|Mean Fiddler Gp
||EPS - Basic
||Market Cap (m)
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Real-Time news about Mean Fiddler Gp (London Stock Exchange): 0 recent articles
|vmjmurphy: This is the Daniel Stewart Note:
Mean Fiddler Music Group Plc FY 2004 results
Daniel Stewart & Company Plc
Tel: 020 7374 6789
Fax: 020 7374 6742
MEF.L, the leading live music, festivals and international touring operator has this morning announced full year results for the year ended December 2003. The Company has achieved revenue growth of 13.1% to £44.1m (FY 2002 £39.0m), and clean pre-tax profits of £1.3m (FY 2002 loss £4.8m), ahead of our forecasts of £42.1m sales, and £1.2m PBT. Profitability and margin growth has been achieved across all three operating divisions, and with continuing strong organic growth drivers as well as encouraging early indications from the nascent Mean Fiddler Music division, we have again substantially increased our pre-tax profit forecasts for the current and future years. We have upgraded FY 2004 PBT by 26%, from £2.09m to £2.65m, and FY 2005 by 10% from £3.86m to £4.20m. MEF.L is currently trading on a forward annualised P/e of 12.5x, and the strong growth profile gives in our opinion, substantial upside at current levels.
MEF.L has surpassed market expectations in recent results, and whilst we have upgraded our DS&C FY 2004 PBT forecasts by 26%, we would flag the potential for on-going upward earnings revision. A dominant player in a market with a number of strong organic drivers, including the increasing popularity of live music, increasing capacity in festivals MEF.L owns a number of high profile festivals outright, including Reading and Leeds, and has a growing stake in Glastonbury. We believe there is substantial scope for above inflation ticket price increases, as well as considerable potential for the media division.
There is also potential earnings enhancement from the Fleadh festival in June. This has a strong line up, including Bob Dylan and the Counting Crows, however, the festival has not been run since 2002, when it was loss making. Management is confident that this will generate a profit, but is unable to currently quantify this.
A music recognition and download service is currently in trials. This is a truly innovative operation, for the first time allowing end users to both use a mobile telephone to recognise and download live music. The capital investment in this operation has been minimal, with MEF.L undertaking a revenue sharing agreement with technical partners, reducing the risk profile of the new operation. We have only included minimal contribution from this division in our current year forecasts, however, the credibility of the distribution partners, including Warner Bros., BMG, Universal and EMI is encouraging.
With the current valuation underpinned by the core business model, and potential economies of scale from roll-out of the festivals and international touring division into Europe, as well as building on the franchise brand of the Jazz Cafes, we consider this to be a highly scaleable business model, which offers value at these levels.
With the lack of a credible quoted comparator, we have used a five year discounted cashflow model, using a cost of equity of 11.3%. On this basis our target share price of 74p is at a 41% premium to the current share price.|
|penpont: Have had this on the monitor for a while and have just read citywire's revue of todays results.
Apparently housebroker Daniel Stewart has upgraded its profit forecast by 26% to £2.6 million for current year and by 10% to 4.2m for next.
If I'm right in assuming that everythings pro-rata that should equate to around 4p eps for this and 7p for next year, representing an extremely high growth rate, and to me justifying a share price of roughly double its current level on a 12 month view.|
|barnetpeter: The Times Sunday
Mean Fiddler stages its comeback tour
Disposals and a focus on core activities have helped Vince Power's music group get back in tune, writes David Clerkin
ROME once burnt to the sound of a fiddle being played, but shareholders who have watched their investments go up in smoke in recent years may find that Mean Fiddler is music to their ears.
The Mean Fiddler Music Group began life in 1982 when Waterford-born Vince Power, who left Ireland at 16 to get involved in the demolition business in Britain, opened his first live music venue in Harlesden High Street, northwest London.
Power later moved into bigger venues, as well as restaurants, bars and music festivals, such as Reading and the Finsbury Park Fleadh, and established Mean Fiddler as a leading player in the British music and entertainment scene.
The group took to the public stage by listing on London's AIM, the alternative investment market, in November 2001. Since then, however, Mean Fiddler has struggled to win over the crowd.
Investors have seen the share price fall from over 50p to a low of just 9p earlier this year. Results for the year to December 2002 were disappointing, as the group recorded a loss of £4.4m (6.35m) from turnover of £39m.
Mean Fiddler responded by embarking on a programme of cost-cutting and disposals of non-core businesses, which yielded more than £3.5m.
The group sold its loss- making bar and restaurant division. It also offloaded Mean Country, a country music radio station that broadcasts on the unfashionable AM band.
Mean Fiddler also reached agreement with a local council in Britain over a compulsory purchase order on the Complex, one of its London venues.
The council originally offered £60,000 for the property but agreed to pay £1.6m after a lengthy legal dispute.
With an additional £5m in the bank, the group is now in a stronger position and will focus on what it considers its three core activities: live music venues, international touring and festivals.
The live venues division operates well-known London haunts such as the Jazz Cafe and the Astoria, a 1,000-seater venue that recently played host to the Rolling Stones. The company says it will consider opening additional venues.
On the international touring front, Mean Fiddler has managed British tours for some of the biggest names in contemporary music, including Justin Timberlake and Destiny's Child. The company recorded sales of more than half a million tickets for the Timberlake concerts alone.
Mean Fiddler is also recognised as one of Britain's leading festival promoters. It has maintained its involvement with the Reading festival and, more recently, has taken over the management of the legendary Glastonbury event, as well as concerts in Leeds and Glasgow.
Mean Fiddler has steadied its ship with the disposal programme and now has a stronger balance sheet, greater focus on what it does best and funds to expand where it sees the right opportunity.
The group will announce interim results tomorrow, which it says are in line with expectations.
