Member Info for Skindle

If my theory is correct, the sell price will not exceed 200 pence until some resolution is reached in the case of Sports Directgate. Meanwhile in the theatre of dreams, the sale of Kitbag has reached the point of formal contracts but prior to entering into this contract the company offer Sports Direct a final chance to purchase Kitbag at a £5m premium to its existing agreed deal on the condition that it sells back its full shareholding to Toscafund and Schroders at the original purchase price of 200 pence or it buys the whole company including Kitbag for a figure that is acceptable to the majority of shareholders.

Could it be possible that Findel themselves with the approval of Toscafund and Schroders authorised the price drop back under the entry price of Sports Direct to prevent them from selling any more ?

I still can't find any reason why the share price dropped so suddenly and dramatically on Friday afternoon. As shareholders we need protection from this abuse. I was really hoping the board would send out an RNS today just to reassure holders that all is well behind the scenes despite a major shareholder turning hostile from its previously stated support. Can't help thinking that the board have something up their sleeve that will resolve this whole situation.

Not good reading but as long as all shareholders stick together against the Sports Direct threat then we should be able to fend off this hostile attack. One would hope that Schroders and Toscafund are in there this morning buying up all the shares they can get their hands on to balance out Friday's manipulated drop in value. We can see these people off but we must stick together and be positive. Buy as much stock as you can.

Thanks for your response 1GW_. The RNS was posted at 10.39 but the price did not begin to change until 13.44. It appeared to me to be a very deliberate move from £2.28 to £1.97, as if it had been pre negotiated. Indeed the move was not initiated by any large share trades. A move of this magnitude is normally driven by large transactions. The complete lack of any is why I raised my query in the first place. Your theory, whilst plausible is not one I agree with. If Sports Direct as you suggest use their share sale to drag the price down in order to make an audacious bid for the whole business, then it is destined to fail along with its effort to install Mr Gardner as a director. Any offer around the £2 mark will be met with complete rejection by the board and the major shareholders. We will learn more with time but currently I am completely baffled.

Good morning, is it possible for Sports Direct to adversely affect the share price without selling any or all of its holding ? I ask because at this moment there has been no evidence to suggest that these people have sold. Total reported share transactions yesterday amounted to around 53,000. 1GW_, you mentioned earlier in the week that you bought some more shares but the transaction appeared on ICAP. Could it be possible that Sports Direct have sold their holding via this system ?

This lot are a bunch of ignorant south London geezers. They are either in or they are out. No finesse, no planning, if they don't get what they want through plan A, there is no plan B, so let's just get the hell out !!! Having said that there is no evidence to suggest that our unruly visitors have left the building, as I haven't seen share sales to confirm their exit. On the other hand we are back at Sports Direct entry levels so one would assume that these people have sold out. My conclusion is that we have a board of directors of superior intelligence who have frustrated the street kids of Sports Direct forcing them to jump ship. We now look forward to hearing more about the details of the sale of Kitbag, who has bought them (my guess MBO !) and the level of debt reduction following the sale. Goodbye Sports Direct and good riddance !!!

Could this be the beginning of Sports Direct's exit from the business following its unsuccessful bid to take it out by unscrupulous means ? If so this could have a detrimental effect on the share price until they complete their sale.

Well done for buying 1GW_. I only remember Toscafund building their holding up to a figure of 29.21%, just below the amount where they would have been obliged to make a formal offer for the business. You may be right in saying that other funds also under the control of Toscafund had or have an interest in Findel.

Thank you Stevo51, kind words. There was a time not so long ago when I thought that a Sports Direct nominated person on the board of Findel would be a positive move but I now realise that I was wrong. It is essential that this proposal by Sports Direct is rejected. What happens post rejection is where the situation could become very interesting indeed. Will Sports Direct make an offer for the whole business or will they sell their holding and give it up as a bad job ? Although the board of directors haven't shown us much growth in the last eighteen months, I do feel that our investments are safe under their stewardship.

I would like to point out to all investors that Sports Direct have never actually said they are interested in acquiring Findel, they have only ever said they are supportive shareholders. Let us not jump to conclusions. As a response to Goldmanbaby1, it is very difficult to assess a notional value for the business, the value is what an interested party is prepared to pay. Having said that I would like to point out that while debt is higher than most investors would like, the imminent sale of Kitbag and the possibility of selling Findel Education would significantly reduce core debt leaving a business with low debt and gross income of just over £300m and a ten per cent margin. A very attractive proposition by anyone's standard.

