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Iām of the opinion that Mayfair will need to withdraw, unlikely, or revise the offer price to get the 90% required. I can see a 37-40p new bid to tempt those that are holding onā¦.including me. Even then, with the promised Ā£5m investment, itās cheap. 45-50p minimum is nearer the mark.
ITS is on the move
Does ITS look like a similar situation to BUMP
Yeah amazing they get away with it, highly questionable integrity of the ceo. Masters of f corporate finance. I bought in at 27 and averaged down to 16p, ended up owning about 0.5% of the company, so sold up today at 29p (didnāt quite trust them to hold for 30p). A sweet return in the end, but agree there is far more value in the company that Ā£15m. So where next?
Well done on holding your nerve and topping up, useful posts over past few months.
Looks like a done deal at this price to me.
Question is whether you can make more than 2% investing elsewhere in the time it takes for the cash to come through from this. Bird in the hand - guaranteed 2% - may be worth holding on for though
I kept buying all the way down, I own over 2%. In the end I will make around8-10% on the investment. In general terms a good punt but this should not be going for less than 50p. Iām not selling on the market, whilst 2% is small it is valuable to them. Itās possible they may need to pay more to get this across the line.
Canāt believe how these companies get away with it.
Sadly, this has played out beautifully for Bertie and his Mayfair crowd. Sold at a ridiculous premium to much fanfair at IPO, seems now after just 18 months that going back to private is the way forward!!! Getting it for a song at Ā£15m, this will be back to making Ā£4m EBITDA in no time, so itās double bubble for them. Iām gutted, oh and what about this market disrupting baby carrier thatās got a patent pending. āLove it when a plan comes togetherā eh Bertie.
Take a look over at UBG , could be the next .
https://news.sky.com/story/maternitywear-chain-seraphine-to-be-taken-private-at-fraction-of-ipo-price-12790522
expect an announcement tomorrow.
Use II Catabrit and thank you for information. Bought small amount as punt just recently knowning might lose it all or multiply it.
Hi. Been buying this. As I have commented on other boards, it lacks some of the downside that I typically seek but I think the franchise is a strong one and that the equity will re-rate meaningfully *if* (big if) they get through this cycle without needing to raise fresh capital. Personally, I do think there's a risk that this could delist and so I wouldn't want to hold this in an ISA or with a broker that doesn't allow you to own unlisted shares. (ii do by the way). It's an interesting risk/reward and I have position sized accordingly and I wish everyone the best of luck and look forward to sharing info / discussing updates etc.
As you suggest there is no money, that is called fraud & management will go to prison. Share premium has to be managed on separate account and shown separately in balance sheet.
In the 2021 accounts, share premium was shown separately and Share premium account contains Ā£59,436,003. In the 2022 full year accounts that will be reduced by Ā£40,000,000.
We have to see what management will do that money. They have few options only. Reserve created on such reduction can be treated as a realised profit and, therefore, it may be distributed to shareholders or used to buy back shares.
Iām not an accountant but tried to figure out what was going on with the cancellation of the share premium, my guess was Mayfair partners loaded the company with 40 mil debt to buy the original owner out, they then pay that debt back issuing shares at ipo, cancelling the debt creates the excess in the share premium account which has to be paid back (or cleared) before shareholders can get a payout? Would be nice for a finance bod to have a look. This drops because nobody buys retailers heading into a recession (apart from desperadoās like us), there are no buys so every sell moves the price down. But I honestly think they are setting themselves up for a good run, they got credible staff coming onboard, clearing the decks for when the tide turns. May 2020 French connection had a market cap of 4 million, 6 months later it had 5 bagged before a sale, same deal here but I think this is a better business and will actually start turning a profit. Not for widows.
May be HeresHopin & robizm1001 are shorters or paid to deramp the company. and spread the false information.
Companies do reduction of share premium and keep the money in separate account and can use for the share buyback, dividends or company mergers.
