Serviced Office Group Share Discussion Threads

[cockneyrebel] 11/7/2006 09:42

Relax Liarspoker - I think if you're prepared to hold for the results any little tick ups now will mean little by then.

CR

[liarspoker] 11/7/2006 09:34

Another tick up with Scaps still on 10.5p.

1 v 1

We could move fast if Scaps is short.

[liarspoker] 11/7/2006 08:31

Tick up !!

Still 2 v 1

Scaps now only one on 10.5p.

[liarspoker] 11/7/2006 08:27

2 v 1

Scaps the only one on 10p.

I have a feeling there is a delayed buy or two.

[cockneyrebel] 10/7/2006 17:24

Perhaps I have the wrong O'Reilly!

Anyway, not to worry if it is, the main man here is Tom Farmer and that is thee Tom Farmer of 'Sir' fame I'm sure.

CR

[liarspoker] 10/7/2006 16:35

D'oh.

There are so many O'Reilly's though.

[cockneyrebel] 10/7/2006 16:33

Where else would an O'Reilly come from? :-)

CR

[cockneyrebel] 10/7/2006 15:36

That's a breakout.

CR

[cockneyrebel] 10/7/2006 12:55

Cheers Hybrasil.

Had my eye on these for an age. I had to buy now because the AGM is very soon and I couldn't afford not holding if they put out an AGM statement.

Personally I don't think there will be an AGM statement looking at last year but you never know. I at least wanted in before the Aug results.

Tom Farmer is a very nice investor to have on board, as is Peter O'Rielly imo.

From the finals:

"The current year has started well, occupancy levels are predicted to continue to rise and we expect to benefit from the increased size of our portfolio during the coming year. We now have the infrastructure in place to manage the group in its present form, but also to handle the rapid and efficient integration of further property acquisitions. "

CR

[hybrasil] 10/7/2006 12:08

CR
We meet again.
With the backing of Tom Farmer I think this thing could be destined for great things.
I know Mr Kingshott wont over pay for deals but I believe deals will; happen and that can only be good.

[cambium] 10/7/2006 11:01

Its on my watchlist, cheers CR.

[cockneyrebel] 10/7/2006 10:53

bought my wadgeworth here Cambium - should be another buy at least show up today.

CR

[cambium] 10/7/2006 10:28

Are you fully invested then CR?

[davidosh] 10/7/2006 10:24

A very good find there CR and thanks for the review of operations and prospects....

I note that the agm is very soon as well

The Company announces that it has convened an Annual General Meeting to be held
at 12 noon on 18 July 2006 at Fleet House, 8 - 12 New Bridge Street, London
EC4V 6AL.

I have noted the date and will try to get along and provide an update

[cockneyrebel] 10/7/2006 10:03

Serviced Office Group Plc (SVO)

Serviced Office Group is the reincarnation of KBC Holdings Ltd, a former software company. A bit of a failure as KBC, new management has taken control, has put the foreign loss making businesses into voluntary liquidation and has created a serviced office business from KBC's existing properties. The new management has said the days of software are over and that they believe they can make a significant and profitable business from serviced offices of which they seem to have experience.

The new management seem to have been doing a good job. Losses of 3.24p a share in 2003 were reduced to just 0.48p a share in 2004 while the year to Dec 2005 has seen an eps of 0.59p per share while 0.54p of that came in H2.

SOG own some properties and lease others. The ten strong SOG business centre portfolio now comprises five leased premises at Blackfriars, Uxbridge (2), Marlow and Richmond and five freehold centres, at Harrow, Hayes, Kingston, Crawley and Bournemouth.

At the last set of results the company said:
'The current year has started well, occupancy levels are predicted to continue rising and we expect to benefit from the increased size of our portfolio during the coming year.'

Looking at the pace the company has been growing earnings at under the new management it is running at a rise of 1p pa over the past year. In view of them doing 0.55p in H2 that also makes the stock look cheap on a price of 9p when 1p+ eps for the current year looks very achievable based on H2's eps.

Since those results SOG have also acquired the second Crawley business. They have paid £1.5m for the 11,200 freehold business centre which generates £24K per month license fees. That seems good business to me, the interest on a mortgage for that would be £80K pa and it already brings in £288K. A few synergies and cost savings and that's going to make a substantial additional income. They have also acquired Hill House in Richmond which has 170 Workstations and generating £720K pa in license fees.

Late last September the company made it's first acquisition under the new management acquiring Willowbank Office Centres for just £200K. These had losses of £5.5K and turnover of nearly £1m. Kingshot, the Chairman said then '"I am confident that there are a number of ways we can increase the 1 million of income per annum currently being generated by the three Willowbank centres.'

Net asset value was 7p per share at the year end. No shortage of cash either with £1.7m on the balance sheet.

If some or all of these acquisitions start to show through along with organic growth it's pretty easy to see well in excess of 1p eps this year imo and 2p in the year ahead. What sort of PE would that growth trade on? I think a forward PE of 15 is quite possible with the 7p+ NAV there too. If they can do 2p eps next year then 30p might be an achievable target imo.

Trading at just 9p to buy, two pence over their all time low they look potentially very cheap imo. There's some shrewd investors in here too. Sir Tom Farmer holds 24.4% while Peter O'Reilly holds 5%. Kingshot, the Chairman also holds 24.4%.

Lastly, I've looked on ADVFN - just one thread with a dozen posts and nothing since Sep last year - always a good clue that there is no hype in the share price.

All the office property businesses I look at are doing cracking business or being taken over - Bizspace, Basepoiint, YourSpace, Workspace etc

Interims are due around Aug 18th.

[hybrasil] 07/9/2005 09:05

Only just the rns of 2/9. Great to see an acquisition even if it is a leasehold one - didnt cost very much either.

[hybrasil] 29/7/2005 11:34

this share has dropped back a long way on lack of news surely something will happen before christmas

[finbarr] 05/4/2005 14:48

HiB,

Off the point, I looked at KTS/O2 deal. It not an issue;Cost is 200stg per month

[hybrasil] 03/4/2005 18:38

we must be due a deal soon.

[hybrasil] 23/2/2005 20:39

According to uk analyst there have been newswire reports of an acquisition

[hybrasil] 22/2/2005 21:49

What we are waiting for now is the first acquisition on behalf of this new co.

[hybrasil] 21/2/2005 14:35

some recovery today-.
Had hoped to buy back the shares I sold but failed.

[hybrasil] 19/2/2005 18:24

Not a thing.
I havnt got my certs in the certificated shares I hold but ihave got them in the ones I hold electonically.Will you post on the saf thread when yopu have spoken to Mr D.

[topvest] 18/2/2005 19:07

hybrasil - can't see this doing much for a while now that the hype is over. Might join in on this one again if it goes below 7p which is close to NAV. Had all my share certificate in the 7 Secure Ventures companies this week. Have you heard anything on these? I'll try and speak to Paul Davis next week.