Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Agree weakness at top has existed since Mike Averill (now a non-exec at Biffa) retired. A sequence of appointments lacking sector experience in a business where this is important. Current CFO has been in job for years now and suspect has still to report a successful year. Augean, with former Shanks Director as Chairman has also performed well.
Pendragon results out today which, as a comparable competitor, gives a good idea of Covid impact Lookers will have experienced. Although reporting good recent sales, like for like on prior half year is 43% down which will have damaged the balance sheet and suggests Redwine may well be correct on the capital raise prediction. Clarification RNS needed urgently, it is irresponsible to leave shareholders in the dark for so long.
Over a month since the last update. This can not be good news. With the external resources being thrown at it it should have been possible to completely reproduce the prior year’s accounts by now so must be requiring a detail review of many years.
Yes, invested for the long term in around 2008. The Board rejected an offer from Carlyle Group of 120p in 2010 because it “under valued the business” and it has been down hill ever since with ridiculous amounts paid to the Board for continual value destruction.
Hope you are right but there are a couple of flaws in your argument. Firstly, Pendragon’s share price has hardly moved for weeks. They are a direct competitor and would have participated in the sales boom. Secondly, we have no clue over their asset position. It has taken so long to produce the accounts it is quite possible that there are major asset write-downs or a balance sheet reconstruction. The fact is that until we get a clarification RNS and comments are just pure speculation and these boards have been full of individuals predicting massive share price increases for troubled businesses and most were woefully wrong.
Hope you are right but there are two flaws in your argument. The share price of Pendragon, a direct competitor has barely move for weeks and presumably are sharing in this boom. Secondly, we have no clue about their assets. It is taking so long to clarify the accounts, they could be facing asset write-downs and possibly the need to recapitalise the balance sheet. Until we see a clarification RNS all comments are just total speculation. If you track back on these Boards you will find individuals predicting massive share price increases on companies with problems and the vast majority were wrong.
Why? Could go either way depending on the extent of the bad news and the impact on the balance sheet. It is taking a ridiculous amount of time to get the numbers sorted which suggests it is more complex than first thought.
May well be volatility depending on what news emerges but their direct comparator, Pendragon, has been fairly stable, albeit at a low level, in the same sector, for several weeks.
Oiky, fortunately I sold mine at c£4.50 as I needed cash and the max price of my current holding is 70p, a point at which many commentators thought the only way was up. Have some pretty sick BT, Centrica and Marks tho!
Agree that this is shocking governance for any organisation and an indication that the Board had no grip on what was going on. In these situations, no news is generally not good news and suspect a recapitalisation of some sort may be being looked at.
Maybe the reverse. Wonder how long it will be before Lloyds propose a share consolidation to deflect attention away from the woeful share price performance. It worked in some respects for RBS and a large amount of the public have forgotten that the current price (bad tho it is) is after the consolidation.
Do not think there is a normal. Depends on what they find. If there is more than already declared then they will need to provide updates. I think they may have expanded beyond their ability to control the business. They took over my local Mercedes dealer that I have had vehicles from continuously for 30 years and ruined it so badly that I went elsewhere after my last PCP ended and I know I am not alone.
Agree. History suggests that once you start looking a myriad of issues arise. Just look at Patisserie Valerie, NMC and Finablr in the recent past. All suspended then the really bad news came out.
No idea but thought I may try and ask that question at the AGM, albeit a virtual one. Have been told that it is not possible to attend either in person, which I understand, nor by any electronic means.
A huge fee fest for KPMG, which must sweeten the pill for a business that has been censured so often for its audit standards. Google KPMG and censure and you struggle to decide which one to look at first. The reward for an incompetent audit is just more administration work for another of the big 4. Something seems wrong.
Annual report issued today. As has been the case for years, the Executive Directors remuneration bears no similarity to shareholder value. Obviously, no comparator for CEO as new appointment although suspect he will be happy with the £0.5m bonus. Remuneration of CFO is over 100% above last year for overseeing further value destruction. What will they get paid if we ever see value creation?