Management has taken decisive action to exit businesses that were a drain on the company's resources.
The share price has rebounded strongly as the market reacted favourably to the disposal programme and confidence in the group's future returned. The share has seen gains of more than 30% since the start of September and more than 170% since last May.
Trading volumes have increased sharply in recent months, improving the share's liquidity.
The company has recently acquired stakes in leading continental European festivals and is considering extending its Jazz Cafe brand to other cities in Britain and Europe. Adding festivals and venues to the Mean Fiddler portfolio gives the group greater buying power in attracting big-name artists to its venues and further strengthens its position.
Investors in Mean Fiddler need to be comfortable with its risky status as a small-cap company in an uncertain sector.
The company deserves credit for its ability to react to heavy losses and its willingness to take decisive steps to exit unattractive businesses.
Its strong brand name and reputation in the music business leave it well placed for the future.
The recent share price history should act as a reminder of the risks involved in a punt of this nature, but the immediate outlook for shareholders falls under the category of easy listening.
Market value: £11.6m
Free float: n/a
Average daily volume: 0.046m
Key shareholders: Vince Power approx 60%, Melvin Benn approx 8%, Coors approx 7%
Share performance: Since Dec 31, 2001: +14.3% Since Dec 31, 2002: +71.4%
Earnings forecast: n/a Pros P/E 2004: n/a
Risk grade: 326 v 148 London average (source: Risk Grades)
Risk ranking: 14% of London-quoted companies are more risky
19 September 2003
Mean Fiddler shares rise on windfall news
A £3.15m cash windfall was music to the ears for the management of Mean Fiddler. Shares in the music group surged by nearly 25 per cent following this week's news of a compensation settlement, and the sale of its AM radio station.
Having rejected an initial offer of £60,000 by Islington Council, following the compulsory purchase of its London venue The Complex in January 2000, the three-year wait for settlement has paid off. Following legal proceedings, the group has now pocketed £1.65m.
Added to this, it completed the £1.5m sale of its radio station, Mean Country. It paid £250,000 for the station in May 2002, and the sale concludes its disposal programme of non-core assets. Including the sale of bars, this has raised over £5m and leaves the group with three core, profitable divisions: festivals, international touring and live music venues.
Results for the year-ended 31 December 2002 revealed losses of £8.3m on sales of £39m due to difficult trading conditions. But the more focused, slim-line operation is now on course for an improved performance, and should benefit from sell-outs at its Reading and Leeds festivals, as well as its 24 per cent interest in Glastonbury.
This business is a real number-cruncher. It is all about how many tickets the group can sell. It sold around 120,000 for Leeds and Reading, at £90 each. And by 2005, it will have a 40 per cent stake in Glastonbury, for which 115,000 tickets were sold this year at £105 a piece. So, as long as it can still attract crowd-pulling bands, its share price looks set to continue moving up the charts.|
|sofa_surfer: With you now.
Although a word of warning for present share price situ, the RSI is overbought at 88, anything above 75 would normally constitute as a sell signal, look out for reactions south in the short term.|
|bipos: barnetpeter i agreed with you this company share price could fly with the release of some good news due to the small capitalisation of this company.|
|kabomp: I think the reason the share price won't move is because of past performance. This share has offered so much for so long but has actually lost me money rather than made. I am still convinced it will turn out good in the end.|
|buckers01: I'm beginning to think the world has got completely depressed. MEF keep annoucing little gems like concerts and partnerships and bids for radio licences and the share price ..............does nothing. Where's everybody gone, what's happening, no wonder the markets wont lift off. Where's everyones sense of adventure.|
|crowman: For those of us who bought meanfiddler when it was floated as a dot com, all this positive posting is quite astonishing!
Meanfiddler.com was floated and its shares sold to us (the general public)in the press as a little gold mine, with online ticket sales in thier millions offered as the main revenue stream, and I therefore without doing proper research chucked in a few grand at 9p.
Within six months, the true situation re. these shares became apparent- the Board intended to merge the dotcom with the parent company and the shares would be valued back down at 1p.
So the revenue stream of online ticket sales that most of us were investing in the dotcom to benefit from, was going to be absorbed into the main business, and we effectively had the vast majority of our shares value wiped out.
It is hard to believe that this wasnt planned from the start, and that the press releases were designed to get people jumping on board at inflated prices.
When I did some investigating, it turned out that there were some board members of meanfiddler who had been previously bankrupted, the original calculation that meanfiddler made regarding the merger and the relative value of shares was incorrect, and devalued the investment of the dotcom shareholder more than it should have, and that I should never have trusted these people with a single penny of my money!
And low and behold, when meanfiddler finally gets floated as a single company, the share price goes where?
I wouldnt get too bullish about these guys if I were you. Regardless of the potential for the business itself, my feeling is that they'll pass as little of the profits onto shareholders as they possibly can, and there are literally hundreds of better shares to invest your hard earned money in than this one!!
Give it a wide bearth!
(BEar in mind I still hold a few of these shares and so have no financial benefit from putting my view across!!!!)|
|buckers01: Forget about the consolidation of the share price. This company has merit becuase of what it does. It is good at organising rock events and managing clubs and venues like the Garage and Astoria.
The share price is only falling at the moment because people thought they were going to make a quick buck from the group enlarging. The big boys and the shrewd investors are just sitting on the sidelines waiting for another 10p to 15p mark down and they will top up prior to news starting to flow from the group.
I may be lucky in that I got into these at 1p soon after Bass announced thier involvement. They don't throw money at no hopers but with this one you may have to wait 12 to 18 months before you see good profits.
If you want to know what they do go to www.meanfiddler.com and check out the website.
Mean Fiddler Gp share price data is direct from the London Stock Exchange