Lees Foods Share Discussion Threads

[joe say] 04/5/2012 15:19

The unions may also wish to consider whether the board and its advisors will stick by what they say in the medium to long term, given their record to date

[strollingmolby] 04/5/2012 14:22

May be interesting for the Union to consider the rewards that Miquel & Co would reap in the years ahead, versus the 2.5% salary increase Usdaw secured for Lees workers in 2011:

At the confectionery and meringue manufacturer Lees of Scotland, Usdaw members voted to accept an offer of 2.5% increase plus an extra 10p per hour added to junior pay rates.

USDAW Research - Bargaining Report August 2011

[davidosh] 04/5/2012 14:08

The unions may think that taking the company off the market does no harm to the employees long term future but that is completely different to assessing whether the directors are paying a fair price to the minority holders.
We totally depend on Shore Capital and their independence but that has been questioned by many investors and the Unions were never going to be remotely concerned about the shareholders and their return on investment as they are at the opposite end of the spectrum in that respect

[skyracer] 04/5/2012 14:01

Well ... I welcome the management buyout at Lees Foods too .... at a fair price.

If the MBO team had said the buyout was to be accompanied by a 10% wage cut or redundancies the unions would NOT NOT NOT be welcoming the MBO ....

Nobody is against this MBO per se, we are just negotiating the price.

[davydoo] 04/5/2012 13:52

When unions start buying shares, i'll take an interest in what they say.

I'd have thought it pretty easy to get the unions onside in a situation like this, I can see the meeting now 'Lets get the business back in the hands of those who work for it, not the greedy capitalists and speculators in London'

[joe say] 04/5/2012 13:35

gotta be a bad thing then - as is the norm, unions only care about themselves despite all the hollow words they air

[strollingmolby] 04/5/2012 13:27

The Union support the MBO... FWIW

USDAW welcomes Management buyout at Lees Foods

[joe say] 04/5/2012 08:06

Its because he can cream a lot of it - Derrrr !


Alledgedly

[masurenguy] 04/5/2012 08:01

First year of trading on AIM (y/e Dec 2005) their sales were £13.5m with PBT of £614k and a net debt of circa £500k. Last reported year (y/e Dec 2010) sales were £18.65m and PBT was £1.0m. Last years results (y/e Dec 2011) will finally be released next week.

The net cash of £1.1m at the last interims will be boosted by the £500K settlement with HMRC announced in January. If this cash is deducted from the £5.6m offer then the enterprise value that the directors are applying to the business is just £4m which is roughly 5.7 x post tax profits from Dec 2010 - last declared year to date. Looks to me to be a real bargain MBO price for a well established and profitable business with potentially up to £1.6m in net cash at the bank.

When they listed in June 2005, Raymond Miquel, Executive Chairman and Managing Director of Lees, said:
" The admission to AIM marks a new phase in the growth and development of the Group and will enable us to access capital for growth as and when opportunities arise. It will raise the Company's profile, with customers, suppliers and potential candidates for acquisition and will create an objective market value for the business, potentially broadening the shareholder base and providing liquidity for the shares."

Perhaps someone could ask him to explain the logic behind their new outlook, what has changed and why, with sales and profits that are currently circa 40% higher and which has moved from a net debt of circa £500k to possible net cash of circa £1.5m, there is an advantage in a return to private ownership?

[cwa1] 02/5/2012 12:20

Great coverage David :-)

[davidosh] 02/5/2012 12:14

The Scotsman sees this as a victory for the smaller shareholders...

The move was hailed as a victory by a group of small investors who are opposing the sale on valuation grounds and believe that evidence of soaring profits at the Coatbridge-based firm will strengthen their case.

[cwa1] 01/5/2012 17:04

Oh and a message to the board and any advisors/auditors that drop in here to see how the mood of the meeting is going, please be aware that the upcoming results will be scrutinised in minute detail.

[isis] 01/5/2012 17:00

All shareholders regardless should be worried about these type of situations which happen when a shareprice remains undervalued and the Directors and their investment vehicles have large holdings.
I have a couple of holdings in a similar situation and the same could happen.

It is most definitely in my opinion an opportunistic move and not in the interests of smaller shareholders - they always are.

[cwa1] 01/5/2012 16:48

A few disjointed observations on today's announcement.

Firstly the results will be sent out following their announcement in hard copy. Results date 8/5. So let's say that most people will have received them by the Monday following(that seems very quick by normal standards but I would guess is possible), so on or about 14/5. The meeting is then on the 22/5-roughly a week after receipt-not exactly a lot of time to give consideration to the most important decision in the company's history is it?

Next, Selftrade, for one, require at least 5 days notice to ensure a proxy vote is registered. Again not much time at all from date of announcement to having to have votes in. Why the rush apart from making it difficult for people. I'm not sure if Selftrade holders could wait until they received a hard copy(which some would want)and still have time to register a proxy vote.

Does the previous communication given to brokers voting NO to the scheme still stand from the prior date, or do they require to all to be re-submitted? I'm sure that will be a PITA for some people if it is. Confusing at the very least unless previously given votes all stand.

The date itself. I was working around trying to get to the meeting on the 15th but unfortunately don't think I can make it to the one on the 22nd. I do hope it won't alter the plans of other nay sayers!!

