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Real-Time news about Ely Prop (London Stock Exchange): 0 recent articles
|lbo: Newcourt shows it has the right stuff
NEWCOURT Group is one of the more interesting companies to have come to the Irish market in recent years. Chaired by solicitor James Osborne, the outsourcing group announced its 2006 results last week. These showed that sales had increased by 78 per cent to 116m last year, pre-tax profits were 155 per cent up to 5.7m while earnings (after-tax profits) per share advanced by 64 per cent to 9.97 cent. Newcourt is an eclectic mix of businesses. It started life in 2002 when founders Ted O'Neill and Phil Sykes bought Federal Security. Since then, the business has expanded to include student accommodation, health and safety training and consultancy, facilities management, recruitment and pilot training.
The company's shares were floated on the Irish Stock Exchange's junior IEX market and on London's AIM in November 2007 at 70 cent. By the end of the week the share price had reached 1.70 valuing the entire company at 141m.
Newcourt has expanded rapidly through acquisition in recent years. In 2006 it paid 22m for student accommodation group Ely. As well as purchasing Ely, it spent approximately 15m on a further half-dozen acquisitions last year. While the Ely deal was largely funded through the issue of new shares, most of the other acquisitions were largely paid for in cash.
As a result, Newcourt's net debt rose from 4.6m to 27m during the year. A further legacy of the acquisition spree was that by buying what are largely people businesses it got very little by way of tangible assets with 65.5m of the group's total fixed assets of 71.7m consisting of goodwill.
In other words, over 90 per cent of the group's assets walk in and out the door every day. Having used their Stock Exchange quotation to build a large, diversified outsourcing group, O'Neill and Sykes must now knit it all together and make it work.|
|countryboy2: This very small property company is building up nicely its property interests in a niche market of student accommodation lettings. I am hopeful when their first results shareholders will not be disappointed. This starter company is an ideal way to enter the Irish property market and grow.................that is the objective........to grow. I should be very disappointed if the share price does not improve within the first year of the company's existence. I gather there is a lot going on within the company - growth and investment. Lets wait now and see if Ely lives up to its promises.|
Ely Prop share price data is direct from the London Stock Exchange