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Real-Time news about Fii Group (London Stock Exchange): 0 recent articles
|moogee: FII pension fund is a good start :)
Ask your broker but I would guess some sort of stock tranfer form.
However, if AE and JS can raise the cash instead of a dilution then I would expect Fii share price to jump somewhat. Ditching £30m debt for only £2.8m seems like a great deal to me.
Alternatively, it could all go pear shape and we lose everything.
|moogee: It is indeed great news that finally, the Trustees and FII have come to an agreement. The deal is already done in my eyes since non acceptance means the company folds. Taking the four points in order:
a) payment of £2.8m to the trustees. Point c implies that this will be raised by a rights issue. Assuming a 6p rights price we are taking 46m new shares. So we are looking at a 1 old share is replaced by 3 new shares. That's quite a heavy dilution in my books. Maybe it would be better to pay this off in cash by instalments wouldn't you think? As you say £2.8m is dirt cheap. I suspect that FII will now tell us that the future with all these overseas contracts is rosy. IF so then FII should make a profit and I would personally prefer to see FII pay this through earned cash than have my holding to be massively diluted. Okay, one may take up the rights issue thus negating the dilution but will you? Obviously, all this depends on what type and quality a future FII has.
b) the juicy bit and key question; how much is the Xtempus stake really worth? FII valued it at nil (okay £1). If there is nil value then why would the trustees buy it? If the stake is worth £1 now but is going to greatly appreciate and give value in the future then surely shouldn't FII retain the Xtempus stake? I would have offered FII a tenner for the Xtempus shares just in case Xtempus did pull through. This part of the deal I'm the least pleased with. However, if this stake transfer actually reduced the amount stated in (a) or (c) then it could be worth it. Basically, we don't know and probably we'll never know.
c)option to the Trustees of over 2.5% of the enlarged Company's issued capital to satisfy its obligations, hmm?!?!? How much will that affect us? At the current share price of 6.75p one would expect the option price to be peanuts and any rise above the peanut level will be taken, hence another dilution. How much of a dilution is open ended since the statement just states OVER 2.5%. How big is the obligation that FII must satisfy? If the obligation is say £27.8m minus £2.8m in (a) that leaves £25m. Assuming the Xtempus stake is nil because it is deemed that Xtempus won't come to the market thus value can't be realised of our (sorry, the Trustees) stake. So this still leaves £25m. If the share price shoots up then the dilution effect will be smaller than if we just languished along the bottom. Obviously, the share price and the taking up of the rights issue in (a) all depends on what kind of future Fii has.
d) FII still has an obligation to the FII Group Pension & Life Assurance Scheme even when this nightmare is behind us! How much is this going to cost us in regular contributions?
So, heading towards the future has a shoe company, a bright prospect? Hmm, if FII was going to make cash hand over fist even with these new orders from abroad then FII should pay the £2.8m for next years profits and protect our existing holdings. We haven't had any return of this investment for 5 years now so waiting another year isn't going to hurt as much as this dilution effect for ever in the future. So I can't see FII ever making huge profits. Also, the foowear business, granted FII has very good brands, is still a very competitive market. The action of moving the manufacturing overseas has only brought us back to a level playing field from when we lost the M&S shoe contract to overseas manufacturing companies. We can increase our market and this is where our increase in profits will come from.
If FII persist as a shoe company then I can't see an exciting future. This may be the reason why I'm not as happy as I should be.
Now that the pension fund is all but gone , the company is truly stripped down to a minimum, huge historic losses that may be used to offset future taxes on profits, very saleable footwear contracts....FII may be a very good takeover target.
This is our only hope IMHO and will aid to reduce the impact of point (c).
So, I'm pleased that this huge problem is over and thanks to Doug and others for their help in this matter and turning the company around but I await the future with some dread of massive dilution and modest profits.
|moogee: I don't know about expectations but anyone looking at the shareprice graph would conclude Fii has been suspended again!
The share price is about as active as this discussion board!|
|moogee: I think we'll need to keep an eye on Second Advance Value Realisation Company Limited. They seem to be just in for very short term gains. They certainly appear to have caused distress for two companies, one being Advanced Medical Solutions Group plc.
I think Doug has his work cut out.
