THREAD NOW CLOSED 3 May 2007

LATEST NEWS...(Check RNS service for details)

10/4/2007 - GME removes its minority interest in Patriot so shareholders enjoy 100% of all growth at Patriot
20/3/2007 - GME announces it will no longer support as NIM as non-core but instead focus on Patriot's US$123 order book
4/1/2007 - Cantor Fitgerald report 6.90% Holding
Decemebr - $31m orders reported
w/b 27/11 - Cantor buy >3%, Further order of $11m for rig packages
w/e 24/11 - Orders of $20m announced, but not profitable as expected
w/e 13/10 - Further $8m orders
w/e 27/09 - Further additions by Schroders to 12%
w/e 22/9 - Further orders of c $18m plus Gartmore stake increases to 20%.

Global Marine Energy plc is an Oil services company primarily bringing together and delivering rig component/equipment packages to international markets. GME is the holding company for two subsidiaries, Patriot Mechanical Handling and NIM engineering. Patriot provides the bulk of GME's sales.

GME is a niche player, there being only 1 or 2 alternatives for packaged equipment.
Patriot is a member of Source One drilling - a marketing alliance created by Le Tourneau Ellis Williams (LEWCO). www.source1drilling.com

Thread re-opened post results. Feel free to post away. News summary under picture.

Disclaimer: As always, Do Your Own research as no comments or foward looking statements posted here can be guaranteed.

This is an AIM listed company so high risk - only for investments you & your family can afford and are prepared to loose.



***Latest*** (also see estimated Share position analysis below @ 20 April 2006)
19 Sept - $9m from Brazil & America
14 Aug - GME announces $9m of orders including $1.2m NIM orders for Baker marine
These funded in part from recent raised capital.
11 Aug - GME delivers 11.2m stg (2005 4.76m). NIM issues notified in July addressed.
June - Cobra Ltd take large stake, a few previous buyers add
June - Placings at 15p
25 May - Paul Findlay promoted to Group CEO. S Wild (NIM subsid) off board.
10 May - PMHH signs up to http://www.source1drilling.com alliance
8 May - PMHH huge $8.6M china order+announces multiple chinese deals
5 May - PMH signs exclusive deal with winch company EMCE/Stokvis
4 May - Shroders increase to 11.16%
19 Apr - Shroders buy 10.10% 4,525,000
4 Apr - Gartmore adds stock now 17%, CAML buys 3.52%

Owl,

Just imagine if they were headed by Edward Woodward!

'Would Edward Woodward's Wood Group buy Wood's Group?'

:-)

Eponymous from the Greek means literally "named about" so Mr Wood is the eponymous head of Wood Group. Robinson Crusoe was the eponymous hero of the book of that name. Just thought you should know.

Same old news:

http://www.btimes.com.my/Current_News/BT/Thursday/Corporate/BT555636.txt/Article/

Well I don't know about you, but with orders like these coming from GME's best client, either GME will get a chunk more work, or they have so much already they can't take anymore!!

If that's the case, but they have the skills, wouldn't be surprised to see 'prefunded' orders coming in this industry soon. The clients can easily afford it.

There must come a 'tipping point' where economies of scale mean more companies will do what Wood Group are already doing, and start merging & buying up facilities. Just imagine, with a 20M-30M offer, another company would probably be better placed than GME's management to drive sales towards the 13M, 18M, 21M the analysts have projected, make economies of scale and even raise sales further to say 40M by better use of their own existing facilities. Pay back wouldd be 1-2 years. Integration costs (for the right company) could be minimal.

The institutions would be in favour too, & I'm sure and it would be a great accolade for GME management.

I wonder if this is now the only way GME can take on new work, and expand at the
rate they'd like? Yes, maybe Keppel was an indication of things to come, but we all know the co. can't take many of those due to length of contracts, and usual need for advance capital.

If anyone can see the merits/argument for GME 'staying single'
then fire away...in this game, surely bigger must be better.

Owl - you forgpt to mention the final stage of the process, when the Oil Production Co sees the top of the cycle coming and then demerges a profit-enhanced Oil Service Co to book a nice gain at the expense of the PI's who have not yet spotted the final stages of the oil production reinvestment boom cycle!

