Interserve (not good)

[monabri]

https://www.londonstockexchange.com/exc ... 30600.html

Shareholders of Interserve PLC could lose everything under the terms of a rescue finance plan being discussed between the outsourcing firm and creditors, the Financial Times reported Friday, citing people close to the negotiations.

[monabri]

The FT article says

"Interserve, which has 75,000 employees worldwide, is hoping that it can pull off a sale of a business in the Middle East and that this — together with a debt-for-equity swap — would enable it to tap shareholders early next year, putting the company on a more stable footing, said people close to the company."


Middle East buyer....?.

#itsbeginningtosoundalotlikeCarillion

[monabri]

Must be a different Interserve?

https://www.fairfieldcurrent.com/news/2 ... lysts.html

"Interserve plc (LON:IRV) has received a consensus rating of “Buy” from the six analysts that are presently covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a hold rating and three have assigned a buy rating "

Is it April already..?

[idpickering]

Good effort monabri. You’re not talking to yourself lol. I don’t hold either firm.

Ian.

[Bouleversee]

The FT article says

"Interserve, which has 75,000 employees worldwide, is hoping that it can pull off a sale of a business in the Middle East and that this — together with a debt-for-equity swap — would enable it to tap shareholders early next year, putting the company on a more stable footing, said people close to the company."


Middle East buyer....?.

#itsbeginningtosoundalotlikeCarillion

More like Lonmin, methinks, in that CLLN went bust but Lonmin still lives though its original shareholders were wiped out other than left with a tiny holding if they coughed up for a rights issue which I don't think has added any value since then. Sounds as though IRV is planning to do the same.

[Bouleversee]

Must be a different Interserve?

https://www.fairfieldcurrent.com/news/2 ... lysts.html

"Interserve plc (LON:IRV) has received a consensus rating of “Buy” from the six analysts that are presently covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a hold rating and three have assigned a buy rating "

Is it April already..?

Certainly feels like it. One shower after another. I'd noticed the IRV s.p. going up for the last few days and for a moment thought they must have pulled something out of the hat but it now looks like that must have been a dead rabbit insofar as we long term holders and topper uppers are concerned. Ye gods! What a terrible year this has been; several years' ISA contributions down the pan and things can only get worse. Can anyone introduce me to David Cameron?

Happy Christmas to all.

Bouleversee.

[jackdaww]

its not good at all , and highlights the real risks of pursuing this elementary stock screen without research -

the PYAD 2000 article advocated some research - ie engaging brain.

i sold mine in 2010 at around 220 .

ive recently sold also my last remaining sally in that sector - babcock.

[Jon277]

I am normally like Doris and never sell regardless but I think this is about to go bust

Have put a limit order sell in after that and other media reports. About an 85% loss


J

[Bouleversee]

I am normally like Doris and never sell regardless but I think this is about to go bust

Have put a limit order sell in after that and other media reports. About an 85% loss


J

Just debating whether it's worth trying to get anything for mine. They will surely be down to next to nothing when they open tomorrow. What limit did you set? 96.45% and 85.37% losses on my two holdings, both in ISAs. (Why is it that most of my gains are not?) Depressing. Oh no, just remembered that capital doesn't matter.

[monabri]

Quoting from the Nov 23 2018 trading update.

Overall trading for 2018: strong profit growth in-line with management expectations

· Fit for Growth programme on track to deliver its target of £15m savings in 2018
· Year-end net debt expected in the range of £625m-£650m
· Deleveraging plan moving forward for announcement in early 2019

"The implementation of the Group's strategy and the Fit for Growth transformation programme remain on track and the Group expects a significant operating profit improvement in 2018, in line with management's expectations."

In April 2018 Interserve completed a refinancing to provide financial stability for the Group with new facilities through to 2021

The Board is working with its advisers to look at all options to deliver the optimum capital structure for the business to support its long-term, sustainable development. This process includes options to bring new capital into the business and, as previously announced, progressing the disposal of non-core businesses.