Notification of Interest
Aminex PLC ('the Company'), the oil and gas company listed on the London and Irish Stock Exchanges, was notified on 17 April 2003 that Second Advance Value Realisation Company Limited has acquired 3,371,000 Ordinary Shares of EUR0.06 per share in the Company, which represents approximately 3.71% of the Company's issued share capital. The acquisition is conditional upon the listing of Second Advance Value Realisation Company Limited on the London Stock Exchange on 25 April 2003, whereupon the holding will be registered in the name of Nortrust Nominees Limited account AVC01.
Advance Value Realisation Company Limited. The Company's principal activity is that of an Investment Company. The objective of the Company is to manage its investment s to provide value and liquidity to its investors. The Company has not yet been approved by the Inland Revenue as an Investment Trust for the purposes of Section 842 of the Income and Corporation Taxes Act 1988 for the year ended 30-Jun-2001. It has conducted its affairs as to be able to seek such approval for the year ended 30-Jun-2002.
It has just seen the back of Advance Value Realisation Company, an investment vehicle set up to relieve institutions of stakes in unloved small companies.
25th March 2003 - Advanced Medical Solutions Group plc - AGM Resolution
The board received yesterday a request by Advance Value Realisation Company Limited (AVRC) under section 376 of the
Companies Act to put an ordinary resolution at the forthcoming AGM to shareholders to request the AMS board to invite offers
for the Company. This is much the same resolution that was defeated last year.
The principal reasons given by AVRC for this action are:
1. "An unsatisfactory share price performance"; and
2. "No recovery in AMS's trading" "Against a background of worldwide growth in the advance dressing market of 10%-12%
year on year, the performance of AMS's core business has been extremely disappointing".
Responding to these points, the board of AMS would like to highlight that:
1. Since AMS announced the acquisition of MedLogic on 28 March 2002, its share price has outperformed the FTSE Small
Cap Index by approximately 15 per cent; and
2. AMS's core Professional Woundcare business has grown by 26 per cent. in 2002, representing double the market
growth rate that AVRC refer to in their letter.
The board is disappointed that this request was made the day before the Company issued its preliminary results for 2002 and the day before the Company had meetings scheduled with its institutional shareholders, including AVRC. A copy of the AVRC letter and a detailed response from the AMS board will be circulated with the Annual Report and Accounts next month.
|moogee: What share options and management expenses are you referring to? Management greatly reduced with a emphasis on reducing costs not increasing them with expenses. For the management to issue share options; they must think that the share price will rise. I can't see this happening until the pension deficit is sorted out. These are just my thoughts but if you know things I would be clad to hear the specifics.
I await your new info on the above matter.
|moogee: Yes I've been a shareholder for some time in Fii. Relatively speaking one could say that I don't have that many shares compared with others.
How long will I stick with this company is hard to say. It all depends on what Fii does in the future and whether I think the shares will be overpriced at a later date. Now there's optimism for you. Like many investors I was trapped by the long suspension. After the suspension I deemed that the share price was too low to sell since I believed the company could be turned around. I posted earlier what I thought the company should do to increase shareholder value. One suggestion was logically to move manufacturing overseas. Thankfully, Doug Ware is doing a good job in turning the company around to which I am grateful. I believe now is a good time to buy even under the shadow of the pension fund deficit. In view the Bradstock ruling I believe the pension fund deficit can be easily sorted out. It is in the Company's, shareholders and pension trustee's best interests to resolve this. Once this is done I would expect a re-rating of the shares. A re-rating is already due based on the bull points I have mentioned above. Also considering possible footwear contracts with major stores on the back of Fii's well-known established brands and we can quickly see how undervalued Fii really is.
So to answer your question of how long will I hold all depends on what Fii does from now on and is the share overvalued or not.
My style of investing however does tend to be long term in years.
How about you?
|moogee: Agree with your post. Lets hope that Fii has finished with all the non profitable disposals and that FII can organicaly increase profit margins and turnover. Hovever, with the circular stating that the pension deficit is £23.1m I feel that the trustees will be offered something far less than they hoped for. With this pension problem hanging over FII I can't see the share price doing much.
Still this doesn't phase the major shareholders and with one increasing their stake, they must feelconfident as well.|
Fii Group share price data is direct from the London Stock Exchange