Member Info for mbingo

Working off the company website share registrar from March 2019 and reviewing holdings RNSs, the following are shareholders:

IKO Enterprises: 14.77% (increasing before and since new board)
Ninety One UK: 11.43%
JP Morgan: 10.85% (NEW)
Investec: 9.96%
Aberforth: 6.55% (NEW)
Goldman Sachs: 5.76% (NEW, small decrease recently)
Greater Manchester Fund: 5.81% (small decrease)
Templeton: 4.96%
Blackrock: 4.94%
Artemis: 4.87%
Massachusetts: 4.53%
Schroder: 3.89%
Norges: 3.37% (small increase recently)

Total: 91.69%

Clearly more have been selling, but encouraging that so many institutional investors back the new board and company post Covid!

Government furlough scheme so important to businesses like Sig. impressive that board have also all taken a 50% pay cut. Good cost control.

This point is really relevant and particularly relevant with respect to the UK and Germany where the majority of their revenue comes from. Look at the UK government budget - massive infrastructure spend, biggest in a generation. A big boost for the sector mid-term.

Get it, but this negative sentiment is what is creating some of the opportunities. I’m bullish mid-term. Central banks v accommodative. May could still be ups and downs but I think global equities rally into the summer as we get to business - boosted by the banks. Unlikely to catch the bottoms but scaling in at these sort of prices makes sense for me in this sector.

Not highly geared, that’s for sure.

From the trading update at year end:

Disposals and balance sheet

Further reductions in levels of working capital have helped the Group to reduce its net debt at 31 December 2019 to c.£162m (2018: £189m), with debt factoring also reduced to c.£26m at the year end (2018: £50m).



The announced disposals of the Group's Air Handling division and its Building Solutions business will generate c.£204m of net proceeds and complete the transition to a robust balance sheet, delivering a net cash position on a pro forma basis and provide flexibility for increased investment and returns to shareholders. Following receipt of shareholder approval, the disposal of the Air Handling Division is now expected to complete later this month, with the disposal of the Group's Building Solutions business also expected to complete during the first quarter, subject to competition clearances.



These disposals enable the Group to focus on its leading positions as a specialist distributor of insulation and interiors products which operates in seven countries across Europe and a merchant of roofing and exteriors products in the UK and France.



Following completion of these disposals, the Group intends to terminate its remaining debt factoring arrangements and to target headline financial leverage, pre IFRS 16, of approximately 0.5x EBITDA (31 December 2018: 1.8x).

Quite like this quote from advfn: “ I get there has been management change, but odd that the Chairman, CEO and FD all bought shares at £1+ over the last 18 months, and meaningful amounts. Yes - the business has run into problems even prior to CV, but typically you don't purchase stock like that if you look in and see a total dog mess.”

Hmm .. would help the personal P&L! It hasn’t seen any Covid bounce unlike many others. JP Morgan see value, expect other institutional investors will too. With no material change, I expect a bounce - 50/60p would still be 50% of valuation from early Feb - crazy drop!

The drop is way overdone. £106m market cap now. Cash £135m as it stands. Some debt too of course, but importantly no danger of breaching covenants. Measures taken to save costs during crisis and measures taken in 2019 to reduce debt and increase margins leave them with a strong balance sheet. Measures will be taken in the next 2-3 weeks to get back to business in the Uk and Europe. JP Morgan’s 10% stake also gives confidence.

Tiny Cap still given the NHS contracts and cash build implications, not just the ventilators, but the range of respiratory products. Closely held, small float. Lombard the seller last few weeks - almost gone.

Would be great to understand whether the “exceptional volumes” referred to in the RNS of March 24th will have a positive impact on free cash flow generation and ultimately the balance sheet. When do people expect to receive a financial update from the group?

Valued at £70m. .. moves are amplified given few shares in circulation. Bought heavily in the 500s (and plenty higher too!), looking ahead to the financials next week and signs of OPEC becoming uneasy at the price. Comforted by Chairman owning close to 30% and the large cash pile.

900p is actually £120m cap

Astonished that Rockrose is at 900p/£130m cap. Assume it is a case of investors taking profit here to sub falling prices elsewhere. I certainly didn’t catch the bottom here, but have been adding what I can at this level.

Short term capitulation across all sectors. Oil price will recover and Rockrose well set up for this type of situation, hence name. Balance sheet makes this attractive. Corona will affect supply chains and demand in oil, but for how long. Will central bankers add support? I expect so. Opportunity here in the medium term I think.

Anything could happen, but for me risk v reward at 1500 is a clear buy. A safehaven. O&G prices go down and they can pick up cheap assets. They go up and revenue goes up. Hedging now looks like a very wise decision. Biggest position for me now - by a margin.

£200m market cap, $320m unrestricted cash. Hedging in play re O&G. Low risk.

what a bargain!! Bought loads more this morning.

Bargains aplenty. USD 370m Cash position and CEO circa 30% interest makes this compelling in troubled times. Add the fact that circa 40% of O&G hedged at $65 ish for Brent ? Gas and that takes the sting off today’s drop in Brent. Added a lot today.

Seems to be coiling like the $gold price. Market cap is really v low still. Great gold price to be discussing terms.