Member Info for Kando

"And that Sidara injection? Wasn’t emergency life support, it was long-term optionality funding, spelled out clearly in black and white."

If it says that why don't you be a good sport and post it for the message board. Cite and reference where it says that.

I agree Swag, except for:

"However the valuation is still £100k ..whatever they need to do later to make it habitable is of no consequence to the seller."

The £200k isn't for later to make it habitable. In the analogy, it's to satisfy the lenders to give them the mortgage to purchase it to begin with. They won't offer a mortgage for them to buy a burning house. The cash is required to put out the fire before the sale can progress.

The mortgage in the analogy is the debt Wood already owes and needs to renegotiate. The $450m is to satisfy lenders and prevent them from simply calling in the debts and recovering some of their losses and reducing their exposure ultimately via liquidation or more likely before that happens, forcing a D4E swap/less likely, a RI. So, as others have said, the offer still is 85p per share. That is what Sidara are offering. If the house weren't on fire and lenders weren't wary and ready to pull the plug and $450m weren't required to backstop the debt and derisk the lender's positions, then it would be 85p to shareholders.

"Whats to say Wood cant raise another $115m or so and thereby minimise any dilution?

Could be argued that any theoretical no-takeover scenario dilution has already been cut in half anyway."

If you want to argue that, then you're assuming that lenders and Sidara hadn't already priced in that disposal towards the required level of recapitalization. That the disposal hadn't followed months and months of negotiations with suitors and the ultimate suitor before selling. It didn't just happen overnight. You'd be naive to think the required liquidity injection didn't already factor in disposals in the pipeline. It would have been part of Sidara's due diligence, and not something that would or could be deliberately hidden from them.

"i don’t see anything in the latest rns that suggests that scenario"

Exactly. See previously: "Ice, work on your reading comprehension."

"You, on the other hand, were the one screaming that a solo refi was “impossible”"

Nonsense, show me when I said that? I said solo refinancing would be highly dilutive to shareholders, which it would be. It'd be equity wipeout by dilution. It is not impossible, in fact it is INEVITABLE without a takeover. A rights issue or debt for equity swap would follow in the absence of a takeover and the recapitalization required would dilute current holders significantly, close to wipeout.

You call my position a "doom scenario" when it involves shareholders walking away with (hopefully) 35p+ per share.

Your scenario where you sack the board, collapsed the debt renegotiation (I guess the board would be wryly saying "you're welcome" to you for that, since you wanted them sacked long before they negotiated a proposed agreement. Good luck negotiating the debt without a board in place), and the takeover to fall through/Sidara rejected. That is the real "doom scenario", that is YOUR scenario. So own it. Stop projecting. Down your rabbit hole fantasy lay equity dilution or administration. Stop being a coward and own it.

Seriously Ice, work on your reading comprehension. You misattribute or misquote everything posted here, and you've seemingly failed to read any of the company releases and have consequently drawn nothing but the wrong conclusions.

When I "inevitably pivot"? I haven't pivoted yet, so I wouldn't bank on it.

Meanwhile in Icecool fantasy land... we had the AGM coup "they're sacking the board, the institutions will vote them out". Then the EGM coup that never came. Then the FCA investigation that you tried to take credit for reporting and instigating (hah...ha). To Sidara's takeover being "dead in the water".

If after accounts, we see a formalized bid from Sidara, and a recommendation to accept from the board. Where will you pivot to? Everyone else will have been right, and you will have been wrong. And not for the first time. But there is a zero percent chance your ego will "pivot" towards humility. You'll still believe you're somehow "right", and that the whole thing is some conspiracy. It's the Icecool playbook of grandiosity and delusion.

"Also wtf am I even doing here….. it’s all pointless. 🤦‍♂️🤦‍♂️🤦‍♂️🤣🤣🤦‍♂️🤦‍♂️"

Totally agree.

Disagree that there's any assumptions in there. The company have RNSed the situation.

Not everyone on this board is a fantasist.

It's not quite that situation. Using your analogy Captain, I think it's more like Wood are selling a house that's ablaze and left unchecked, it will burn to the ground and become worthless. If lenders pull the plug, it would be worthless. That's just a reality of business. It owes more than it has.

Per your analogy, Sidara are offering £200k worth of water and firefighting equipment, and to repair some of the fire damage (which no one else is offering and Wood doesn't have the funds to do themselves) and in exchange want to buy the house heavily discounted for £100k. That's the sweetheart deal they've arranged, because Wood have few alternative options, and ostensibly none that are better. That doesn't mean the $450 in liquidity is to "spend on it after", it's part of the upfront offer to stop the business burning to the ground. I see everyone's point that shareholders won't benefit from that, but it doesn't mean it isn't a part of the current valuation.

The current state of AI is still garbage in garbage out.

If Robert-00 is supplying the input, you can guess the quality of the output.

Not sure anyone said early August Rock, it seemed to be more mid to late. The extensions are until the 25th. If the extensions are at all indicative and they've given themselves a bit of leeway on timings, it might be somewhere around the 20th. But yes, there's always the possibility the rumours were just rumours.

Wouldn't want to interrupt you looking foolish Robert.

