Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
It is unclear from the information supplied to shareholders that we have been presented with the information upon which we can make a rational decision. So unclear are the figures presented that if I understand the position correctly £26 million of assets walk out the door and the quitters pay £19.6 M. 25% of which is handed over to Chime Shareholders in a private company.as part of the deal. This is a crazy deal. WPP
Assets of £ 26M will walk ot the door we will be paid £19.6 M. Sounds like highway robbery to me. Reject this deal.
I see no reason to make an exception in a case of a mysterious area of danger when selling an interest in a business in which I own shares. Without the same knowledge as the acquirer on the insider with full knowledge. I first ask what is the value of the assets which are being marched out the door. What is the balance sheet historical value of the goodwill related to the acquisition of those parts departing out the door and its present goodwill value now. I am concerned that the chief minority shareholder was excluded from taking part when he should have been part as a chief minority shareholder in the full discussions to represent the minorities interest as opposed to the by acquirers on the Board of the new company. A p/e of 8 is not a proper valuation as it may be affected by the loss of a serious contract and redundancy costs which have already been taken. A proper valuation of the assets walking out the door is the correct basis. As the remaining shareholders will not have control and will be paid in preference shares and ordinary shares on a spread out arrangement there is a mysterious element of risk being taken by remaining Chime shareholders on an unlisted market. Revalue goodwill as at now and add the tangible assets walking out the door I see no reason to sell at a discount. for a minority interest without control. What is the view of the other shareholders ? How are they checking the value for money of the deal? So they have enough information for the deal to stack up? Alternatively what would WPP be prepared to pay? .
I am a numbers man far from PR. You are obviously are a knowledgeable, senior and clever man used to valuing business in the PR field. You say in your own words " this would in normal circumstances provide provide a notional 12 times" multiple for an established business up and going without risk discounting involved as in a start up. So if there is no change of personnel and things continue "without the retirees" who as you say could be replaced in the business. Why let the assets walk at a multiple of 8 when if they stay it is worth a multiple of 12 then Chime shareholders would be mad to offer a discount of 33%. The shareholders in Chime are not mad and wish to protect the proper value of their holding why is there a need for change at a discount. As a shareholder why do you want this strange deal which fellow respected shareholder with 21% will not buy it.at any price?
You write in a very similar (actually the same annoying) style to that of Peter Bingle, the 'Johnny no Friends' of the Bell Pottinger Group. In which case you could actually be Peter Bingle and thus a disappointed man with a precarious future. Either that or you don't bother to read the Chime market notices (which would be normal for someone in Public Affairs I suppose). The fully adjusted multiple is 8 times, allowing for the fact that the management are the acquirers and a proportion of any multiple must be allocated to the profit generating abilities of the incumbent management, this would under normal circumstances provide a notional 12 times, far higher than that of the Holding Company. Should WPP launch a bid I suppose they have the senior management to replace the 'leavers' (post contract obligations), the clients, however, are a entirely different proposition - clients go where they want when they want regardless of contract in this industry. And Peter if you are Peter (and I think that you are) WPP wouldn't give you a job either.
Are Chime shareholders going to sell at too law a multiple?. Yes mistakes have been made but a good PR company should be able to manage a recovery from it. If Lord Bell and Piers Pottinger wish to walk away with an undervalued business then I am totally against it. If Sir Martin Sorrell thinks it a good deal for shareholders then I would like to know why and surely the senior NE Director must be the WPP director. It has 21%
WPP has upped its stake. This must mean that Sir Martin Sorrell is firmly against the break up and is buying more votes. This is a share to watch closely. I believe that at 156 its a good time to buy and CS has also been buying.. .
Both Peel Hunt and Investec view Chime Communications (CHW) as a "buy", the former with a price target of 200p, as both believe the agreement to sell its public relations division Bell Pottinger for 19.6 million pounds, eight times EBITDA, is at a good price. The agency has seen some adverse trading in recent months, and so the brokers are happy to see the back of it. With its significantly strengthened cash balance exceeding 20 million pounds, the group will now have the resources to focus on its much stronger VCCP advertising franchise as well as its sports marketing operation.
Christopher Satterthwaite, Chief Executive Officer of Chime Communications PLC, said: "The disposal is a natural evolution given the planned repositioning of the Group and is a key part of our future growth plan. When completed, the Group's growth prospects will be strong with a good acquisition pipeline, including international opportunities, already identified and funds available to make these acquisitions."
