Member Info for Knight01

New investor presentation released on the website a few days ago. Slide 15 has some details on current situation in the Gulf:

- BAU for operations in UAE and Saudi

- Will be a loss of revenue in Qatar, but from the wording seems like ongoing discussions with clients as to how much this will be. Also encouraging to see that the crew are gradually returning to the vessels, so perhaps we will see a few months of discounted revenue from Qatar for FY26 (assuming conditions don't get worse)

- Significant risks if conditions deteriorate (hopefully they won't)

I'm still holding all of mine for now but re-thinking TP. Hindsight is a wonderful thing and would have been great to take some off the table when it was 24p. That being said, any sign of a resolution of the war and we should be back up to those levels very quickly.

I tend to agree Rivaldo.

24p now seems to be more of a psychological barrier for this share than anything else. Still seems very cheap given the continued positive newsflow that this management has been able to deliver for a number of years now. Demand for vessels appears to be strong, particularly for the mid/large class vessels, supported by GMS' increasing presence in the offshore wind industry.

Been very tempting to topslice some at 24p given the recent strong rise from 15p, but I'm still holding on to all of mine for now.

Another 6 years added to the backlog, now at $0.7b!

Delighted with the recent contract news! Provides real confidence for the rest of this year and sets us up very nicely for the next stage of growth.

Looking forward to FY results, divi/buyback announcements and the updated backlog!

A number of contracts (including some large long term ones) were announced at the start of this year, taking the backlog to a peak of $570m at the end of Q1, higher than it's been for years.

EBITDA was upgraded slightly mid year, and otherwise reiterated in all quarterly updates. Same for net debt, reported every quarter and not much news to share on this (in a good way) as the debt is now restructured and well under control, very soon to hit 1.5x EBITDA target.

I can understand a bit of nervousness around lack of recent contract news and lower utilisation rates this year (though GMS have stated this is due to other factors rather than lack of demand), however not enough for me to suggest that patience won't be rewarded here. As each month goes by the NAV is increasing and we get closer to the dividend/buyback annoucement.

All IMO. DYOR.

Topped up for a shorter term trade alongside my longer term holding.

Q3 update should be out soon, and hopefully some more contract news over the next few months to bring up the backlog again.

Trotsky - you are absolutely spot on the current dividend is not sustainable unless we see a significant improvement in business performance, which is why the current dividend yield is pretty meaningless atm when it comes to supporting the SP.

In terms of cash - i remember seeing a broker estimate of £38.8m at FY25 year end, but this was prior to the £4 buyback extension was announced. My estimates would be somewhere around £35-36m cash year end to be 'in-line', but who knows what 'management expectations' are?!

I'll be looking out for how the Vicon/Smart manufacturing business is performing in EOY results, it's unclear to me how the rise of AI will impact the Vicon business but the SM area should be more protected, so hopefully management are able to drive some meaningful growth here!

Don't think it's fair to blame the management here, not yet anyway. A lot of small caps in the UK in a similar position - performing well but well undervalued, but then they seem to rise when you least expect them to...

My view is patience here will be rewarded - value will out itself in the end. At these prices you are securing a stock that is expected to provide circa 5% dividend yield from next year (4x covered!) all whilst approaching an almost 50% discount to NAV.

Risks of a downturn in oil price and a drop in utilisation rates are perhaps weighing on the share price, but if those risks don't materialise and the management are able to deliver some bottom line growth...

Yes and I think the buyback completed at these levels will have a positive effect on the SP if profits return to previous levels. Some more meaningful acquisitions will also certainly help.

Price starting to creep up, don't want to speak to soon but looks like we might have escaped the dreaded profit warning!

I haven't added here but also decided against selling out after the H1 results. Any good signs in the smart manufacturing / markerless areas then personally i think this is a great base to see some upside from.

(Cue profit warning released tomorrow...)

If you look at note 29 of the FY24 results, adjusted net profit is $32.2m for 2024.

Haven't seen forecasts for 2025 but H1 25 adj. Net profit was $14m vs $7.3 in H1 24.

The dividend policy will provide a solid yield whilst leaving room to continue deleveraging and/or investing in the fleet to increase earnings. Of course, subject to being able to maintain a good utilisation rate!

GMS released an investor presentation on their website yesterday.

Some highlights:

- Aiming to double EBITDA over the next 5 years, with plans to add a vessel to the fleet every year (imagine $200m EBITDA!)

- Deleveraging to continue until 1.5x EBITDA

- Shareholder returns to start in H1 2026 (I assume they'll announce a divi or buyback with EOY results)

- Steadily increasing day rates

- Do not intend to exceed 2.0 leverage with future expansion

- current share price represents >30% discount to total equity, will we see a takeover approach?

Some concerns/headwinds:

- One off tax charges impacting FY25

- Increased geopolitical tensions

- Increased future expenditure to maintain vessels

- New vessels entering the market, potentially impacting utilisation rates. The older K class vessels seem most at risk.

- A number of vessels coming to the end of their contracts in the next few quarters. Its normal for GMS to announce/secure new contracts quite late (hence why backlog fluctuates up and down), but one to keep an eye on as new contracts are awarded over the next few months

So not without risks but the current share price is already at a significant discount to where it should be, not taking into account any future growth! Strong medium term hold for me

My main reason for thinking it is that if the market continues to not value YU as what BK sees it's true value at (which he is vocally complaining about), then he may no longer see any value in being listed on the AIM, given the costs/overheads involved. And with his large holding and this being on AIM, he could probably delist this quite freely.

I feel like YU are already doing the bare minimum when it comes to investor relations and/or getting Institutional Investors on board.

But maybe I am reading too much into it, and it is just the state of UK markets at the moment...

BodR, why do you think there's no chance of YU delisting? Genuine question and maybe I've missed something - but I just see it as a potential risk here, not saying it will definitely happen nor has BK indicated it - but things like this can happen out the blue on AIM.

As I mentioned here I am a holder already and been in from around £5, have sold some but still holding on as based just on fundamentals believe this should be around £20 atleast

What is the risk here of BK delisting and deciding to take this Private?

If he did, the share price would tank. Given his constant moans around valuation, his large holding and the fact this is still on AIM, it's one thing that concerns me.

I have a medium sized position here but reluctant to add more because of the above. Otherwise the current SP is a ridiculously low valuation.

Uninspiring update today, but better than another profit warning I guess.

Still seems undervalued but I would expect the share price to react once there is some more confidence in H2 performance.

They are getting good value for money with the current buyback though...

Yesterday's RNS provides confirmation of an additional ~60m shares issues as part of the warrants, leaving approx ~23.5m shares remaining (circa 2% outstanding dilution). In total this will also generate almost £5m of funds for GMS.

This company has come a long way in the last 2-3 years with the refinancing and significantly improved debt profile, secured backlog at recent record levels, warrants largely complete, and seafox reducing their holding (and hence control) in GMS. Barring any black swan events, I am hoping we see a strong move up towards 25p+ in the short to medium term.

Many thanks for the responses and clarifying that for me!

Hello,

Could someone please explain how the charges work for REITs? If I purchased these in my ISA, are there any ongoing charges i have to pay to hold the REIT and how is it taken?

From the KiD I can see the ongoing costs for THRL amount to 3.67% annually, but I'm unsure as to how this is paid.

Any insight greatly appreciated.

Many thanks

... is all that's required here now.

This is just the beginning of the turnaround and it has a long way to go yet.