Interserve – slipping again. Has it mortgaged itself too far?

I haven’t commented on fully listed Interserve (IRV) for a while. This, of course, is another outsourcing company doing our blessed government’s good works for it – and, like Carillion (RIP) is struggling with its debt (albeit we are to believe to a lesser extent). It is also a company which has delivered less than complete clarity. But it is under new management. So I wonder why the shares (now down to just 64.9p to sell as at Friday’s close) have again been slipping.

Interserve – that’s quite a short position: what do they know?

I noted yesterday that shares in fully-listed Interserve (IRV) seemed to be in free fall. At time of writing they were down 15% and they dropped further at the close. There was no RNS, nor any news I could find. Following a spot of digging, the FCA spreadsheet of net short positions shows a spot of recent activity: why?

Interserve – no RNS, so why are the shares off by 15%?

I realise that there may be a spot of nervousness in the market at the moment – especially in the wake of disasters at Carillon and Capita. Does that explain why shares in fully-listed Interserve (IRG) are off by 15% today, with no RNS announced?

Interserve – good news announced, but key detail missed in RNS – SKY

I read with interest that fully listed Interserve (IRV) some good news in its RNS on Wednesday of this week. It has secured £180 million of short term funding to the end of March, and an agreement to defer covenant tests on its borrowing also until the end of March. Great news! Well, sort of. The problem – as revealed by Sky News (see HERE) later the same day - is that there were conditions which were not mentioned by the company.

Interserve – another old board rat deserts the sinking ship (with a bag of goodies)

Fully listed Interserve plc (IRV) has announced the departure of its support services managing director, Mr Bruce Melizan. He has stepped down from the Board and will stick around until the end of January to effect a handover. A second announcement describes the severance package….I wish I had one of those!

Interserve - down 8% today: why?

Shares in main market-listed Interserve (IRV) have been falling today, last seen down a thumping 8.2% - quite a drop for a £106 million company when there has been no news. One wonders why.

Interserve (#IRV) – trading slowdown sees “realistic prospect” will not meet end 2017 net debt-EBITDA covenant test

Interserve – shares falling again today, still a sell

Yesterday revelations on Sky and a company statement made clear that all is not well at Interserve (IRV), for all the positive noises about constructive  discussions with its lenders, Sky revealed that a syndicate of lenders including Royal Bank of Scotland and HSBC had called in Ernst and Young amid fears about the balance sheet. Noting also that the balance sheet is painfully thin, as per its recent interims statement, and the calamitous profit warning last month suggesting that the company had no idea of the eventual magnitude of the provision needed associated with its exit from its energy-from-waste business, as well as questions over current trading and you already have pretty good reasons to get out.

Interserve: more reasons to sell - the balance sheet, advisers called in by lenders

A little bit more of a look at main market listed Interserve (IRV) simply serves to underline my comment earlier that it is a sell.

Interserve – oh dear, “in constructive and ongoing discussions with its lenders”

Main market listed Interserve (IRV) has followed up its profit warning of 14 September with a statement today that it is in constructive and ongoing discussions with its lenders. The word constructive may sound positive, but I fancy it is anything but: the 14 September warning said that the Board continues to believe that the group will be able to operate within its banking covenants. Oh, and the CFO stepped down on 30 September 2017, as announced on 30 June – except that it looks like that was after a nudge.

Interserve (#IRV) – “significantly below” profit warning

Interserve (#IRV) – JV with Amec Foster Wheeler (#AMFW) wins a key framework contract at Sellafield

Interserve (#IRV) – H1 adj. EPS +1%, DPS +2.5%, outlook "unchanged"

Interserve (#IRV) profits warning albeit a 1 off event from Glasgow

Interserve (#IRV) - near term UK Construction conditions remain "challenging"

Interserve (#IRV) - preferred bidder for £200million defence rehabilitation centre