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.

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.

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.

Large market with barriers to entry to overcome for competitors.

I like it! ;-))

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.

"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.

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. ;-))

Certainly BIG AL,

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

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

Fine looking chart..

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



You wont listen but its the truth.

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?

Hi Mickey good point one that I replied to on that board before the little hitler in admin who dislikes me removed my post.

The reference is from the admission document refering to the license for 'TEXTURED COATINGS', a minimal amount of the bigger asbestos removal picture.

I personally have a stake in a private business in the property renovation market and beleive me as soon as asbestos removal is mentioned would be contracters take off, they just dont want to know about it. Theres not enough skilled knowledgable people in the industry plus they also fear envoiremental health bodies slapping a huge fine on them if they dont come up to standard.

They just dont want the work.

Interesting to note aswell from the admission document the following......

In addition, the Directors and Proposed Directors believe that there are strong
barriers to entry to the industry,, in particular:

(a) a customer requirement for reputation and credibility, which offsets low
start-up costs;

(b) scale and a full service capability - critical if a provider is to have
full access to the market;

(c) a track record - a pre-requisite for cost effective insurance cover, among
other things; and

(d) the hazardous nature of asbestos and litigation risk. ENDS.

Sure the representative body may relax license laws on textured coatings, but is it going to hurt SID?, I very much doubt it will cause one jot of a problem.

cheers GF.

Its interesting to note that.......

Silverdell is a prominent member of ARCA and is represented on the Governing
Council and Technical Committee. The Directors and the Proposed Directors (which
terms are defined under the section entitled, 'The Board' later) believe that in
a market where clients are heavily focussed on brand and reputation, not only
does this enhance the Silverdell Group's credentials, it means that it can
actively participate in developments within the industry.


Silverdell has also innovated, developing technologies to record and monitor
removal works using audiovisual equipment (which the HSE intend to make an
industry standard) and introducing on-site self-auditing, a process now adopted
as good practice by ARCA.

A few opportunist buys today and who can blame them.

One to watch.

Positive this morning.

Should help within the industry...

Silverdell has an excellent health and safety record amongst its industry peers.
Adherence by the Silverdell Group to high standards of health and safety are
recognised within the industry: a senior employee won the Asbestos Removal
Contractors Association ('ARCA') Supervisor of the Year award in 2003 and
Silverdell currently holds the ARCA Regional Award for Training (South East). In
2006 Silverdell also received an award from the Royal Association for the
Prevention of Accidents ('ROSPA'). ROSPA awards companies who show a commitment
to the prevention of accidents within the workplace by the installation of
systems and procedures that empower employees to work in a more knowledgeable
manner when it comes to health and safety

Looks ready to tick up.

Nice to see buyers moving in here today and the increase in SP.

GF, hope this one is better than your short position on SOLA at 180. Bit of a stinker that one.

salford, GF's comments and advise, firstly, have always been to bring our attention to a particular share in good faith, and are usually always followed by his, but please research it fully yourself.