You can see the other company LDG, which have done reduction of share premium.
https://www.lse.co.uk/rns/LDG/synsion-investment-and-intended-further-buyback-zv42lhepbh6odzv.html
Proposed Share Buyback
On 14 January 2022, the Company announced a reduction of capital, change of Investing Policy and share buyback (the "Prior Buyback"). Shareholder approval to complete the Prior Buyback was obtained on 31 January 2022 and, pursuant to the Prior Buyback, the Company acquired 140,441,180 ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares"), in market trades via its retained broker, at an average price of 15.7 pence per share, between 25 February 2022 and 6 April 2022. Following completion of the Prior Buyback, the Company has made a number of new investments, however, trading in the Company's Ordinary Shares has returned to a level which represents a significant discount to the Company's net asset value (NAV) per Ordinary Share.
If you can search, you will find lots of examples.
They can use that pay dividends or share buyback.
AGM resolutions: Resolution 17: Purchase of own shares THAT the Company be generally and unconditionally authorised for the purpose of section 701 of the Companies Act 2006 (the āActā) to make market purchases (within the meaning of section 693(4) of the Act) of ordinary shares of Ā£0.01 each in the capital of the Company (āSharesā) on such terms and in such manner as the directors may from time to time determine, provided that:
17.1 the maximum aggregate number of Shares which may be purchased is 7,630,211 (being approximately 14.99 percent of the issued ordinary share capital of the Company);
17.2 the minimum price (excluding expenses) which may be paid for each Share is Ā£0.01 (being the nominal amount thereof); and
17.3 the maximum price (excluding expenses) which may be paid for each Share is the higher of:
(a) an amount equal to 105 per cent of the average of the middle market quotations of a Share, as derived from the London Stock Exchange Daily Official List, for the five business days immediately before the day on which
the purchase is made; and
(b) the higher of the price of the last independent trade of a Share and the highest current independent bid for a Share on the trading venue where the purchase is carried out.
The authority conferred by this resolution shall expire (unless previously renewed, varied or revoked by the Company in a general meeting) upon the earlier of the conclusion of the next AGM of the Company and the date which is 15 months from the date of passing of the resolution, save that the Company may, before the expiry of the authority granted by this resolution, enter into a contract to purchase Shares which may be executed wholly or partly after the expiry of such authority,
I know what it is and it is just an accounting issue. They cannot use that Ā£40 million to pay debt or anything
robizm1001, Go through the reduction of share capital. It is very common . Several companies have done that for share buyback or other use. Only thing is they have limitations of use of capital.
https://www.mondaq.com/uk/shareholders/857790/why-reduce-your-share-capital
You need to learn accountancy fast before you loose all of your money. There is no Ā£40 million. They have cancelled this reserve to be able to pay a dividend. It is not money and cannot be used for anything like paying debt.
Spot on kotichava
They dont have much debt. According to last accounts, Ā· Net debt Ā£3.6m (HY22: net cash Ā£1.3m) with cash and cash equivalents of Ā£3.3m.
Net debt is not much. They don't need to raise. They recently converted capital reduction of 40 mil. They can use that money to pay existing debt.
69% of shares owned by institutional investors. Problem is lack of liquidity. Today 9000 pounds & 108,754 shares transacted, which caused 20.% fall. Once liquidity picks up, it will raise fast like that only.
The Capital Reduction creates additional distributable reserves to the value of Ā£40,000,000, which is intended to support the payment of future dividends to shareholders, with any payment being subject always to the financial performance of the Company and relevant law. The Company does not intend to change its dividend policy following the Capital Reduction and the creation of distributable reserves.
Kotichava
Do you think they got Ā£40,000,000 to actually buy back shares with? They got Ā£3,000,000 or had that amount in cash but that is eaten up completely by debt and with trading deteriorating that cash will evaporate entirely. Leaving them with the option of another fundraise. Not good at these levels to issue more shares. They got a while left though. The brand looks good but it makes no money. Things could get a lot lot worse.
They have 40 mil pounds from the capital reduction of share premium. I dont understand what they are waiting for. They had mandate for the share buyback in the AGM. Management is too slow to proceed.
Can this company survive? I see this eventually ending up in someone's hands, leaving nothing for the personal investor, and this be delisted. Sadly.