1st Mar 2019 12:11
LONDON (Alliance News) - Seafox International Ltd on Friday said Gulf Marine Services PLC's debt plans are "unacceptable", suggesting a new action plan for the company.
Seafox, which has a 14% stake in Gulf Marine, has been trying to get a change of leadership since January, when it asked for Chair Simon Heale to step down to be replaced by former News International and current Times Newspapers Chair Andrew Knight.
Heale resigned in mid-February after consulting with shareholders.
Now Heale has resigned, Seafox is removing its resolution to get Knight appointed, also noting the new chair will have to go through the nomination committee and a selected advisor.
Seafox still believes, however, that Knight should be considered as a candidate.
Seafox also wants to appoint Abdullah Mazrui, the chair of Emirates Insurance Co, and Hisham Halbouny, an investment banker, to the company's board as non-executive directors.
"Gulf Marine stated 2019 earnings before interest, tax, depreciation, and amortisation will stay at around USD69 million and there is no market recovery in sight. With an estimated USD30 million interest, capital expenditure and tax of USD13 million, this leaves approximately USD17 million to deleverage a USD380 million debt," said Seafox.
"In our view, this is unacceptable for shareholders. Ebitda needs to improve to at least USD75 million through the cost cutting we can bring, a significantly reduced interest bill as a result of our relationships with lenders so the stock rerates upwards allowing the company to deliver for shareholders. It is not just about one nomination but a full overhaul of the board."
Shares were 2.1% lower on Friday at a price of 17.50 pence each.
Related Shares:
Gulf Marine Services