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It is speculation but the fact that it has confirmed it is moving into a massive new market would be good news expected to raise the price. If an oil company or mining company say they have done a seismic study and think they have found a big discovery the price will go up, its still only future potential that may not be economically viable
Someone previously posted a link saying GT weren’t dealing with FTSE 350 companies anymore? o big conspiracy.
https://www.accountancydaily.co/grant-thornton-pulls-out-bidding-ftse-350-audits
One quick google search on RR Total package will show how stupid you are. RR sell the engines at a loss so they can make money on the servicing. Having worked in multiple projects with RR engines in multiple countries (although Siemens now do the industrial engine servicing) I know a bit more than you, the other manufacturers do the same whether Ruston, Solar, GE. Although the biggest point you seem to be missing is that RR wouldn’t be borrowing money from Syme, they would be borrowing money from financial investors
Someone put a really good post up a while ago about the benefits of Syme to the likes of the wine & whiskey industry. The RSN recently with a list of clients had a number of steel brokers as clients. If you imagine the current market, broker had purchased steel to supply clients (car manufacturer) Covid came along and manufacturing stopped, steel purchases were delayed and prices crashed say 30%. The broker is left holding millions of £ of steel, out of pocket with orders on hold. His options currently are sell the steel at 30% loss, take out a loan (banks may not want to loan Due to low steel prices, high debt) or he could apply through Symes platform for finance until either a) steel prices recover or b) manufacturing restarts and his order book starts moving again, for a 4% fee it’s a no brainer and helps out short term, he also has done the due diligence and the option to use the platform will be open to him for a repeat fee
Only rents the engines out? I’ve worked on a few platforms where we bought RR RB211 gas turbines for the power generators, we didn’t rent them. We do then pay RR a horrendous yearly service contract to maintain the engines and the warranty
Slomo
The client pays a yearly fee for the cash and it’s fixed term, 3 years with a years extension was on the RSN. Syme are at no risk as they are not the lender they supply the fin tech that tracks the stock, the reason that it is taking months from application to implementation for clients and the reason there is a cap on how many clients they can process at once is because of the due diligence process that Syme carry out. If you don’t fit the criteria you don’t get the platform. Any loan to a company carries risk however with this platform the lender receives a guaranteed 4% fee plus retains the stock, if for example a car manufacturer received a traditional loan the lender would join a list of creditors chasing pennies in the pound during a bankruptcy claim. Also 4% is not expensive I seen that RR bonds option was 6.7% somewhere due to their current credit rating
They can go to the bank which will cost them higher interest rates as their debt has been downgraded to junk and at the same time raise their debt levels even more, or they can dilute their shares to raise the $1.5 billion as they are contemplating, either option isn't very attractive to investors. SYME offers something different, it allows them to raise the money for less interest without increasing their debt or diluting their shares. Win win