MWB Business Exchange Share Discussion Threads

[scburbs] 28/4/2011 19:36

Have the Independent Directors misunderstood their role! They describe the depressed share price as providing an unhelpful valuation benchmark, but consider it acceptable to sell the business at a 10.48% premium to this depressed valuation. They appear to be describing it as an unhelpful valuation benchmark for MWB!! Corporate Governance best practice?

An odd time for this transaction (from MBE's perspective, entirely sensible from MWB's) given the central London office market (MBE's main market) has a significant shortage of space. Not to worry I am sure the upswing that I purchased these for will not be diluted by mixing up central London offices with regional hotels!!

"The consideration under the terms of the Acquisition represents a value of 50.27 pence per Business Exchange Share, based on the Closing Price of 41.25 pence per MWB Unit on 27 April 2011 (being the latest practicable date prior to the date of this announcement), representing a premium of approximately 10.48 per cent. to the Closing Price of 45.5 pence per Business Exchange Share on such date.

...

Business Exchange's depressed share price provides an unhelpful valuation benchmark. Having considered the potential alternative strategic options, taking into account the current state of financial markets and restricted availability of funding for leveraged transactions, the Independent Business Exchange Directors believe that the most elegant way forward at this time is for MWB to acquire the minority Business Exchange Shares. In the longer term, outright ownership of Business Exchange by MWB may facilitate a disposal of Business Exchange, thereby delivering value to all MWB stakeholders, including (through their ownership of new MWB Units) the current minority Business Exchange Shareholders."

[bonio10000] 21/3/2011 20:53

All good news for MBE/MWB then.

Sometimes it is handy to be unloved, makes it easier to get in before the rush.

[markt] 21/3/2011 18:19

Regus up 16% today BTW...
...worlds biggest rental office/space company

and they are hopeful for 2011

[bonio10000] 18/3/2011 08:53

Interesting special report in the Economist this month on property.

There were some comments that people thought London Office space would run out by the end of 2012.

[sco77harris] 16/12/2010 17:06

with the action over at mwb, i thik this is looking ripe :)

[bonio10000] 10/11/2010 11:55

I'm guessing MBE would be stupid to risk long term tenancies for short term gain, so will look to fill free space.

Re landlords - all landlords are a'holes in my book. Most of them fail to declare rent or property sales for tax as well.

[yump] 10/11/2010 11:52

Yes, I think there is going to be a general shortage of space come 2012. Also its apparent that residential landlords are apparently going to be evicting tenants (on notice of course), because for the Olympic period they can hike their rent.

That should just render them unfit to be landlords imo. However, it looks as if they can do it legally, but I'd guess the bad feeling will last for many years. I wouldn't want to be one of them when the Olympic tenants disappear. Hopefully greed will be their downfall.

Perhaps MWB might be able to raise rates temporarily on the residual empty office space ? ( Without pushing anyone out of course ).

[bonio10000] 10/11/2010 10:47

I'm guessing all the reporters and crews etc in town might need short term offices to work?

[yump] 10/11/2010 10:33

I completely overlooked any benefit from the Olympics, although not sure what it would be exactly.

Hopefully with rates and occupancy increasing at the same time, plus increased use of other facilities, profits could grow very rapidly as everything compounds together, with relatively fixed cost base.

They don't specifically mention the centres acquired back in 2009, but presumably those will have started from a very low base and could add in significant growth.

[horndean eagle] 10/11/2010 09:22

Todays trading statement was pretty bullish. Shares should re-rate soon given its key focus on the booming London office market.

[yump] 14/5/2010 16:54

An important footnote !

(1)Leased centres exclude OMAs and managed centres as Business Exchange receives
fees for operating such centres. These figures also exclude immature centres acquired from the administrator or landlords of various subsidiaries of the MLS
group shortly before the June 2009 period end.

My bold.

[yump] 14/5/2010 16:53

This is an excerpt from the MWB main statement on 12/5. Looks like we could be bumbling along the bottom at the moment. No clues yet as to whether the acquisition of those extra properties at a (knockdown ?) price will lead to a jump in profits at some point...

AIM-quoted MWB Business Exchange Plc ("Business Exchange"), Central London's
largest provider of flexible office space, has continued to see signs of
recovery in terms of rate stability and occupancy growth. Over the first four
months of 2010, demand from the corporate market has improved, especially in the
City where occupancy remains strong. Business Exchange's new centres in
Paddington and Knightsbridge, traditionally areas undersupplied with high
quality serviced offices, will become fully operational shortly. Management
continues to focus on cost control and driving yield where possible. To that end
a number of new technology driven products and services have been launched with
a view to creating new revenue streams as well as improving still further the
high levels of client retention.

Management has been rigorous in capitalising on revenue opportunities in the
market. Although demand during the first four months of 2010 has remained
broadly constant, Business Exchange's revenue conversion levels have improved,
resulting in the volume of deals increasing, albeit for smaller workstation
requirements. As a result, occupancy at the Group's leased centres (1)
remained firm at similar levels to the 82% reported at 31 December 2009. Revenue
per available workstation ("REVPAW") and revenue per occupied workstation
("REVPOW") have improved slightly from GBP6,180 and GBP7,545 respectively at 31
December 2009, which reflects the continued focus on yield management.

[lbo] 24/11/2009 00:00

Harris leaves Your Space board


Ray Harris has resigned from the board of serviced office operator Your Space Plc (LSE: YSP), where he was a non-executive director.

Earlier this week, creditors owed £5.5m by the firm, which operates office space in New Mount Street and St James's Court Manchester, agreed to accept 20p in the £1 as part of a creditors' voluntary arrangement (CVA).

Your Space will pay £366,667 into the CVA each year for three years, totalling £1.1m. The biggest creditors are Bank of Ireland and Her Majesty's Revenue and Customs. Shares in the company were suspended in September at 21p, valuing it at £5.32m.

Harris, a chartered accountant, was also chair of the audit committee at Your Space. He leaves the board with immediate effect.

[yump] 15/9/2009 11:54

Its just going through pre-flight checks.

[jeffian] 15/9/2009 10:00

Well it hasn't jumped far since May!

[dibbs] 15/9/2009 00:05

Yes, wish I had some!

[davebowler] 14/9/2009 13:36

MWB is jumping.

[davebowler] 02/9/2009 11:09

Oops, I put in the wrong EPIC code intending this to be MWB.

[explorer88] 27/8/2009 15:40

thanks johnv

[johnv] 27/8/2009 13:54

70% in july09

[explorer88] 27/8/2009 12:56

can anyone help please?

what % of MBE does MWB own?

[dibbs] 27/8/2009 08:01

silverfern, yes sounds like a pretty good performance given that the period being reported has been very tough. The second half will benefit from the new centres so the full year EPS should see these sitting on a very low PE at todays share price.

Dibbs

[silverfern] 27/8/2009 07:44

"Trading for the first six months of 2009 has been ahead of our expectations,
given the tough economic climate.We view the future with cautious optimism on
the basis we have continued to trade strongly and our cash flow is
robust"

[eeza] 25/8/2009 15:44

Will it be good enough to move the Sp though. It smells of stagnant water.