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SILVERDELL, Asbestos Remedial and Consultancy. 'Where theres muck theres money'. (SID)     

goldfinger - 08 Jan 2007 11:42

Ive just come across this one in the last few days and have been very impressed by what I have seen so far. Hardly had a mention in the market world and floated middle of last year.

As a good and proven management team , looks cheap on fundies and is acquiring quality bolt ons in the fragmented market it serves.

Chart looks very sound and the company is profitable.

Fundies are...

P/E of just over 14 to end of Sept 2007 and a P/E of just over 11 and a PEG of 0.5 to end of sept 2008.

Looks very much like a new Worthington Nicholls.

Very similar to the admission document...

http://www.investegate.co.uk/Article.aspx?id=200606230700300600F

Web site.....

http://www.silverdell.co.uk/homepage.asp

Chart.



DYOR.

soul traders - 10 Jan 2007 11:07 - 10 of 213

Well, GF, after a glowing accolade like that, how can I refuse your invitation?

Will stick both SID and MYH on the watchlist - I'm not sure when I'll next be churning my portfolio but am certainly always interested in new prospects for my shopping list. (Note to self: I have to do some serious digging around on Plus stocks as well . . . )

goldfinger - 10 Jan 2007 11:52 - 11 of 213

Blimey I say that and its dropped a penny today, aghhhhhhhhhhhhhhhhhhhhhhh.

soul traders - 10 Jan 2007 11:57 - 12 of 213

Chuckle - after recent performance, that's scarcely surprising, and not exactly a disaster, either!

goldfinger - 10 Jan 2007 12:06 - 13 of 213

And so as MYH agHHHHHHHHHHHHHHHHHHHHHHHHHHHH.

goldfinger - 10 Jan 2007 15:28 - 14 of 213

A nice turn around and ito the blue we go.

Still cheap on a forward P/E of just over 14.

I reckon a quality company in a niche area like this would be fully valued on a P/E of double that, so that would indicate a SP target of 250p ish.

Big Al - 10 Jan 2007 18:36 - 15 of 213

I was in early today - limit buy triggered first thing.

The story is covincing enough for me to stick it in the speculative section of the SIPP.

;-))

Big Al - 10 Jan 2007 18:37 - 16 of 213

PS - Timing's probably crap, but hey .............

goldfinger - 10 Jan 2007 19:15 - 17 of 213

Glad to have you aboard Big Al.

Big Al - 10 Jan 2007 19:22 - 18 of 213

GF - this is a little close to home, forgive the pun, but I'm doing work on the house and it looks like I may need the services of such a firm in the future. I'm probably not the only one out there and I took a quick look around their website too.

My natural instinct is to trade, but with the recently opened SIPP, I'm looking to take longer term punts in smaller size. They look like an outfit that fits the bill.

Al

goldfinger - 11 Jan 2007 11:16 - 19 of 213

Sure do Big Al and from the admission document..

The Directors and Proposed Directors believe that Silverdell
has the following strengths:


Brand and reputation: which provide a competitive advantage in an
industry which is both highly regulated and subject to increasing legislation/ litigation


Experience and track record: given the fragmented nature of the market,
only a few participants have the expertise and infrastructure to take on
major projects


Scale and geographic coverage: which enable Silverdell to continue to
capture nationwide contracts as well as providing a strong platform for
market consolidation


Health and safety record: of critical importance when winning new
business and difficult for competitors to replicate


Industry representation: which allows Silverdell to be at the forefront
of developments within the industry


Blue chip customer base: underpinning revenue and enabling Silverdell to
operate at the higher end of the market with the associated contract
premiums.

goldfinger - 11 Jan 2007 12:49 - 20 of 213

Interesting facts about the market.....

Uncertainty also surrounds the longevity of the market, although expectations
are that asbestos removal will peak around 2020, with 85 per cent. of all
asbestos having been removed by 2050.

It is believed that around 80 per cent. of the UK commercial and industrial
property stock have a high risk of containing asbestos, necessitating ongoing
asbestos management and potential remediation.ENDS.

