Hastie Australia Possibly Going Under

[Koopy]

Has any body heard this rumour?

Click on the following link:

http://www.asx.com.au/asx/statistics/announcements.do?by=issuerId&issuerId=5640&timeframe=D&period=M

Open the PDF Labled suspension from official quotation.
Doesnt sound good.

[Tesla]

Hi Koopy
Thanks for this info - obviously not just a rumor then (from the link)? They could just be in financial difficulty, in which case another big company of financial institute will bail them out (Macquarie). This happens with many public companies and some that I have worked for. In the long run it is much better for us fridgies to stick to private companies for stability and job security. At the end of the day these public companies only care about the dollar which is their major downfall. They forget who makes them the money - soldiers in the field. Then it was only a few months ago where Frigerite disappeared.

[shiftykat74]

hey, i worked for hastie in melbourne up until 10 months ago & still keep in contact with current employees. the management at hastie deny it and are saying that hastie has been taken off the share market while they buy more companies or some bull. dunno how true it is. hope they do go under.

[Grizzly]

. In the long run it is much better for us fridgies to stick to private companies for stability and job security. At the end of the day these public companies only care about the dollar which is their major downfall. They forget who makes them the money - soldiers in the field.
Wise words Tesla!
Or as was explained to me a while back by a senior executive of Exxon Mobil. "You are a commodity,if you can accept that your working life will be easier!"
Grizzly

[Tesla]

Thanks Grizzly
I didn't realise how big this company is, according to their website Hastie employs 7,000 people through UK, Middle East, Singapore, Australia and NZ.
shiftykat74 I remember attending a general company meeting when the director addressed the meeting and said everything was looking great and their were no problems - the very next day the receivers arrived to take charge of the company. The rumours came from us techs after we had stop credit at our main supplier for over a month.
Shocking how some of the directors are brain damaged and have no empathy that is they don't miss a nights sleep when many people who helped them get there are gone the next day struggling to pay the mortgage and feed the family. Sorry if I sound a little negative but I have been made redundant twice in my working life. There may be no problems at Hastie but a take over bid from them or another.
It will be interesting to see the outcome of this during the next month.

[Koopy]

Well I knew a few working for hastie NSW and there being told that it's a simple board of directors change. If you ask me. A public company seizing trade on the market for any reason is a bad sign.

[Tesla]

Koopy with further surfing on this company I found they have a net debt of around 188 million dollars and a drop in profit of over 30%. That's nearly $27,000 debt per person working there. Almost sounds like a hedge fund trading on debt to me, but feel free to correct me if I am wrong. If I had shares in this company I would dump them but I don't believe in shares. It is a bad sign Koopy.
Likewise if Maquarie bailed them out with refinancing I would dump their shares too. It's a shame that some of our super funds invest in these type of shares.

[AUcooler]

I worked for a company a few years ago that was taken over by the Hastie group during my stay. Before the Hastie take over, the company was turning a healthy profit. The old managment was quickly replaced by a junior budget line of managers and things turned bad quite quickly. Employees were simply treated as a number on a PDA. Im not surprised they are in trouble now.

[lawrence1]

I hear that they are,,," refinancing" after which may see their shares worth less than they currently are.

[Koopy]

well more information has come up today. Possibly Hastie are buying another company (who ever looks after woolworths refrigeration Austral refrigeration i think) merging them into a similar venture as coles city. Guess we are going to have to sit back and watch this space hey.

[cool_tech]

hi guys.
Did my apprenticeship with Hastie and just before i finished it was a mass exit of the better technicians and continued after i left. bad management decisions. The live pda system didn't work very well, costomers did not trust it and they went to other service companies. I heard that there was a trading holt due to not disclosing correct amount of debt. (alledgedly) still keep in contact with a few guys in melb hope they dont go under for the techs sake.

[airmate]

Hi,

Hope they are not going under as they have taken over atleast 6 companies over here in New Zealand.

[Tesla]

Hi airmate
could you please elaborate to us the size ($/people) or where and when these companies were taken over (roughly what you think if you don't have access to the actual figures)? History shows that NZ companies are generally cheap to buy on the international market.

[headgasket]

two engineers and twenty sheep

[Tesla]

headgasket ewe baaahhstard (lol) I was born in NZ and I had no choice in the matter.
But seriously I herd (just a rumour) today that the said company may be losing out on two very large contracts overseas and didn't want investors to dump shears now (when high) and buy back when the moos hits the fan. Also they were planning on boosting by selling some cheap shears after the news. Sorry to take the piss and no disrespect to any who may loose their jobs I just couldn't help it. In this case the grass might really be greener on the other side of the fence.

[Grizzly]

:D Hi Tesla Headgasket could have something there?
Even you have sheep on the brain, It's SHARES not SHEARS (they are used to Shear Sheep are they not?)
Grizzly :D
Never mind I do believe you guys may just win the world cup this year, provided you can avoid the French.

