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So BlueDealer, do you think it's worth taking them up then?
Under the terms of the Rights Issue shareholders on the register as at 24 November 2014 will be entitled to 4 New Ordinary Shares of GBP0.10 for every 5 existing UBM Ordinary Shares held at GBP2.87 per share.
Exhibitionist unmasked: Tim Cobbold, Chief Executive since May, is presenting a different sort of show from his predecessor. David Levin looked to bolt-on deals – if one leaves aside the attempted merger with Informa – to expand UBM. But Mr Cobbold’s putative acquisition would be the group’s largest deal this century. But with UBM coming up against the limits of net debt to underlying earnings, finding the $900 million that Advanstar may fetch is tricky. Even the sale of PR Newswire – a favourite topic for analysts – would not be enough by itself. And if that sale didn’t happen, analysts reckon that the necessary rights issue could total up to 37% of the group’s £1.5 billion market value. Mr Cobbold has his work cut out to convince shareholders his show is better as well as bigger.
biggy..
Having said that, there are those who saw the sale as the disposal of a deteriorating, lower-margin business that generated a large amount of its revenues from Europe, which in turn is still trying to solve its sovereign debt crisis. Fine, but then why did the company purchase �30m buying 50% of Canada Newswire in November? Was UBM not supposed to now concentrate on its [cyclical] events division? The company's full-year results on March 1st should provide greater clarity. For now, Questor recommends steering clear of UBM. The shares are expensive, trading at a price-to-earnings ratio of 13.6, higher than some of its rivals, such as Informa. Avoid, it says.
Is the company pursuing a new strategy or simply realigning itself geographically? That would seem to be the question which investors are trying to answer, without much success so far, with regards to UBM. Hence, shares have recovered from the drop following the announcement of the sale of the firm's Delta data services division earlier this month. Those assets were sold for �160m - well below the �300m which some had expected it to fetch - and to help finance the transaction UBM provided Electra Partners with a �40m high-interest loan, which for some implied the FTSE 250 company was desperate to get rid of Delta.
UBM: Liberum Capital takes target price from 800p to 890p and leaves its buy recommendation unchanged.
UBM: JP Morgan lowers target price from 800p to 770p downgrading to neutral.
UBM: Citigroup cuts target price from 765p to 734p, while staying with its neutral rating. Deutsche Bank lowers target price from 860p to 840p leaving the buy recommendation unaltered.
Going foreward, Liechti said he expected a 10-15% dilution with pure profit offset slightly by cash and PIK [Price in Kind] interest amortisation. "Trading update suggests fiscal year 2012 fully diluted earnings per share at 58p versus our 58.1p which looks in line with concensus, so 'ok' with events profit as expected," he stated.
"We can now look forward to focusing on further developing UBM as a fast-growing and increasingly profitable events-led, marketing services and communications business." While the divestment represents a weight off UBM's shoulders, some questioned whether the price paid for the company could not have been negotiated higher. Steve Liechti, an analyst at Investec, said Delta had been sold for a low price. "The good news is it[Delta] is going, so management can focus on core Events/PRN [PR Newswires], but the bad news is at a low price and cash received is only £100m." He indicated that the price paid represented around 5.8 x fiscal year 2012 expected earnings before interest and tax (EBIT), saying: "This looks a disappointing number against our valuation of £180m, but there is an element of relief that the tramsaction has followed through.
FTSE 250-listed business publisher and events organiser UBM has reported the receipt of a binding offer from Electra Partners LLP to purchase a portfolio of its Data Services businesses, known as 'Delta', for 160m pounds, including a 40m pound vendor loan note. According to UBM, Delta represents the bulk of UBM's Data Services segment and includes its health, technology and IP and paper business units. In 2012, the group reported that the businesses generated revenue of £179.3m and adjusted operating profit of £27.4m. As of June 30th 2012, UBM reported that the businesses had gross assets of £295.5m. Commenting on the proposed sale of Delta, David Levin, Chief Executive Officer of UBM, said: "This transaction is a significant strategic step forward for UBM. By divesting Delta we simplify UBM's business, improve the quality of our earnings, enhance our underlying growth rates and remove the challenges inherent in the continued transition to digital data delivery.
