RE: Pbody1 Apr 2019 22:02
Yes NEDHAMMER and others thanks for asking and being concerned.
I am not that old yet...but there will come a day.
My phone provider turned the phone off for a week and thus no internet! I couldn't make phone calls either!
What you get for all online I suppose. Not sure if it will go again! They have yet to explain why!
Since I have looked into "free internet" more than anything. Its surprising what there is! (If you have the internet to look it up). Back to GMS.
I have read the financial statement. Most will have moved on I suspect.
It is pretty much what we expected. Revenue was down for the amount of work.
Not a great outlook in general, but better placed than most the competition.
Earlier rather than later to renegotiate with financiers where possible to allow long term operation in a industry "lean" period being ideal.
My take on it is the poor exchange rate will have effected the European operations money back in the coffers somewhat with a low pound/euro to dollar rate. That is where BREXIT has had some effect.
As others have pointed out the Lenders repayments are killing at the moment, particularly as payment for vessel transport is not always paid on time and the recovery of that can knock on to the next quarter.
This working capital (of between 30 and 50 million) to move the equipment to locations is causing us unforeseen costs as late payers mean we use our capital as a buffer. Were talking 3 or 5 million here. Just on late payments.
Perhaps this borrowing facility will be the first they intend to renegotiate as it is relatively short term and a 50 million float seems excessive. But it looks as if its a headache that wont go away.
Reading back there were some serious trades carried out last week, I hope if there are any large holders changing their position they are notifying GMS and the RNS will be updated accordingly.
What is interesting to note is the New chairman has not bought into the shares yet.
I am presuming that will happen in the new year or when any financial renegotiations have taken place to show faith in the future. I read somewhere there are 6 banks in the syndicate.
My (only) worry is if they dont get a good deal at this point (where borrowing money globally is very very cheap) they will struggle later to match it or use the financial situation to help deleverage the position at a time when the words "industry lean period" look set to be the driving factor in foreseeable future.
Sustainability is the long and the short of it.
A better footing for the knocks that have yet to come.
Lets hope there aren't any but if there are we are better prepared. The safety is exemplary long may it continue.
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