Overall we remain on track to deliver a significantly improved financial performance this year in line with our plan.


we are working with all stakeholders to put in place the right standards, services, governance and financing to deliver a stronger future for Interserve's customers and our 74,000 people


Well, what can one say? This was a couple of weeks ago.

[jackdaww]

I am normally like Doris and never sell regardless but I think this is about to go bust

Have put a limit order sell in after that and other media reports. About an 85% loss

J

Just debating whether it's worth trying to get anything for mine. They will surely be down to next to nothing when they open tomorrow. What limit did you set? 96.45% and 85.37% losses on my two holdings, both in ISAs. (Why is it that most of my gains are not?) Depressing.

Oh no, just remembered that capital doesn't matter.

=================================

wherever that little nugget came from , it certainly wasnt the 2000 pyad articles - far from it .

commiserations to those who have hung on to these duds.

[Bouleversee]

Quoting from the Nov 23 2018 trading update.

Overall trading for 2018: strong profit growth in-line with management expectations

· Fit for Growth programme on track to deliver its target of £15m savings in 2018
· Year-end net debt expected in the range of £625m-£650m
· Deleveraging plan moving forward for announcement in early 2019

"The implementation of the Group's strategy and the Fit for Growth transformation programme remain on track and the Group expects a significant operating profit improvement in 2018, in line with management's expectations."

In April 2018 Interserve completed a refinancing to provide financial stability for the Group with new facilities through to 2021

The Board is working with its advisers to look at all options to deliver the optimum capital structure for the business to support its long-term, sustainable development. This process includes options to bring new capital into the business and, as previously announced, progressing the disposal of non-core businesses.

Overall we remain on track to deliver a significantly improved financial performance this year in line with our plan.


we are working with all stakeholders to put in place the right standards, services, governance and financing to deliver a stronger future for Interserve's customers and our 74,000 people


Well, what can one say? This was a couple of weeks ago.

It wouldn't be printable here, I suspect. What's the difference between stakeholders and shareholders?

[Dod101]

These days stakeholders are everyone affected, employees, sub contractors and most importantly creditors. Shareholders are also stakeholders but alas, at the bottom of the pile.

Dod

[Bouleversee]

Exactly.

[monabri]

From IRV...news as expected

https://www.interserve.com/news-media/p ... aging-plan

[jackdaww]

Support Services. Say no more.

Investing in this sort of government low margin outsourcing field should come with a warning: suicide bidding or hidden bad contract costs will blow the company up eventually.

----------------------------------------
quite right.

and there have been warnings posted on these boards in recent years .

sadly for them , possibly influenced by other posters, some people have not profited from those warnings .

[Bouleversee]

Support Services. Say no more.

Investing in this sort of government low margin outsourcing field should come with a warning: suicide bidding or hidden bad contract costs will blow the company up eventually.

----------------------------------------
quite right.

and there have been warnings posted on these boards in recent years .

sadly for them , possibly influenced by other posters, some people have not profited from those warnings .

But didn't those warnings come after the s.p. had dropped like a stone and holdings worth precious little? We bought our shares in 2009 and they did well for a while till the sky fell in and at that point hardly worth selling. One hoped that they would eventually recover at least to some extent but that is clearly not going to happen now. Even less worth selling now.

How did those who had limit orders in to sell this morning get on?

[88V8]

In Feb 2017, Dividend Champions records Interserve's twenty years of dividend growth, and 1.9 times cover.

Another nail in the nutty notion of a buy-and-forget HYP.

V8

[Wizard]

Presumably if the shareholders vote it down the business goes belly up, either way shareholders are basically wiped out. But if the plan goes through all the top management presumably keep their jobs and fat salaries. On that basis if I were a shareholder I would vote against the plan.

Terry.
Fortunately don't hold this one.

[Bouleversee]

I wonder what the stance of the institutional holders will be or did they get out long ago? Cash ISAs are suddenly looking more appealing.