Dm Share Discussion Threads

[aa29] 08/1/2009 23:10

Mmm - conditions which allow him to retain control over more than 75% of the company. Not sure exactly which extra powers that gives him under the Companies Acts but 75% is a significant level of control under law.

On the positive front, HV is willing to invest £1.5m in an illiquid investment and it can't do any harm to have the benefit of his experience for the Group going forward. My impression was that the board was fairly lightweight so this consultancy will help.

[jeff h] 08/1/2009 22:12

AA29 - No, I'll ask him the next time I see him...you could always ring
AW and ask him yourself!

I think my mate said his organisation wanted him to stay on and leave him
with a stake to incentivise him...whereas the private equity firm was happy
to take all the shares and just have him around for a handover period.

As for the price well AW happy to have cash not more shares and to sell
at below 10p today all be it with conditions attached.

[aa29] 08/1/2009 21:49

Jeff, any idea of his reasons for wanting out?

I would have thought that even if a sale had gone through last year, the price would not have reflected real value which doesn't seem sensible business to me.

[jeff h] 08/1/2009 19:11

AA29 my mates recollection after meeting AW last year when the company was
subject to offers was that AW wanted out ie a complete sale of all his shares.

Taking a cash div and todays transaction means that his position doesn't seem to have changed.

[aa29] 08/1/2009 17:18

Acquisition update:

DM has firmly established itself as the UK market leader in its two core market sectors of response based customer recruitment and direct mail. The acquisition of DLG presents the Group with an opportunity to rapidly establish critical mass and an influential market position in consumer lifecycle database marketing to the direct marketing industry.

DM has a track record of making selective acquisitions at the right price and rapidly improving the acquisitions' financial performance, whilst integrating them into the wider Group. As part of the turnaround and integration process for DLG, the DM Board has today reached an agreement with Mr Hugh Villiers to become non-executive Vice Chairman of DLG, to assist the Board in the turnaround of DLG.

Hugh is a successful entrepreneur who has a proven track record in building and growing consumer lifestyle businesses having been involved in the initial development of the lifestyle data collection sector in the early 1980's. He successfully helped found and develop CMT Ltd, Consumer Access Ltd and Consodata UK Ltd where he held the role of Managing Director at all three companies. Each of these businesses established profitable, market leading positions in their respective sectors and where ultimately subject to successful trade sales, which have, by various routes, ended up with all of them being a part of the Acxiom UK group of companies. Hugh will, in his role as non-executive Vice Chairman of DLG, act as a consultant to the Group and will be remunerated on a success only basis by reference to the financial
performance of DLG in the financial years ending 31 December 2011. The Company may, at its election, satisfy any such success-only payment due to Mr. Villiers in cash or by granting him a comparable level of nil cost options to acquire shares in the Company. It is intended that any such options will be granted within 15 business days of the publication of the Group's results for the relevant financial year.

Share Sale and Directors Dealing
In order to further demonstrate Mr Villiers' confidence and commitment to his role as DLG Vice Chairman, Hugh has today acquired from Adrian Williams, DM Chairman, 15,290,520 ordinary shares in DM, at 9.81 pence per share (the "Sale Shares"), for a total cost of £1.5 million. Additionally, Mr Villiers has granted a power of attorney to Adrian Williams who shall be able to vote the Sale Shares at any meetings of shareholders of DM. Such a power of attorney shall be irrevocable until the earlier of: (i) Adrian Williams ceasing to have an interest in DM securities representing at least 51 per cent of the issued share capital of DM; and (ii) Mr Villiers ceasing to hold any ordinary shares of 1 penny each in the issued share capital of DM and/or options to subscribe for ordinary shares.
Following the sale, Mr Villiers will hold 15,290,520 ordinary shares in DM, representing 10.51 per cent. of the Group's issued share capital. Adrian Williams shareholding will be reduced by 15,290,520 ordinary shares from 117,545,565 to 102,255,045, representing a decrease of 10.51 per cent. to, in aggregate, 70.27 per cent. of the Group's issued share capital.

AIM Rule 17 Disclosure
Subject to the requirements of AIM Rule 17, Adrian Williams, Chairman, has notified DM that Olan Mills Limited, the chain of family photography businesses of which he was a director, has been placed into administration.

Outlook
The Board of DM believes that the Group has an opportunity, with the acquisition of DLG, to create a market leading fully integrated off and on-line lead generation and direct marketing services Group. The addition of Hugh Villiers to the management of the Group, with his proven track record in the consumer lifestyle industry in both growing and successfully selling consumer lifestyle businesses, enhances this vision.

RNS ends ....

My own thoughts, clearly HV will be well incentivised to make the DLG acquisition a success. On the down side, Adrian Williams is reducing his investment (this share sale and the recent dividend taken in cash). Good news must be that despite the cash cost of DLG, this must already have been covered from cash flow given that the directors have not used the scrip dividend option (see pre Xmas RNS re scrip dividend shares issued)

[guru11] 06/1/2009 11:53

plast - agree with you - lets hope this is the start of a good year.

