Member Info for Moreforus

Connaught going bust Thousands of jobs are at risk after social housing maintenance group Connaught warned last night that it is in the process of calling in the administrators. Confirmation is expected later today, although some subsidiaries won't be affected and will continue to "trade normally". The company, which employs 10,000 people and has £220m of debt, said yesterday morning that it had been unable to prise additional funds from its lenders. As a result, trading in Connaught shares was suspended all day Tuesday "pending clarification of the company's financial position". In a statement issued after the stock market closed last night, the firm said: "It is now clear that sufficient support would not be extended to the group as a whole to enable it to continue trading as a going concern." "As a consequence, the board is saddened to announce that it is in the process of appointing partners from KPMG as administrators of Connaught plc and its subsidiary, Connaught Partnerships Limited, which comprises its Social Housing Division." Main subsidiaries, Connaught Compliance, National Britannia Holdings, Fountains and Connaught Environmental are not being placed into administration and will keep going. Connaught shares began to plunge in June when the group lowered estimates for this year and next year because of the emergency budget. It identified 31 contracts within its social housing division where part of the value relating to capital expenditure has been deferred. It had been worth as mush as £600m last October and nearly half a billion pounds less than three months ago. There were further falls at the end of July when the firm said it is in dire need of cash, then early last month warned it will post a loss for the year to August 31. The firm was worth just £23m on Monday night.

no the results are now in 2.5 weeks ...not long now

1.57p trades are buys

probably but if the mms are prepared to take 500k and not drop the sp....they think they will be able to sell it higher in the next few weeks..

whats interesting is that they paid 1.75p... this means wins is out of stock....he was selling at 1.56 on Friday so we should see a little more progress than simply watching paint dry... the results are due now in 3 weeks (26th September was last years i think)....

looks like wins is out of stock now

tick up 228k buy at...1,75p on plus what did you pay?

well angma nd nvta arent... the point is with this company is sentiment has been poor - the fundies misunderstood and thats what the results will rectify but you are in before people wake up and smell the coffee!!

its going to be like watching paint dry until the results....

4 trades 3 buys 1 sell 210k buys vs 21k sell selling stock at 1.561

nice 140k buy

market is still long so the stock is cheap relative to the fundies due to oversupply....hopefully people will buy before the news and not after,,,,while its cheap!

2nd was on a 24k buy this shows how little it takes to move this the mms still have an overhang and for us to break and hold 2p we need some decent volume buying ..i think the results will trigger that

dont know why we ticked up...can buy at 1.57p now..silly spread does not help

looks like we are now getting a little bit of momentum

but up

some more buyers.... what will be interesting is when the market gets confirmation that there is no 5 mill quid owed for the Abacus purchase... gogoneko - 12 Aug'10 - 11:43 - 2737 of 2750 Mr Mond has kindly replied but unfortunately not explicitly given the permission to copy the contents here which I had asked, so I have to respect the confidentiality notice, which is a shame - however I feel that there is information in the wider interests of the investor community so .... Firstly I will acknowledge that moreforus's claims that there will be no dilution relating to the Abacus agreement are right. Secondly, it was also acknowledged that this was not conveyed to investors when the opportunities arose (something which will be addressed in the forthcoming annual report), and instead investors were expected to reach their own conclusions of the prospect for dilution based on the information available.

Moreforus Posts: 2,999 Observation Opinion: No Opinion Price: 1.70 FAO Riddler13 Aug '10 1.Current sp is 1.45-1.95 but you can buy at 1.65p. *****(EDIT ITS NOW 1.52p to buy!!!!) ******** 2.Market cap is fully diluted 6.979 mill (308 mill shares plus potential conversion shares of an extra 115 mill). 3.Predicted results full year June 2011 is 1.8 mill profits. 4.That's a p/e of 2.8 undiluted or 3.8 diluted. 5.On a p/e of 10 the sp should be a sp of 4.2p Was tipped in shares mag last week as the fast growing small cap (dont have it so cannot validate)..however Was tipped in times at the end of June :- Tiddler to watch ClearDebt helps those struggling to repay what they owe, usually by an individual voluntary arrangement. Seymour Pierce, its broker, reckoned the shares — unchanged at 1½p — far too cheap after paying a visit and finding management “extremely upbeat” about trading. Seymour Pierce forecasts a 76 per cent surge in ClearDebt’s sales this year. Results for Full year June 2010 are due at the end of September (6 weeks). Last earnings are most likely to be in the 700k-1.2 mill range. Given the new economic slowdown, VAT rise, fiscal squeeze etc etc they are expected to be busy and may explain the surge in sales growth. They work on kaizen principles which means effectively most of the work flow is automated and the co can respond to more business flow without increasing cost. They are a market leader http://www.iva.com/iva_companies/ClearDebt.asp The chart has support at 1.5p and resistance at 2p. There is currently an overhang of stock to clear in order to break 2p. The market was under the misapprehension (as the company had assumed it was obvious) that there was a potential 5 million gbp liaibility to be paid for in new shares issued to complete a purchase from 2007 of a company called Abacus. This was stated as being based on performance of the assets - the asset became profitable in 2009 thus the initial conditions were not met and there is no liability. This will be explicitly stated in the results at the end of September. This will be hugely price positive imho for obvious reasons. Sentiment has been poor to date due to a purchase of assets and then a convertible note to pay for them, however this was for 2.3 mill gbp and not the 3 mill gbp expected. My calcs above have factored in the potential dilution. Again if the company deliver in the next 6-9 months (the current trading year will have 3 months figures to give the management outlook for the September statement) then fair value would be 4.2p fully diluted. It;s a growth stock in a growth sector that is undervalued relative to current and future fundamentals - unilduted fair value for the current trading year which again ends in June 2011 = 5.8p, diluted it;s 4.2p.

Moreforus Posts: 2,999 Observation Opinion: No Opinion Price: 1.70 riddler13 Aug '10 it has had poor sentiment due to fear over the 5 mill gbp liability (the ceo confirmed to me and another posted on advfn) that this is not the case and they will confirm as such in the results in september and the relax assets purchase, however it;s very cheap vs the fundies. (Far too cheap). At 1.65p it could be worth 4.2p and more if they pay down the convertible. It's also safe profit making and not an oiler or driller and will benefit from the uk;s fiscal difficulties (unfortunately).

 The growth in profits was held back by an increase of around 40% in advertising expenditure compared to a year earlier, which seems welljustified by a 75% increase in IVA cases approved that will feed through into future profits. Equity Development http://equitydevelopment.co.uk/