Courtier1
20 Mar 2018
Re: RNS Hunter gone They got th timing wrong. Ie they expected the bill but forgot to include it in the cash flow forecast! Fairly basic but there you go.That’s another reason they kept saying net debt would remain as forecast. Ie the expected payment was built into some numbers just not the most important one!My suspicion is that there will be a placing plus underwritten rights issue, all heavily discounted. Provides cash now from placing and allows existing shareholders to recap business over a few weeks. I would be surprised if it is done higher than 50p or lower than 25p but you never know.
cooperboy
20 Mar 2018
language Oh and btw I have discovered you can't use bad language-even the word parc spelt backwards with aterix! Though it was the least offensive adjective I could find for the current situation.............................
cooperboy
20 Mar 2018
Re: RNS Hunter gone I fully agree TX2 - CVR need investment quickly and they are not going to get that from PIs buying a few thousand here and there. I still dont fully understand if the £30 million to the IR was a mistake of timing ie they knew it was due but didnt realise now-or if it was completely forgotten-is that even possible?? The big question is what the institutions will pay given there is no dividend etc-I am hoping 50p but who knows. Perhaps CVR should speak to Woodford-he invests in all the rubbish companies ha
TX2
20 Mar 2018
Re: RNS Hunter gone I would have thought a rights issue rather than an open offer or open offer/placing mix would be highly unlikely.Rights issues take a long time to organise & complete;firstly a detailed prospectus has to be produced giving detailed financial information on the company rather like an IPO document which has legal implications if proves incorrect;apart from the fact that I do not think the company can afford to wait a couple of months to get the money.I am not sure that there is any advantage in pricing the new shares at a very low price ie sub 50p assuming existing shareholders are taking up the offer.The eleven largest shareholders hold about 55% of the company according to public information,and I would guess another 20% is in the hands of the next couple of dozen largest holdings.Obviously if existing major shareholders are not prepared to support a funding & commit in advance take up the bulk of shares then I doubt if any offer is possible.
Poleaxe
20 Mar 2018
Re: RNS Hunter gone Thanks Meanbugger. It's sounds like you're knowledgeable about the situation.I think a rights issue would be preferable for PIs rather than an open offer. Unlike a rights issue, with an open offer you don't (usually) receive anything if you let your entitlement lapse. This means you have to take it up or lose out. Perhaps they can get an open offer done quicker? The ex date for an open offer is often the announcement date.
Meanbugger
19 Mar 2018
Re: RNS Hunter gone Poleaxe yes you are right about the company being desperately short of cash before disaster struck. I think they basically misjudged the cash needed to finance properly the Matthew Clark acquisition. The company grew massively in size but it didn't bring any smoothing benefits to cash flow so the peak cash requirement just got a lot bigger and harder to manage. To sort out the mess they need to repay some of the bank borrowings and lessen the dependence on invoice financing. Ironically they need money to pay dividends in future as many of their institutional shareholders have an income requirement. New shares at 10p with maybe a forecast 0.75p dividend could be quite attractive. Actually I don't think there will be a whole host of losses resulting from goodwill write-downs etc. This is a liquidity crisis not one of collapsing profitability in the operating businesses. At group level cheap debt will be replaced by more expensive equity so eps will fall dramatically especially with a billion new shares in issue.I'm hearing suggestions that the fund-raising is almost ready to be announced. Due to its size a circular and general meeting will be necessary with either an open offer or an underwritten rights issue so that all existing shareholders can participate if they wish. I think they need to give 3 weeks notice for the general meeting so with Easter getting in the way it will be mid-April at the earliest before they receive the cash and start paying their bills. Anyway it looks as if total disaster has been averted and the institutions might get their hands on some cheap shares.
Bill1703
19 Mar 2018
Re: RNS Hunter gone "Poor Diana must rue the day she joined."Not so sure about that.. and whatever else she is, she ain't "poor".Salary £450k for FY17, up from £407k FY16 (maybe because the business was bigger - cos they made it bigger by spending money). Annual bonus £428k FY17 (vs £366k FY16)... total remuneration £966k FY17 (vs £844k). Okay, this all sounds like the start of a tabloid-style "executive excess" rant - but the point is, what have she and her fellow execs (three other exec directors on £500k-plus packages) actually done to earn this, and particularly the big bonus payments? Anyone can spend other people's money...I am sure some shareholders will be demanding claw-back of some of these bonuses, particularly if there is any suggestion of previous period figures having to be restated. They will also (hopefully) be watching closely to see what she gets by way of pay-off...
Poleaxe
19 Mar 2018
Re: RNS Hunter gone I'm not inclined to believe the unexpected £30m HMRC story. I think you're being played.They were fully stretched and it was crunch time. If the required fund raising is anywhere near in the order of £100m or more (as has been muted), even the stupidest of directors would have known they had a cash crisis. However, I think they'd prefer to look stupid and incompetent, rather than criminal (hence the recent share purchases and the HMRC thing). It looks to me like a classic case of 'misdirection'.Someone there knew they were running short of cash. Check the London Gazette and see how agressive they have been in recent months, issuing winding up petitions against debtors.If and when this gets bailed out, don't be surprised to see accounts re-statements, asset write downs, goodwill writeoffs, increasees in bad debt provisions etc galore!
Paringa
19 Mar 2018
Re: RNS Hunter gone My only consolation in this is that the directors have lost a packet!Poor Diana must rue the day she joined.Notice another recent AIM stock Accrol is a walking disaster following very recent results. Roughly one tenth of issue price. They even lost money on making toilet paper!!!I now have two AIM stocks JN Nicols and Fulcrum Utility.So far so very good there !
cooperboy
19 Mar 2018
dividend I suppose being grateful for very small mercies its just as well that the due payment to the IR was discovered last tuesday. Had it not been discovered until today then presumably the dividend would have gone out and there would be a further £8 million hole to fill.I see today it is the turn of micro focus to get smashed. I am starting to think its not worth being in any single company share for results day. Though pleased to say i missed out on this disaster at least.
Laraghs fund
19 Mar 2018
Re: RNS Hunter gone I hope she does not get a fat payout for overseeing such a mess.I still fail to see how £30m in corporation tax can be due after looking at the last annual accounts, and if this is VAT, then that is paid quarterly so very difficult to forget or not put in the cash forecast
cooperboy
19 Mar 2018
Re: RNS Hunter gone I think we can do without her 'transition support' perhaps she could go on a gcse accounting course instead
Bill1703
19 Mar 2018
Re: RNS Hunter gone Yes, didn't make it past Monday.I would imagine, a whole series of other changes to come in due course, at Board level and below...
penhome
19 Mar 2018
RNS Hunter gone Non-exec Chairman Adams becomes exec chairmanWell, the Sky and Sunday Times articles got that bit right. I wonder if they have the placing info right as well. This could be another week which is best forgotten.Pen
valeite
18 Mar 2018
Re: so much capital destroyed was referring to my capital LOL
