliver £400M+ profit plus in 2021-2022. They will get more than £400M in disposals - note CEO's 'very confident' reply to questions. Everyone will be getting a dividend in 2023. But yes a 'waiting game' as they need time and are certainly in no mood to over promise.
Bab have signalled the disposal of their Oil & Gas Aviation business. What might be next? I'm sure they would be open to offers for other elements of the Aviation business and they do stuff in South Africa they don't do any where else. When I was an insider SA was run by some lovely people but its performance was very up and down and you wondered why. The big one for me is Cavendish the nuclear business. It would have great appeal to current UK players or international organisations looking for a foothold in Nuclear. That little lot would add up to more than £400 Million. Thoughts on a post card from others?
I have lots of friends working in Bab**** so their jobs being safe would be great. However when they mention a figure of £40 million restructuring costs that suggests a level of exits well over 50. Maybe the truth will lie somewhere between. You can't really stop recruitment in a business of Bab's scale and its not always possible to transfer skills to fill gaps.
This is a guess on dividends. Perhaps half year 2021-2022 after they have finished benefiting from furlough and have traded to plan for 6 months and with the year end in the bag. This should create more interest from fund managers supporting a close to post COVID price (£5) by the end of 2021-2022.
Not sure the rather considered Group now at the top will react to rumour like RI. If they did and then there was another rumour, and they said nothing, everyone would think it was true. Maybe. Think we are going to have to patiently wait till May for the good news.
I have restated the words I used below for clarity. They were measured.
I would imagine they will do what they can to finalise the sale of Oil & Gas Aviation ahead of the results announcement in May 2021.
I remain optimistic about the future of your share holding. All the best.
The Executives in Bab**** are increasingly confident in the new Top table team. It is not unusual for a new team 'to get the bad news' out of the way. First there was the right down of the Aviation business then a review of all contracts (lets just make sure nothing nasty under a stone). So expect a little more on revenue and profit take on existing projects in May but nothing materially negative. Bab**** are actually quite a prudent organisation and quite often realise more value than originally estimated. I would imagine they will do what they can to finalise the sale of Oil & Gas Aviation ahead of the results announcement in May 2021 - this will both improve the cash position and reduce the capital employed. Then its full steam ahead - so buy shares now and you will be the right side of a 10 percent dividend and will have more than doubled your capital by May 2022. Once they get rid of the toxic Aviation unit expect some acquisitive interest which is likely to be rejected.
Sold six figure sum yesterday - bought them all back today. This is the news we have needed to hear for ages. Decisive action from the Board. Cash in through the door and less capital employed in the business. The Emergency services element of the Aviation business is a much stronger strategic fit. I'm sure this is win win.
It's just going to be this way until we get some hard news ahead of their results in May. The odd contract win might help but only confirmation the business is trending back to historical results and does not have a debt problem will do the trick. There are better days ahead for Bab but its going to be bumpy.
Bab**** have made use of Furlough and I can't see them paying dividends until they have stopped that. I think it would be more likely to restart at half year 2021-2022 rather than at the start of the financial year. Also at the next half year there should be a return to normal trading and a clear sight of circa £500 Million year end profit 2021-2022. If it returned to a 30p a share dividend the yield at current price would be north of 10%. So for me its a hold with a stop loss over 350p - hope for growth from there and a great yield.
I worked in Bab**** for a number of years. Their Marine business on its own is worth more than the share price. Their reputation and contracts are where the money is in UK Defence spending: Through life support to end of live of Vanguard, expanding Astute Class in service support followed by Dreadnought. They also have a strengthening position on Surface Ships. Bab**** are increasingly well placed in Marine in Canada, Australia and the Middle East. They are well positioned in fast jet support and flying training. Defence Land is probably not a shining jewel but it's also not really where the money is. The Aviation business has been a drag but it has expanded the International footprint which may create opportunities going forward. Look for a £200+ Million profit at year with no dividend (due to Furlough) and limited bonus which will improve the cash position. 2021-2022 we will see a return to run rate profitability of circa £500 Million - then much depends on the success of the new CEO/Chair Person partnership. The Mood will change and the share price will push over £6.
That’s sad I always doubted buying a VC backed business where incentives and the people it attracts are totally different to a Corporate. different kettle of fish with VT Group where it was difficult to distinguish the people and the culture. But there is still a great company there that if it plays to its strengths will recover and prosper. Nice to chat. Good luck with your shares.
Bab**** are stronger than their share price. They made a poor acquisition in Helicopter business but it will return to a £500 million profit business in 2021-2022. Expect any final bad news of a reasonably marginal level in May 2021.