|Serviced Office Group
||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Serviced Off. (London Stock Exchange): 0 recent articles
|hybrasil: Simply poor business decisions. Lets sell the freeholds. Oh dear now we have to face rent reviews. This trading statement will I suspect hammer the share price|
|hybrasil: Unusual to see so few postings in this success story. I suspect a doubling of the share price from here within 24 months|
|mount teide: Seventy five million options granted to Directors at a 25% discount to the then share price. Nice.
This is unlikely come as a surprise to investors who had the misfortune to invest in Michael Kingshott's previous quoted company Jacobs Holdings Ltd.
While MD at Jacobs, investors saw a huge loss of shareholder value, before the bombed out company was taken over by Bidvest SA at a small fraction of the share price most investors and institutions had bought in at.
He talked a good game, but consistently failed to deliver on the bottom line.
|davidosh: I do not hold but was rather shocked by the 75 million options awarded at just 2p with the share price already 2.75p....that is a huge payout to directors and almost 50% dilution at the pre placing level of holdings !!|
|cockneyrebel: 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.|
Serviced Office Group share price data is direct from the London Stock Exchange