Instead they made a tender offer to buyback maximum of 27% of shares at 95p.
I would still be happy with this 27% buyback if the company was already profitable so it had an automatic impact on eps. But this just adds another assumption to the thesis which is for the company to improve margins.
This is really a great find! The risk/reward seems compelling but obviously further due dilligence is necessary. The market somehow reacted in october to the sale ( at least ), but still the valuation is insane , given the 55 pence cash out + relativly stable business segments. Also inflationary pressure should further soften , so margins should be impacted positily.
Sadly ( for most companies within AIM ) communication is really bad here.
But certainly something worth a look , because downside is limited and upside / capital allocation seems to be starting very favourable.
What do you think about their latest M&A Target with "Specialist Aviation"?
Regarding the latest acquisition, honestly I'm in two minds. I'd prefer to see material improvements in the consolidated results before a return to M&A. Especially given the track record here is far from flawless.
That said, this part of the business (i.e. Special Missions) is currently the highest margin (and highest RoTC) division. At least capital is being allocated to better quality parts of the business. Alongside, the already announced shareholder return.
At this time, I've no strong opinion either way. But this may well change when we see the price!
Well looks like 55p was a joke
https://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=4462469&lang=en-GB&companycode=uk-hgr8&v=
Instead they made a tender offer to buyback maximum of 27% of shares at 95p.
I would still be happy with this 27% buyback if the company was already profitable so it had an automatic impact on eps. But this just adds another assumption to the thesis which is for the company to improve margins.
This is really a great find! The risk/reward seems compelling but obviously further due dilligence is necessary. The market somehow reacted in october to the sale ( at least ), but still the valuation is insane , given the 55 pence cash out + relativly stable business segments. Also inflationary pressure should further soften , so margins should be impacted positily.
Sadly ( for most companies within AIM ) communication is really bad here.
But certainly something worth a look , because downside is limited and upside / capital allocation seems to be starting very favourable.
What do you think about their latest M&A Target with "Specialist Aviation"?
Great comments - thank you.
Regarding the latest acquisition, honestly I'm in two minds. I'd prefer to see material improvements in the consolidated results before a return to M&A. Especially given the track record here is far from flawless.
That said, this part of the business (i.e. Special Missions) is currently the highest margin (and highest RoTC) division. At least capital is being allocated to better quality parts of the business. Alongside, the already announced shareholder return.
At this time, I've no strong opinion either way. But this may well change when we see the price!
Haha exactly my thoughts, good (margin) , bad because of missing information / past decisions ! Anyways will be on the radar closely to follow!