Lastly, in the announcement they say:-

the Company announces its intention to seek an adjournment of the Court Meeting and the General Meeting due to be held on 15 May 2012, in order to give shareholders sufficient time to consider the Preliminary Results prior to voting at these Meetings. The Court Meeting and General Meeting will still take place on 15 May 2012 but the chairman of these meetings will seek the approval of shareholders entitled to attend and vote at the respective meetings to adjourn the meetings

What happens if shareholders entitled to attend refuse to adjourn? Can a "fast one" be pulled this way, or are these type of adjournments always granted? For example, if those that attended and were eligible to vote argued against an adjournment, what would happen?

Oh, and isn't incredible that there was no mention of results before has now gone to seeing them available within a week!!

Would be grateful for any thoughts on the situation.

[davidosh] 01/5/2012 16:45

A very good post and comments here...

[joe say] 01/5/2012 13:41

and the court of public opinion

[skyracer] 01/5/2012 13:28

Well its progress. The auditors are BAKER TILLY of Glasgow. With only 7 short days I would think the Accounts would be pretty much completed. In any case, given the publicity and scrutiny that will certainly follow the publishing of the Accounts it would be foolish of BAKER TILLY to approve any tinkering of the Accounts which deviated from a consistent approach. I mean clearly we will be looking for extraordinary increases in costs, provisions etc. Anything unusual. BAKER TILLY are not just accountable to their client Lees Food plc but ultimately to ICAS and their Code of Ethics.

[cwa1] 01/5/2012 12:06

Will be VERY interesting to see how negative they can make these results given all the recent upbeat trading, cash, etc , news. Suspect they and the advisers will be huddled in a corner trying to make them seem as poor as they possibly can as we speak.....

[strollingmolby] 01/5/2012 11:31

Notice of Preliminary Results and Proposed Adjournment of Court Meeting and General Meeting

The Company expects to announce its Preliminary Results for the year ended 31 December 2011 (the "Preliminary Results") on Tuesday, 8 May 2012 which will be sent to shareholders in hard copy following their announcement.

Furthermore, the Company announces its intention to seek an adjournment of the Court Meeting and the General Meeting due to be held on 15 May 2012, in order to give shareholders sufficient time to consider the Preliminary Results prior to voting at these Meetings. The Court Meeting and General Meeting will still take place on 15 May 2012 but the chairman of these meetings will seek the approval of shareholders entitled to attend and vote at the respective meetings to adjourn the meetings until 10.00 a.m and 10.15 a.m. respectively on 22 May 2012 at the same venue, being the offices of Burness LLP, 50 Lothian Road, Edinburgh EH3 9WJ (the "Adjourned Meetings"). Assuming the Meetings are adjourned, the Company will on 15 May 2012 announce revised latest times and dates for receipt of BLUE and WHITE Forms of Proxy for the Adjourned Meetings and a revised Voting Record Time.
Notwithstanding these proposed adjournments, the Company still expects that, subject to the requisite approvals being obtained at the Adjourned Meetings and the sanction of the Court, the Scheme will be implemented on 12 June 2012.

[davidosh] 01/5/2012 11:19

I have been very busy elsewhere but just to mention that ShareSoc sent out a Press release on Friday re Lees Foods...

[cwa1] 27/4/2012 16:46

Delighted to see some good press in The Scotsman today:-



SHAREHOLDER group ShareSoc has formally launched on online campaign aimed at rallying together small investors opposed to the management buy-out of Lanarkshire-based confectionery specialist Lees Foods.


The group is aiming to block the deal at the proposed price of 230p a share being offered by Randotte, the vehicle representing directors behind the buy-out.

Most small investors logging their opposition to the deal at ShareSoc's website cited a price of 325p to 350p as a more reasonable offer. Lees shareholder David Stredder, who is also a director of ShareSoc, said: "All shareholders that I am aware of are unhappy with the offer because we don't feel it values the company where it ought to."

[davidosh] 26/4/2012 15:31

There have been a number of shareholders with the same complaint about Selftrade on the website where Lees shareholders are registering their views here....



Please enter your holdings and details plus comments so that we can all get an indication of support for the NO vote.

If you feel you are being obstructed from voting the way you want to or have concerns about this whole process then the Takeover Panel who oversee this takeover/MBO are interested to here from you and that includes problems with voting. The case officer is Mark Jones on 0207 382 9026. I understand a large number of shareholders have contacted him with complaints so they are taking it very seriously indeed.

[skyracer] 26/4/2012 14:15

TIO

Go into your account message box. Send a simple and courteous message (Re Selftrade letter regarding corporate action Lee Foods) saying you would like Selftrade to vote against the proposals on both the Blue and White Forms of Proxy on your behalf for your holding of nnn shares.

See Lee RNS 19 April

That should do the trick. Allow them a couple of days to confirm.

[nitnia] 26/4/2012 14:12

Hi,

I too am with Selftrade and having difficulty with them!

I am trying to get a copy of the Scheme Docs which Lees say are available on their website but I can't see them . Are they there ? Have emailed them asking for a copy.

As with previous poster any help with voting ins appreciated.