Member Info for NettlesTheCat

Could well be Svend - I’ll have another look on Monday before parting with any money. 👍

I remember that SPC - caused the closing of a decent chaps investment on here if I remember rightly.

CFO confirmed divi reinstated short term. We know their mid term is 2027 so it all depends what they mean by short term I guess.

I second that Svend.

RR rose with negative/stagnant FTSE days.

I think we’ll see a nice rise for RR next week, off the back of the FTSE alone.

Best of luck Kewjosh. I think you’ll need it this time.

I'd say that's a good thing. 😂

Bets thing to happen would be for a share suspension for the sake of all the holders here - my heart goes out to you.

At this rate, shares will be suspended.

I'm beginning to think this is worth a punt at this price.

Off topic as this rises nicely.

Anyone else watching PFC.L? Interesting decline - one to watch for the bottom.

"...next incoming resistance area may be 280/285 levels"

Should be interesting!

Highest price in over 4 years.

"I'm a Director of my transport company."

Never stopped me Billy - I tell myself to fudge off on a very regular basis! 😂

"As for how much of SMR that RR owns, Go here:

https://find-and-update.company-information.service.gov.uk/company/13039768/filing-history

Click on "Confirmation statement" and go to page 2.

530000+40000+10620+35000= 615620

530000 / 615620 = RR owns 86% of SMR"

Great info - thank you for that link.

So a sale of at least 36% will be needed to get to the minority status. He did stipulate quite quickly after making this "faux pas" that it would be "in the future" which judging by the forecast heat graph of sectors making up the future of RR PLC, I'd suggest it will be at least 10 years before any sale.

… now where’s that salmon? Need to get back to a purring cat.

… and yes, before anyone else mentions it, I’m suggesting Tufans figures of the percentage figure of sake are far greater than lost revenue of the smaller share holding.

In fact, I’d suggest he’s even thought that far ahead and built in the longevity of SMR use and maybe doubled that (if not more).

Like I say - love this guy.

"Nettles PLC make 100% margin on that transaction."

Because it's the gizzards I pinch from Falcon's floor after a shoot!

"To me it doesn't make sense to drop their ownership below 50% as they'll lose control of the SMR Ltd company, although presumably it'll be built in to the sale of their stake that they remain the manufacturer."

Hypothesis/potential case study here:

Nettles owns 100% of a company (NETTLES LTD). He has another company that produces the goods for that company (A holding company called NETTLES PLC).

Nettles LTD is charged £100 for catfood from its sole supplier, Nettles PLC. Nettles PLC make 100% margin on that transaction.

In the future, Nettles LTD sell 51% of the company - that are then liable for 49% of outgoings (not the 100%).

Nettles PLC still get 100% margin for the supply of goods.

Nettles Ltd LOVE working with Nettles PLC and the 51% share holder agrees.

Nettles PLC puts cost prices up - Nettles Ltd then have to do the same.

End result? Nettles PLC increase margin whilst reducing exposure to purchase invoices (by 51%).

On top of this, Nettles PLC got a hefty lump sum for selling the original 51%.

"To me it doesn't make sense to drop their ownership below 50% as they'll lose control of the SMR Ltd company, although presumably it'll be built in to the sale of their stake that they remain the manufacturer."

"...remain the manufacturer." (I repeat that part)

That's my point. Great foresight from Tufan. He can effectively sell a huge chunk of RR SMR Ltd and retain the manufacturing. With 49% (RR PLC holding) he'll continue to play hard ball with clients, whilst also maintaining the right the play hard ball in supplier costs to RR SMR Ltd (from RR PLC).

It's an wizardry move if you think about it - hence win, win, win.

Win one = selling a parentage of RR SMR Ltd for a highly inflated figure (he doesn't need to sell)

Win two = a 49% holding in RR SMR Ltd (with caveats) suggest he'll maintain a highly inflated sell figure per unit (based on winning the contracts)

Win three = RR Plc maintain highly inflated cost production to sell to RR SMR Ltd.

I love this guy.

"Why is selling an assett which has the capability of generating Billions such a good thing"

Fair point. And maybe me moaning about having SMR as a LTD business wasn't warranted.

RR SMR is a ltd business. RR PLC own 85% (please correct me if I'm wrong anyone - that's the only figures I could find).

Therefore, with a sale of shareholding to get to 49%, Tufan thinks the sale is worth more than the initial investment.

Moreover, RR PLC will be the main contractor to produce the SMRs (from SMR LTD) so regardless of RR PLCs stake in RR SMR Ltd, he will gain from overall sales.

Therefore:

1) RR SMR Ltd will negotiate decent selling for margin

2) RR PLC will continue to negotiate decent selling for margin (yes, a conversation to be had between Tufan and.... Tufan!)

3) + At the right time, RR PLC will sell 36% (if not more) at a high price and maintain the ability to still conitue points (1) and (2).

It's a win, win, win.

To be clear, current investors in RR SMR LTD:

Rolls-Royce

BNF Resources Limited

Constellation

Qatar Investment Authority

If anyone has the investment ratio, I'd be very grateful.