Teliti Share Discussion Threads

[blank frank] 31/1/2007 18:52

From "TMG Plc Shareholder News", June 2006:-

"As CEO I would like to emphasise to you our shareholders the underlying strength of the Company, which is our substantial, contracted revenue."

Jeff Williams, Chief Executive Officer, TMG PLC.

[stemis] 31/1/2007 08:06

Clearly the banks haven't appointed a receiver or we would have heard. I suspect the remaining board [Razzall, Williams and (?)Hallet] are desperately trying to sell the business as a going concern and the bank is waiting for the outcome of that. Unfortunately, bearing in mind the potential for unrecognised liabilities and the inability of anyone to trust any financial information that comes out of the company, I'd expect it to be a pre-pack (immediate purchase out of receivership).

[blank frank] 30/1/2007 19:06

I've mentally written this off as a 100% loss.

But while the company isn't in administration, or while we haven't seen results and a trading statement showing that the financial situation is hopeless, there may still be some slight hope of getting something back.

The business, especially the contracts and staff, may well be worth quite a bit, depending upon current trading performance (though obviously if last year's trading performance has continued, that's a different matter); the debt would obviously reduce that value though.

In addition, the LSE listing, and the tax losses of over £4M., could be worth well over a million pounds ... could there be some potential as a shell? Although I believe that to use the tax losses the new business would have to be in a similar line of business, and one or more of the old directors might have to stay on.

IF the end is coming though, I would prefer that it is quick. Investors will then be put out of their misery, rather than having to endure a drawn out death. Some may also be able to use their tax losses.

B.F.

[kimboy2] 30/1/2007 12:01

I presume they must still be within their banking limits as the banks are not in control yet.

I notice that at 31/1/06 (the last accounts) that they had 198k on overdraft and 713k repayable within a year. Seems barely credible the banks aren't in unless they renegotiated the loans in the meantime.

I don't suppose they will produce any accounts by the end of the month in which case I presume they become delisted and a private company again.

[jonwig] 30/1/2007 11:48

Their local rag, the Bromsgrove Standard, still carries their ads (though may just not be updated) but hasn't reported any news yet:

[stemis] 30/1/2007 11:35

Another one gone:-

Telephone Maintenance Group PLC
30 January 2007

Telephone Maintenance Group plc announces that at a meeting of the board of
directors held yesterday Ed Smyth resigned as a director with immediate effect.

Yet they still seem to be trading

[tenapen] 26/1/2007 21:36

Im sorry to read the news :-(




i don't hold.

[kimboy2] 25/1/2007 21:35

I think there is zero chance of them carrying on in its present form. What will the banks view be ? I presume tha bank has been told a load of porkies.

It is also bound to need further finance as well.

The easiest thing is for the bank to appoint an adminstrator and sell the assets and see what's left. I don't think there will be anything for shareholders though.

[blank frank] 25/1/2007 20:16

"On 19th October 2006 TMG announced a placing which raised #750,000 to provide additional working capital to fund TMG's enlarged operations after completion of recent acquisitions."

I shouldn't think that those investors are very pleased! But that placing shows how convincing the situation was portrayed - they presumably did due diligence before investing that amount of money. If large investors like that can be taken in, then what hope did small outside investors have?

But as regards any compensation: who would pay it? The company probably couldn't afford to, even if it was found liable; and likewise for the director(s) concerned.

At the moment, I would regard a good result as 10p a share, through a bid or rescue fundraising. Maybe 20p if we are exceptionally lucky.

My one faint hope is that the company's financial position is not so bad that it can't struggle on, albeit perhaps with a further cash injection. Trading losses of £1.4M. less the c. £1.1M. net (after the Datatel payment) raised in October through the issue of equity is £0.3M. ... not a vast amount.

Hopefully there are / will be sufficient people left at the top to manage the situation at the moment. In that respect, it may be good that CEO Jeff Willaims is still there at the moment.

B.F.

[renixus1] 25/1/2007 19:20

Well well, i presume Jeff has left the country, not answering calls etc - someone will be to blame. It will all look pretty obvious if we see the accounts (but don't know if we will now) - sounds like they don't even know what the true numbers are, only what they may be.

What's corporate synergy's involvement, did they get stung too? They've sent in their own investigators, might be worth watching how they get on if they're looking for compensation.

