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Real-Time news about Clerkenwell (London Stock Exchange): 0 recent articles
|hugepants: CRK would be worth buying if you could be sure they will liquidate the company if they cant find an investment within the time limit. The alternative is they delist.
I bought shares in a cash shell 3 years ago. They delisted 2 years ago and still have not made an acquistion.
PS. OVG has effectively 8p net cash and a 4.25p share price.|
|jay083: Tipped by this lot. kicking myself, thought about buying in before it moved - just didn't want to be locked into such an illiquid share. hey ho...
Clerkenwell Ventures - Buy at 21.5p
Says exclusive small cap specialist website UKMicrocap.com
Clerkenwell was admitted to AIM in October 2004 as a cash shell to acquire businesses in the leisure industry. Since then it has evaluated multiple opportunities but in recent years it has seen good businesses without a special need reluctant to crystallise value at prevailing levels and debt availability across the leisure industry substantially impacted by economic conditions. As a result, the company returned £26.79 million to shareholders in March 2009.
Financials & Recent Trading
Clerkenwell announced results for the six months ended 31 st March 2009 on 30 th June. These showed a pre-tax loss of £95,000 on no turnover, though £148,000 of this was a non-cash share based payments charge and stripping this out £230,000 of finance income compared with administrative expenses of £177,000. At period end the balance sheet showed net cash of £3.56 million and net current assets and net tangible assets of £3.20 million.
In February a General Meeting of shareholders re-approved the company's investing strategy. In accordance with AIM rules this gives it 12 months to make an acquisition or otherwise implement its approved investing strategy otherwise the company will need to return to shareholders or return its funds to them and liquidate. Considering what we have said above and continuing adverse market conditions, we see the latter as the most likely occurrence though the company did note in the results statement that it had "continued to evaluate a number of businesses".
Non-Executive Chairman David Page was involved with PizzaExpress for 27 years, including as both Chief Executive and Chairman. He co-founded AIM listed restaurant company Clapham House Group, where he is presently Executive Chairman.
Non-Executive Director Paul Campbell is a long-term business partner of Page's having been Finance Director at PizzaExpress and since its formation in 2003, Chief Executive of Clapham House Group. He is a qualified Chartered accountant and also has leisure sector experience from Relaxion, which was a leisure management company with operations throughout the UK, where he was Chief Executive.
*The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Smaller company shares usually suffer a wider bid offer spread the blue chips and can be illiquid and hard to sell and must therefore be deemed higher risk investments.
This is a simple story. Page and Campbell are sensible men and we believe they will only do a deal as true vultures. Having been patient and walked away from many a transaction over the past few years and both been buyers of shares since early March (owning 4.35% and 4.91% of the equity respectively), we simply don't believe this management will squander the cash they have remaining. The £26.79 million Page and Campbell have already returned to shareholders shows that if they can't find what they believe to be compelling value, they will simply give the cash back.
There are presently 8,344,688 shares in issue and £3.2 million equates to 38p per share. Outstanding share options are exercisable at 54p so shouldn't represent an issue, though on the business being wound down we would see some costs being incurred related to this process. However, the current share price of 21.5p leaves clear upside. In short, we see a low-risk gain in 6 months or a higher-risk gain further down the line on Page and Campbell pulling a deal off. At 21.5p, the stance is BUY.
Spread: 20p 23p (13%)|
|eburne1960: tilton, I am not assuming the share price will match the NAV either, my figures assume that the shares will trade at the same discount to the residual cash as the discount they are now trading to the current cash, which IS an assumption, but not an unreasonable one. The residual cash would work out as c.4.2p a share, whereas I've assumed an equivalent bid price of 3.14p .|
The point gilston is making is that he believes the share price will not match the residual NAV, and I think he will be proved to be right. I have bought mine as a (virtually) free call option on the future.
|eburne1960: Yes, presumably you would have been happier that the directors bought the first business that came along and watched the share price fall 40 or 50 per cent, some people are never satisfied.....
still all the more returns for those of us who better understand shares!|
|nickcduk: Not at all worried about price movements in CRK until they find an acquisition target. When they do the share price will respond sharply. Those who are complaining about the board dragging their heels should be grateful that they didn't make an acquisition when valuations were much higher. Now we will be in an ideal position to snap up a bargain at the bottom of the cycle rather than the top. In the meantime the cash pile and NAV grows.|
|nickcduk: On the upside they didn't make an acquisition during the boom times for the sector. If they had I doubt the share price would be much higher than where we are now. Ideally placed to make an excellent cheap acquisition.|
David Page is a restaurant entrepreneur whose expertise lies in the chain format. He cut his teeth with PizzaExpress, which grew profitably from 23 branches to more than 350 under his stewardship. He is now seeking to repeat this success with the three restaurant brands acquired by his latest venture, Clapham House Group, of which he is chairman.
A trained teacher, Page started his restaurant career as a dishwasher at a franchised PizzaExpress restaurant but by 1976 he was managing director of the brand's largest and most successful franchise group.
Page played a major role in PizzaExpress's flotation on the London Stock Exchange in 1993, when his franchise group merged with the newly-listed company. He rose from managing director to chief executive (in 1996) and chairman (in 1998). Page led a management buy-out bid in late 2002, but was outbid by Capricorn Ventures International and TDR Capital in June 2003.
Five months later, in November, he and former PizzaExpress finance director Paul Campbell raised £15m on the Alternative Investment Market (AIM) to fund their new company, Clapham House Group. In just over a year the group had bought three fledgling London-based brands to develop the Real Greek Food Company, the Bombay Bicycle Club and Gourmet Burger Kitchen.
What we think
Page quickly proved his mettle as PizzaExpress's largest and most profitable franchisee. He was also instrumental in PizzaExpress's successful flotation through the reverse takeover of the publicly-listed Star Computer Group and the pizza chain remained a stock market darling for nearly 10 years.
But by 2002, PizzaExpress's winning offer of authentic, thin-base pizzas after the 180-year-old Neopolitan style was coming under increasing pressure from upcoming rivals such as Ask. As profits started to fall and the share price plummeted to around 245p, the company was besieged by takeover approaches.
The most high-profile offers came from past and present directors. All, however, lost out to a consortium headed by Nando's owner Capricorn Ventures International.
Undeterred, Page linked up with PizzaExpress finance director Paul Campbell to create Clapham House Group, which he describes as an incubator for new chains who will benefit from the cash injection and economies of scale that Clapham House can provide. "We are a support vehicle for existing management and are an alternative to venture capital," he told Chain Leader magazine in early 2005.
Focusing on the full-service, mid-spend casual dining market, Page examined all styles of popular cuisine except pizza and pasta, which he felt was dominated by four players led, of course, by PizzaExpress. He opted for a three-strong Greek chain, a company with one Indian restaurant and five home delivery units, and a burger company with six restaurants.
In 2004, Page founded Clerkenwell Ventures, an investment vehicle for high-growth leisure businesses, including hotel management contracts and health and fitness clubs. He also has a stake in Urban Dining, a restaurant company set up by former PizzaExpress directors Glen Tomlinson and John Metcalfe.
|dovegin: rights issue for acquisition pending? and no uplift in share price|
|jedi trader: How to shaft a comany share price by Andrew Garner...
1. Do a placement immediatley before fy results so i you are unable to take advantage of a higher support level price and parctically give the shares away.
2. After doing placement do another straight away but this time give the shares away at less than half the market value price so as to really hammer the share price.
3. tell all your mates before so they short it and pay for this years trip to the carribean.
4. repeat steps 1, 2 and 3.|
Clerkenwell Ventures share price data is direct from the London Stock Exchange