|Better Capital GBP
||ORD GBP1.00 (2009)
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Better Capital 2009 Share Discussion Threads
Showing 76 to 97 of 100 messages
|They are two different funds!|
|Yes I have thanks. Tiltonboy says the cash from the Gardner sale will not be spent on buying the BC 12 shares. So my question to him is: how then will be the BC 12 purchase be financed?|
Have you not read any of the recent announcements?
Someone seems desparate to get out.|
|So where is the cash coming from or is the purchase not for cash?|
|Yes, very good news. Has all gone to plan, for a change. And i think a decent chance that the rump might deliver a bit of upside.|
|An early Christmas present. NAV of 125p of which over 100p should be returned to shareholders. Happy to apply a 40% discount to the rump, to give a price of around 110p.|
|Very curious on BC12 - so the handful of holdings are struggling, but the cash pile is going to be used to buy back up to 50% of the shares? Effectively they're doubling down - hope they know what they're doing, because so far the performance of the holdings suggests the market's been right about the discount.|
|Not so good for BC12 though. But interesting buyback strategy, although at what price?
Since the Annual Results, Fund II acquired a further 23.7 million Better Capital 2012 Shares ("2012 Shares") with an average gross price of 31.96 pence per share. At 30 September 2016, Fund II held 57.1 million shares (16.47 per cent. of the 2012 Cell share capital). The 2012 Shares are valued based on their quoted closing price at that date of 33.00 pence. Subject to shareholder consents, it is the Company's current intention to acquire up to 50 per cent. of Fund II's holding of the 2012 Shares by way of an off-market transaction and to cancel these on acquisition. Further communication on the matter will be made in due course.
The Fund II GP has advised the Board that the recent underperformance in Everest, Jaeger and SPOT against their respective current year budgets is expected to impact the 2012 Cell NAV as at 30 September 2016 with a current expectation of a decline in the region of 14 per cent. (ie approx 61p)
|Looking good. A modest increase in NAV, and hopefully more to come given the interest in Gardner.|
|Gardner sale on target:
|Been ticking up all week with a few chunky buys thrown in.|
|Earlier on today there was a decent mkt. with 100k by 100k.|
|Good spot re the link. Fund has said that any realisation proceeds will be returned to shareholders so this looks like a reasonable liquidation play. Even if 'only' 200mn is achieved, that should result in about £1 return. As well as the sky article the portfolio update in Feb was encouraging for Gardner. I have come full circle with the latter having owned them 10+ years ago when they were quoted in their own right.
Thank you, Rambutan, for highlighting this.|
|Gardner value at 09/15 was £185m. It had net debt of £27.5m.
|17p distribution paid today on the 2009 shares. Share price now only giving Gardner value - a little upside from last valuation. Was stated that sale by end of 2016 expected. Other four cos could fetch 20p+, given time and no (more) disasters. Am happy to hold.|
|Another write off! Is this the most unsuccessful company on the stock market? So many changes of management, and so many write offs (Reader's Digest, City Link, Fairline).
Stand by for Jaeger next......|
|Any views on BC12 here? (Better Capital 2012 Cell) My analysis below.
Can currently purchase at 66.5p vs a debt free 102p NAV (30.9.2014)
The breakdown of the £354.1 million NAV at 30th September is:
Everest £69.4m, Jaeger £50m, City Link £20m, SPOT £100m, Cash £111.3m, Misc £3.4m
Since the balance sheet date we’ve had the following developments
10th November 2014 – Acquired all the debt facilities of Intertain Limited for £20 million.
29th December 2014 – City Link Group placed into administration. No effect on B/S as was already written down to reflect liquidation value.
19th March 2015 – Financial restructuring of Intertain Limited. Company entered into a CVA to refocus business on core estate and have now assumed equity control. I imagine this is a marginally positive development for NAV.
20th March 2015 – Purchase of CAV Aerospace with an initial commitment of £40 million covering the acquisition, working capital requirements and future growth initiatives. £48m cash remaining as of the 20th March.
So we have two new purchases adding £60m to the investment portfolio and have £63.3m less cash so NAV is still around £1 and share price is trading somewhere around a 35% discount.
A first distribution of capital was made in September 2014 of 1.75p. I’m not 100% sure on their distribution policy, but if it is a case of them distributing all the capital/Loan repayments/dividends that BC12 receive back from their investments then there is potential for bigger cash returns this year as they state ‘Significant further cash distributions to Fund II are expected in FY15’ with regards to Everest and also say ‘there is a good prospect of some cash distribution from SPOT in FY15’.
John Moulton has made recent puchases at both 70p (2.85m shares) and 80.1p (1m shares).
Better Capital have had a pretty poor run but not sure the sizeable discount to NAV is warranted. Might be a long wait but I’m a buyer.|
|Sad to read media coverage of City Link criticising Moulton. Just shows most British adults are effing clueless when it comes to investing or how companies survive. Unprofitable companies fail - end of. Nobody forced Moulton to try to rescue City Link when the BCAP investment was made, and listening now to cretins representing the RMT must make him wonder why he bothered trying in the first place...|
|Parcel delivery firm City Link collapses
City Link, one of the UK’s biggest parcel delivery groups, which supplies John Lewis among other retailers, collapsed into administration on Christmas Eve — but it did little to calm an online buying frenzy yesterday. The Coventry-based company, owned by Better Capital, the investment company, called in administrators from EY, the professional services firm, after years of “substantial losses”.
Hunter Kelly, joint administrator to City Link, said: “City Link Limited has incurred substantial losses over several years. We will provide support to employees relating to potential redundancies. We are now beginning the process of realising the company’s assets.”
Complete article: http://www.thetimes.co.uk/tto/business/industries/supportservices/article4307059.ece|
|Just my thoughts: Most recent nav is £225m (little cash or debt), of which Gardner is £118m, with the other 5 port cos making up the balance (see pg25 of below report). Gardner seems to be valued at approx 11 x EBITDA, so neither cheap nor expensive. Therefore, if they can really get Gardner growing then the nav is going to do very well ie 150p+ over the next 3-4yrs. If Gardner just ticks along and say 3 of the 5 other port cos do well then the nav can still tick up nicely ie 125p+. But if Gardner was to hit turbulence then the 09 fund is in trouble. Remember that the 09 fund is in distribution mode and has a final wind up date of dec 2018 (tbc).