||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Mar City (London Stock Exchange): 0 recent articles
|david77: It's only just over a week - a bit early to be panicking yet. As long as this is still true "The Company's operations continue to perform in line with management expectations." then I won't lose sleep just yet.
I would guess/hope that the assets are more than the recent share price, so if all else fails, then they are a takeover candidate. Fortunately the housing market is buoyant so I am optimistic about the eventual outcome.|
|boilinthebag: Sorry Graham, 'hoped' is from a journalist quote.
The RNS on the 20th February mentions the £10 million Repayment was 'expected' the next week. Therefore, the Ryans must have been already negotiating the Loan before this date as their means of repayment. That is, before the share price drop. The full details of the Covenants are not declared.
The Loan, as the means of repayment was then announced by Mar City on the 23rd.
All this does not alter the fact that with the share price dropping further today they could easily produce another RNS as to whether the expected money has arrived.
This may help the share price stay above the critical 34p level.|
|grahamburn: I think your reference to:
"The loan may not have gone ahead when the share price dropped so heavily, or, there may be a delay for renegotiations."
is not strictly as per the timeline of events.
The Trading Update and Debtor RNS was on 20 February and that caused the dramatic fall in the share price.
The Director Shareholder RNS which announced the loan secured by the Ryans and the associated pledge was on 23 February together with timeline for repayment of the loan.
So, though I accept it is a tight scenario, the FINAL signing off for the loan and the security would have presumably been after the "disastrous" Trading Update (which I was less perturbed about than the market and others - see my post at the time). In short, the safety margin - some 50% below the market price on 23 February seems there or thereabouts.
One final quibble on wording. The RNS on 23 February said the company "expected" the two tranche payment to be made during that week. It did not say "hoped".
However, as always, I stand to be corrected on all this in the light of future events, as the credibility of the management and its control and planning processes need to be restored and reaffirmed over the next few months. That may start when the results are published next month (we hope/expect!), though any definitive judgement may take a good while longer.|
|boilinthebag: I agree Grahamburn, it is just that the safety margin is so large compared to the share price at the time of negotiating for this loan. The Bank would never make the loan if they thought that there was a serious chance of default.
However, this is a loan to their company not Mar City, who may very well have the money, but it only said that they 'hoped' to have the money in their account.
Just feel an update from the company would be appropriate. The loan may not have gone ahead when the share price dropped so heavily, or, there may be a delay for renegotiations.
Hopefully all is well, but poor not to update the shareholders when they released news about the loan to the market.|
|boilinthebag: Funny that it is a month since they updated us on the Debtor position, with no further mention of the £10 million they were going to receive. With the share price down so far, it seems odd that they have not said if they have actually received these funds.
Will the rest of this debt ever get paid if the Ryans had to carry out the transaction at such a low share price value.|
|barnetpeter: Yes but forget the company...think of the share price. If 50 million shares are around, can be borrowed, May be dumped on the mkt etc. who is going to buy these at much higher prices? How many shares do the market makers need if they have all this to hand? How does Mar raise cash if they need to at a price unless it's about 20 pence?
Of course it may all turn out ok....but current shareholders? Fodder....|
|the shuffle man: They have pledged their entire shareholding in the company worth over £22m to raise the £10m loan. They stand to lose all of this if the share price tanks. Does anyone know what assets were held in the other company. Maybe they were asset rich but cash poor.|
|grahamburn: I do not disagree with your prediction, though the share price has only dropped over the past couple of months and the results are some 6 weeks away.
I would, however, (as a relatively recent shareholder) be grateful for your explanation of the comment regarding the owners getting another 5% of the company back when the share price reaches 140p. (I assume by that you mean the majority shareholders - ie the Ryans and other directors.) I have gone back through the RNS's for a year or so and found this from last year's final results, but it doesn't seem to chime with your statement.
As indicated in the Circular, the Board has now established an unapproved share option scheme and subject to admission of the New Consolidated Ordinary Shares, has awarded to each of Maggie Ryan and Tony Ryan options over 2,757,323 Ordinary Shares at 80p per share (equivalent to the Placing Price). The options are not exerciseable for three years and are only exerciseable if the Company's share price is equal to or greater than 150 pence per New Consolidated Ordinary Share.
The award of these options to Maggie Ryan and Tony Ryan constitutes a related party transaction under the AIM Rules. Hamilton Anstead and Marcus Jones, being the independent Directors in relation to the award of these options, consider, having consulted with WH Ireland, the Company's nominated adviser, that the terms of the option awards are fair and reasonable insofar as the shareholders of Mar City are concerned.
One reason why the company interested (though not the most important) was the limited free float in the shares. That's always a useful indication of a share which has the potential to rise quickly as and when more general interest is awakened in the business - such as the announcement of a dividend etc.
Thanks in advance for a little guidance on your comment.|
|firtashia: Hi nashwan, yes for me Coms is just a speculative punt & so I've not got a lot invested in it. Like you I do think MAR is a company on the rise as recent history shows and from forecasts this is expected to continue. At this share price I consider the company to be good value given the potential. There are lots of reasons why PIs and IIs sell; if I cant find a reason directly associated with the company's fundamentals or expected revenues/earnings then I try to ignore it or take advantage of it. I don't think its the recent trading statement that has given anyone a reason to sell so this may be an opportunity to buy some more.|
|the shuffle man: This company is not being priced correctly by the market. It is at a large discount to its listed competitors, so either they are massively over valued or MAR is undervalued. If MAR were to trade near its Peers a share price of at least £1.50 could easily be justified. Too cheap IMO.|
Mar City share price data is direct from the London Stock Exchange