Member Info for Davde

The purchase of Pitreadie makes sense to me:-

1) It is adjacent to an existing wind farm containing 33 turbines so a precedent has been set for future planning permissions being granted. It may work in reverse however if significant local opposition to further developments.
2) Tree planting has already been started as a potential input to a biomass project.
3) Solar potential will also be explored.
4) The land was bought at open market value, without any renewables premium, verified by an independant valuation. This means that should nothing come from this foray into renewables there is very little downside as asset will be sold off if not viable at existing market value.
All these opportunities will be explored in next year. Nobody will dispute that Parkmeads communications could be better and that 3rd party transactions tend to raise eyebrows. I am personally happy with the transaction as it has a higher probability of success, rather than buying any farm! Time will tell if this had been a self enriching action for TC or will be for the benefit of all stakeholders, my view is the latter!

The interims raise many questions re FGP strategy.

1. Greyhound being set up for sale which is good but impairment and current carrying value looks to be only £0.9m! If this includes property then the business had a negative value a bit more clarity is required re this as does not make sense to me, very possible I am misreading views welcome!
2. Not convinced US School or Transit businesses are as lucrative as being suggested, the hits again in relation to insurance provisions have made these loss making businesses in the first half. The on going increases in insurance premiums will impact profits in second half as these may not be in contract costs is my understanding. This means that pursuing a strategy of developing these businesses maybe problematic so coming to view selling off all US operations maybe best option.
3. First Bus does make profits and is a core business for FGP so perhaps this is where future focus should be? Albeit now with threat of potential nationalisation in part, personally think this is unlikely!
4. Rail should be exited ASAP as political risk to great.

Basically now of view that FGP should stick to UK bus division and sell rest as risks now seem high in other divisions. Debt could be pared down from proceeds and surplus returned to shareholders leaving a sustainable UK operation albeit smaller. Institutional shareholders may have similar views as this cannot go on!

Pyueck can fully understand your view re HQ location but we will need to agree to disagree re importance of the location in improving FGP performance. I do hope we see improved financial performance and clarity re strategy objectives in the interims, think we will both agree with that.

Pyueck they have improved margins on First Bus so hopefully we will see further improvements in the interims, we live in hope! I still believe there is a healthy future for the First bus division and selling a mistake at present. Re greyhound completely agree they need to ensure maximun value achieved in any sale and perhaps splitting into real estate and transport maybe the way forward, i.e. keep real estate at least in short term to maximise return and selling bus operation as a going concern. Re rest of US operations and splitting off, not sure I agree there is good potential for consolidation in a fragmented market. I do hope they do not embark on a spending spree there is no need, barriers to entry are low in both the transit and schools operations. Any cash raised from Greyhound sale should be used to reduce debt and/or invest in remaining operations excluding rail. The HQ issue does not bother me the key is to have good people on the ground at a local level and to use technology to communicate, HQ's can be located anywhere these days. We will find out what is planned very soon and if no improvements in performance and a clear strategy going forward, then suspect institutional investors will take action and takeover by the likes of Coast will become very probable in my view. I live in hope of a modest return from this investment but we will see!

Are due out soon so hopefully an update on greyhound sale and hopefully a review of current strategy regarding sale/demerge of first bus as I personally think this is a mistake given the need to reduce carbon emissions faster than previously anticipated. Buses can play a large part in this although govt subsidies maybe be required to entice people away from cars! Maybe the new chairman will appreciate role buses will play in this and the opportunity it will present in the near future!

As a LTH yes I am sitting on small loss at current SP. Will I sell when SP rises to say 55p yes I will sell some, as I have done over the years on the rises but will still keep my core holding. I like PMG virtually no debt, cash in bank, in profit from Netherlands gas production. More profits from platypus in coming years. Potential renewables income albeit strategy details to be finalised, soon I hope! Then there is GPA potential. PMG BoD
have many potshots aimed at them in recent weeks but these guys are experts that are well respected in industry which is why they are in demand! Whilst PMG SP may not rocket overnight the strategy is sound, if somewhat conservative. Whats not to like with little downside and good chance of nice upside. I have no major future concerns currently with my holding as I know a return will be delivered only question is how much!

