daw2905
14 Jul 2015
Re: AGM questions I too would appreciate answers to those questions.Dw (also a lth)
oldie1
10 Jul 2015
AGM questions I continue to hold a substantial number of RUR shares and have sold none. However, recent events and missed deadlines etc have been unsettling.Unfortunately, I will not be able to attend the AGM next Tuesday. Were I to do so, my questions to the board would include those below:• Regarding the “spin-out” of IPC and the related RNS announcement of 19/6/15, I assume that the “principal assets” of IPC which have been transferred to RUR do not encompass what really counts, namely IPC’s intellectual property, its contracts, its goodwill etc. IPC appears to be a valuable business and I recall that it was touted as such when it was acquired by RUR. Given this, why has IPC been, it would appear, gifted to the former CEO? What independent scrutiny of that transaction was undertaken at the instigation of the board?• The loan arrangement with Radix seems unusual. Radix is not a mainstream lender and tracing its family tree of related people and companies yields some interesting connections. It would therefore be helpful to have clear answers to a few questions on this. What is the remaining balance and what are the key terms of the Radix loan? What are the connections, direct and indirect, other than as lender, between Radix and RUR? Have any transactions taken place between Radix and its connections and RUR’s group apart from the loan? What other financial/business arrangements, if any, are in place between Radix and its connections and RUR’s group?• What are the key terms of the US$12 million “bridging loan facility” and the “one year strategic loan” mentioned in an RNS announcement on 19/6/15? Who is the lender in each case? Are there any connections, direct or indirect, other than as lender, between each lender and RUR?• What action has been taken to prevent future occurrences of such events as the release of RNS announcements that subsequently have to be corrected, RNS announcements that should have been released after market hours being released before the market closes etc?• The current position and the board’s assessment of the future prospects of RUR have, in my opinion, been communicated to shareholders very unclearly. RNS announcements have tended to conceal more than they reveal, leaving obvious questions unanswered. This is very unhelpful, cannot all be attributed to commercial confidentiality and leads one to perhaps unwarranted and worrying conclusions. Clear answers to the big questions are thus long overdue. What is the current solvency and liquidity position? When are the various expected payments and receipts heralded and repeatedly delayed over recent months actually going to occur? What plans for the development of the business are afoot? When, realistically, will those plans come to fruition? …. and so on and so on.Some of these questions may have been partly answered by RUR already, in which case I apologise for having missed that. Others reading this post may have other salient questions to add to my list.The board would, quite legitimately, be able to duck most if not all of these questions citing AIM rules on communicating with all shareholders simultaneously and/or commercial confidentiality. However, at least asking them would give the board a clear list of matters that unconnected and concerned minority shareholders (including PIs) expect to see answered as part of a new and more open approach to investor relations. We may then reasonably anticipate most of the answers following in RNS announcements over the coming weeks.The board should also be familiar with the fact that minority shareholders are not powerless. Moral suasion is a powerful force which it would be unwise for the board to ignore as, in extremis, legal protections are available to minorities. However, my stance generally is to trust and support the board, unless and until evidence arises that that trust is not merited. One would hope that the RUR board would welcome well-intentioned i
TheGreatGame
06 Jul 2015
Re: Pablo Galante 'Not' is right judging from recent history.
Leicesterboy
05 Jul 2015
Re: Pablo Galante Lets see what the AGM has to say on 14th July 2015, they must be very close to doing deals ! Must not they ? LB
TheGreatGame
03 Jul 2015
Re: Pablo Galante Well. This doing well ain't it?No more PEWho do I complain about now?
TheGreatGame
26 Jun 2015
Re: Pablo Galante Looking at the results and transparency LB. Not much of either imo.
Leicesterboy
26 Jun 2015
Re: Pablo Galante Hi GG, I do tend to agree with you on all aspects, and the $12 million bridging loan will be expensive if they cant get the Sale of the Peruvian Assets, but in Annual Report it states that a Replacement Sale agreement was in place for the Peruvian run of the River Hydro on 15th May 2015 at £4.4 million which is slightly more than the $6.6 million they talked about before, but one may have been for part sale and this is for the lot ! 10 shareholders own 78% of the Share Capital so the PIs are an irrelevance really.I still think they will pull through, but as we all know Cash is KING !LB
Leicesterboy
26 Jun 2015
Re: Pablo Galante IPC made a Loss to 31st December 2014 of £4.2 million where 2013 it made a Profit of £2.1 million, I think they have struggled with many factors outside their control, a slow down in Power Projects on a change in Government in Peru, so struggled to find an Equity partner hence the Sale of Projects in Peru.I am not quite sure that you will see PE making a fortune, he is still to be on a Consultancy till the outstanding Sale of the Peruvian Assets are done, Colin Emson who is Chairman takes 29000 in Salary he is Sterlings Man who own over 53% will not want any under handed activity they are staring at an £18 million loss on their Investment.LB
TheGreatGame
25 Jun 2015
