|Final distribution 0.042p per share, so £30. Better than nothing I suppose...|
|payment received today from barclays stockbrokers
quicker than i expected|
|So that's it then, I suppose under the circs (collapsing Rouble etc)a reasonable outcome.|
|So a sale of Unistream for $4.975m (or £3.34m) and a potential distribution of £4.5m, which is around 12p a share.|
|Perhaps the Advisor is charging expenses?|
|Rouble also weakened from 100 to 106 since 30 Sep so that £3.4m is now about £3.2m, NAV impact about half a penny. Think this one is a bit thin for a realisation punt at current prices|
|Three interesting pieces of information in the latest results
1. they have reclassified the investment in Unistream as current, meaning they are pretty confident of a sale in the next 12 months
2. the investment has been written down to £3.4m based on an indicative offer. Overall that would give a NAV of 12p a share (=£4.7m). Adding in the share buyback in April that puts the total resulting distribution to shareholders at £5.4m right on the threshhold for incentive payments to directors and the investment advisor.
3. The investment advisor seems to have received a performance fee of £68,000. According to the announcement on 31 March
"The Company has also entered into a new incentive arrangement with Nicholas Henderson-Stewart (the Company's investment advisor, the "Advisor") under which the Advisor will receive an additional incentive fee based on distributions to Shareholders made subsequent to the date of this announcement. The percentage of the distributions to Shareholders payable to the Advisor will vary according to the value and timing of such distributions, with no payment being due until distributions exceed approximately £5.3 million and the payment being capped at 4% of such distributions."
So how did he get £68,000???|
|Interesting positive update.
"Notwithstanding these obstacles the Board believes that it will be able to realise the asset in the near term. The Bank remains an attractive company due to its consistent growth, strong market positioning and cash generation."
Current NAV is 18.8p. The board and investment advisor are incentivised to return at least £5.3m to shareholders which would be 14p. I can't imagine they'd be interested in less, so current price of 9.125p looks good value. The overhead rate of £380k a year is about 1p a share.|
|That is the question......Thanks,for info Stems.|
|If anyone is interested, here is the web site for Unistream
and here are the sets of accounts
Net asset value(31.12.13) was RUB 860m (£10.3m) and it made a profit after tax of RUB 124m (£1.5m). I don't think things have improved since then.
So is our 26% stake worth more than £2m? Maybe....
Is it worth the £8.4m it's in the accounts at? Seems unlikely....|
|That's even better,Papy. So the current market cap with the shares just over 10p is approx, £4m,with cash of approx £2m. (Assuming they've spent about £750,000 buying in and cancelling their own shares).
I can see why institutions won't be bothered with them,so there may well be more selling......but for the patient there is quite a lot to go for!|
|gfrae, no prob
I should have been clearer - 44.6m shares was before the buyback - so it's 37.9m now.|
I agree with your numbers. I also agree that the director takeup is hardly positive. I too was thinking about buying more but now I'm undecided. I had assumed they had some reasonable expectation of getting £5 million+ for Unistream....|
|Thanks,Papy. So now with 44.6m shares outstanding the market cap is about £4.7m and the net cash is presumably now about £2m after the share buy back. So all depends on what they cab sell Unistream for.|
|I'm only paying attention to Tim Slesinger selling his full 15%.
That says a director holding a large stake thinks more than 10p from here is not a slam dunk. I would have increased my stake if he had sold materially less than his entitlement, but as it is, this is bearish, so I will stick.
I can understand other non-BoD (pension funds etc) preferring the certainty of 10p for 15% of their holding - given this is now a roll of the dice on what Unistream can be sold for, and there is no recent guidance from AURR on their expectations - so I don't think this non-BoD takeup is necessarily bearish.|
|Can't work out if this is bullish or bearish. Bearish that so many shareholders prepared to sell at a discount (even directors are selling) but bullish for remaining holders who now own a greater %age of the co.
