The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
That is the risk with this, unless they get AIRB between now and FY results they will be forced to do a placing unless the MREL framework review is favourable. I will not be holding this into FY results.
I do not see a takeover in this environment unless we get a vaccine, if this thing did not have these crazy leases it would have been acquired long ago.
The leases the old chairman entered into to give his missus a job on the side are like a poison pill. Consider MTRO as a retail property holding with a bank attached to it. MTRO just need to hang in there and keep on growing their customer base, as time goes on those lease liabilities will decrease and their income base will increase.
Jed have you even read the H1 RNS, their cruise and travel may be losing money but their insurance business will likely make £140m of gross profits. This will easily offset the travel losses. They made trading EBITDA of £54m in H1, therefore from a cashflow basis they will still be cashflow positive from a trading perspective at year end.
They will reduce occupancy/loadfactors to enable social distancing
Have a test lab on the ship, with frequent testing
Their air con only blows fresh air, no recirculation
They pick up all passengers by car individually
Pianista. Most cruise companies have the option to stretch out builds and I believe Meyer Werft gave Saga an option to delay delivery to 2021. SAGA already have one vessel available and ready. Each ship requires 48 crew in warm lay-up as well as the interest payments starting when delivered.
Those ships might generate £40m each, but what they fail to tell you is that they are mortgaged to the hilt. Each of them have interest payments of £10m pa as well as depreciation of £10m pa. So what they really make is £20m pa each.
https://www.youtube.com/watch?v=VV7jeqoVOFY
Go to 4:30.
Look at the expense numbers and compare against 2019. The numbers indicate no recovery for furloughing from HMRC, otherwise their travel loss would be £20m smaller. They may have furloughed employees and decided to pay for it themselves after the TU.