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All points copied from the report. My opinion is irrelevant as it is just an opinion ! Regards
All points copied from the report. My opinion is irrelevant as it is just an opinion ! Regards
COPIED FROM THE REPORT Individually significant charges of £71.0m, including intangible asset write downs of £62.0m Acquisitions and disposals can be costly to complete and complex to deliver the targeted benefits. Risks range from deal execution (including price negotiations, due diligence, and contracting) to transition and integration into (or separation from) NCC Well-executed acquisitions and disposals with an appropriate purchase price can create significant value. Poorly executed acquisitions and disposals or those with excessive purchase prices can destroy shareholder value.
Discovered this week that Rickitt Mitchell were the corporate finance advisors on this deal as they were on the many of the acquisitions NCC Group plc undertook. Read into this what you will but both companies share prices have the same trajectory and these " advisors " walk away with hefty fees. Great work if you can get it !!
Well I am sure it will not be too hard for him considering his large share sale in 2014 and a year or two of severance pay for losing shareholders one hell of a lot of value on his watch !!! I billion valuation to under 350 million in under six months takes some doing !!!
Good comment from successful investor Luke Johnson in his Sunday Times article where he makes a good point about the CEO and Chairman of DX PLC overseeing the destruction of 200 million pounds worth of shareholder value and still being in their respective roles !!!!
What do they own apart from some expensive leases on fancy offices . The only asset they really have is the staff and they can move freely with the expertise they have. Most of the contracts appear to be very sketchy regarding earnings and variable and in no way can be banked on when earlier guidance seemed to signal that they were contracted earnings .This will never recover to the heady 350's . Always felt uneasy that the Chairman was also the Chairman of the M&A Company that was used predominantly. Good luck everyone and maybe a takeover may happen with a premium but otherwise I cannot see a recovery above £1.30.
Just an observation . Comments also from the CEO on Twitter on the same subject. " What is happening to the world? Have we lost all sense? - Politics & common sense have finally left the building ! A dark day !!!! Not sure these comments would enamour yourself to your US workforce , customers and the Government procurement departments many of whom I assume follow Twitter and voted for Trump .
My point is that it seems a strange arrangement where a Non Exec Chairman is advising for both parties as a buyer and a seller and he is presumably rewarded by both sides which seems a conflict of interest. However I am a novice so what should I know !!
After researching I note that the Non Exec Chairman of NCC is also the Non Exec Chairman of the Corporate Finance advisors that acted on the Fox IT deal and the PSC deal along with some of the previous acquisitions. He also holds a good chunk of stock in NCC which is interesting !!
Holding this stock still but have concern over Government contracts post Brexit , and now the US post election. Will governments in Europe be comfortable with a non EU member having access to certain information along with a more inwardly focused protectionist US ?