Any thoughts anyone?
there are 44.61m shares in issue now - advfn and Digital Look are incorrect (not up to date)
After todays buyback, I make it 12.2p distributions from here for the BoD to get increased fees vs previously (and for Advisor incentive to start) and 18.3p for the BoD to earn £300k in fees (at which point shareholder approval is required for such fees).
Please correct me if you get different.|
How do you arrive at the increase kicking in at 17p?
The advfn financials show 75m shares in issue and the announcement stated that the remuneration exceeds the current allowance at a return of 7.6m
If the nos of shares in issue is correct then the increase kicks in at just over 10p???|
|Stemis, yes, unfortunately, this seems to be business-as-usual in the lifecycle of these specialist closed end IT's. In the endgame the Investment Manager, and in this case, BoD, "need incenting" to recover a few crumbs from the detritus they have created! At least here there is one director with a material holding - very unusual.|
|Looks like the directors are going to manage to line their own pockets after all. Having presided over a fall in NAV from over £1 a few years ago to only 24p now, they have negotiated an increase in their fees that kicks in if they manage to return 17p a share to shareholders. That basically involves selling one investment.|
|The buy back as at 10p,ie less than the current bid price,so it's possible that they won't be buying in any stock in at all.
Unless,the directors know of a large holder who wants to sell,perhaps?|
|I only hold 3386(thought I had a lot more than that), just sold them @ 10.6p|
Re Walton: Not absolutely sure, but I think it was a statement on Citywire. I do not see his name on the major holders list, but of course he could be acting for an institution. Just looked at my notes, in which I wrote Walton( do not know what BTEM stands for) 5%, and £765,000; whether that was the value of the 5% in toto, or the value of the additional holding, I do not remember.
Yes I am a holder. However,because I failed to read any further than the directors reduction in fees, etc, I missed the buy back statement. Ho Ho. That said, the longer holders wait, the greater the likelyhood of the rouble recovering? Having taken part in previous buy backs I do not have that big a holding, so I am going to take a look and decide what to do.|
|Azalea, do you have a link re your 460? I can't see an RNS or other news re John Walton (BTEM) 5% stake? Many thanks.
Are you a holder, may I ask? Do you have a view on the 10p share buyback on April 10th? It seems light on details - no director intentions re their holdings, no NAV comments.
I've speculatively bought a small position today at 10.74p, as
- "The Directors will receive a net reduction in fees until distributions to the Shareholders exceed approximately GBP5.3 million", which I make over 12p/share after this buyback (assuming full takeup of the buyback at 10p, and that my maths is right!). The new advisor performance incentive also cuts in at £5.3m
- My estimate of proforma NAV comes out at 18.3p/share after the buyback (again if full takeup), assuming no change in the Rouble valuation of Unistream (but allowing for Superstroy sale, rouble depreciation vs £, other costs and fees, etc). Against that, AURR NAVs have been all over the shop (admittedly in an unprecedented environment).
- What they will actually get for their Unistream stake is unknowable. If the outcome is anything like happened with Superstroy (sold for over double the last book value) then there is a lot of upside. The last Superstroy book value was savagely marked down before then selling at that premium. Unistream stake was not marked down (in fact up a bit) in the last results but maybe a similar kitchen sink pessimism was applied? Against that, an up to 6-12mo schedule to sell it may encourage a fire-sale approach by potential buyers of the stake?
- The Directors have a significant interest, in the shape of Tim Slesinger (who historically sold OSD to AURR and still has a sizeable AURR holding afaics) so the BoD is hopefully more aligned to shareholders than in the typical closed-end fund windup. He participated in previous tenders. It will be interesting to see if he participates in the Buy-back. I suspect he will, but if he doesn't that would be a further bull point.
- Obviously there are no end of risk factors - rouble, Ukraine, effect of sanctions, etc etc. So a speculation not an investment. Not for grannies/orphans.
Comments and thoughts welcome.|