Calm down Robert. It didn't take any trawling, I recalled you saying it, giving others a hard time about accepting 35p as the least worst outcome. You called it chicken feed and that you didn't need Sidara. Now you're "easily pleased" with it. Funny that. As stated, very cringe-worthy.

Robert you are just impossibly cringe-worthy old bean.

A month ago you were celebrating the 35p being "in the bin". Now you're bragging while snapping their hand off to get their "chicken feed".

Robert-00

Posted in: WG.

Posts: 3,141

Price: 18.44

No Opinion

35p is now in the bin 👊25 Jul 2025 11:17

That poultry suggestion of a 35p offer needs to be increased closer to £1 now, wood don’t need Sidara.

----

Robert-00

Posted in: WG.

Posts: 3,141

Price: 18.44

No Opinion

RE: 35p is now in the bin 👊25 Jul 2025 11:47

Chicken feed

Stew, I'm not sure you really understand the state of play here. The only reason the shares are suspended is because the FY accounts are late. The only precondition left for Sidara to formalize their offer and lenders to formalize the debt modifications is the publication of the accounts. The suspension can be lifted as soon as the accounts are published. Resumption of trading could and has historically occurred concomitantly with the release of accounts as long as the relevant application is made, with accounts released at 7am and trading resuming at 8am. Saying it will never trade again and yet be sold to Sidara for 35p doesn't make a whole lot of sense, given what we know. The bid is likely to come simultaneously or soon after trading has already resumed, not before. Then from bid to any ultimate takeover there will be many months, with a shareholder vote to arrange, longer if there are other bidders. During that time it would have no reason to still be in suspension.

You weren't joking?

"What's not to like?" about equity wipeout by dilution.

Surely that's a rhetorical?

"We'd all be better having a rights issue to bring that debt down to manageable levels."

Very funny!

I agree with almost all of what you said, I just don't agree that this is a narrative manufactured by the Board and Sidara. They couldn't generate FCF for half a decade, selling off productive assets to cover the cash outflow, then admited to multi-year accounting misstatements/misleading auditors/divisional level fraud (however you want to describe it) and breaking debt covenants, just as their big-ish debt pile matures. This has not been a healthy company for a while.

I think whatever "narrative" there is comes from the lenders threatening to call the debt in, which they've a right to do; they're under no obligation to keep lending to a company misleading auditors and issuing inaccurate accounts, who have promised and failed to deliver FCF again this year. At which point if they were to call it in, Wood is insolvent as it doesn't have the cash today to pay. It seems clear that, perhaps not all, but some lenders, have wanted out and still want out. Whatever pressure is on this situation to organize a sale, to any willing suitor, it comes from the lenders, and always has.

Yet everything else you said is true. If FCF generation is really around the corner once the exceptionals roll off, then this company has significantly greater value than is currently being ascribed to it by the proposed Sidara offer. Because of that I'm still hopeful there might yet be other interested parties to bid that offer higher. A lot depends on the accounts and the forecast. But I still think lenders will only be placated by a takeover. They're at the point of wanting to derisk, not hand out fifth chances to a company with a poor track record of delivery.

Pokerchips, they bought it down from a much, much higher level with those sales, but it's been fairly static since - so it isn't "back up again". It has however required a steady drip feed of disposals to plug negative FCF to maintain it at these levels.

"As per Jun 24 Interim Financial report - the Net debt owed to Banks was £876 million. There were no new funds raised after June 24 - no RNS was released. So this narrative that the debt is more than 1.5 billion is absolutely untrue. The issue in Accounting is on Revenue recognition which will not impact Net Debt."

Sorry to be a party pooper berges, but Net Debt =/= Total Debt.

From the last released Going Concern statement HY24:

"As of 30 June 2024, the Group’s principal debt facilities comprise a $1,200.0m revolving credit facility maturing in October 2026; a $200.0m term loan which matures in October 2026 and $352.5m of US private placement debt repayable in various tranches between July 2024 and July 2031, with around 75% due after the end of 2025. At 30 June 2024, the Group had headroom of $602.8m under its principal debt facilities and a further $84.0m of other undrawn borrowing facilities. The Group also expects to have sufficient levels of headroom in the severe but plausible downside scenario modelled."

As you can see, total debt facilities amount to ~$1.75bn. Of which $602m were undrawn. This, as of HY24, meant total debt was ~$1.15bn. This excludes leases, which are counted as a debt, since you have to pay them. Leases account for another ~$400m. Thus, total debt over a year ago was about $1.55bn. They were cash flow negative last year and sold Ethos Energy to cover that. They are again forecast to be cash flow negative this year to the tune of 150-200m, of which $30m has so far been raised from asset sales, and another $135m will be raised by the end of the year to roughly cover the rest. Total debt may increase marginally if negative cashflow is more towards $200m than $150m.

Either way total debt is still assumed to be somewhere around $1.55-$1.65bn.

Net debt (excluding leases) will be maintained roughly around the $690-720m mark, after disposals.

I don't believe there is any conspiracy or narrative in the reporting of the debt. It simply is what it is.

Likewise, FY audits generally take 3-4 months from December year end, hence why they are published in April-May. This audit requires multiple prior year restatements, it's only been ~3 months since the review revealed what needed restating. All of that needs to be audited - irreproachably this time given historic misstatements - so again, not so likely to be a conspiracy, but an expected timescale for audits.