Member Info for Skindle

We don't know anything about Mr Sugden other than his age. It would be fair to assume that he is retiring but this may not be the case at all. The pledge to step down at the last AGM may have been part of the plan to encourage Sports Direct to make an offer. A bit like dangling the carrot in front of the mule. It may prove that Mr Sugden is using this situation as a stage to show the market of his superior expertise in business management. Mr Ashley, in acquiring Findel could do worse than find Mr Sugden a senior position on his own board to help improve corporate governance at Sports Direct. Whether he would accept that type of role is another matter of course.

Recent positive price movement would suggest that something is taking place. I reiterate my sentiments from earlier in the year when I stated that finding acquisition interest beyond Sports Direct would lead to greater value. There is no evidence to suggest that the board have pursued interest in this respect which I am disappointed about. Meanwhile, back at the top, Mr Sugden is still our chairman with no sign of a successor. On reflection I think this is preferable to allowing Mr Ashley to take the reigns even if it is at the expense of a supply deal.

I am appalled to read that Mr Kowalski has elected to accept a nil cost option of 185,034 shares as part of a performance share plan. Unfortunately the 'performance' part of the title lacks definition. I would describe the last twenty four months performance as absolutely shocking. Surely £356,000 remuneration is more than enough reward for turning up to work five days a week for the last year ! I would have more respect for the board if they put their hands in their pockets and bought some shares to underscore to the market their alleged belief in their own ability, particularly Mr Ball, who has so far not bought a single share.

We now know that talks between the two companies took place immediately after our final results were released on the 14th June. Every day from that date the share price rose until it accelerated on the 1st July when both companies announced/confirmed that they were in talks about a possible supply contract. The negative movement of the share price since the 4th July indicates to me that no further talks have taken place and stalemate has been reached.

One point I forgot to mention in my last post is of course this latest valuation of £2.40 does not include any supply deal with Sports Direct. Further negative movement in the share price today (now nearly 30% in five weeks) leads me to conclude that shareholders should refrain from selling where possible but delay in making further investments into Findel until the low point to this current decline is established. We will all make profit on this share if we stick together, and the boards of Findel and Sports Direct finally do the right thing for both sets of shareholders.

So, for whose benefit is this latest Edison Research note ? Sports Direct, or is there interest from elsewhere ? I have to admit to feeling rather disappointed at this latest valuation. On this basis I would be against a takeover at this level as I believe better value could be achieved by waiting. Meanwhile, back at Sports Direct, still no board representation and an investment that is worth less now than they paid. I really wish this stalemate situation would conclude so that we can return to that old fashioned situation where the share price is representative of a company's present value.

In my opinion the message from our board is loud and clear. If you want to take up positions on the board, you will have to acquire the whole business. We are open to the proposition of a mutually beneficial distribution deal but not at the expense of Sports Direct personnel sitting on the board. So I believe it is now up to Sports Direct to either make a formal offer or divest. I think that our chairmans decision to step down at the AGM was all part of leveraging Sports Direct into making an offer. I don't believe the board have made any efforts to find a replacement chairman. As regards trading, yet more disappointment from Education but very encouraging from Express Gifts. I will be surprised to see any pre tax profits from Education this financial year, so it is all the more important to agree a distribution deal with Sports Direct primarily to shore up the mid firing Education arm.

Those two elements are inextricably linked. I hope our board have done what they said they would and protect us small shareholders against the skullduggery of Mr Ashley. As I have said in the past, I fear the worst but hope for the best. Maybe, just maybe tomorrow will bring the turning of the corner, although recent share price movement has been disappointingly negative.

Last week I placed an order to buy 5000 shares at a limit price of 178 pence, when the spread was 185/175. The order expired without being filled and I didn't renew it. What a difference a few days makes.

Whilst waiting for our leadership issue to reach its conclusion my thoughts have turned to how much we can expect an uplift in revenue at Express Gifts should a supply agreement be reached with Sports Direct. 1.2 million registered users (?) at Express Gifts multiplied by an annual spend per user of say £50 equals £60m. Realistic or wildly optimistic ? Only time will tell.

Well, that is one leadership issue resolved. I only wish our own leadership problem could be solved so painlessly. Worst case scenario is Mr Ashley takes the chair unconditionally, unlikely but worryingly possible. Let's look on the bright side, we could have ended up with Boris Johnson as our Prime Minister !!! That would have been a worst case scenario (in my opinion) !!

Thank you for your response 1GW_, most interesting.

According to Morning Star nine shareholders now own 93.76% of the company between them. On paper I would say that Mr Ashley will have a large majority in favour of his appointment to the role of chairman. I suspect our board may now be powerless to enforce any onerous conditions upon Mr Ashley in the role. I blame Toscafund and Schroders for selling to Sports Direct in the first place.

No Columbo we are not waiting for Mr Ashley, we are waiting for our board to decide who will be our next chairman and if it is to be Mr Ashley, under what conditions will they set to protect minority shareholders. The consequence of not breaking through £2 and holding above that level is the inevitable fall back to the next support level at £1.70. A disappointing week after a very positive recovery since our results day on the 14th June.

Only a brief mention of the Findel interest in the Sports Direct results released today. During the year the Group acquired 16.4m shares and an economic interest in Findel plc, and disposed of 1.5m shares during the year. At the year-end the Group held a stake of 29.9% (inclusive of economic interest).

Very disappointing to learn that R & M are reducing. A reaction to the Mr Ashley chairmanship proposal or just a reaction to the recent referendum result ? R & M have been very supportive of our board in its current form. I have my fingers crossed that they won't reduce any more.

1GW_ explained very clearly what happened to the Kitbag proceeds in one of his more most recent posts. I, like you was disappointed not to see a reduction in core debt following the Kitbag sale but now that it has been eloquently explained, I understand completely. I now realise how much Kitbag was sucking out of the business, we should all be grateful to our board for managing to sell the business at all.

One fact we can all be certain of if Mr Ashley takes the chair, is that Findel Education will be sold off immediately. The sale proceeds would need to be protected and used to reduce our core debt.

FIL adding not subtracting. MA's allies buying in, in anticipation of his appointment ?

Some sizeable trades but we are still struggling to break through the £2 resistance barrier. I am hoping that these trades don't turn out to be one of our larger shareholders exiting