GULF MARINE SERVICES PLC (GMS)

GULF MARINE SERVICES PLC (GMS)

Blog posts

Lessons From a Failed Investment

This is a premium article, available to ShareSoc full members and SIGnet members. Recent troubles at the AA (AA.) and Petropavlovsk (POG) brought to mind another problematic investment that I am more familiar with and which shares some characteristics of those companies. That investment is Gulf Marine Services (GMS). IPOs by Private Equity Vendors Like the AA, GMS was floated by its original private equity owners, with a premium listing on the LSE main market, in March 2014. GMS is a relatively straightforward business: ...

The Trouble with LTIPs…

It was with some consternation that I read this announcement today from one of my investee companies, Gulf Marine Services (LSE:GMS), in which LTIP awards are granted to several...

AGM Reports

Gulf Marine Services (GMS) AGM report 2016

Debt levels/Banking covenants Investors are mainly concerned with the company’s high levels of debt, and whether it would breach banking covenants. At year end the company had debt of $398.9m, which is expected to rise to a peak of $425m this year. The year end debt levels represented 2.9x EBITDA. Since then the company has since guided down earnings by 15-20%, while debt levels are forecast to rise. Hence the company will come perilously close to breaching its banking covenants. The Chairman, ...