Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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makes the idea of an mbo rather comical!
If you want an insight as to what is going on inside Elektron, check this link out from Glassdoor: http://www.glassdoor.co.uk/Reviews/Elektron-Technology-Reviews-E634744.htm It gives anonymous employee reviews of what it is like to work there. Some of them include: “The management are running this company into the ground!”, "Probably the worst run company in the entire world", "The staff turn over is massive and it has become a revolving door which is a shame as they are losing some good people....." As an outside investor looking in, it looks like the company has been totally mismanaged.
Chairman and major shareholder Keith Daley does however continue to update his twitter feed. Aside from mentioning his role at Elektron, he describes himself as entrepreneur, piano and viola player, along with being a lover of champagne. Read more: http://www.cambridge-news.co.uk/Business/Private-Punter/What-is-going-on-at-Elektron-Tech-20140527112005.htm#ixzz33BDXLsfc
Cynics, of course, raise the suggestion that directors at Elektron are merely engineering a cheap MBO, as they despair at the recent share price performance. Others see the board as inept and unable to deliver on strategy. Part of shareholder anger has, however, been vented over a joint share ownership plan which has been viewed as too beneficial to the directors. Add to that claims of inflated salaries for executive staff amid poor operational decisions and delivery and it isn’t difficult to see why the situation is attracting wider attention among market watchers. Read more: http://www.cambridge-news.co.uk/Business/Private-Punter/What-is-going-on-at-Elektron-Tech-20140527112005.htm#ixzz33BD0cf00
What is going on at Elektron Tech ? John Wilson CEO of Elektron Technology: Picture Keith Heppell There has been something of an ill wind blowing through Cambridge University’s West Site of late, the impending storm clouds of which have gathered over AIM-listed Elektron Technology. A relative newcomer to the city, having relocated from Essex, the company has managed to anger an increasingly vocal retail shareholder base and, arguably, others with a bit more clout. Regular readers of this column will recall my visit last year to the Broers Building where Elektron is based, meeting with the CEO John Wilson, who was eager to tell me about the company’s plans. This coincided with a falling share price on the back of previous profit warnings, which were compounded by significant disquiet from a number of retail holders. At the time of raising these concerns, they were largely dismissed by the CEO, who put them down to a small group of individuals failing to recognise the need for change at the company and the strategy it needed to adopt. Although thankfully I wasn’t tempted to buy into this particular story, I have nonetheless remained a watcher from the sidelines, of what has been something of a rapid descent into the market basement and growing resentment from shareholders towards the Elektron board. The company, which has a number of diverse operations, claims to be a global technology company that manufactures and markets products vital to a connected world. And indeed, a quick look at the annual revenues confirms it is a sizeable operation with recognised brands such as Bulgin helping sales last year of £55.7m. While, on that basis, one could be forgiven for thinking this was a story well worth buying into, the reality for holders has been something altogether different. Apart from profit warnings, and the selling off of businesses previously acquired, such as Total Carbide, the company has resided over a rising tide of net debt on the balance sheet. Ironically, back in 2008 it entered into a sale and leaseback arrangement concerning properties relating to subsidiaries in Bucks, Devon and Essex, in order to reduce its borrowings. The deal saw around £4.5m raised for the company, as Andrew Perloff’s Panther Securities, which today sits on 6% of the company, effectively became landlord. However, a few years later, Elektron stumped up some £8.2m for another listed entity, Hartest, to give what it described as critical mass. Now, amid claims of failing to maximise potential from that and previous acquisitions, the whole Elektron business is valued at just £4.8m, while debt has ballooned to £8m, according to recent statements. While other listed companies have been sharing in recovery, Elektron appears to have moved in the opposite direction, which has recently culminated in the company effectively putting itself up for sale. Cynics, of course, raise the s
Some thoughts that may be of interest to others taking a look. http://www.privatepunter.co.uk/Companies/the-column-for-27-may-2014
Given the past record of the EKT board I'm not impressed by their rejection of the bid from microgen, it is very poor that they have ruined a good company. I understand that one or two came from Hartest where they should have learned from the mistakes made there, sadly, apparently not!
