Interserve

[monabri]

It's looking even grimmer for IRV.

https://www.bbc.co.uk/news/education-46191830

I certainly won't be putting my hand in my pocket if they try to raise funds and I think they will struggle to get the funding if they do.

[monabri]

https://www.londonstockexchange.com/exc ... 34200.html

Support services firm Interserve PLC is set to ask shareholders for more cash, the BBC reported on Tuesday.

Shares are now at a 30-year low after a 10% fall on Monday, the BBC said, and added sources "close to" the company have denied Interserve is close to bankruptcy.

Interserve shares were 1.7% lower on Tuesday at 38.64 pence each


( They're a bit lower than 38p now)

[idpickering]

I don’t hold these and am shy of the support services sector. I think the experience with Carillion confirmed my avoidance of such shares. I get these two are not alike before someone jumps down my throat.

Ian.

[Bouleversee]

Actually, they do seem to have rather a lot in common, Ian. I am starting to feel rather sick. If they go bust my family and I will suffer a huge loss between us, although since they are already practically worthless that is largely already showing in the p/f values. I had hoped they would eventually recover to some extent but like Monabri I don't feel inclined to pay for any rights; nor did I with Carpetright and Mothercare which are also practically worthless. At least, unlike IRV, the latter 2 are not in my ISA so losses can be offset against gains which are increasingly hard to find, however.

[monabri]

One common characteristic I'd suggest is that they ( CLLN and IRV) seem to undertake low margin work. Thus, when something goes awry ( energy for waste * in the case of IRV) then the doo doo hits the fan as they can't claw the loss of profits back from their other work.

* energy for waste...if this was a one off contract you might understand/ cut some slack in that " they got it wrong"...but they've undertaken and completed other similar jobs. The fact that they don't seem to be able to calculate a cost to complete by now is unacceptable. Any group who can't bound their anticipated cost to completion after this length of time are uninvestible. Alternatively, they do have a number but it is unpalatable. Rant over!

[idpickering]

Actually, they do seem to have rather a lot in common, Ian. I am starting to feel rather sick. If they go bust my family and I will suffer a huge loss between us, although since they are already practically worthless that is largely already showing in the p/f values. I had hoped they would eventually recover to some extent but like Monabri I don't feel inclined to pay for any rights; nor did I with Carpetright and Mothercare which are also practically worthless. At least, unlike IRV, the latter 2 are not in my ISA so losses can be offset against gains which are increasingly hard to find, however.

Thank you for your input. I’m sorry that you and your family are exposed to this matter, and I wish you good luck going forward.

Ian.

[AJC5001]

It's looking even grimmer for IRV.

https://www.bbc.co.uk/news/education-46191830

I certainly won't be putting my hand in my pocket if they try to raise funds and I think they will struggle to get the funding if they do.

I don't think I've ever considered Interserve. Has it ever been a High Yield share?

Adrian

[AleisterCrowley]

Never been on my radar, and until last week I (genuinely) thought they were an ISP !!

[Arborbridge]

Interserve is a sad story. I had never heard of the company until they had one or two adherants on the HYP practical board on TMF. I bought in 2010, and they were my tip-toppiest share - always first for XIRR and with a good dividend - until things took a dive at Carillion etc.

Well, I got out at 89.95p in February this year. Made a big loss but retained enough capital to be useful. As often with these processes, I didn't have a clear home in mind, but just wanted to get out. I notice the next share I bought after that date was....WPP. That went well then! So, selling was the right thing to do, but buying WPP perhaps wasn't the best decision.


Arb.

[mike]

A bit of a straw for grasping

Released today at 14:50

Interserve notes recent press commentary surrounding the Group and the movement in its share price.

Interserve confirms that the implementation of the Group's strategy and the Fit for Growth transformation programme remains on track and the Group continues to expect a significant operating profit improvement in 2018, in line with management's expectations.

https://www.investegate.co.uk/interserve-plc--irv-/rns/statement-following-recent-press-coverage/201811131450012325H/

Immediate reaction was share price touched 40p (up from 32p) before dropping back a bit.

Can't see divi being reinstated for some time.

Mike

[Bouleversee]

Why does Mandy Rice Davies spring to mind?

[dspp]

Why does Mandy Rice Davies spring to mind?

My reasons for thinking of her might be very different to yours

- dspp

[jackdaww]

only three years ago this was a £1 billion company .

there have been plenty of warnings on here about low margin outsourcers/contractors , which i am lucky to have learned from.

[YeeWo]

Interserve is a sad story.........Well, I got out at 89.95p in February this year. Made a big loss but retained enough capital to be useful. As often with these processes, I didn't have a clear home in mind, but just wanted to get out. I notice the next share I bought after that date was....WPP. That went well then! So, selling was the right thing to do, but buying WPP perhaps wasn't the best decision. Arb.

I sold out of WPP completely on 27 July 18 @ £11.80 crystallising a £5k-ish loss, not HYPish but WPP sans-Sorrell didn't feel right, the march of the FANGS has clearly created huge disintermediation opportunities in marketing. The reason I mention this is because funds from WPP were redeployed in Vodafone & BAT amongst others. Too early to tell definitively if WPP is doomed, but frying pans/fires do come to mind in trying to re-orientate in the down-market we're living with this year.

I appreciate this is an Interserve thread and I apologise for digressing!

[Bouleversee]

only three years ago this was a £1 billion company .

there have been plenty of warnings on here about low margin outsourcers/contractors , which i am lucky to have learned from.

Before Nov. 2009 and Apr. and Dec. 2014, which is when we bought ours?

[Bouleversee]

It's looking even grimmer for IRV.

https://www.bbc.co.uk/news/education-46191830

I certainly won't be putting my hand in my pocket if they try to raise funds and I think they will struggle to get the funding if they do.

I note that it says that NEW investors will be asked to put up more cash, so is that to be a repeat of the Pat. Val. money raising exercise where the old investors aren't even given the choice? I wonder who these new investors will be.

[Arborbridge]

only three years ago this was a £1 billion company .

there have been plenty of warnings on here about low margin outsourcers/contractors , which i am lucky to have learned from.

Before Nov. 2009 and Apr. and Dec. 2014, which is when we bought ours?

Good point, Boueversee. I do not recall any warnings about Interserve or low margin outsourcers at that time. In fact, Interserve were for a time praised for differentiating itself from the likes of Carillion or Balfour Beatty because they were pursuing more "upmarket" design work rather than grease monkey construction. In 2009 IRV was well recommended.

Naturally, there might have been discussions in which someone pointed out that low margin work was undesirable in a general sense, but on these boards one can always find someone who stated some warning opinion. It's a daily event and if we took any notice, our HYPs would be pretty hollowed out I can remember someone warning that one of the biggest HYP shares - maybe RB or ULVR was "technically" bankrupt and should be avoided.

That's the way it goes.

[Bouleversee]

I don't keep records of such things, but I'm pretty sure I would have bought them after they had been discussed as a buy on here after I had been introduced to the HYP board and HYP principle. Fortunately I have enough non-HYP gains to compensate for HYP losses.

[Bouleversee]

That's interesting: HL have IRV s p at 38.48p to sell and 37.48p to buy.

[jackdaww]

I don't keep records of such things, but I'm pretty sure I would have bought them after they had been discussed as a buy on here after I had been introduced to the HYP board and HYP principle. Fortunately I have enough non-HYP gains to compensate for HYP losses.

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

others are no doubt in a similar position , without the good fortune from holding non-hyp's.

my own ( carefully chosen) HYP type shares are just about treading water , which isnt bad , but my non hyp's have mostly done much better .