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Real-Time news about Savile Grp (London Stock Exchange): 0 recent articles
The impression I get is that Penny de Valk is very good and I was worried that there may be conflict between her and Linda Jackson at the top of Fairplace Cedar. I also don't think Linda Jackson's performance at the top of Fairplace (alongside Michael Moran who left at the start of the year) has been as good as it perhaps should have been, even allowing for the difficult trading environment within the sector.
I'm getting a little more hopeful that things may start to improve with a simplified leadership structure at both IDDAS and Fairplace Cedar. I just hope that the two largest shareholders stop interferring and trying to grow the business by acquisition and I suspect they have now learned their lesson. They should just see the existing businesses as cash generating units which facilitate the payment of dividends to shareholders. The share price will then react accordingly. A 1.5p dividend ought to support a 25p share price and would only cost £225k per annum, a profit figure which they ought to be achieve easily with the existing businesses and getting rid of any staff who are underperforming.
I think you're being too optimistic with your cash estimation as I believe there will be some more exceptional costs to come out during the current financial year but nonetheless I think the share is too cheap by quite some margin.
ps Someone got a nice 10k at 9p. Was that you playful ?|
|deswalker: Had a conversation with the FD.
They acted very quickly y'day to protect the group.
Penny de Valk joined Fairplace Cedar a couple of weeks ago and is bedding in well. With Helen Pitcher in charge at IDDAS we now only have two operational heads. Both these divisions are currently trading better. The Group still has decent cash balances.
The results will obviously look messy and the performance for the year to date will not be great due to 7 days but perhaps, just perhaps we can start from today with a more optimistic outlook.
It is the FD's understanding that all the 900k deferred shares are no longer payable and he confirmed that the heavy dilution due to the options struck at 20.6p have also been torn up.
They are the first to put their hands up and say what a mess has been made of it all. But hopefully they will now just stick to their knitting of developing Fairplace Cedar and IDDAS. These two divisions ought to support a share price higher than this if they can return to anything resembling the past performance.|
|alanrex: shocking share price performance. i'd love to have a good chat with that cohen - does anyone know if he has made lots of money from this???|
|deswalker: They gain liquidity (Brookwell shares will be easier to sell than SAVG shares), an exposure to a more diversified portfolio and they avoid the hassle of selling down the SAVG stake themselves by passing on this responsibility to Brookwell.
Obviously they lose the upside to the individual share price but equally they dilute any remaining downside too.
Brookwell take a nice annual fee for managing and running down a portfolio of these runt positions.
There won't be tax considerations here as VCTs are CGT exempt anyway, but it probably would constitute a divestment were the swapper to be a CGT payer.
The D shares are a new issue. Brookwell will have been in touch with all VCTs and Small Cap Inv Trusts to see if they wanted to subscribe and what sort of assets they wanted to get rid of and swap for these new shares. Brookwell will then have done some due diligence on the prospects and liquidity of these assets and adjusted down the mark-to-market of these by some haircut percentage before agreeing the number of D shares they are willing to swap into.
The various Advanced Realization trusts used to run on a similar basis as did the fleetingly popular Jubilee Investment Trust IIRC.|
|alanrex: share price performance has been atrocious. i sincerely hope some good news next week and that the share price movements is not based on inside info!! please, some good news!!|
|liarspoker: Yep but you pay for what you buy Steg.
SAVG is basically valued at a small premium over cash so the operating business is practicaly valued at a little over zero. If they make an earnings enhancing acquisition then no doubt the share price will move the other way. This ones a bit like CAO in that you buy and shove it in the bottom draw. Very good value imo. Ex-divi tomorrow too ( 1p ).|
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).|
|alanrex: 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|
|a1samu: Interim announcement:16.2.10
From the investors.savileplc.com - AGM details & financial calendar page.
"The interim figures will be substantially below those achieved last year." "Outplacement revenues experienced a downturn in Nov & Dec, which was exacerbated by the loss of a substantial contract." See Trading Statement of the 12.1.10.
I am expecting more share price falls, down, perhaps to 20p and less, to give a MC figure of somewhere near the cash hoard level of £3.2M.
This is a peoples business and such businesses have a habit of the wheels falling off big time.|
|penpont: UPDATE:Savile Grp Eyes Buys; 09 Pretax Pft More Than Doubles
(Adds executive comments, analyst comments and share price.)
By Rachael Gormley
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--U.K. human resources consultancy Savile Group PLC (SAVG.LN) Tuesday said it is looking at selective acquisition opportunities as it aims to balance the outplacing and talent management sides of its business and prepare for a new credit cycle.
"Talent management is a GBP1 billion market and it's much more fragmented, so there's more opportunity for acquisitions," Executive Chairman Jonathan Cohen told Dow Jones Newswires.
Currently around 70% of group revenue comes from the company's Fairplace unit, which helps those made redundant find new roles, while the remainder comes from its coaching and careers advice units, Cedar and IDDAS.
However, Cohen said he plans to change the balance to around half each, adding that strengthening the talent management side of the business would serve the company well for the end of the recession when spending increases.
"We have looked at quite a number of things in the last eight to 12 months but we've walked away because of price expectations," he said. "We're not going to pay a silly price, we'd rather hire people."
Earlier Tuesday, the company proposed its first dividend in five years after fiscal-year pretax profit more than doubled, boosted by demand for its career advice services.
For the year ended June 30, debt-free Savile posted pretax profit of GBP1.9 million, compared with GBP720,000 a year earlier.
Revenue increased to GBP10.4 million from GBP7 million.
Savile has recommended a dividend of 2.25 pence a share.
Hardman & Co analyst Sonia Kaur said she expects any acquisitions to be immediately earnings-accretive and lead to the strong possibility of earnings upgrades.
At 0900 GMT, shares were up 0.5 pence, or 0.6%, at 89 pence, compared with a rise of 0.4% on the wider AIM market.|
Savile Group share price data is direct from the London Stock Exchange