Microgen Open To Full Or Partial Acquisition Of Elektron Technology Tue, 20th May 2014 17:08 LONDON (Alliance News) - Microgen PLC Tuesday said it remains interested in making an offer for Elektron Technology PLC in whole or in part, even though previous proposals to invest in the business have been rejected. Under takeover rules, Microgen must make clear whether or not it wants to make an offer and has until June 17 to do so. Aside from a potential offer for all of Elektron's share capital, Microgen said possibilities include a acquiring just the instrumentation, monitoring and control (IMC) business of Elektron, or making an equity investment while Elektron remains AIM listed. On May 13, Elektron said it was still in discussions over its possible sale, while other options were also being considered. The news came after the company announced on April 7 that it was considering a fundraising or possible sale of the company, amongst other options, such as a fundraising or sale of non-core assets. Microgen said that it had made contact with Elektron prior to its April 7 announcement, to ask whether it was open to discussions. According to Microgen, Elekron's chairman responded with a request for clarification, adding that he and a major shareholder held about 26% of the company's share capital, while Elektron's employee benefit trust holds a further 13%. According to Microgen, Elektron signalled that it would only consider an offer for the whole of the company. Microgen said several attempts were made to get clarification, but Elektron refused to provide due diligence information unless Microgen signed to "onerous" and "unacceptable" non-disclosure terms. The Microgen proposal was that it would make a potential equity investment of between GBP12.0 million and GBP18.0 million, with Elektron remaining listed on AIM. The investment would have been made through instruments convertible into shares. According to Microgen, Elektron rejected the proposal and said it would only consider proposals for its entire share capital. Elektron eventually dropped the non-disclosure demands, subject to certain conditions related to UK takeover rules. "Microgen remains interested in exploring various options with the board of Elektron and its advisers, including the possibility of making an offer for the entire issued share capital of Elektron or providing a funding solution to Elektron or evaluating the acquisition of the IMC business," Microgen said in a statement. Microgen shares closed down 1.5% at 121.60 pence, while Elektron shares closed down 2.7% at 4.50p. By Samuel Agini; samagini@alliancenews.com; @samuelagini Copyright 2014 Alliance News Limited. All Rights Reserved
Was priced to go bust now a complete turnaround banks give full support
Beautifully put; how they've managed to run a pefectly good business into the ground beats me. I suppose it was the usual, huge egos trump common sense.
On the payroll for a quick payotff after they sell off?
they should have put out a more honest rns, along the lines of "we have absolutely no confidence in the business and our ability to run it, and because we are so useless we are trying to flog it for a fraction of revenue"
i know you are trying to see the positive, but i still think this is arse over tit. if they want to enhance sh value they should sell at the top , not rock bottom. it adds no value at all. this is no way to run a business!
My guess the bidders are coming from china.. china seem to buying up western companies, most recently house of fraser. Pay good money too before it had a chance to go to IPO. If a bidding war errûpts you might get over 10p Sam.
cheers, but won't hold my breath...left with a choice of selling at peaks of euphoria, hold for the long term in the hope they muddle on and through without selling the grandparents, or buy agressively to bring my average bellow 10p (assuming that is the least they will selkl it for).....christ knows.
Not happy with 10p, I'm here for the full turnaround, and the new buyers obviously see potential. The CheckIt device/system has to worth market cap alone imo. In this rising market they have to make a swift decisive offer, it does at least say THIS company is worth more than it is currently to shareholders, creditors and bidders. Sorry to hear your down, hope you make some back pretty quick off of this offer.
now that i have finished venting and ranting i would like to know why riddler said to ignore?
9.7pence if book value is what u think is fair! so are we just ignoring growth potential, goodwill....? great if you picked this up for 5p. wonder what the directors think who have stuffed their pockets with shares above 10p.
so u are happy to be bought off, out of the long term story, for 10p? well thats a loss for me and the added insult of watching the buyers turn it around.
Thought something was going on, and someone always knows somthing. This is going to be an easy turnaround for new management.. I'd have thought 10p per share was a fair offer.
"Also been a few board changes. A good board can make all the difference" is this the new "good" board in action?
its like being kicked down to the bottom of the stairs then asked to be gratreful for a hand up to the first step!!!!!!!!! still angry!!!!!!!!
it's the worst thing possible for shareholders!!!! a real slap in the face for anyone but daytraders!!!!!!!! so angry!!!!!!!!!!!!
how on earth can selling the business at all time historic market lows enhance shareholder value!!!!!
are mm's looking for stock or big order to fill? price marked up on last 3 buys. Somethings due.