UBM: Numis cuts target price from 780p to 766p reiterating a hold recommendation.
UBM: Deutsche Bank raises target price from 790p to 860p, while keeping its buy rating.
UBM: Nomura raises target price from 800p to 900p, while reiterating a buy rating.
UBM: Investec downgrades to hold, keeping a target price of 745p.
what ever.lol...
Business publisher and events organiser UBM has bought out the PA Group's half-share in Canada Newswire (CNW). UBM is paying £30.1m in cash for the stake. Following the transaction, UBM will retain its 17% interest in the PA Group. Established in 1960, CNW pumps out around 90,000 wire releases per year. In 2011 CNW generated revenues of £30.8m. Full ownership will enable UBM to integrate CNW with PR Newswire, UBM's newswire division. Cost savings from the integration of the businesses and technology platform are expected to be broadly offset by restructuring costs in the balance of 2012 and 2013. The return on this investment is expected to exceed UBM's cost of capital in 2013 and subsequent years. "Customers of both companies will see many benefits, not the least of which will be expanded distribution capabilities, social and mobile integration and growth of our multimedia capabilities," claimed Ninan Chacko, Chief Executive Officer of PR Newswire. David Levin, Chief Executive Officer of UBM, meanwhile, has accepted an invitation to join PA Group's board of directors.
Ninan Chacko, CEO of PR Newswire, said: "PR Newswire and CNW have enjoyed many years of close collaboration. By bringing the two companies together, we will be able to better serve our customers in Canada and around the world. Customers of both companies will see many benefits, not the least of which will be expanded distribution capabilities, social and mobile integration and growth of our multimedia capabilities. The current management team of CNW will remain in place to drive the integration and capitalise on this revenue opportunity." David Levin, CEO of UBM plc, said: "We have enjoyed a long and fruitful partnership with the PA Group. I am delighted to accept the PA's invitation to join its Board of Directors."
UBM plc strengthens its PR Newswire business Acquires outstanding 50% stake of Canada Newswire for £30.1m UBM plc today announces that PR Newswire has acquired the outstanding 50% share in its Canada Newswire (CNW) business from the PA Group Limited (PA Group) for cash consideration of £30.1m. Following the transaction, UBM will retain its 17% interest in the PA Group. Established in 1960, CNW is the leading newswire provider in Canada, distributing approximately 90,000 wire releases per year. It is also the country's largest investor relations webcast provider and a leading regulatory filing agent. In 2011 CNW generated revenues of £30.8m. UBM has fully consolidated CNW's results reflecting its direct and indirect ownership of 58.5%. The acquisition will not directly affect reported consolidated revenue or operating income. The transaction will eliminate the non-controlling interest in CNW profit which in 2011 was £2.3m. Full ownership will enable PR Newswire to implement an aligned commercial, product development and infrastructure strategy across its North American business. Alignment is expected to result in incremental revenues in Canada by providing customers with access to PR Newswire's full range of product offerings and by enabling the two organisations to work together in accelerating the trend towards higher engagement products. Cost savings from the integration of the businesses and technology platform are expected to be broadly offset by restructuring costs in the balance of 2012 and 2013. The return on this investment is expected to exceed UBM's cost of capital in 2013 and subsequent years.
http://www.investegate.co.uk/Article.aspx?id=20121101070000P3E1B
UBM: Investec keeps buy rating and 745p target.
UBM: Panmure Gordon maintains sell rating and 620p target; JPMorgan Cazenove cuts target from 815p to 800p, overweight rating kept.
Tempus writes that UBM's nine-month trading statement proved more enervating than this week’s Informa numbers, with overall sales up 4 per cent at £735 million and like-for-like growth up 5 per cent. Adjusted operating profit grew 11 per cent to £142 million and the company maintained its guidance for underlying growth of up to 5 per cent and improved margins to more than 19.3 per cent. UBM entered the year boasting of a steep discount to peers but a strong run since summer — with shares up more than a third since early June — has closed that window. Management has taken the bold step to cut adrift data services, but the shares, which trade at 12.5 times projected profit, look up with events. Hold until the data services deal is done.