[mikeref]

Ran across a tech the other day who works for another large refrigeration company that scouts around here and asked him about Hastie and his company that also starts with H. Might have put the wind up him as apparently some serious cut backs are happening there too. I don't see how this economy is recovering at all in Australia. Anyone with overheads or thoes that have overextended before the meltdown are still neckdeep in mud. my business survives as my office is my ute... And Tesla, plenty of sheep in the outback for your shears ;), but shares in anything at the moment are up the creek:off topic:. CARBON TAX PENDING?:off topic:

[mad fridgie]

I can not see how a company with heaps of capital and debt, can run a program similar to City.
My understanding of the City set up is: 100% open book, cost plus a very small margin, but "all" costs related to the client (down to chocy biscuit at brew down is charged), client pays on time, very little risk for City, and no need for the contractor to cut corners to make a few extra notes.
Looking at City's books (available to the public), they turn over a hugh amount, make a small profit as a percentage, but have little capital invested and little in the way of borrowings, so profit does not need to be massive. City is basically owned by one married couple, it seems they have remembered what their core business is. I can not see the big supermarket chains wanting to pay a surcharge for all the borrowing some of these big corporates have.
The relationship between City and ASDA has being going for years, both parties must be happy!

[Magoo]

It would seem the Hastie Group has hit the wall, due to debt servicing, debt equity ratios etc., Oh joy, stop credit everywhere is the next stage, compounding the issue, things go into a death spiral after that. Been there, envolved with that situation. Not pleasant.

[Tesla]

:D Hi Tesla Headgasket could have something there?
Even you have sheep on the brain, It's SHARES not SHEARS (they are used to Shear Sheep are they not?)
Grizzly :D
Never mind I do believe you guys may just win the world cup this year, provided you can avoid the French.

Glad you caught me on my shocking spelling Grizzly: It is all just a play on words and fun/pun.
If the game is played in CHCH we may have a chance - I hope we win, it would be nice for a change.

[Grizzly]

If it's any consolation Guys, It's the same in the U.K.
It may just be me but Engineers becoming commodities and the quick buck rules.
Seems to have spread like a virus, especially since "Managers" no longer need to have an ounce of practical skills.
I do believe in Hastie's case they even have a Area Manager that was a Hairdresser?
If true it says it all really.
Keep us informed guys it's nice to hear "We" are not alone.
Tesla I did wonder! (Re spelling)
Grizzly

[lawrence1]

So you guys.....whats the crystal ball saying for the H.

[Tesla]

lawrence1 I look into my crystal ball (I have a real one/several) and I see the two public companies that start with H in Ausie and must say they look like they are in trouble. As for the private company that starts with H all good. I should imagine we will know in the next month or two. From history if it repeats there are no reasons these two H's would go down just re financed and cost cutting.

[mikeref]

Oh.! the elbow shove is it Tesla and Lawrence 1?? I don't have any inside info the second H.. It could bite me in the ass if i'm way off track, but seriously, i don't get a kick out of any business that may go under,( so long as they played by the rules)..:)..Mike.

[Tesla]

Sorry mikeref
I didn't really want to spread or increase any rumours hence using H. For your benefit and others I shall say the two public companies are Hasties and Hayden where the good private company is - well I can't say because I work for them. As for Hayden some of the guys from there have come to work for the company that I work for.

[Tesla]

Just an update from tonight's news on the TV - Hasties share dropped 70% from refinancing.

[de8201]

I am researching this company as part of my share portfolio and have found the following info.

The issue is that Hastie and other business in their sector are only feeling the GFC now. At the height of the GFC Hastie was posting record profits, as it was delivering projects that were tendered, won and funded prior. Most jobs tendered over the GFC period were tendered in a very tight market for lower margin.

Hastie has an order book of 2.6 Billion dollars, why wouldn't Macquarie and their panel of lenders prop them up to reap the profit as these projects get delivered and the business shakes of it's GFC period, not to mention the additional 5 Billion dollars in projects recently tendered which includes the new Royal Adelaide hospital which will be one of the largest HVAC projects ever completed in Australia and probably the biggest based on $ value.

I have just been studying their half year report and it seems that they wouldn't have lost the 90million (at all in the first half if it weren't for making provisions for bad (doubtful debtors) who owe them 33.5million and for a goodwill impairment of 69million and a write down in the value of Rotary of 1.35million. In total that is almost 104million. More than the 90million lost in the 1st half. It is also note worthy that these losses all relate to the middle east and Ireland, not the Australian operations. The report goes on to say that the full year forecasting will return a profit of approx 50million. Which in real terms equals a 2nd half profit of 140 million less the 90 million debt from 1st half. It also says that Hasties assets outweigh it's liabilities by almost 76million.

Based on all that I'd say they will probably see the light at the end of the tunnell. Which is upsetting as it would be easier to win projects with them out of business.

At 26.5c this stock has to be close to the bottom of it's price cycle. I'd say that it would be a bargain based on the price you would expect once it rebounds.

[RefridgyDidge]

A release from Hasties today

Appendix 3Y
Change of directors interest

The CFO, Christopher Thomas Woodward is disposing of 562,980 shares.

I am interested to hear any thoughts on this occurrence.

To me it seems that this is an obvious negative sign to the companies outlook, but I am no expert on these matters.