However if they turn this new company around as fast as the last one then DMP could look extra cheap.

[paulcaine2003a] 05/1/2009 14:42

Not a bad rise so far today. A couple more days like this and its break-even time baby!

[plast] 04/1/2009 12:20

well i hope your right, i need this to fly now, some time this year will do,
been holding for some time now from old company so i think im due for a bit of profit.

[guru11] 30/12/2008 22:11

50.5k bought today and at at 2p premium, so how many have the MM got in hand, and how fast could these rise on any good news?
This price today could look cheap next Christmas.

[guru11] 23/12/2008 17:18

Did anyone buy 3 more shares today - 23 December ?

I feel that after the last turnaround of the company that DMP purchased, that the directors wont waste any time turning the latest purchase around either. This time though the benefits could well be a lot greater.

Hopefully next Christmas, this time around now, will just be considered a blip in the share price, where punters will be saying - Did you know that you could have bought DMP in December 2008 for just 10p now they are x.

Merry Christmas and a prosperous New Year to all DMP shareholders, and see you in the New Year.

[guru11] 04/12/2008 13:30

Price today is 8.625 / 9.95p - Looks again like a longer term hold to get value out of DMP stock.

[aa29] 04/12/2008 12:49

EGM today confirmed dividend/scrip dividend.

[aa29] 03/12/2008 00:07

Guru - yes, dividend is due 23 Dec.

You may find you've been lucky and are able to get shares cheaper than 9.4p if we have another down period in the market.

Don't forget though that EPS will be held back by the DLG acquisition - more shares in issue and DLG losses will both reduce EPS in the short term. We aren't aware of the current extent of DLG losses and timetable for turnaround.

We may have another delay for value to appear but that should be really boosted once the DLG benefits are achieved.

[guru11] 02/12/2008 21:32

I have contacted iDealing.com who says that as the stock is held in a pooled nominee name that they do not offer the option of offering a script dividend.
I think that this is a little poor. However I may still think about buying once I have the dividend.

With 50,000 share sold being the last two deals the price could tread water for a while. Did we say that the dividend is now due to be paid somewhere around 23rd December?

Once an update trading statement comes out mentioning a revised eps, we will then be aware the real price that DMP should be. This kind of stock does tend to have a low pe ratio, however eps have been growing year on year, unlike the current share price which one day may well catch up.

In 2008 we had a trading statement on January 22nd and final results on 3rd March. The stock was 18p after the chairman had bought a futher 300k shares and then came out with a trading statement soon afterwards.

[aa29] 01/12/2008 13:10

Yes - see post 642.

The deadline to apply is 8 December. With my nominee shares, I did have to get in touch with the dividend dept of my online brokers and they are now applying for the shares. They wouldn't normally have advised me about a scrip dividend opportunity.

[paulcaine2003a] 01/12/2008 10:33

has anyone received any information re: the scrip dividend?

[guru11] 26/11/2008 15:42

2 lots of 25k sold today and the market makers get nervous and drop the price.
Still longer term with some news I expect this to be just another blip, and the price to be way ahead of todays price.

[guru11] 20/11/2008 21:15

If we can increase our holdings by 37% with the script issue due, then a review of current forecasts could be most welcome and beneficial to the share price.
We can only be optimistic after management past achievements and previous and current wise moves.

[paulcaine2003a] 18/11/2008 08:58

Good find AA29.

That article re-affirms what we have said, but 5% of the total value is an absolute steal!

We are definately due a review of the current forecasts!

[aa29] 18/11/2008 00:16

Check out the quote from the 'insider' here !!!

[guru11] 15/11/2008 16:35

Hi AA29 - Many thanks for that - mine are held in a nominee name, so as you say I will either hear from my broker or I will have to contact them. With a bid price Friday of 10p, taking up the script at 9.4p could be a good move. It will be interesting to see what the full years eps is, share price, and more importantly the pe ratio is then. There is potential there with the current management in place and their past record.

[aa29] 15/11/2008 14:04

Yes, Guru - scrip issue is fixed at 9.4p. I have some shares held in certificate form and the paperwork was received this morning.

People may need to check with their broker as mine, at least, would not normally advise me of a scrip dividend opportunity for shares held by it's online service.

[guru11] 14/11/2008 23:49

Are we looking at fixed scripted dividend price of 9.4p? As if so with the price today at 10.5 / 10p, doing a dummy buy / sell today it could be a good deal. Could well be the right time to take the script dividend with the future potential of the combined group.

[aa29] 14/11/2008 16:15

Paul, thanks for the link.

Whilst it doesn't say who's issued the forecasts, my impression is that DM would only give a conservative steer to an analyst and then expect to beat the forecast (eg 07 profit was ahead of Blue Oar's 08 profit forecast). I would interpret these forecasts as giving further reassurance that trading since interims is going (very) well.


9.4p is in the circular about the dividend.