I for one would be delighted with an offer for GME - can't wait around for ever. If progress is as good as the RNS's have suggested over the last year, this one should be a case of hold on rumour and buy after careful consideration of the accounts, creating some nice momentum when the prelims are publised (see DGT as a great example of this over this last week). If this does not prove to be the case, at least a little bit, I may well move on then to something a little faster rewarding.

Oh God, make me patient, but not yet - St Augustine might have said, had the stock market existed in the early part of the first millenium.

sd

You only need to be as patient as the >3% holders, Stockdog ;-)

Presumably Gartmore didn't buy >10% to wait 3 years for some payback, nor will Mr Wood expect to be sitting on a 107,500 loss (actually larger than that as he can't sell at the offer!!) less 5,000 per month he's losing in interest (@6%) ...for long.
He's racked up 122,500 loss in 3 months!!

Patriot up 40% @ 38c

Owl

Please tell me some good news.

Getting a bit depressed about the sp. It's bad enough when it doesn't rise but when it goes lower ......I just cannot understand why?

Got in touch with Bankside and spoke to Micheal Padley.

All si well!

1. NIM have plenty of work but have had a problem because of shortage of welders, they are presently recruiting more welders so problem will soon be rectified.

2. They will probably issue a trading statement in early April.

3. Results for year end 31stMarch will hopefully be published in June this year. (we had to wait until Sept last year).

4. Patriot going from strength to strength (his phrase not mine).

So all in all things seem to be going okay and we will have to be patient. MP said things looking very good indeed, from April onwards.

I know a lot of ths has been posted before but I'm thinking of newish investors etc.

Can give you more excellent news re Korea, Chrissie.

I've forwarded to your email.
Though unfortunately the sp can only respond if people buy.

Keep eyes peeled on two co.s.
One begins in H and makes cars!..also rigs/drill ships
The other S stereos & TV's ...also rigs/drillships
DYOR

Hyundai & Samsung - Korean Heavy Industries.

By my calculations, Mr Wood has now been paying the company over 8k to come to work each day if averaged over 28 months - a grand total of 234k!!

That's a huge incentive to sort the situation out as this increases at c4.5k per month, or average 148 for each of the 28 months.

How long this situation is sustainable is anyones guess. Even if I had 25m, I'd not want to be loosing an increasing close on 10k per month and effectively paying the company I work for to work for them!

Someone loves GME, big rise & volume around lunchtime from 18.25 to 19.50.

This will be an interesting week.
But IMO we need to wait till after April 5th to see the real picture.

Owl

As you say a nice rise today I was told by Padley that they hope to get a trading statement out in early April so fingers crossed.

Chrissie, did he say when?
I got the impression they're waiting till after April 5th (so people can take capital losses). Those left after will be longer termers, so should be supportive of the price.

Topped up with 10k today.

I think you are a very wise Owl for topping up. Padley didn't say exactly when but you're probably right about 5thApril.

Owl

You got mail!

Chrissie
So have you :)

Well, not sure how bad is bad for 2005/06, but it does seem now to be behind us. As I wondered, a full order book does not necessarily translate into bookable revenues in the year in question.

Looking at next year's t'over of 20m on a gross margin of about 37.5% gives gross profit of 7.5m, less 5m oveheads and tax at 20%(?) leaves 1.6m net profit after tax. With approx 44,800,000 shares in issue at 19p, gives a forward PE of 5.32. If this should be nearer 10, rising to nearer 14 when the interim trading results prove the prospect, then the SP should nearly double over the next 6 months and then rise to somewhere approaching 50p by beginning of calendar 2007.

Assuming everything else remains equal . . .

sd

Stockdog/Chrissie & anyone else who look in here,
you must read the whole research note - it's excellent.

'Bad' means 12m not 13m rveneues. 12m's not bad - it's nearly 3x last year. But it gets better. 2007 is not 17m, it's 20m (previously we'd have to wait till 2008 for that!!), it gets even better (and this is my favorite line in the note.

'potential current multi year orders could rise sharply to 50m'.

This is not ramping, this is objective analysts who met Wood earlier this week and who live or die by the quality of their analysis.

All in all it's great news. They've been transparent by issuing early guidance (never before), they've announced early issue of results (never before) etc

Here's the link (you may need to sugn of free account):

http://www.edisoninvestmentresearch.co.uk/