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IRV have won �938M Government Contracts in last 12 months, topping the table of Strategic Suppliers. I can't see the government backing away from them now........... I also don't think it's helpful to try compare Interserve's position with Carillions' - massively different. If you remove the Efw debacle from IRV, which they have nearly finally exited and probably "over-accounted" for - then you are left with a stable solid profitable Construction business, an expanding FM business with a mix of older low margin contracts (due to the minimum wage) and some profitable new projects - plus excellent forward workload. Add that to the new management team and the result will be a positive year - big increase at end of March imo.
With Carillion in liquidation and 9.3% shorting this share, I thought there maybe a slight dip short term, but holding up well today. And obvious advantages now longer term as IRV are major government supplier. I foresee be a big shift upwards at end of March, so shorts might start being closed out over next few weeks? GLA
A good week - nice to see them staying stable today, following the recent gains A good platform to move forward......hopefully Onwards and upwards GLA
Long term this is a safe investment - as stated previously - double your investment this year. Short term the question is : will this keep rising gradually, stay steady or drop back slightly (through people taking profit / security). If the large funds now have enough confidence, then it could increase the share price significantly short term, otherwise we may need to wait until the end of March for further big rises. Good to see those who talked this share down or shorted the share, will be now looking closely at their choice of action over the last couple of weeks. Perhaps they underestimated the solid underlying strength of this Business or the belief that current investors have in the Business. One way for the doomsayers and shorters to recover any losses, could be to invest in IRV now and wait like the rest of us for it to keep going in the right direction..... GLA
INTERSERVE TOPS GOVERNMENT SUPPLIER TABLE Jan 05, 2018 Interserve tops Government supplier tableInterserve topped the list of the Government�s strategic suppliers in 2017, winning �938m of work, in a table published by data provider, Tussell. Recently announced wins include five year FM contracts for the Department for Work and Pensions (�227m) and the Department for Transport (�190m). The table was published just before Christmas by Tussell, a data provider of government procurement information, and by their definition �strategic suppliers� are those who work with government across a number of different departments. Interserve�s share of the total award/framework value was 11% and was closely followed by Amey with �928m. Tussell also published an overall list of suppliers to the Government with Interserve just outside the top ten, topped by First MTR South West Trains for a one-off contract win of �3.4bn. Other recently announced wins include a �500m construction framework for Manchester City Council which covers highways and infrastructure across Yorkshire and the North West and a �140m FM contract extension with the BBC. The new rankings were published in the national press earlier in the week.
http://www.fm-world.co.uk/news/interserve-wins-five-year-deal-with-thomas-cook Double your money this year, if willing to leave in for 12 months �2 Christmas 2018
Still not giving up on £1 for Christmas........... But I maybe a week out :-( This share will go up steadily in the New Year - solid company getting back on a sound financial footing! Safe opportunity here to double your money in next 12 months imo Happy Christmas all and a very prosperous New Year
On the contrary I believe they may have over-estimated the final exit costs from EfW. Also I don't think they have fully factored in the recovery from insurances ! Leaving headroom to invest in growth / exiting non profitable markets next year. I don't think we will see the share price staying this low again Confidence increasing with investors now, following recent announcement Just needs a couple of large funds to move in and share price will rocket.....could still reach £1 before the Christmas break..........
Not sure about years of mismanagement, but some bad decisions definitely. Agree that Debbie will sort this out as solid underlying business. May sell off RMD, but hope not as It would be well under valued at present ... Construction arm should always play a big part, as it cash flows the FM business. Shouldn't need to wait until Feb, Good news coming before Christmas.....me thinks
Disagree. Share price is currently well undervalued, bad news is all out, good news will land prior to the Christmas close. Don't be concerned by the doomsayers and sell at a loss, just hold or buy in if you want to take full advantage! �1+ at 4.30pm on 22nd Dec - watch this space!
The minimum wage maybe an affect, but Interserve were hit by the rise in the minimum wage from �6.50 to �7.20 April 2016, which affected the profits that year by circa �10 to �15 M. On all new Contracts won, they will have learned that lesson and factored in future rises. On the older long term FM Projects, then yes there could be an affect but others like Serco are holding up well after the news. I tend to agree it is the lack of any new announcement (on their financials) from Interserve that is creating uncertainty and giving the Shorters an opportunity. It would be good if it came soon and caught a few shorts out. Sit tight imo, good news on the way, but when and at what cost in the short term?
Just my opinion, but I think they may surprise the market, by squeezing enough cash out the Business to meet their current financial obligations without any additional borrowing. Meet all the banking covenants and re-finance at end of tax year as they always would have done. Possibly new CEO & CFO being very cautious as you would expect them to be until they fully understand all assets & liabilities.
Looks like they are going to bounce about around the 80's until good news comes out, although may creep up..... it seems there has been a major cost cutting (redundancy) exercise across the Business.... Costs lower, so should be leaner moving forward They need to get some confidence back into the market, regarding financing agreements and not breaking banking covenants ........can't be too long now before some better news comes out surely.......... then it could move upwards quickly imo.......
Yes, hopefully hit the �1 mark before the week is out....... In far stronger position than Carillion Should rise to �1.20 + in short term, but then a slow road back to previous levels above �2.50 prior to the EfW and Trading updates... unless significant good news comes out
Could be slow recovery, but all bad news is probably out the way now with new CEO and CFO in place Get shot down no doubt - but still a strong underlying Construction Business (minus EfW) and good forward workload Starting to get back on track