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CEO STARTS SELLING THE FAMILY SILVER
THE 'FAT CONTROLLER' IS WAVING GOODBYE
After announcing that he is leaving his sinking ship, the CEO now announces that the only marginal quality part of the UAE business is being sold, to extract some cash to stay liquid.
Bank meeting this month - I guess the Bank gave him an ultimatum. You owe us money, you owe Boris money, and you are making a 1.5m loss, on a collapsing revenue base.
This then collapses the UAE 6m pa turnover business, down to 1m pA, with massive losses - and that has happened in two to three years. It was always going to happen - buying third rate actors does not work out all that well in a professional business. What a disaster!
Aukett S****e Group PLC - London-based architect - Says it is to sell John R Harris & Partners, which operates out of the Middle East, to its local management team for a maximum consideration for maximum of GBP1.1 million. Says the sale is part of a series of intended actions to restructure the group's operations and to allow the John R Harris business to fulfil its potential without the burden of a central overhead
".....without the burden of a central overhead!!"....ouch!!
Yeap, that is the CEO himself and his band of non-fee earning board members.
The CEO - just a Central Overhead that has never earnt a penny in his life. He does look like he has eaten a sheep, in his latest photograph.
What's next?
Sell off all Non-UK Assets - not much left to go now. [CEO does love Putin - he is about the only one still in Moscow - no shame]
Sell off UK Assets, perhaps selling off Veretec & UK Design Business separately - they are different businesses, but of insignificant size. However, what happens if the main fee earners in those UK businesses simply say, 'we are out of here', and set up their own practices - AUK will be left with nothing, as Clients will follow the fee earners. These fee earners are not shareholders - so why should they pay The Fat Controller for earnings that they created.
Finally sack the entire Board - perhaps do that first?
So, after that, there will be not enough cash to pay off the liabilities. Shares zip?
I am not sure why the shares are at such a dizzy height of 1.3p!
Enjoy reading your write ups. Where does Trevor Brown fit in then?
Dartron......lost you on Trevor Brown?
There are now over 1,000 Companies that have left Russia – many permanently, taking the ethical view that it is not a country that they wish to link their brand with in the future.
Despite a complete cavalcade of UK Companies exiting, Aukett remain, and the CEO’s only comment was not on ethics, but on gaining a financial advantage.
UK Companies that have made a ‘Clean Break’:
Allen & Overy, Asda, BP, BAT, Centrica, Chapman Freeborn, Clarivate, Clifford Chance, Compass, Currency, Dentsu, Esri, Eurovision, Eversheds, Freshfields, Hogan Lovells, ITF, John Wood, Linklaters, Lloyds, LSE, Mondi, Morgan, Morrisons, Norton Rose, Reckitt, Savills, Shell
Willis
UK Companies that are ‘Suspending Operations’:
Abrdn, ACCA, Asos, Aston Martin, Boohoo, Edrington, Knight Frank, Kodak, M&G, Mothercare, QS, Rolls Royce, Shiseido, Wise
Aukett! ...happy to continue earning the roubles, whilst Ukraine burns
https://www.lse.co.uk/rns/AUK/holdings-in-company-aw4dhl7ugb72wvd.html
Trevor Brown owns 5% of the company.
He also owns large chunks of other 'on their last legs' Aim companies. Seems to be a known investor when discussed on other BB's. For example owns a lot of CMH too.
7.1% now for Mr Brown.
hey Dartron
Perhaps Mr Brown is lining up to buy the shares of the retired/retiring Directors....but will they sell for 1.3p?
The real worry is that the main fee earners winning the work are not the shareholders - they have next to no share holding, even the two MD in London - next to nothing.... ..The majority of shares are held by 65- 70-75 year olds, that had their day 20 years ago. Most [if not all] have resigned....some big bust ups along the way!..and now the Fat Controller is hanging up his calculator.
So a question without notice to Mr Brown:
"what happens if the main fee earners in the UK businesses simply say, 'we are out of here', and set up their own practices - AUK [& Mr Brown] will be left with nothing, as Clients will follow the fee earners. These fee earners are not shareholders - so why should they pay The Fat Controller [or Mr Brown] for earnings that they created."
AUK sold off the only worthwhile piece of the 3rd Rate Actors out in UAE - so the Middle East has basically imploded. Zip value there....
AUK simply pick up dividends from the EU operation - so that will always small beer. Zip value there.
What do you think D?
Hi Bear, I dont have your knowledge of the company, but the scenario you present, I have seen happen in other business I work with - many of these consultancy companies have the same problem. It's almost like you are saying that the 2.3M of intangible assets might just 'walk away'. Doesn't look like there is much else to get excited about from glancing a the balance sheet. It will be interesting to see how this plays out. As I said, keep an eye on ticker CMH. T Brown has 28% of that company.
It does sound like the the major share holders might want to exit, could it just be a useful shell company for another AIM listing via a reverse takeover. I dont know.
Any architectural practice has a long 7+ year tail of potential PI claims - so not a great 'shelf' to buy into?
AUK has excessive commercial office space that also is a burden for a new entrant.
If you took five of the leading fee earners out of the business, the company would only have massive liabilities, and little to no revenue. The leading five fee earners have little to no shareholding, so would have no ambition to simply sell their futures to fund the retirement of the past or future owners.
By all accounts, the Fat Controller has tried to sell this 'pup' for 20 years, but has failed.
When all else has failed, the Fat Controller is now having to sell the family silver to pay its debts.
Buying an architectural practice at, what might be the start of a recession, is not a great prospect. Further staff redundancies may emerge in the next 12 months, as the UK market begins to contract, adding more restructuring costs to a business already on its knees.
CMH also has aged directors looking to exit [a 77 year old.....] - perhaps a common thread to AUK?