This is symbolic of AIM, a company with a promising 8 year track record, going bust after listing on AIM because the numbers were made up. How can an investor invest in AIM stocks, if the information spewed by the company's listing there is so easily bogus.

[jonwig] 25/1/2007 18:34

B.F. Commiserations - we've all been there at some time or another.
I wouldn't say 'stupid', at all - you just didn't jump in time, though!

Remember the pictures of the happy staff on the forecourt in the shareholder newsletter?
They've probably lost their jobs, so it wasn't just new directors and existing shareholders who've been conned.

[blank frank] 25/1/2007 18:04

"Mr Lewis and Mr McLaughlin consider they were misinformed by the Company of its financial position and prospects at the time of their appointment and have resigned as directors with immediate effect."

They're not the only ones!! It appears that I (and other investors) may have been similarly misinformed when I rated these shares a buy. I feel pretty gutted ... and I also feel a bit stupid.

It doesn't look great for the company now; we may be fortunte if it survives, or if we as shareholders get anything back. It's not beyond the realms of possibility, but I wouldn't hold my breath. The best case scenario may be a takeover or rescue fundraising, but these would likely be considerably less than the current price of 45.5p.

B.F.

[jonwig] 25/1/2007 16:26

Kimboy - say no more ...

[kimboy2] 25/1/2007 16:18

jw
The fact is Greg Hallet is very experienced in these matters.

Is that better ?

[jonwig] 25/1/2007 16:14

randsys - most of us guys are out, but intrigued!

I think it wise to confine ourselves to facts not opinions, here, now.

[jannief] 25/1/2007 14:34

A little reminder:-

*Mr Hallett was a director of Butterfly Collection Limited, a liquidator was
appointed to the company on 20 July 2001. The deficit to creditors was
estimated at £188,000.

Mr Hallett was a director of Tech-Style Group Limited that went into
administrative receivership on 27 June 1994. The deficit to creditors was
estimated at £4.2 million.

Mr Hallett was a director of Vedonis Fashion Limited that went into
administrative receivership in July 1990. The deficit to creditors was
estimated at £400,000.

Mr Hallett was director of TMG...........................

[blindfaith2] 25/1/2007 12:22

Jon - good spot, btw there are better O&G plays than Crosby

[blindfaith2] 25/1/2007 11:11

Kim > Yeah, Blank must be even more pi$$ed off than the rest of us as he championed their cause from beginning to end.

Shame if they went bust, as on the face of it they had a few decent contracts. Whether they just bought the turnover though I guess we will never know.

Hanky panky must be a possibility with the shear size of these losses and I hope PKF get to the bottom of what's been going on and instigate prosecutions if that's what's needed.

[the bull] 25/1/2007 11:11

Another city equities tip gone wrong, do they specialise in such cases. Luckily £2K at stake as a tester so not too bad, hope others have not suffered too badly

[kimboy2] 25/1/2007 10:42

Well, well, well. Bust I think.

Incredible. It would seem to me that fraud must be involved. No one can be that incompetent.

One of the unfortunate things is that we probably won't get to see the accounts or find out what, or who, went wrong. At least those of us who sold out.

I feel very sorry for Blank Frank who did his research and championed this share against all detractors. He was badly let down as were no doubt many others.

In the interests of learning from mistakes this comment from BF caught my eye;

"I have personally met TEL's CEO Jeff Williams, and Greg Hallett, and I feel that they are both very able, honest, and pleasant."

It seems to me very difficult to come to a judgement as to the competence of an individual unless yu are sat the other side of the board table. I have always thought meeting the directors can cloud your judgement.

[blindfaith2] 25/1/2007 10:26

Administration ? I would not fancy being the purchase leder clerk taking the supplier calls at the mo !

£1.4M trading losses on t/o of £4-5M takes some doing though, and they didn't know or smell a rat, beggars belief.

[jonwig] 25/1/2007 10:12

Goodness Gracious Me:

"... it has emerged that the losses for the year ended 31 July 2006 might be as much as £2.2m, including trading losses of £1.4m."

Hence suspended. "Incompetence" is no longer appropriate!

I suspect the MMs looking after the book on Friday afternoon were sleeping off a heavy lunch, helping some of us to unload at 70p instead of ... I daren't say.