Member Info for Banburyboy

Concerns are from previous rns
(1) stock over valued - correcting entry is to reduce stock value and profit by a similer amount
(2) revenue has been overstated - correcting entry reduce revenue and restore item to stock
(3) receivables overstated correcting entry impair receivable in balance sheet and profit.
Debt is unlikely to feature as it was not called out as an issue.
The combination of all the adjustments will materially impact profit and net assets by equal amounts. This may mean they breach covenents or suppliers take fright.
Point of the post is based on what we have been told debt is not an issue

Musicman - how ridiculous. That has in one move lost the Tories the next election. Watch the oolls
£ down 3 cents. Government borrowing rates up0.6% in a day. Market knows this is reckless
The 5% cut whilst not hugely expensive rightly will be used to hang them.
Crinkles in Tory party as ever chose wrong candidate.

Erebus - auditors place huge reliance on the reprentations from and Integrity and honesty of management. There is very little detailed audit work. The fact new CFO could not sit down and draw a line resolve this jumps out the page. Why would they not as its not their watch. New CFO is either not very good or the concerns are existential. Sorry but logic says it's the latter.

I did say months ago the sheer quantum of the auditors concerns stock values , receivables and income recognition did not bode well. All three inflate profit and assets. One is bad enough three is a full house.
The fact BDO have walked indicates management are disputing their concerns. I find it difficult to believe they don't have the records to restate as BDO require.
What BDO are saying is look get someone else in independent and they will conclude the same as us. Which they will.
The adjustments will be huge.
Company clearly has some value but I'm afraid as supplier and banking concerns mount the BoD will put up for sale what remains. How much is left for PIs remains to be seen

Looks good Rox.
The merry go round on Wrks / card / Saga seems to be working.
Results for other two on Tuesday !!

Consideration of $500k before any production.
Let's hope this is a sign Congo is imminent as RRR are in no position to commit to that sort of cash.

Hot ticket - there are about twenty posters on this Board and one is Noel so 95% would be your max
99.9999% !!!! They urgently need election officials in the 4 Ukrainian Republics so with that level of objectivity and impartiality you would be a shoe horn.
You are also not inspiring confidence as our legal representative for as and when the BoD s**ft us.

NSS what you call cloak and daggers I call questionable governance.
The fundamentals are fabulous - I don't think there is any realistic prospect of it being taken private due to dispersed share holding. The legacy history is murky to say the least and I have a lingering fear of a legal claim against our assets that would destroy value.
Not being negative but I think a good investor needs risks front and centre. Would welcome views from SHs who know about the companies recent restructuring - is this (a legal claim ) an issue or am I worrying unnecessarily?

Hot ticket - three small words - alternative investment market. Otherwise known as the wild west or a Casino. Fairdealer told you a great example.
You are clutching at straws - shareholding here should come with a wealth warning.

Gary completely agree posters like Plasterer are significantly behind the curve on house building shares.

Ade interest rates are set by the bank of England and are based on Macro economic considerations.
Fiscal boosts I.e stamp duty cuts are government initiatited.
In terms of the housing market have you ever thought the second (stampduty) might be to mitigate the impact of the first ( interest rates) to cushion the impact on the housing market.
Less crazy politics rather smart interventions in certain areas to cushion economic fall out from rate rises. I'm not political at all but there is a certain logic.

Paddy fantastic timing though. I think you may find at last nights close you with a bit of luck have called the bottom. That would put you in the worst tipster ever catorgery.
I and others have said to you many times the following :
- no sign of house prices falling year on year they are still +10%
- 90% forward sold so some protection this year
- PSN net asset value £13 ashare this is a traditional floor
- Berenberg who are bearish on HB's have - future house price growth as nil and cost inflation 5%. Margins are currently 25% so a fall to 20% is no great shakes.
- Supply of housing is critically short - the law of economics says this will support prices.
- PSN operate at bottom of market with prices circa 260k. They will benefit as the anyone distressed trades down. Gleeson results last Thursday demonstrated that trend
- Interest rates are at historical lows even with a 1% hike BoE base rates will still only be 3%
- Inflation is coming down - the fuel cap takes 5% off
- Lenders will not repocess and there is no issue re jobs market which caused previous crash.
- 65% of deals are fixed at present
- the sweet spot on when a mortgage becomes more costly than renting is currently 5% interest rates will never reach there.
That's a pretty short resume of the bull case
Would be great to hear a response to each line but i think your strategy is more instinct and gut than anything more considered. Each to its own but good to call out your position for what it is.
Your timing of a post this morning made my day :)

Paddy - poor timing of your post its up 4% this morning as are other HB.

Hi Beza seems reasonable at £900k profit.
Absolutely no risk of company going bust

Bridge 75% is full control. A few individuals can take in private with scaps for me and you. The Board only has its own and a few shareholders interests at heart.
Had the fund raise been equal and pari passu then it was reasonable with MS taking up the slack thats fair. The fund raise was not needed and is incidental to control the real intent. 75% is a special resolution.
A good asset and still could be some money to be made but you will need exemplary timing. What is for sure is they will make five times the money per share we will. Takeover in short time is our best bet as it limits dilution damage to what is now. No doubt huge amounts of options RNs soon. So predictable. With 75% and rising they will vote a golden pill to stop takeover.

Bridge - these are not conspiracy theories. That's Kennedy is still alive QNN the trade towers didn't happen.
What you have is some informed posters who have been here a lot longer than you and have taken the time out to research how the company is slipping from our grasp.
You have a more laid back attitude to the intentions of the Board than many others do. But please don't insult us by refer to our concerns as conspiracy theories. You are entitled to your view but at face value the last two fund raises have not been a level playing field and a few high net individuals have secured control of 75% of the company and could take it private on a whim. That's fact not conspiracy.

Fairdealer just to add with only 21% private share holders are now potential toast as large holders have the 75% they need to vote through anything at all.
No doubt the placing was arranged in the ratios to main SH to get 75% plus and control.
AIM at its most awful and not even subtle about it. Holders should be very careful with this one

Geordie - 10p was illustrative only - certainly a 33% dilution in key shareholders favour means whatever we get is significantly lower. Key point is for Jo public we need a take out . Boards main interest is itself and a few major PIs. A take out locks in our share of the pie. The BOD will work to reduce our share.

Geordie - I agree this company has value.
What we are alluding to is Swindles and his merry men engineering a dubious but as fair trader says legal scheme which leaves PIs with crumbs.
The company will do well but I'm praying for an unsolicited offer as this will be the only way we get fair value.
So offer comes in for 10p. Board will reject as understated value. Price will spike at 10p . Thats when to sell. Board will reject offer and continue their surreptitious take over of the company and you will never see 10p again. Classic AIM

Ripley excellent posts.
What an awful Board - Swindells by name and all that.
Clearly the major shareholders see value and are positioning so they control a greater proportion of the company. The Michael Spencer issue is appalling
There is a real risk they do further skulduggery., taking it private. negotiate and reccomend a take over on the cheap where they have a material undisclosed interest and gain.
Very nervous on my holding here - assets will do well whether ordinary SHs like us get a fair share or perhaps even anything is debatable.