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No part of the Board's statement on Friday suggests further cash is needed now?
'In addition, Kier is continuing to consider a potential equity raise.'
With positive cashflow on projects benefiting further from cost cuts, the Board is comfortable dealing with banks while trade flourishes and will pick a suitable time to strengthen the Balance Sheet. The negative posters simply fail to acknowledge that Kier announced a plan soon after Davies became CE and have continued, unruffled to make consistent decisions to implement it.
I have read some comments here and elsewhere by the doomsters about pension deficit and deal costs, but predictably they forgot to mention the other (positive) point about cash:
There will be additional payments made on completion to cover, among other things, Kier and its subsidiary and associated undertakings (the "Group") providing working capital funding to Kier Living in the period from 1 July 2020 until Completion.
Steve, you may remember that I hold Kier shares, have benefitted from their climb back into the 90p+ and believe they will be enjoying a considerable increase in the near future; however, I agree with you about the article - the journalism is so lazy that it refers to Davies appointment as last year! I know time has stood still, but seem to remember he joined in Apr 2019. Anyway, I am convinced of the board's competence and that the top line, bottom line, cash generation and refinancing are all going to produce this year.
Jan 2021: It said it had begun to start paying back the £79m of tax it deferred because of the covid pandemic in its 2020 financial year, including £25m of VAT which, in its full year results, said it has until the end of March to clear. The remaining £54.7m is due to be paid by the end of its 2021 financial year after the firm struck a so-called Time To Pay agreement with HMRC.
If you understand what you are writing about, why are you being misleading or worse telling deliberate untruths; if you don't grasp exactly what is happening at Kier, and I do not claim to as an outside private investor, then I will inform you now that facts in previous published accounts and documents show that you are distorting what the company has stated. Are you saying Davies lies in documents which are in the public domain? He is a competent, hands on operator supported by a strong FD. I trust him, more than I trust you!
90p next week, onwards and upwards. Better expected results and no new shocks (both of these flagged in last public statement) a sale of part and or a part sale injecting funds in to Kier, renewed confidence of bankers, underlying control of cash, costs and margins. Look forward, much to like. Excited as a small shareholder, but understand institutions loss on these shares down from £14+ has made the big boys reluctant to purchase more; only now might they start to purchase to average down their holdings cost per share and benefit from a revival which for many months has been gathering speed
Steve, I have read some of your points objectively. There sure is risk in a company with relatively high borrowings. You have shown 3 main approaches:
1) Ordinary shareholding values will considerably reduce in value very soon.
2) Hark back to numbers in previous published accounts or update statements to show threats to Kier today.
3) Pick up on some piece of news and paint the dark side of it.
Overall, you should not have the oxygen of publicity to boost your ego and malign the company and it's leaders. Whatever, your agenda is, your comments are not, as you claim, a salient warning to others, more a desire to be the centre of attention at best or at worst damage a company which has taken major steps to rework and release it's potential to multiply it's value. I will not be responding to any of your comments unless they are current, relevant and supported by current facts.
As a private investor, I was unhappy that the Sky article appeared (causing a wave of sales) amid rising volumes and sp having just hit 90p+. I knew it would recover, but wondered about whether the short term blip was caused deliberately by a party feeding a journalist?
All opinions are subjective. Hinkley makes some points worthy of consideration, however, this share (which I hold some of @ an averaged 98p) is grossly undervalued due to past mismanagement leading to high borrowings. Not only do Davies' team appear to be getting to grips with the situation, my experience suggests there wiil have been what turns out to be some over-provisions as part of the write downs and we will be seeing some write-backs to increase Operating Profits in the next reporting year. True KL could have contributed significantly to company orofits, but housing requires more upfront investment than Kier's other activities
Watching the Kier price retreat, but it will soon bounce back. Why? Everyone should realise that with a massive injection of funds, decreasing debt and a profitable company, each diluted share would be conservatively 2-4 times the present value with room to increase much more with a sensible PE ratio
I hold shares in Kier and always believed the current management would turn around company performance. The one reason that Kier shares remain at a pitifully low level is the lack of a clear narrative in the few public statements made by Davies. The update contained only carefully chosen snippets of information which were deliberately cautious, but once again gave the doubters more ammunition. On profits, cashflow, divestment of KL and the possibility of further write offs most companies would be keen to announce a coherent, bullish story, emphasising that the Board were driving the business forward. Hopefully the half year figures and commentary will mark a change in approach.
Steve, your point is taken, however, if both parties wish to deal it is not that difficult to agree a price between one pound and £100+m! Various 'what ifs' can be negotiated and included too. Anyone, please have a 'guess,' if anything, just what is going on with GH and Kier regarding KL???
I have always believed that this management will bring Kier through their crisis and, unlike Steve, understand the (cautious) lack of figures in updates, I fail to understand why they flag a sale of Kier Living over and over again, when my experience of Plc corporate purchases and sales is a deal thrashed out quickly by leaders, then lawyers and accountants locked in a room until the agreement has been produced for ratification.