I don't think it matters if Sports Direct don't bid. If they don't, the Kitbag deal completes as planned, the debt is reduced further and we can look forward to the release of the year end figures next June when hopefully we will be looking at circa £30m plus pre tax profit without the burden of Kitbag. I don't see a for sale sign outside the business, I just see a business dealing sensibly with a hostile shareholder.

Thanks again 1GW_. If Sports Direct paid £4 a share for the remaining 81.07% they would still only have paid £280m which is very cheap. The next few weeks should prove to be very interesting.

Thank you for that information 1GW_, I did not receive that circular. I trust you read my most recent post, and in particular the last sentence. It certainly looks like the sale of Kitbag is being used to leverage Sports Direct into making a bid. I am relieved to note that both Toscafund and Schroders are siding with the board in this battle for control.all that remains now is for Sports Direct to make its intentions clear.

Another set of underwhelming jam tomorrow figures dogged by exceptional items/deductions. The identity of the Kitbag buyer has however become apparent to me. It is almost certainly a management buyout, for the following reasons. 1) it was not a co incidence that the company were able to announce the potential sale of Kitbag at exactly the same moment (and indeed in the same RNS) as the Sports Direct announcement of its purchase of 18.93% of the business. 2) it is not normal for a seller to be familiar with a buyers financing problems, unless of course they are involved to a lesser or greater degree with that very financing themselves to help fund the transaction. 3) to present a set of half year figures excluding Kitbag even though an unconditional contract of sale has not been entered into suggests to me that the board are very familiar and comfortable with its interested party. I would guess that the deal was agreed in principle back at the end of May when the company announced that they would be retaining Kitbag as part of the group. The only way I can see Sports Direct stopping this MBO from taking place is for them to buy the whole business. With the share price at this low level, now is an enormous buying opportunity particularly with this in prospect.

.....to all investors. We were virtually at the same price exactly one year ago, (zero growth year on year) when we received the "good news" that the company had made a profit for the first half of its year for the first time in several years. What sent the price crashing from £2.35 to £1.88 inside two days was the £19m impairment of Kleeneze's value. What else is there left to impair since Findel Education's value suffered the same treatment in June this year. Has the value of Kitbag already been impaired ? I am not sure. If not, it may well be about to happen particularly as there is an interested party in line to acquire it. Would the board enjoy seeing the share price fall below the price that Sports Direct paid ? Again I am not sure.

More than likely ohaire but what about putting some figures to your prediction. You have read my thoughts. Have any other investors got any predictions as to group income and pre tax profit/ loss ?

I am pretty certain that the board of Findel, (such as it is) despite actively looking for a new CEO will oppose any attempt by Sports Direct to have one of its representatives elected to serve as one of its directors. I firmly believe that our investment is safe in the hands of the current board, I am not sure I could trust a Sports Direct appointed director as his primary interest of course will be Sports Direct and not us as shareholders. I am confident that the company have had a reasonable but not exceptional first six months. The first seventeen weeks of the trading year was reported as being ahead by 1.9%, or in line with expectation. There is no reason to believe that the following/remaining nine weeks of the first half of the year were any different. I stand by what I said more recently and expect group revenue to be around £230m with pre tax profit of approximately £5m. What concerns me is the prospect of further impairments or re valuations which of course sent the share price tumbling this time last year. What also concerns me is the company not informing us as to the date of the release of the half year results. In previous years we have always been kept informed in advance of the release of the half year and full year release dates. Why not this year ? Maybe your fourth paragraph 1GW_ is my answer. Let's be positive, the half year results come in slightly ahead of expectation, the board successfully oppose the appointment of the Sports Direct representative and instead announce the appointment of a high profile young go getter to the role of CEO.

As there is only so much inane drivel I can take I have found this excellent function that enables me to filter out the posts I no longer want to read.

Couldn't agree more but this is a Findel discussion board where we share information and views with one another about Findel. If you want to discuss musical preferences, the weather, how you feel or where you are going, then you need Facebook or Twitter. Meanwhile over at Findel the wait goes on for further information about the Kitbag sale and trading during the first half of the year. Last year the half yearly report was released on the 26th November, therefore next Wednesday or Thursday could see the release of this years report. In any case, I believe the company have a maximum of three months to release their report after the end of the trading period which was around the 26th September. It is disappointing to note the share price continuing to slide as a consequence of impatient investors wishing to cash out. The market makers used the same tactic recently in the weeks prior to the announcement of Sports Direct's acquisition from Toscafund and Schroders of 18.93% of the company. I repeat what I said some weeks ago, investors, do not sell your shares unless you absolutely have to. Your patience will be richly rewarded.