Chime Communications PLC, a leading marketing services group, announces the terms of its planned disposal of parts of the Public Relations Division ("the Disposal"). As previously announced, Chime is pursuing a transition strategy from being a diversified group with an emphasis on public relations to being a communications and sports marketing business. In support of this strategy, the Group has now reached agreement for the disposal to BPP Communications Limited ('BPP Communications' - a company formed for the purpose by certain directors and senior managers of Chime) of the Bell Pottinger businesses. The main trading businesses that BPP Communications will be acquiring from Chime are: Bell Pottinger Public Relations, Pelham Bell Pottinger (60%), Bell Pottinger Public Affairs, Bell Pottinger Sans Frontières and Bell Pottinger Middle East. In addition, BPP Communications will acquire the 40% stake in Pelham Bell Pottinger held by senior management. It has been agreed that BPP Communications will acquire these non-core businesses for total consideration of £19.6 million. This is made up as follows: · £13.9 million in cash payable on completion; · £1 million in cash payable on agreement of the completion balance sheet; · The issue of 4.1 million ordinary and 4.1 million preference shares with nominal value of £4.1million and representing 25% of the equity capital of BPP Communications ; and · The assumption by BPP Communications of certain deferred obligations amounting to £0.6 million......................................................
http://www.investegate.co.uk/Article.aspx?id=201205310700134920E
I am at bit of a loss as to what you mean about your well connected friends at your level of connection. As a shareholder of a company which since you wrote; its share price has fallen from 216 to 152. Do you not think we should know the names of the quitters on the Board and the Stayers so we shareholders can make considered decisions on the basis of good information. Is the Problem Lord Bell and his nefarious and undesirable connections (as you intimate) which holds the price down. What is your solution to the problem? Frankly I have never ever seen a public relations company go out of its way to push down the value of the company it runs If the other Directors are so good why since your letter has the price gone south by 25%. Which directors are looking after the shop and which are not? I value your input. KR Joe .
Chime is a Group with a Chief Executive (Chief Decision maker) of almost 10 years standing, Christopher Satterthwaite, (he was CEO of BPG) who is entirely responsible fort the Groups diversification into Sports Marketing and Healthcare, a Chief Operating Officer, Mark Smith and a cadre of senior management at division group level - see website it's all there. Bell is 70, he hasn't run this company for over a decade, the clients he services are seen as undesirable to the majority of the other clients and the market. The WPP representative is a NED, one of 7 NEDs I think, he too is on the company's website - Paul Richardson, WPP Group's CFO. I am in the same business in an altogether different Group (larger) and I have many friends at a senior level within Chime, if WPP move to a hostile (and it would be a hostile) most of the senior management would walk taking clients with them which is always the case in the MarComms industry - on the whole client relationships are personal not corporate. The recent share price retraction is, in my view, a result of the loss of a $100m contract with the US Govt for Iraq (lots of press commentary and an entirely undesirable end-user client) and the European situation.
Never get angry, never make a threat. Reason with people. Never hate your enemies, it affects your judgment. Never argue with an angry person. I have never taken things on trust. I see no reason to make an exception in the case of a mysterious area of danger. The time to make up your mind about people is...never. You never get a second chance to make a first impression. Since your letter was printed Lord Bell has been concentrating on his MBO and nobody has been looking after the shop - our shop. This has been my strongest fear, all time is spent on private interests and none on building the busines of PR. Perhaps you in your wisdom could tell me who are WPP's Directors on the board who while the others paddle their own cannoe, it can only be them who look after Chime shareholders interests. As Sir Marin says anything which is good for Tim and Piers is bad for Chime shareholders. I have never seen a PR firm run down its own company which such an uninformative Management Statement which frankly is unintelligible. As Sir can now take over Chime at a knock down price, I cannot under stand you logic of pushing the price downwards since your note to us of the 1St May 2012 did. 215p down to 165p. I would welcome your views and support to send a message to the Board. KR Joe
Sir Martin has not landed he has, from my memory of this Group's original share structure, topped back up to 20% a figure that has been diluted over the past months as Chime built its Sports Marketing capabilities. There has always been one or, occasionally two, WPP NEDs on the Chime Board. No change there either. Bell & Pottinger want to remove the Bell Pottinger companies as they no longer fit with the company. BP serves, as most Independent readers will know, a bevy of Heads of State for places such as Bahrain, Belarus etc and also has one of the largest lobbying firms in Europe. Chime, post an MBO always assuming it gets shareholder approval, will consist primarily of the fourth or perhaps even the third largest sports marketing group in the world, the tenth largest advertising agency group in the UK, its Research group and a sizable PR group with no connection to politics. The Board have already stated in several press releases that, post a successful conclusion to an MBO, the group will become more acquisitive. Death of 7 cuts - idiot Joe plainly knows nothing about this company - all his queries are clearly answerable by the group's own website - who are the Directors? pretty dim shareholder our Joe all those Directors have been listed there since the website went up over a decade ago and those Directors have already announced plans for the group post an MBO Joe, back in February. I've held Chime shares, bought at 11p consolidated into 55p, sold at £2.31 and repurchased at £1.85 for years. I've made a great deal of money from this share over those years and its PE is low, it's low because the group is currently too close to issues that engender adverse news commentary which stops Institutions investing.
Sir Martin has landed and protects shareholders interests. Which Directors are on the Board and in which capacity? No announcement! Why? An anouncement must soon be expected concerning the the future of the compay and the supposed management buyout to remove speculation.
