MartinDrew
12 Jan 2017
JP Morgae Uprate "JPMORGAN RAISES INTERSERVE PRICE TARGET TO 518 (476) PENCE – ‘OVERWEIGHT’ "Roll on that price hike!
Omaha man
11 Jan 2017
Re: Up 9% today In terms of profits I think you will find they will treat the costs as an exceptional item, neatly sidestepping having to say too much about it. Cash will indeed have to be included in the normal cash-flow statement.
deepsleeves
11 Jan 2017
Re: Up 9% today OmahaWill not the exit costs be included in calculations made to get to the basis of the statements in the trading update re profit and cash?Deep
Omaha man
11 Jan 2017
Re: Up 9% today The key point is that once you include the termination costs of the energy from waste debacle the profits are largely wiped out. Management has consistently misled shareholders about this culminating in the Chief Exec being sacked - nobody yet appointed to replace him. New CE could easily cut the dividend; find other problems etc.Low margin businesses like this depend on not making major mistakes which can dramatically influence results. Once confidence in the management is gone there is always going to be concern that other nasties creep out of the woodwork.Don't get me wrong, I believe there is a sound business here and over a couple of years time frame would expect a very good return from the shares, but the ride may yet have further bumps along the way.
deepsleeves
11 Jan 2017
Re: Up 9% today Given the trading statement re-iterates on track for 2016 and that implies profit of £M90+ for the year giving a P/E of 5 reducing to 4.5 over the next 2 years and a dividend yield of over 7% twice covered by earnings I not really sure I understand the markets valuation of IRV.The biggest issues I can see are the level of debt [expected to have reduced by £50M over the year] and the impact of the NLW [but reduced from an expected £0.45 to £0,30 for the coming year]Any other thoughts on why the valuation is so low would be welcomeDeep
