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RCR, RCR TOMLINSON LIMITED
blacksheep
post Posted: Dec 4 2018, 09:55 AM
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In Reply To: blacksheep's post @ Nov 27 2018, 03:05 PM

RCR Tomlinson administrators reveal debts of up to $630m from collapsed engineering firm

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RCR creditors — who is owed what
Trade creditors (subcontractors and suppliers) — $100-250 million
Secured creditors — $235 million
Unsecured bond issuers — $113 million
2,800 employee entitlements totalling $32 million, excluding redundancy


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Burned by solar
McGrathNicol partner Jason Preston told creditors initial investigations revealed the company's collapse was largely caused by problems with its solar farm developments, which left the business exposed to a number of risks, particularly if there were project delays.

This was attributed to the way in which the contracts were structured.

RCR signed engineering procurement and construction contracts, or EPCs, for its solar projects, in which it provided a fixed price for its customers.

If the contract took longer to complete, and therefore cost more to deliver, RCR had to absorb the increase.

This meant the company consumed "significant amounts of cash very quickly," McGrathNicol told creditors.


read more - https://www.abc.net.au/news/2018-12-03/rcr-...ection=business



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Nov 27 2018, 03:05 PM
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In Reply To: blacksheep's post @ Nov 27 2018, 10:53 AM

Unbelievable!!!!! What's ASIC going to do about this?

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RCR Tomlinson's board hired McGrathNicol to undertake "contingency planning" for a potential voluntary administration on August 14 - two weeks before it raised $100 million from investors.

https://www.afr.com/business/rcr-tomlinson-...20181126-h18e2l



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Nov 27 2018, 10:53 AM
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In Reply To: blacksheep's post @ Nov 22 2018, 09:08 PM

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And what an expensive lesson for those shareholders who took RCR's assurances as reason to plough more money in. The company's single largest shareholder, with 14 per cent, is the storied Perpetual, whose investment style is synonymous with the phrase "strong balance sheet". Though clearly not in this instance. And then, there's Allan Gray, which isn't exactly known as a passive investor, sitting on 8 per cent. Both fund managers increased their stakes in recent weeks, and must be livid to see what's happened to their investment. Who knows how much they'll get back, once everyone else is paid.

We wouldn't be surprised if shareholders' ire extended a little further to Macquarie Capital. The investment bank was the lead manager and underwriter of the $100 million offer finalised only a few weeks ago

https://www.afr.com/brand/rear-window/rcr-t...20181126-h18d7v

Another classic "broker recommendation" that didn't age well - this one appeared in the SMH 14 June 2018
QUOTE
Stock watch
RCR Tomlinson
Macquarie retained its "outperform" recommendation for engineering services company RCR Tomlinson, despite the company's share price declining 28 per cent since the broker's previous note in February. Macquarie's outlook review comes after a site visit to the company's Swan Hill solar farm and AEMO and ARENA industry meetings. The brokers says that the Swan Hill solar farm would be delivered on time and budget, and that recent industry meetings had indicated a strong outlook for solar until at least 2020. Macquarie says that the company's outlook for the 2019 financial year is solid and is predicting 50 per cent revenue in the hand for the year. It also noted that RCR's valuation was attractive against its peer group and is trading on the assumption of significant downside risk.




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Nov 23 2018, 08:56 AM
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In Reply To: nipper's post @ Nov 23 2018, 08:44 AM

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RCR, which employs more than 3400 people and was founded by the Tomlinson brothers in 1898, operates the brands O'Donnell Griffin, Haden and Resolve FM.

It builds a broad range of infrastructure projects in Australia, New Zealand and south-east Asia including power stations, water treatment systems, and rail infrastructure as well as providing maintenance services.

Its clients include Transport for NSW, Metro Trains Melbourne, the Water Corporation of WA, Sydney Water and Pilbara Minerals, and it operates a joint venture with Downer EDI.
- good bits will be sold off



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Nov 23 2018, 08:44 AM
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In Reply To: blacksheep's post @ Nov 22 2018, 09:08 PM

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a company which managed to win the support of respected fund managers, including Allan Gray, Perpetual, Dimensional Fund Advisers, Tribeca Investment Partners and Fidelity.


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RCR Tomlinson made the mistake of tying its final milestone payments on its Queensland solar projects to targets that included final connection to the grid. When the company could not complete this because of the prolonged testing demands of the Australian Energy Market Operator it was forced to make liquidated damages payments to its client.

AEMO has significantly toughened its testing prior to the introduction of new technology and generation into the power system. This is in keeping with the pressure from the federal government to ensure stability and reliability in the system

Solar power comes from the sun ... And it's free. lol



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Nov 22 2018, 09:08 PM
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In Reply To: nipper's post @ Nov 22 2018, 05:16 PM

Allan Gray increased their s/holding not that long ago.
From bullet-proof to administration in weeks
QUOTE
Investment management company Allan Gray's managing director, Simon Mawhinney, said the collapse was astonishing and an absolute disaster for shareholders.

"We've never seen a turnaround like this," Mr Mawhinney said.

"After the $100 million they raised, they allegedly had $140 million of net cash and a seemingly bullet-proof balance sheet.

"To go from audited financial statements released to the ASX in August, signed off by the board and their bankers, as well as the positive AGM commentary in October, defies belief.

https://www.abc.net.au/news/2018-11-22/engi...ection=business

Surely ASIC will be looking into?



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


nipper
post Posted: Nov 22 2018, 05:16 PM
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"Debacle Complete As RCR Collapses Into Administration"

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RCR Tomlinson has collapsed after failing to find extra funding on top of the $100 million raised in August in the wake of a third solar power plant debacle.

That money now seems to have gone in the space of two months - the fundraising was completed in late September, now the company has gone bankrupt.

The entitlement offer offered RCR shares on a one-for-1.65 basis at $1 each. The price was a 64% discount from the stock’s last trade of $2.80 before the first lengthy suspension on July 30. That discount was a bit of a giveaway about the level of desperation for RCR’s board.
- ouch !!



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
john269
post Posted: May 10 2012, 11:44 AM
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What's with the current selling well below the max buy back level?

 
hungry
post Posted: Mar 15 2010, 09:30 AM
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May be on the move again.
Has wkly bullish divergence. OBV rising & broken the 1.00 resis Friday on higher vol.
Not too many sellers atm.

 
john269
post Posted: Oct 14 2009, 11:02 AM
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In Reply To: uraniumbull's post @ Sep 16 2009, 05:50 PM

Any thoughts on when this might be announced Ubull?

 
 


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