||EPS - Basic
||Market Cap (m)
|Construction & Materials
Real-Time news about Tolent (London Stock Exchange): 0 recent articles
|nocton: mudbath, unless the date has changed, this was what the original announcement said:
"If the Resolution is approved, it is expected that the Cancellation will take effect at 7.00 a.m. on 16 February 2010 being at least 20 business days following the date of this letter and 5 clear business days following the date of the General Meeting."
So, Monday is the last day for any such buying and manipulation of the share price.|
|patricia59: Tolent quits AIM to go back into private ownership
Jan 18 2010 by Peter McCusker, The Journal
THE group of North East companies de-listing from the stock market in the last year has another member after construction company Tolent announced its intention to quit.
After 10 years on AIM, the Gateshead company's CEO and founder John Wood said the company was in good financial shape but that he found listing was not an advantage and that fluctuations in its share price made customers unnecessarily nervous in an already difficult market.
Established by Mr Wood 26 years ago, Tolent has been a mainstay of the North construction and civil engineering industry in that time with offices on Tyneside, Teesside, Leeds, Manchester and London.
Like many construction companies Tolent, has suffered during the recession, cutting its workforce from 540 to 300, with annual revenues declining from £150m in 2008 to around £100m last year.
Mr Wood said: "For a company like ours there is no advantage to being on AIM. We have never once used the market to raise money.
"Over the years our share price has fluctuated, rising to £3 at one point.
"But what we found is that even a small trade in shares of say £10,000 could move the share price by 10p and this can sometimes spook our clients.
"When turnover is down and you are listed on AIM then you have to make an announcement, and in the current climate this can make clients twitchy.
"Clients look at these things and wonder what it going on, but as a private company there is no requirement to make announcements such as these.
"We are not a company that is in any kind of trouble. We are strong solid business with a healthy order book of £53m. We have cash reserves of £6.5m. We have no debt and we are very competitive. This year we expect revenues to be flat at £100m, we will break even, but we aim to keep our best staff and will be in a good position for 2011 when we will hopefully see a sustained recovery."
Tolent has been involved in some of the region's major recent construction projects, completing Time Central and Newcastle City Library and is currently completing Wellbar House, next door to Time Central at Gallowgate in Newcastle.
The decision to de-list is likely to be approved at a general meeting on February 8. Over 70% of the shares are owned by Gutenga Investments a trust owned by the family of Henry Schmil, founder of Amco, from which Tolent demerged on to AIM in 1999.
In May 2009 Prudhoe-based telecoms group BNS delisted from the AIM market, saying it had been "massively" undervalued due to poor market conditions and a lack of understanding among investors of the firm's hi-tech services.
In March last year Killingworth-based property and construction group Metnor quit AIM after a decade, it saying it had been "seriously undervalued" and condemning the City for "perpetual short-termism".
And Newcastle-based Northern Recruitment Group quit the FTSE in December 2008.
Tolent's shares closed down 50% at 18.5p on Friday after it unveiled its plans.|
|nocton: I wrote to the chairman, Peter Hems, complaining about this, along the lines of many comments on this thread. In reply, ne explained the rationale more or less along the lines of the announcement, but in answer to some of my specific questions he said:
"The directors intend to operate the company exactly as before, the board have an obligation to act in what they perceive to be in the best interest of the company as a whole and by implication all shareholders, the company will continue to pay dividends when it is considered prudent to do so."
"You make a number of comments concerning the collapse in the share price, including a suggestion that the company should have made an offer to buy in shares alongside the delisting announcement. The cash flow requirements of the business at the current time with the reduced levels of workload, downsizing and reorganisation costs are such that it would have been imprudent for us to do so. It may be appropriate for such an arrangement to be introduced at a later date, when cash flow permits, but it would not be appropriate to commit to such a course of action at this point in time. I am conscious that a number of shareholders have decided to sell in the period since the announcement, but I also note that there have been a number of purchases, which I am assured is not any of the major shareholders referred to in the circular."
"I would reiterate that the fundamentals of the business with or without the AIM listing are the same. The number of actual share transactions in normal circumstances in the past has been minimal and as such many of our investors may be considered to be long term investors. The basis on which the quoted price is calculated is reflective of supply and demand and as such the low levels of activity have reflected in the quoted price of the shares, which has had the impact of undervaluing the business as a whole. The matched bargain trading facility will provide a limited opportunity for share transactions in the future."
Perhaps reassuring? I certainly think there is little point in selling now at this price.|
|jeff h: Good news doesn't do much for the share price in this market MrT8... any bad news and it gets slaughtered.
Bit more info:-
Tolent's share price takes hefty tumble
Jun 26 2008 by Graeme King, The Journal
SHARES in construction company Tolent have tumbled by a third inside 48 hours after the business reported tough trading and that two bad debts would hit its half-year results.
The Gateshead company closed yesterday valued at under £12m down from around £18m on Tuesday morning.
But the business's finance director and its advisers moved quickly to say the drop in price was probably more to do with City fears about the construction sector, rather than Tolent in particular.
Tolent was trading at a reasonably healthy 137p on Tuesday morning, but then a trading statement was issued saying the first four months of 2008 had been "disappointing" due to economic conditions.
The company also said it had put aside £950,000 to cover a debt owed by a housebuilder, and an accounting adjustment.