PMG must be worth more than current market value of circa £40m. They should have at least £25m plus in cash after FPM sale, they have land assets of £7m and a gas business generating profits that should be worth at least £15m, if not more. In my view the breakup value of PGM exceeds current market value so roll on Nov results and an uplift in SP!

Who are the banks expecting to underwrite the £200m? If TCG sell assets i.e. Nordic would they not be impacting terms of rescue deal which banks are participating in anyway. Or are they trying to squeeze Fosun? Its all getting very messy!

Hopefully chairman will come out with a review of the existing strategy shortly that will further boost SP. News on greyhound sale, reversal or delay (pending increased profitability measures being taken) of first bus sale and reinstatement of dividends proposal would work wonders for SP. Maybe happy days coming you never know, its overdue!

Johnpw my comment 're integrity was not aimed at your post. Apologies for any offence caused.

Whilst not disagreeing that progess at PMG has not been what is was hoped, that is mainly explainable by the slump in oil prices. The RNS gave an overview of the strategy and I am sure further details will follow regarding implementation. The dilution was approximately 10% the SP is down circa 20% overdone in my view! Agree related transactions raise eyebrows however I have no reason to question the integrity of TC or BoD the assets were bought for market value without permissions. If the assets had permissions the price would have been a lot higher. Regarding the speculation regarding the "mansion" only time will tell if included in asset purchases or not, I suspect not! If permissions not granted then sure land assets will be sold on without any major loss so agree its a speculative purchase but it has little downside and significant potential upside.

Also agree orders good news. Also agree clarity on results and the post balance sheet events would be welcome its been nearly a month now!

Diversification into green energy is being undetaken by all the major energy producers. PMG should be applauded for taking such a move, if this transaction was not related the SP would not have been affected as much as it has been. In my view PMG and its management team are pursuing a sound strategy, so I for one will continue to invest and have taken the opportunity to top up. The finals will be out in Nov which I am sure will make for positive reading in terms of profits and cash generated. Whilst I appreciate PMG communications are minimal and this irritates some holders its TC's style, so no change there. I have seen no evidence that the PMG board do not have the utmost integrity to date, the majority of stuff said in last week on this and other discussion boards is speculation and misinformation being spread by people who have their own agendas! I am sure we will be updated re renewables plan in Nov if not before, as a PMG holder patience is required!

The acquisition of the land at farming usage market value, pre any planning permissions being granted, means little downside should suitable permissions not be granted so little risk. It fits with energy diversification strategy and will be lucrative should permissions be granted. Given co location to existing wind farms may increase likelyhood on getting permissions required so looks like a good investment to me. Its the method of purchase that has caused sp reaction as its a dilution rather than cash purchase! Time will tell if it comes good.

Think whatever the issue is, it has been raised by auditors in last week or so and they are seeking clarity i.e. arguing with audit view! Agree a seperate RNS would have been welcome re contracts but think they wanted to sweeten results delay impact. Still feel positive that company moving forward but an update re licensing would be most welcome as this is crucial! In interim price wil drift down in my view!

Suspect its an accounting issue due to sale of assets and write back of liabilities mentioned in Nov last year maybe part of it, but its more than 1 thing based on their statement. Hopefully nothing that impacts core business going forward. We will find out soon enough!

NK is correct in that TCG can be sorted for a lot less. All that is required for profitability to be increased to support debts levels. If that can be achieved by a new BoD quickly TCG is a bargain buy. A plan to do so would be welcome and would be supported by all lenders and shareholders I suspect even with a rights issue. It is some challange in current market but not impossible! If not forthcoming D4E inevitable!

Every day now for the last week or so sell trades have exceeded buys by some margin! Bit confused why as you would expect SP to fall! To me this does not make sense! any views?

I am sure Institutions will have said to board, that Coast said they could raise operational performance to get 250p a share so thats your target for our support I would hope. Not convinced selling First Bus is a good idea! Improving operational performance should be the priority. The new chairman, when appointed, should be tasked with ensuring this happens in next year, failure to do so will see another unsolicited bid and if no improvements forthcoming the institutional investors should no longer support board. I am confident SP will rise in coming year if appropriate action is taken as this cannot go on!

St Andrew land, part of uk currently, broke up today!