spankaroo
18 Mar 2015
Valuation of parts points towards 80p Why?- Insurers accepted Liability back in January- Smoke damage will require virtually all the equipment is replaced.- Replacement value of Swansea facility as at 1 July 2006 for building, plant & Machinery was £31m (tangible fixed assets), of which £20.5m was plant &Mach.- Roll on interims 31 Dec 2015, under ICS it had to show the loss of production at Swansea and assets value as an exceptional item of $13.48m (£9.2m), this is the balance value of Swansea after depreciation over 9 years- Under a normal comprehensive insurance policy, if the equipment & machinery can't be repaired or like for like found - similar age spec -it has to replace with new, which could cost £20m or more if nothing can be salvaged.- If the company doesn't think its viable to continue at Swansea- lets face it most of the wafers are flown from the Far East (June 2014 accounts show US generating EBITDA of £2.7m and the UK £1.8m and Swansea is a bigger site!) management may decide to do a deal with the insurance company.- The absolute minimum for plant & machinery would be the exceptional item posted in the interims $13.48m, but wouldn't include loss of earnings, compensation for potential loss of customers etc. If the insurance company is looking at a potential claim of over $30m just for plant and equipment, so I'm sure they will want to make a deal, say $25m (£17m)- That £17m is more than the current market cap!- Let's not forget about about the US facility, which generated £2.7m EBITDA to 30th June 2014. Market conditions remain good for wafer reclaimers, so expect the same for 2015.- Based on today's market cap of £11m, with just the US, it on a 4x EBITDA multiple.So what's in store for the patient investor? 1. a brand new Swansea site and compensation for loss of earnings etc 2. a cash settlement north of £17m, which could go into the US or given back to shareholders. 3. Or the insurance company bids for the company, but not sure it can do that. in the meantime investors are still sitting on a cash generating asset in the US. Valuation looks too low and a market cap north of £23m plus would more appropriate
BigSwede
19 Jan 2015
The management here have done a good job over the last year / eighteen months. The fire was undoubtedly extremely bad luck but I am holding because I think they will emerge from this better than they were before the fire and in the round it will be onwards and upwards!
sturoym6
16 Jan 2015
Re: RNS Comment that key staff will leave assumes that they will have somewhere to go. Many, I am sure, will want to be involved in getting the plant back into production and there may be scope ble to introduce some betterment, While the fire is undoubtedly a pain in the proverbial, things may not be too bad in the long run as long as customers can be retained. Customer retention, in my view, is where the danger lies.
noidea1960
16 Jan 2015
Re: RNS Staff wageroll will be covered by insurance so will get paid
coldascheese
16 Jan 2015
Re: RNS I have sold out-a year is a long time and by then some key staff may have left the company etc etcTo many possible negatives for me. Damage is worse than I thought,it would be.
noidea1960
16 Jan 2015
Re: RNS I'm a Property insurance broker and they will insure Gross Profit under insurance definition being Net Profit Plus fixed expenses
forwardloop
16 Jan 2015
RNS Clean rooms contaminated requiring equipment refurbishing - 12 months disruption. Now to see how good their business interruption insurance is, and what happens to their customers over the interim period.
yodagates
23 Dec 2014
Re: Why the drop y
yodagates
23 Dec 2014
Re: Why the drop y
Ytong
23 Dec 2014
Re: Why the drop There is business interruption insurance?27p.........seems drastic?
forwardloop
22 Dec 2014
drone camera footage [link]
lambrini girl
22 Dec 2014
Re: Why the drop 27p
sturoym6
22 Dec 2014
Re: Fire at new Swansea plant What Coldascheese said is correct in terms of business interruption payments. The problem, however, is that clients may go elsewhere until the company gets up and running fully and it may not be that easy to get them back.
coldascheese
22 Dec 2014
Re: Fire at new Swansea plant nsuranceCreated by aimtitan - Today 10
3Today 14:3650glass6Go to ThreadI used to work in the investment and protection side on retail a few years backMost policies in the manufacturing side have loss of earnings protection which essentially pays out for losses on the order book for that sitethis means pure wafer, once everything is reported, file the full revenue from the site for however long it is downThis is really good as it means any unforeseen costs had the site not been in a fire are mitigatedAdditionally, this means a heep of new equipment definitely a steel at this price, bought in a couple of k in the high 30s
sturoym6
22 Dec 2014
Re: Fire at new Swansea plant I have looked at the videos that you provided links for and, speaking as a fire investigator, it looks to me as if the fire is predominantly outside the building and it mainly involves storage tanks. While there could clearly be some fire effects inside the factory building, if my interpretation of where the fire is centred is correct it looks as if much of the expensive equipment, with long lead times, will be relatively unaffected. In this case, any production loss will hopefully be relatively short lived. In this context, short lived could be 4 to 6 months.
