Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Union officials are hoping for redundancy payoffs...they might end with statutory minimum and a new job on a zero hours contract!
Please dont rely on Simplywallstreet. Have a look at their views on Eddie Stobart..they didn't even make a note that trading was suspended in ESL.
The union , backed by its members are on a course of action that will ultimately lead to an even worse situation for the business. It is already struggling and - if it was a normal business - it would go under ( shades of British Leyland and Red Robbo). It will eventually end up with the government ( of any flavour) intervening. I can't see RMG competing against its "zero hours contracts " rivals.
From the update, it mentions base pay
"The pay of a postman or woman (base salary only) is around 30 per cent higher than the Voluntary Living Wage. In contrast to the UK average of around 23 per cent, employee turnover for 2018-19 was 7.2 per cent."
Soon postie will be living on min wage working for Hermes etc.
Why pay a dividend when management think that the company might make a loss?
Not that good. Management setting the scene for redundancies in the New Year. Time to weedle out the trouble makers.
Looks like a loss making year.
Maybe Aviva would have exited Singapore/China but with Tulloch's strong far East background it is not surprising that they've decided not to sell. At least the decision is coming from a CEO who knows the score in those markets. He's "time served".
But don't refer to Hong Kong as a country - see RNS today (unless you want to p1s s China off !) and try to get the RNS correct first time!
"Aviva (AV.) is to keep its operations in Singapore and China, after a strategic review of its Asian businesses concluded that shareholders would be better off with the divisions retained, which boasted double-digit operating profit growth in 2018."
The financial services giant made the decision after seeking offers for its Singaporean arm. Its joint venture in China will remain in place, “given the scale of the market, excellent relationship with its partner COFCO and the high growth prospects”. However, Aviva continues to consider options for its businesses in Hong Kong, Vietnam and Indonesia.
The review was one of the first major commitments by recently-installed Aviva chief executive Maurice Tulloch, who provided few details when he announced the move alongside interim results in August.
Aviva’s disclosure also comes ahead of its capital markets day on 20 November, and was prompted by a Bloomberg report that several candidates were poised to bid for the Singapore and Vietnam divisions, in a deal potentially worth $3bn (£2.3bn). News of the restricted review appeared to dash investors’ hopes for a cash wind-fall, as the market knocked four per cent off the share price.
Summary
"Investors tend to get excited whenever companies explore “strategic options” for cash-generating assets. After all, capital returns and solid external validation are always welcome. But in this case, shareholders have had very limited information to base any excitement on, and should wait for further detail at the capital markets day. At 417p, we remain buyers of the shares (497p, 9 Aug 2018), which offer a progressive dividend and are backed by a strong balance sheet."
I hold both AV and LGEN in broadly similar percentages - I see no reason for LGEN to have "gone up" today and I'm really surprised by the negative reaction to AV deciding to stay in a growing market with increasing middle class numbers. Completely daft market reaction - the market being irrational, eh?
I'm happy they're not walking away from a massive, growing market. Good call imho. Jeez, they could be focusing on Brexit Britain.
Final salary pension schemes all round....paid for by the taxpayer
The market has reacted ...the price had dropped a couple of percent. Clearly the market doesn't give JC's plans much credence.
I don't hold shares in BT, at the moment, but I was hoping for a bigger reaction for a(small) buy in point.
It's a sad state of affairs when making sausage rolls ( Greggs) is a better business to be in than building roads,schools etc. The problem with construction is the government tenders big contracts and essentially won't allow a reasonable margin to be made. The government will sooner or later realise that it needs to pay more when there are no UK construction companies left and they are held over a barrel by European companies.
This of course won't happen..so, Kier is not a place where one should be gambling IMHO. It wasn't that long ago the sp was mid 60p ...
It would be redundancies on statutory minimum..
If I was CEO, I'd call an employee meeting
1. Go on strike if you want to over Christmas
2. Advise employees that In the New Year we will be starting redundancy measures after weighing up anticipated losses going forward due to the damage done to the business.
Can you imagine what it would be like in UK industry if Corbyn gets in ? The rise of the Unions and back to the bad old days of the 70s. I
Does that mean that all is left is a Construction company..like Carillion....like Kier...?
Following the same formula as Carillion and Interserve. It will only be a matter of time untll Kier goes into administration. Shorting levels increasing, debt being sold off on the cheap, debt that can't be paid off due to poor/ no margins.
I rarely give a "sell" ( not sure if I've ever said "sell" in any of my posts)..this is a strong sell. Don't try to bet on this one unless you can afford to lose all your " investment" ( it's a gamble and the odds are not in the small investors favour).
Bleak...especially if you are a postie....you won't be needed when RMG give away their parcel service to the competition. Analogies here of a stupid union driving the business into the ground with British Leyland in the 70s. Complete madness. There will be redundancies in the New Year.
Just a note to say remember how much the SFO wiped off the market cap of PFC. The SFO seem to run around slinging mud before they've got their facts. They should introduce a compensation scheme if they cant prove the case within a certain time frame. They cannot be allowed to open cases just to keep their workload up.
I wonder if PFC might try a snaffle at Wood Group?