RE: Shares down today26 Jan 2024 10:45
This is a reply to email I sent to SRT a few days ago
I’m pleased to say that everyone is super busy. Hope all is well and happy new year.
We are not directly part of the inter-gov loan process, so I can’t say anything for certain. However the UK inks billions of pounds of these every year and in fact we are one of three in process. This is normal stuff. We are also told that the process is right at its end with final reviews of the agreement being undertaken prior to signing - exactly as I hopefully indicated in my web cast last week. Therefore I think the chances of it not being concluded as extremely slim - it’s just a time thing.
If I’m the seemingly very unlikely event the loan agreement didn’t proceed they would not have the cash to pay us and so we would not start the project. It would leave us and the customer in a funny situation of having a contract with no cash to pay for it - on this case I expect the customer would apply for budget from internal sources which would likely take at least a year for such a budget cycle. But I reiterate that UKEF is extremely positive and it’s very unlikely.
Regards
Simon