However, Tolent says it has an order book of £120m lined up, with another £40m close to being signed. Shares fell by 35p (25%) on Tuesday to close at 102.5p, and then a further 10.5p (8%) yesterday to close at 92p though that represented a rally from a low of 77p during the day.
Andy Clark, Tolent finance director, said relatively few shares had been traded but these had been enough to take the company's price down.
He said: "The trades are only 600 shares here, 1,000 there, through a few investors. Obviously it's not just us, and certainly we are doing better than the likes of the companies who are just in housebuilding.
"We are certainly not panicking. We would like to be in a slightly better position, but a lot of it is driven by the banks turning off the funding tap. They will gradually turn it back on as, if they are not lending to anybody, they are not making money. Hopefully towards the back end of this year, the tap will be turned back on, and that will feed its way back into the market in 2009."
Andrew Emmott, director of corporate finance for Brewin Dolphin, who advise Tolent, said: "It's not uncommon for small companies to find themselves overly punished in this sort of market for the faintest hint of bad news. Small stocks are suffering disproportionately to large stocks, and construction is also suffering disproportionately, so if you are at the wrong end of both those equations, you can see what happens."
Michael Parkinson, director of research at Brewin Dolphin in Newcastle, has downgraded his pre-tax profit forecasts for Tolent's performance. For 2008, he has cut from £5.6m to just £3m, and for 2009, from £5.8m down to £3.4m. He added: "Investors are pretty scared of most things associated with the construction sector. It's a pretty harsh market we are in at the moment."
|gateside: m8....How do you get to the figure of a dividend yield of 12.65%?
In TLT's Interim Results last August, they stated that the dividend would be 5p They also said that they were changing their dividend policy...
"whereby the dividend attributable to the full year is broken down so that about one third is payable at the interim stage and two-thirds at the final".
This suggests that the final dividend for the year will be approx 10p making a total dividend of 15p, which at the current share price is a dividend yield of approx 7.8%|
|joan of arc: Yes, I am still holding - all the way down from the top. Not much is going on here I agree but there is precious little information to discuss. I must confess I have rather parked these in a drawer and have no real idea how their future prospects have changed or indeed how the current economic outlook will affect them. I do believe their fortunes are entirely tied up with their dividend. Since that has dropped (halved I think)then, if there is a risk of this being cut again, the share price will drop proportionately. It seems that Mr Market has some doubts about their ability maintain the current level. Any thoughts?|
|jeff h: Piedro,
No Amco MBO was a non-runner...possibly because others were interested in
...though these approaches came to nothing for whatever reason.
I don't know why they suddenly decided to send the dividend into the stratosphere..from memory it came as a shock to its brokers BD as it certainly
wasn't forecast by them.
Perhaps it was pressure from Amco Investments Ltd (not to be confused with Amco plc)...maybe they want to sell their stake (they had no objection to the Amco plc potential bids and as I recall were 'fundamentally supportive')
The huge dividend increase may well have been designed to attract the market per your option 3 and also with the rising share price gave them a potentially bigger amount for their stake....I don't know we can only speculate.
|mudbath: It would help the Directors (and other shareholders) realise more fully, the value of their stock, if there were to be significant dilution of the controlling holdings of Amco Investments and the common directors.This could be achieved by some form of corporate activity ,which might ,if the share price is indicative,just be in developing.(Hope so).|
|jeff h: Some news on Amco:-
"A proposed management buy-out pitched at less than the current market price has been made for Amco Corporation. It values the £130m-a-year turnover construction group at £36m.
The two directors making the move are Ian Swire, finance director, and David Jackson, commercial director.
The move would have been kept under wraps had it not been for the unusualness of the offer price. "The price means there is the risk of a false market," said a spokesman for Amco.
"If it had been pitched at say 10% over the current share price, it would have remained highly confidential."
Amco's share price doubled in less than 12 months, from 180p in late summer last year, to 370p in May of this year.
Amco's shares are 'illiquid' - a financial expression to indicate that only a limited proportion of them trade freely on the Stock Exchange.
In Amco's case, this is because 49.9% of all the 13m shares are held by Amco Investments, a trust for the founder's family. The trust is thought to be fundamentally supportive of the move."
.... why Amco Investments Ltd and Stuart Gordon are happy with the price presumably the Offer (if there is one forthcoming) document will explain.
It could be problems with one of the units, pension deficit etc...if there are no apparent problems and an offer is made it will be interesting to see if there are any competing offers.|
|jeff h: Yes intriguing stuff desthecat.
I would have thought the controlling shareholder (Amco Investments Ltd with
a whisker under 50% the same as Tolent if I recall) would have wanted the best price possible.
Also Stuart Gordon owns about 8% 1 million shares there I think....as he
doesn't appear to be part of the bid (per the RNS) why should he be willing to sell on the cheap?
If a bid below fair value was agreed whats to stop another company or individual putting in a higher offer?...the Directors would presumably have a fiduciary duty to accept the higher offer.
As for Tolent, raising the dividend over 100% and way beyond Brokers Forecasts when profits increased by 10% doesn't look like the actions of a board who intend to take it private with a low bid... in fact the thought crossed my mind they'd hiked the dividend perhaps to raise the share price in order to issue fewer shares for a potential acquisition.
It does seem odd...maybe the press or further announcement will give some answers...if Amco does get bought best of luck to you getting a fair price whatever that price maybe.|
Tolent share price data is direct from the London Stock Exchange