Unless this company starts "to get real" and states clearly its vision for the future it will sell for a pittance.. As a shareholder (pawn) I have the vision of "men dancing in circles going nowhere" but sending my investment south meaning gushing down the tubular plug hole. It must be "make your mind up time." A p/e ratio like (that for the listeners) of 6.3. Means Michael the knife is back in town. I want a fair price per pound. Defence Advisers are needed, I suggest Goldmans Sharks. The bites of the panicking that jump ship daily is being devoured by the shark easy meat lands in the pot. This company needs leadership big time. There is no time for mulling wine. KR Baron you know it maks sense. Joe
Is this going to be T/O to the deah by the 7 cuts or the thousand veils. I do not like brutality, I hate those who prolong death at our pawns expense. Could the bride slip off her veils and stop teasing us With kinds regards t o minimojo as you write so well. There night be an opening in Sir MartinBrave New World order. Get your application in might be space for you in another world. KR Joe
good rise but I cant make sense of it - the whole consideration of buying it out when they're getting on a bit really and should be putting their feet up! Was wondering when the recent downward trend was gonna take a turn PS: KingJoe, sadly I aint an employee of Chime!
Qui Bono ? Prepare for a a new vision under Sir Martin Sorrell. This company management seems to be in a state of confusion. One moment the Directors want to buy the PR side of the company. Information is leaked from inside. It is not denied but left to fester. The Directors say the almost half of it business is going down the plug hole and they want to buy that part. When things appear not to add up the answer is the elephant question. This Company's Directors are coming up for retirement. Sir Martin exresses that he cannot fathom the logic as both sides of the business compliment each other by cross selling. And states Lord Bell cannot make his mind up. Lord Bell and Piers Pottinger seem to be preparing a buy out and not running/looking after the shop! The pawns in the game expect clear strategy and decisive decision taking, The shareholders pawns should be informed on what is going on with great clarity. Has an informal bid been made have informal discussions begu. already begun. .
As a share holder I have to ask the elephant question if Lord Bell and Piers Pottiger wish to buy Pelham Bell Pottinger because they think that it would put up the P/E ratio of the Group which remains. Why do they actively pursue a policy of running down its value? In the event that they wish to buy the bad bit and continue to run it themselves then we have reached the stage that a Seniorr Non Executive Director is appointed to ensure clear thinking with his vast vast experience, to ensure fair play. As a share holder I would suggest Sir Martin Sorrell, as soon he will up his share purchases now that the SP is slipping backwards. Share holders deserve clarity of direction strategy to be delivered by the Board of Chime. The Board should inform share holders clearly what their intentions are for the future without which I predict the Direction of the SP will go on falling south. KR Joe
Why "flog it? What is wrong with "chime"? As the Times says.
I assume that mulledwine is the Blue Baron and minijojo is an employee. Sir Martin does not like the sound of it and nor do I. The Blue Baron must stop this immediately for the Co.'s good.. Loose tongues have been flapping to obtain a cheap deal for Directors and family interests. What I want asurance on is that the Directors are looking after "our shop" and not theirs as Mrs. T would say.
Chime Communications is also in Tempus’s sights, it may flog its controversial PR division and has an impressive position in sports marketing, trading at less than nine times forward earnings, with the Brazil Olympics and World Cup on the horizon, Tempus thinks the shares have some way to go.
http://www.chime.plc.uk/announcements/audited-preliminary-results-31-December-2011 FINANCIAL HIGHLIGHTS * Reported profit before tax up 16% to £24.7 million (2010: £21.2 million) * Reported operating income up 10% (2010: 21%) * Reported operating profit up 15% to £25.5 million (2010: £22.1 million) * Operating profit margin3up to 19.5% (2010: 18.3%) * Earnings per share from continuing operations 1 and 3 up 9% to 26.56p (2010: 24.38p) * Net cash as at 31 December 2011 of £3.3 million (2010: £6.9 million) * Total dividend of 6.58p per share (2010: 6.05p), an increase of 9% OPERATIONAL HIGHLIGHTS * Strong performance from Sports Marketing and Advertising * Successful realignment of business mix following the end of main American Government contract * Satisfactory performance of Public Relations Division which now includes a strong healthcare business * Continued investment and expansion in Sports Marketing * VCCP named Marketing magazine's "Agency of the Year" * ast Track named Marketing magazine's "Sponsorship Agency of the Year" * nsight and Engagement Division continuing to recover * Developed digital and social capability organically and through start-ups * Further international expansion – total of 27 overseas offices in 2011 POST YEAR END HIGHLIGHTS * First quarter trading so far in line with management expectations * Discussions continue for the sale of certain parts of the Public Relations Division to relevant management * Earnings enhancing acquisitions of: o McKenzie Clark – a sports based graphic and digital design business o iLUKA – management and activation of major sports based events o Rough Hill (60%) – youth marketing o StratAgile (40%) –data analytics based in Singapore o Succinct (announced on 1st February 2012)