Lighthouse Share Discussion Threads

[cwa1] 31/8/2012 12:14

To be fair, although it would be nice to get an acknowledgement by return, I think you have to give them a little longer before expecting anything back :-)

[graham1ty] 31/8/2012 11:06

Was emailed first thing this morning. Not even an acknowlegement yet !!

[cwa1] 31/8/2012 10:54

Excellent and very fair communication. Conciliatory too. Will be very interested to hear their response.

[graham1ty] 31/8/2012 10:03

I have today written to the new Chairman. Let us see the response:

Richard Last
Chairman
Lighthouse Group
26 Throgmorton Street
EC2N 2AN

31 August 2012

Dear Mr Last
The announcement of the resignation of Mr Hickey as Chairman of Lighthouse Group should be the chance to rebuild relationships with all shareholders. In September the Company will announce Interim Results and I urge that this be used as an opportunity to reintroduce a level of trust.

The delisting proposal was clearly rejected by shareholders and it was obvious that their views had not been properly canvassed beforehand. Shareholders have clearly stated that they want the Listing to remain for the time being. Statements were made about shareholders and former Directors that were, on any reading, arrogant and dismissive and led directly to further opposition to the proposal amongst shareholders and the press. I ask that an attempt is made to repair that damage and that the Board makes a greater attempt to engage with shareholders.
All shareholders will agree that the Company is undervalued at 4 pence. Even with the uncertainty of the Retail Distribution Review, the share price does not reflect efforts made by the Company to prepare for RDR and the cash reserves that have been built up by Lighthouse.
I would urge the Board to use the Interims to lay out what the Company can do to address the valuation of the Company, shareholder returns and, immediately, the share price. The Board stated, in the Circular of 9th July 2012, its concern about a "heavily discounted share price" and the current share price remains approximately 20% below that level.
Shareholders would be interested in any proposals that would increase visibility for the Company and enhance value. These might include a commitment on paying a certain level of dividend; use of the Company's cash resources for a limited buyback of shares; seeking further outside capital from a new strategic investor; a commitment on corporate overheads and slimming down the Board (where base remuneration last year was over £1,000,000); a commitment by Board Members to invest in their own Company ( current holdings amount to less than £160,000 worth); a new group of advisers committed to a publicly-quoted Company; and a programme of presentations to explain to shareholders, analysts and potential investors why the Company should be more highly valued.
The Board complained about the share price failing to reflect the underlying value of Lighthouse Group. In September, at the Interims, as the new Chairman you have a chance to address this issue and I hope this opportunity will be taken.
Yours sincerely



Simon Taylor-Young

[graham1ty] 30/8/2012 08:51

A detail I like............at 50p, Hickey's 5m shares were worth £2.5m. At 5p, they are worth £250,000. So he has lost a small fortune in the collapse of the shareprice.

Wonder what pay off he will get ?

[graham1ty] 30/8/2012 08:30

Well done everyone.

Self serving statement about what a good job he did. Transformed the business and all that..... well it grew through massively dilutive acquisitions. Over the period the shareprice has collapsed from over 50p to below 3p. Hickey was paid roughly £200,000 per annum, a total of almost £2m over the last ten years.

Just for example, Sumus cost £12.6m in 2008. Now the combined group is worth just £5m. Well done Mr Hickey

[battlebus2] 30/8/2012 08:05

Market likes it too as the shares are up!

[sailing john] 30/8/2012 08:03

I'm no longer holding but well done everyone.

SJ

[cwa1] 30/8/2012 07:43

Excellent. Resignation of Hickey:-

[cwa1] 23/8/2012 09:01

All quiet on the Western front.....possibly frantic behind the scenes negotiations to get Hickey to go quietly(he must realise he doesn't stand a chance of surviving given the animosity towards him from shareholders)? If so I hope and trust it will be done relatively inexpensively for shareholders.

[toback] 20/8/2012 10:25

Just back from hols too. Great news - am hoping this will be positive going forward with a focus on returns for shareholders.

From that RNS I reckon discussions as occurring which will see our current leader depart the shores.

[graham1ty] 17/8/2012 20:36

Bloody good work everyone !!

[graham1ty] 17/8/2012 20:34

I've been away for a week and look what has happened. Horay. Must keep this on the boil, keep the press interested and get him off

[harrogate] 16/8/2012 08:02

I don't hold but watch since I am a JCR shareholder where they did a delist last year with the same Chairman. I am totally baffled as to how he has got himslef in this pickle. At JCR they had the votes lined up and agreed before they announced and he was in control. Here he seems to have taken a flier. He is an experienced and astute city man and I have to assume that arrogance got the better of him and the advisors. Could be a buy at this level I would have thought

[davidosh] 15/8/2012 19:06

A decent and honourable man would have stepped down almost immediately after the huge vote against his delisting proposal, and would certainly not have required pushing, one might suggest.

[nigelsom] 15/8/2012 17:52

CWA1 - I'm sure he's capable of the greatest of decency, if the price is right.

Up the ignorant and ill-informed!

Meanwhile, I wonder when Rosengren will come forward with some proposals on the way forward. As TW has suggested recently, binning lots of unnecessary corporate advice (multiple brokers, publicity etc etc) and chopping boardroom pay down to size could easily mean a big increase in divi. Maybe some of the cash in the bank is surplus to requirements as well.

[cwa1] 15/8/2012 17:42

This would be a teriffic success if it could be pulled off. To return the company to the hands of people that actually cared for shareholders and were willing to work hard for a fair day's pay might actually get the share price up off the floor.

It would also be a fantastic comeuppance for Hickey, surely few people deserve it more than he? He has spectacularly misjudged the mood of the "ignorant and ill informed shareholders" and I hope it costs him his cozy little job.

I certainly plan to cast my vote for the proposals.

As a matter of interest, does anyone know;

How much all this will likely to have cost the company?

If it is a simple majority that is required to remove Hickey when voting on the proposal?

and

What sort of terms he might have re his salary if he does get his just deserts?

A decent man seeing just how badly he has misread the situation would surely tender his resignation. I wonder if he will?

[sailing john] 15/8/2012 17:16

I no longer hold but I hope this is successful and serves as a reminder to other Directors that they are employees - not owners.
GL - SJ

[cwa1] 15/8/2012 16:34

Wonder no longer:-

The Requisition has been received from Rock Holdings Limited and Southern Rock Insurance Company Limited, who together own approximately 5.0 per cent. of the Company's issued share capital, and proposes the following ordinary resolutions:

:-)

[trader2] 15/8/2012 16:24

Wonder who actually initiated the Requisition?

[nigelsom] 15/8/2012 15:16

Fantastic! I know where my votes are going...

Hickey is toast. The triumph of the ignorant is coming.