Re: Pablo Galante From Share Prophets last monthCesspit ! It is always worth a gander through the after-hours RNSs to see what is being slipped out when no-one is looking. It is a common way for companies – especially those on the AIM Cesspit – to try to hide bad news from their shareholders. It simply doesn’t work, so why they bother is beyond me. But it is an immediate Red Flag. And that brings me to Rurelec plc (RUR). On Tuesday at 4.30pm – bang on market closing time - it released an RNS entitled ‘Extension of Radix Facility Agreement’. Gosh what an exciting life I lead: I just had to take a look…The first thing which caught my eye was that this had already been released through the RNS system at 4.15pm. Seems a tad clumsy, and so two red Flags are clocked up here: one for carelessness and another for an out-of-hours RNS. Oh, and there was a third Red Flag: the Nomad here is WH Ireland, naming a certain Mr Paul Shackleton, of Naibu and Rangers fame to mention just a couple of items on his CV, as a contact.The company had - as per the title of the RNS – extended a loan facility from Radix Investments UK Ltd, which had agreed to delay the repayment date to the end of June 2015 and advanced a further £340k. Now this raises a few questions such as when was the loan supposed to have been paid off?, and why Rurelec needed additional lending? What were the terms demanded by Radix – to whom the RNS tells us that the Directors are grateful – for this act of leniency? That we are not told sticks out like… well, another Red Flag.So what has been going on here? Wind the clock back to April Fool’s day and we have an RNS entitled ‘sale of Canchayllo Hydroelectric Plant’. Actually, the RNS was reporting that sale proceeds had not been received. Ah, so perhaps this should have been called ‘non-sale of Canchayllo Hydroelectric Plant’. Shall we call that Red Flag number 5? The RNS cheerily continued that the company expected to receive the $6.6m sale proceeds ‘shortly’ but had been subjected to administrative delays. Mr Godot was definitely going to turn up tomorrow.Well we’ve had no update on that since, other than the extension of the Radix loan repayment date and additional funds drawn. Might one conclude that the cash has still not arrived, then? How long a period is ‘shortly’? A day? A week? A month? As it is now, over six weeks? But of course there was no mention of this in Tuesday’s duplicate RNSs. Why not? Oh alright, then, Red Flag number 6.If we now turn the clock back to an RNS of 2 March 2015 we find the company stating that the Radix loan has reached £550k and “will be repaid on 31 Mar 2015” out of the proceeds of the Canchayllo sale. A further loan (due to IPSA Group plc – whose Acting CEO on 29 Dec 2014 was one Peter R S Earl, surely an almighty coincidence, or the very same person as the CEO of Rurelec) was also due to be repaid from that cash – supposed to be $6.5m (except that the 1 April RNS asserts that the figure is $6.6m). Again, we are told that the directors are grateful to Radix for their patience. Oh dear, that’ll be Red Flags 7 and 8.So what has happened to the sale of Canchayllo? When is the cash now expected to arrive? And what happens if Radix gets fed up waiting for its cash? I mention this because according to an RNS back in Dec 2014 the Radix loan facility was secured – although we are not told what on. Mind you, no charge against the assets of the company has been registered with Companies House dating from that time. This means that, as I understand this small corner of company law, should Rurelec become insolvent the security would lapse. I’m sure that Radix will be delighted to find that out. Red Flag number 9?And so one might wonder whether there is any danger of insolvency: according to the last set of numbers (H1 2014, released on 30 Sept 2014 – the last possible date for publication) current assets totalled £15.7m and current liabilities totalled £16.3m. Now this doesn’t suggest
Leicesterboy
25 Jun 2015
Pablo Galante His shareholding is 13,000,000 which is no small shareholding !The BOD plus 3 major shareholders own 78% of Rurelec.Any ideas on the percentage needed to take a company back into a Private Company.Not sure this would work here though. There must be an end game here.LB
Leicesterboy
21 Jun 2015
Re: Mixed views Hi GFD, I am sorry to see Peter Earl go, but as a few have said his timescales are appalling, and in a one of his video interviews he states that the it was like a " beauty contest" in choosing the partners for the projects, as if we were in charge of who we got into bed with ! His statement on the Annual Results was they have had to sell the Peruvian Assets ! The bridging loan appears to be a good move but at what rate they always tend to be expensive, but hopefully the Sales will go through very soon, and why cant they tell us why there is a delay ? or are they just sorting out the finer details of the Sale of Rurelec !All will be revealed shortly. I still believe they will get back on track, Sterling paid over 9 pence per share !LB
TheGreatGame
19 Jun 2015
Re: Hands UP ! LG - Oh the modesty and humility lol
TheGreatGame
19 Jun 2015
Re: Mixed views The only person who should be apologising is the useless individual responsible for steering this company to where it is today.But I imagine he has been lining his pocket quite nicely in the process...
goodflyingduck
19 Jun 2015
Re: Mixed views It certainly is testament to RUR's fundamentals that it is recovering from the news that Peter Earl is leaving RUR. For my part, I think that I really must apologise for having been so confident in Peter's ability to deliver on his expectations as framed in RNS's - especially to MrNP. It has to be difficult for companies on AIM that feel driven to make announcements, in order to stop the sp drifting ever lower, only to find themselves hoist by their own petard. Maybe we should take a leaf out of the Toronto Stock Exchange's way of doing things and have every company make a quarterly trading statement; there would still be scope for "extraordinary" news but, at least, investors would not be driven to distraction or antipathy simply by virtue of there being no "News" ?Anyway, I'd like to believe that RUR can (and will) pick up the pieces and move forward with their remaining assets and the new co-operative "partnership" that will keep them in the energy production arena in South America, focusing now on thermal production. Either that or they are takeover by some other company that can make a better fist of it.GLA GFD
Allisfair
19 Jun 2015
Another AIM share crossed off my watch-list.
