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thanks for your reply. I have no intention of investing any of my hard earned wonga in this share. I've already made a little profit. I do however have a another vested interest in this company in the form of an Assetco pension so am watching how this pans out and am interested in views from both sides of the fence.
you both seem quite level headed on this share, any thoughts on my question posted at 09:54.
Opinions from both sides of the fence please. How will the SOA affect Assetcos ability to obtain future finance ? Surely they can't get £75 million written off with the SOA and then get finance from elsewhere when they need it.
to anyone who cares to answer. How will the SOA affect Assetco's ability to obtain finance in the future ?
I wasn't deramping, just stating a fact, so stop throwing your dummy out of your pram. Market sentiment will determine the SP, so we could see a big rise following approval of the SOA., then again we might not. A t/o is the only option in my opinion as they will need the financial backing from a larger organisation to improve their cashflow and provide the finance for them to fulfil their contracts. The financial penalties for failure in their contracts are too high for them to go it alone and therefore eating into their profit.
I posted it out of the blue because i new that you would be the first person to jump on it. I don't see you correcting other people when they're bigging up the company with how profitable Assetco is. So where are the latest profit figures?
Why do you get so defensive. I was just pointing out the actual figure. Some investors on this BB would probably just read the headline, read posts on here and take it as red that they made £12 million profit. IMO opinion £2.271 million profit after tax is not great is it.
I know that companies headline their pre-tax profit and that it is broken down correctly. The point that i am trying to make is that, when figures of £12 million are banded about on this BB it gives people the wrong impression about the actual profit made for the year. I am not deramping, just staing a fact, that Assetco made an actual profit of £2.71 million.
Look on page 44. It clearly states profit as £2.271 million.
Just for information. Assetco did not make £12.1 million profit in 2010. They actually made just shy of £2.3 million. Its funny how they show £12.1 million pre-tax profit nice and bold on their annual results document but show the actual figure of £2.271 million in small print further down in their financial statement. See page 44 of annual report 2010.
Something tells me you're not a big fan of this company.
IMO assetco cannot survive on their own, they rely on finance to buy assets to run their contracts. Would you provide finance to someone who can't pay what they already owe ?
IMO there won't be any news of a t/o for another month or so. I think that the judge will put the wind up order on hold so that assetco can discuss the proposed SOA with its creditors and come to an agreement that suits all concerned. Another court date will probably be set for 1 months time when the judge will expect the SOA to be agreed, the t/o can then take place. I don't think that Assetco can survive on their own and a t/o is the only option. They rely on credit and finance to run their business and having to go into a SOA with their creditors will seriously affect their 'credit rating'. Can the SP hold at this level, who knows ?
Personally I think it will be closer to 4p and think that the SP won't be far off that at the time the deal is done. Any company who comes in will not want pay over the odds for a company that was close to being wound up as further investment would also be needed to move the company forward. Future success will increase shareholder value.
The ME contracts are fully dependant on Assetco, as are the fire brigade contracts. You have to undestand their contracts to realise the financial implications. The LFB fleet is not leased, its financed over the life of the asset. Financed by banks to which repayments have to be made. The ME contracts are no different. FYI, I worked for the LFB for many years and also for Assetco on the contract management team for the LFB contract, so I do have quite an insight as to how the contracts are setup.
You are correct, no one knows what's in the SOA. My concern is if they opt for the £10 million investment and try to keep afloat, where are they going get finance from for their middleeast contracts. They certainly dont have the money themselves and banks won't touch them with a barge pole. A t/o is the only sensible option left, imo.
Assetco will not have lower debt, they will just have longer to pay for it. This will buy them a bit of time to hopefully start making more money from their business ventures to keep the creditors happy. Their contracts carry high financial risk for failure and could easily wipe out a lot of their profit.
i think that they need to get shot of the LFB contract as soon as possible as it is a noose around their neck. There is not great profit in the contract, more finance will be needed to replace the vehicle and equipment fleet and the financial risks are very very high for failing to meet the KPIs in the contract. Just my informed opinion.
I agree. £10 million won't get them far especially with the finance they have to find within the next few years to start replacing the whole of the LFB fleet again.
Thanks for the reply. I know that Arcapita want to take over Assetco and that Asset Investment Ltd own shares. I was just making sure that they were not linked ie. subsidary company. I am now convinced that the RNS was a typo and won't be reading to much into it.