Member Info for Dingo1

Completely agree. All stakeholders also including employees and customers are owed visibility of the accounts abd without being strong armed into a sale. Ifthe Management and Sid want to force a deal in advance then you know it is sus and keen to avoid BOD fall outbut potentially other bidders. The BOD need a hard time at AGM and really feel the heat and do the right thing

This is fundamently a solid business and could be a great one. With strong controls and risk management, realigned culture and backable leadership why could it not be £2.5 bn + valuation. With a change of leadership it would getting refi and continue to secure further profitable contracts. Unfortunately I only see this with either an activist investor or PE takeover where at a fair price where the new BOD would secure significant upside. Hoping for another bidder.

Can someone smarter than me honestly and sensibly answer a question. If major customers who will have siginificant procurement departments still be writing new contracts with WG if huge risk on financial viability ?. What assurances have they been provided to satisfy clearance ?.

Lightonheat, there would appear to be no up side to lenders of not supporting waiver extension:

1) Suspect the amount of 1st phase of funding from Sid was amount carefully calculated / even discussed with lenders to keep them happy (I think approx same amount as shortfall in cash flow identified in previous updated)

2) Post acquisition / stabilisation there will be a new refi and if existing lenders supportive I am sure they will be in the running

3) A strc

Can i just point out with $ at 1.33 the debt (excl leases) last reported is effectively £518m and they are putting in £450m conditional, defacto nearly wiping out debt due Oct 26.

BlueBoy we don't know if covenant waiver is on technicality of historical results from Deloitte report / restatement of a/cs or more importantly future cash flow / Ebitda cover ratios. What we can assert with reasonable confidence is the lenders have lost confidence in the Management and their numbers. They will have more confidence in refi once report published in full to them and 2024 accounts

Coldspy, given management time, cost and effort over this period and past i don't see them walking either. I am sure late stages of the match knock about now.

Blueboy, you are correct about 85p v 35p. That said the II are not fools so it is either the case the BoD know Co. is a bust, potentially should not really be trading and collectively should be metaphorically put in front of WW1 firing squad or II reject offer to secure part of 450m.

Shaml

Very familiar with how PE works. Goodwill is simply difference between B/S value and what PE willing to pay for future expected value. Part of this is the future contracts as this drives future Ebitda / cash flow and ability to service debt... Not all PE deals are based on asset sales !. My last deal we sold nothing during cycle but grew the business from 1 to 3 year contract base starting point and secure 6x but increasing number of contracts written and scale benefits.

I am still holding. Can anyone on here tell me the following:

- On current trading is there any issue on short term liquidity for the next 6 months and ability to trade ?

- Do we have any clarity on C 70% to 80% II view of Sid offer ?

- Apart from a technical non compliance on Covenant did WG breach their covenant cover ?

- Was there significant impact identified on future cash flow from Deloitte report ?

If there is no clarity then what has changed apart from knowing a proposed non binding and conditional offer of 35p of which the Board are minded to accept.

The market clearly believes this will not happen but does not know for sure. It could be either 35p will not be secured or 35p not acceptable to II and Sid need to improve either offer to Shareholders by bigger ticket or reduced capital injection proposal.

1. Opening position of a bid

2. Debt needs refi

3. Historic restatements

4. Useless BoD

Comments of Bankruptcy as yet completely unfounded. If so BoD acting illegally carrying on trading knowing they cannot settle bills...No indication the current assets not covering near term liabilities.

No comments about not able to get credit insurance ??

So far know breached technical terms of Covenant but do we know breached Covenant debt cover ??. Not seen this in releases.

All so far has bern negotuation, positioning ....If sold as £242m (i repeat again cash injection is all about debt not tradindmg or shareholder return). I hope someone grows a pair for all stakeholders.

Pedro, what else is there. We have had 1) Issues of recruitment governance 2) Historic Accounts adjustment 3) Queries over disclosure and covenant reporting 4) Bad takeover management

Only items left 1) Approval of new business known to be loss making impacting on future cash flow 2) Bribes to win new business 3) Dodgy non curricular activity by the Board. You decide ?.

Jxp. I think any reasonably competent CFO & CEO who have done a couple of Mid / Large size PE deals / value creation roles covering structured finance / refi, divestments, cost and risk management / controls could do a better job than these clowns in the BOD. It is not even a carve out with all the complexities involved. I really struggle to understand how they have fxxxxd this up so badly irrespective of outcome. Worst than the Carillion team !

Don't see 85 pence per share. Debt injection is only until control. Thereafter free to do as they wish. Price is 35 pence

Spot on Wily. Effectively Sid will get a decent return on any short term financing, restructure debt. Divest any divisions unwanted to further pay down debt and pick up future Ebitda and synergy for next to nout. If I was one of their engineers in share save etc I would be furious with BOD and Senior Management. If finances so bad BOD are trading i effectively knowing no longer going concern....Even they cannot be so dumb in a FTSE 250 Co. and not understand implication....

Longfell, this is the equivalent of short term financing. Post completion they refinance debt and when ready just load up more debt and return their short term financing. If future cash flow from projects not an issue then justt helping over the hump and walk away with unreal deal. IIs and PI loss.

LIghonheat, I agree refi does not just happen. That said an order book over £6bn (if true) makes future cash flow income very attractive. Also if PE step in they will manage from own sources if needed short term until proper structured finance put in place. Standard play. I simply struggle to see how if the C £500m not due until October 2026 does not give sufficient runway to resolve and bring this business to better Governance , Management and Performance

Captain Swag, "the Board know the fundamentals" ?. From what I can see most of the Board know jack s**t. Having been CFO that returned 6x to PE investor over 4 years I have seen the art of the possible. I hope the IIs take this on re price or a PE play as right now based on current position unless the BOD have been very much less then truthful for some time then I simply don't buy it on valuation at £242m. Nothing more nothing less than £242m.

Value seeker, you are spot on. Given how much scrutiny and focus put on compliance I am hugely struggling to see how this CEO / Board can possibly be signing off going concern and giving future view in interims if such huge issues on financing / cash flows ....I would love to know what current assets less liabilities looks like on the balance sheet. So many options to support cash flow if needed. e.g Cash rich customers so discounting invoices .........As currently stand at 35p this smells very rotten.

Not sure why engaging having seen your other posts but intrigued to any logic for 450m. Please provide if you can ?.