Just shows what a massive market this is.

Big Al - 11 Jan 2007 13:05 - 21 of 213

Large market with barriers to entry to overcome for competitors.

I like it! ;-))

goldfinger - 11 Jan 2007 23:13 - 22 of 213

Big Al,

I rate this one very much as high as Worthy Nics.

The fact is that its a niche with associated high margins.

Ive pumped over a 1/4 tr million grand in WNG .

Im aiming for about the same or more in this.

Thats just how high I rate it.

Yes it could go all wrong, but again it could all go right.

DYOR. And by that I dont mean to put you off.

goldfinger - 12 Jan 2007 12:10 - 23 of 213

"Already identified opportunities for further complementary acquisitions".

Words taken from the CEO before the acquisition of Redhall.

It looks to me like we have more to come.

AND

The Directors and Proposed Directors believe that the industry is highly
fragmented, particularly as regards the regional providers, which presents a
significant opportunity for industry consolidation on a nationwide basis. The
Directors and Proposed Directors estimate that the Silverdell Group had
approximately 5 per cent. market share in 2005 based on its turnover when
compared to estimates of the market size.

Big Al - 12 Jan 2007 12:57 - 24 of 213

gf

Fundies not my strongest point, never has been, but you sometimes look at something and think the odds are better than many other places. ;-))

goldfinger - 12 Jan 2007 13:14 - 25 of 213

Certainly BIG AL,

forward P/E of just 14. I think that will be easily beaten anyway.

goldfinger - 14 Jan 2007 13:59 - 26 of 213

This is a fact and its a plus for the sid business....

The Silverdell Group has a business division focussed on the rail sector, is
approved to work for Network Rail and has full 'Link-up' accreditation (the
accreditation required to work within the rail industry). The Silverdell Group
also has framework agreements with London Underground service providers

goldfinger - 15 Jan 2007 11:28 - 27 of 213

Fine looking chart..

goldfinger - 15 Jan 2007 22:58 - 28 of 213

A nice tick up today. I keep telling you this is another Worthy Nicolls.



You wont listen but its the truth.

mickeyskint - 16 Jan 2007 11:59 - 29 of 213

GF

I picked this up from the other place. Anything to worry about?

MS


Stegrego - 4 Jan'07 - 22:35 - 53 of 76


This paragraph from the above doc does slightly bother me

'The HSE believes that for most work with asbestos this will maintain the status quo; however, the HSE is proposing to consult further on whether work with asbestos-containing textured coatings should be removed from the licensing
regime altogether. If that were to happen, licensed contractors such as
Silverdell could be exposed to competition from unlicensed contractors for such
work.'


It seems that the new Asbestos Regs 2006 http://www.hse.gov.uk/asbestos/regulations.htm
did infact bring in the changes re coatings etc, such that:

Work is only exempt from licensing if:

the exposure of employees to asbestos fibres is sporadic and of low intensity (but exposure cannot be considered to be sporadic and of low intensity if the concentration of asbestos in the air is liable to exceed 0.6 fibres per cm3 measured over 10 minutes); and

it is clear from the risk assessment that the exposure of any employee to asbestos will not exceed the control limit; and

the work involves:
short, non-continuous maintenance activities. Work can only be considered as short, non-continuous maintenance activities if any one person carries out work with these materials for less than one hour in a seven-day period. The total time spent by all workers on the work should not exceed a total of two hours. [i]

removal of materials in which the asbestos fibres are firmly linked in a matrix, Such materials include: asbestos cement; textured decorative coatings and paints which contain asbestos; articles of bitumen, plastic, resin or rubber which contain asbestos where their thermal or acoustic properties are incidental to their main purpose (eg vinyl floor tiles, electric cables, roofing felt) and other insulation products which may be used at high temperatures but have no insulation purposes, for example gaskets, washers, ropes and seals.
encapsulation or sealing of asbestos-containing materials which are in good condition, or
air monitoring and control, and the collection and analysis of samples to find out if a specific material contains asbestos.



Overall i cant see this being a huge hit on turnover though - anyone else got any thoughts?


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