Savile Group Share Discussion Threads

[davidosh] 07/10/2010 16:31

Well I just picked up a few at 31.5p which seems very reasonable to me. I thought the company were actively doing buybacks which ought to take out any weak holders although happy to do it myself if they are asleep ?

[parvez] 24/9/2010 08:00

This is far to cheap. Capitalisation is £4.8M - They have £3.6M in the bank and making £1m per annum. If my calculations serve me right, and on just a PE of 8, these should be valued at £11.6M i.e. around 85-86p.....anyone concur?

[deswalker] 22/9/2010 08:52

I note the corporate broker has kept his £1m pbt forecast for the current year following yesterday's numbers (and presumably a chat with the company).

[liarspoker] 21/9/2010 08:58

Hi Des,

Yes, I am watching. I near had an organism when the offer price was sub 30p pre auction. Of course unfortunately the price was corrected once the auction proceeded. I did note the improvement in the balance sheet and have an order open as I type though I don't think that I picked up too many since the price as risen already. Fingers crossed.

Liars

[deswalker] 21/9/2010 08:18

LP ... you watching these ?

P&L exactly in line with my expectations and Net Cash is better by 100k.

They didn't do the 3p eps so the Options shouldn't vest and we ought to see all the dilution negated.

They are miles too cheap (55p fair value IMO) and I've added a few this morning. The MM doesn't know anything about the fundies. He just looked at the forecasts, interpreted it as a miss and dropped the price.

But it's generating about 500k of cash per annum on an EV of about 1.3mill

Des

[parvez] 14/9/2010 11:24

looks like some action starting here after a few months break :)

[deswalker] 20/7/2010 12:08

Is anyone else watching this ? I've been buying recently.

[alanrex] 13/4/2010 15:40

havent seen the daily volume but i suspect its not high on this stock, so the buy back should be very beneficial for the company....

all imo dyor

[angel of the north] 13/4/2010 13:56

Good news indeed!
This is basically a great company but the management imo have been apathetic and have now had a big wake - up call.
Maybe someone gave 'em an enema?

I bought a shedload more of these after the big drop so am 'underwater' at the moment but still have faith that they will deliver.

[alanrex] 13/4/2010 13:46

thats a lot of shares to be buying! i can see this heading up to 55-60p very shortly..

all imo dyor

[alanrex] 31/3/2010 22:31

Indeed.
Share price is quite low. I spoke to the FD a while ago and he told me flat out that there have been no approaches, and the rest was all the usual i guess you would expect (we're working hard to rebuild the share price, trust etc).

[angel of the north] 24/3/2010 11:37

The Company advises that it has, with effect from 23 March 2010, cancelled 912,006 of its own ordinary shares which were previously held in treasury.

So...this is a tad 'contra' dilution?

[investinggarden] 02/3/2010 11:59

Sell rating from Growth Company Investor

[empirestate] 23/2/2010 16:49

this is starting to look interesting. is this the only share not to have gone down in oct 08. will run my own slide rule over the bs and post thoughts accordingly

[a1samu] 20/2/2010 21:31

Long time to go to the announcement of a trading statement sometime in August 2010 or to the 21 September, the announcement date of the preliminary year end results.

Neither do I count on any final dividend to be paid. This seems to me to be an opportune moment, not to pay away company funds, especially if results will be marginal for the year in any event.

Long term it appears that there is little to look forward to.

This will be a long, long summer, with little, if any good news to look forward to.

[pugugly] 16/2/2010 13:03

CORRECTION RE CASH

Sorry - Looks as though I may have added rather than subtracting when looking at payables and receivables. From the interim accounts

Trade and other payables | 1,883,988

Trade and other receivables | 2,311,952

So potential cash position is significantly better than my estimate above. Assuming all trade and other receivables are in fact received

SORRY !!! Back to school. and the spreadsheet,

[angel of the north] 16/2/2010 12:32

Alanrex - my thoughts exactly.....I, perhaps foolishly, tripled my holding on the first major drop, thinking that management would be as dsgusted as I and would motivate thenselves somewhat. Agree that not worth selling now, although did think abut it....my streaming prices show sell at 35p but real bid is 30p so holdin and waiting. I aree with directors thoughts of diversification though, but will take time in practice.

[deswalker] 16/2/2010 12:04

Alan

I agree that at these levels it is not worth selling and purely on the numbers it has to be a Buy. After all its EV is only a few million quid and it has the business model to generate large profits as it did last year. On that basis alone it is probably a Buy if one believes in the ability of management to get a grip on things.

My reason for not buying is the bad taste of the Placing and subsequent Trading Statements which leaves me very uncertain about management. But I hasten to add that I have never met or spoken to them and they may well feel as bad about things as they ought to. I have no reason or desire to deramp these shares and I genuinely hope they bounce back for you.

There's no need to play every game in town and so I'll leave this one to somebody else, but they ought to trade a fair bit higher than this in a few year's time if management gets its finger out.

Oh, the other thing that put me off was the funny warrant set up for the divi. Why ??

Rgds,

Des

[alanrex] 16/2/2010 11:51

pug, des et al. I agree somewhat with your sentiments. I brought in as a counter cyclical play expecting the figures to be more resilient. Im less bothered by the dilution impact but more by the outlook or the lack of mention of one. I am in at higher levels but undecided if its worth cutting my losses or holding out given the possibility that performance may turn out to surprise on the positive side with public sector cuts and also to provide for the possibility that q2 was a blip etc. in that scenario, the figures could push the share price up towards 60p.

all imo dyor

[angel of the north] 16/2/2010 11:38

By Rachael Gormley Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--U.K. human resources consultancy Savile Group PLC (SAVG.LN) is still pursuing its buy-and-build strategy despite what it called a "disappointing" first half, Executive Chairman Jonathan Cohen said Tuesday, and the company is hoping to add to its talent management business with the GBP1.8 million of cash it raised last November.

"The purpose [of the fund raising] is to use the cash to enhance earnings and shareholder value," he said, adding that purchasing talent management-style businesses would also help Savile's other goal of bringing down the dominance of its outplacing unit in revenue terms.

"We want to get the percentage of revenue from outplacing down to less than 50% in due course," said Savile of the company's Fairplace unit, which helps those made redundant find new roles.

At the end of the fiscal 2009 in June, Fairplace contributed around 65% of its revenue, which Cohen said made the firm "vulnerable" to a decline in the number of redundancies in the U.K.

"We didn't think it would make us vulnerable as soon as it did," he added.

For the six months to Dec. 31, Savile posted pretax profit of GBP139,000, down from GBP750,000 in the same period a year earlier.

Company Web site: www.savile.com

-By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [e-mail]

(END) Dow Jones Newswires

Any thoughts on this?

[deswalker] 16/2/2010 10:47

Thks PUGUGLY.

I've been semi-monitoring them since October, obviously not expecting the poor trading but looking for a drift in a possible entry price to allow for the dilution. Fortunately that never came and the trading history since then has put me right off. Those that took up the Placing must be livid.

Cheers,

Des

[pugugly] 16/2/2010 10:19

Further thoughts having studied the accounts:-

* Virtually no forward clarity - Pious words about striving to convert potential into contracts but not much else.

* Have burn through over £700,000 in cash since y/e 30th June 09 after accounting for the share issue.

* CORRECTION see below re payables. Corrected at 13:15

(e&oe -All corrections and other thoughts welcome) dyor etc.

CORRECTION RE CASH See 235 below posted at 13:15

Sorry - Looks as though I may have added rather than subtracting when looking at payables and receivables.

Trade and other payables | 1,883,988

Trade and other receivables | 2,311,952