|Ultimate Leisure Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Ultimate Leis. (London Stock Exchange): 0 recent articles
|lbo: Jeffian. Friz and myself know each other well enough to know when we are joking and winding each other up so perhaps you should keep your comments and "regards" to yourself sometimes and not get involved in things that don't involve you! (How is that for post modernly ironic!)
There was further disappointment for shareholders in Ultimate Leisure, as the company unveiled a further drop in first-half profits. Having seen the share price fall from more than 375p over the course of the past 10 months, punters were asking whether it could get any worse. Last month, Ultimate issued a profits warning, when it said full-year profits would be substantially below current market expectations after experiencing difficult trading conditions over Christmas and the new year. The bar and nightclub operator illustrated these difficulties in its interim numbers, as pre-tax profits came in at 1.6 million pounds for the period to December 31st. A dividend payment of 2.4p was little comfort for Ultimate's tolerant shareholders, as the shares closed 10.5p lower at 257p.|
|lbo: I mean in terms of share price and buying interest. Although the last few days that seems to have waned away again.|
|andyh69: The Investment Column
Ultimate Leisure could yet be another Reubens' masterpiece
Edited by Michael Jivkov
Published: 09 February 2006
Ultimate Leisure could yet be another Reubens' masterpiece
Over the past few months the billionaire Reuben brothers have been steadily building up a stake in Ultimate Leisure through contracts for difference. On Tuesday the duo converted these derivatives into actual shares and now control 29.9 per cent of the bars and nightclubs group.
To say they are shrewd investors would be putting it mildly. They made their fortune in the 1990s by setting up a metals trading business in Russia and selling it to Chelsea owner Roman Abramovich. They have been busy reinvesting their money in the UK and have built up a substantial property portfolio.
Ultimate's property backing is clearly the main reason for their interest in the company. At yesterday's closing share price of 266p the group is valued at £65m. But its property estate is worth £80m. This ascribes a negative value to Ultimate's operating business which last year registered sales of £36m. Admittedly, since then trading has deteriorated greatly.
However, its managers have a clear turnaround strategy. They intend to reinvest in the group's rundown estate and build up a series of brands. Ultimate has a strong balance sheet, so it should have no problem financing these reforms. In fact it has promised to continue paying dividends. The group's management already have quite a reputation for reviving down-on-their-luck bar operators. They led the renaissance of Yates a few years ago and eventually sold the group on to a private-equity firm.
Ultimate's asset backing means there is little downside in its shares, and once trading starts to pick up they should start to motor. Investors would do well to follow the lead of the Reuben brothers and buy.
|jeffian: You still there, Ju? See report in the Times today (repeated by AFX on the 'news' tab above) that ULG have bid 170p for Inventive Leisure. I know management has changed at ULG but it's an interesting concept that a troubled group whose management have been hammered following an unexpected profit warning should feel it has a case to take over a rather well-run bar chain. It would have been nice to see if the new boys can manage what they've got before applying their skills to others! Share price doesn't seem to have reacted on the rumour but as it involves gearing up those nice freehold assets, it's possible that such a deal may depress ULG share price rather than increase it in the short term. (?).
A word of caution about asset values in this industry. Fitting out bars and nightclubs is extremely expensive; the tendency is to 'capitalise' this expenditure and then amortise that sum against P&L account over a stated period. In the meantime, it simply gets added to 'Tangible Assets' on the balance sheet. I don't know how much of ULG's Tangible Assets are Fixtures & Fittings but you can get an idea of the sums involved from the last Chairman's statement at the interims which spoke of their refurbishment of the City Vaults in Bigg Market, Newcastle: "This £1.5m refurbishment of our freehold site means that we have over the last 3 years invested in excess of £4m into the Bigg Market". In the event of Armageddon, the freeholds will always have a certain value but the F&F is likely to be a write-off. The other side of the coin is that it is quite likely that these assets will be carried in the balance sheet at 'cost plus additions' and the underlying freeholds may not have been revalued to reflect current market values (I don't know because I haven't seen a full set of account including the notes on this).
I'm reasonably comfortable that there is an asset value underpinning a proportion of the share price, but I wouldn't be so sure that it is the figure stated in the Balance Sheet!
|nghomi: Firstly I found the quality of current posting very high and I must admit that I am not 100% digesting what has been said! I have bailed out for a while now with a small profit. I think directors would have been still holding if they thought this was going to be acquired.
Secondly, I am sorry but I have to say that I don't understand what is the relationship between ARG and ULG. As you say, DD has had voting power in aggeregate of just under 30% (ARD) for more than 6 months. They obviously have not taken over ARD yet! If the same thing repeats itself, then the chances are that ULG share price will be significantly lower than the current price in six months time. Perhaps DD is obliged to invest their spare cash in companies such as ULG (property rich) rather than keeping it in the bank?
Thirdly, are you saying that DD and Cantor are also associates? Hence, you are saying that they have passed the 30% magic number? If so, shouldn't they have said so in one of these RNS's? How long can they keep this in secret as far as the AIM rules are concerned? (If they are associates, they have passed the 30% magic number for several days now!)
Fourthly, what is the significance of 3.6% holding of Man Financial Limited? This is too complicated for me. I'd rather just watching than doing any action:-)|
|jeffian: That's probably 'cos we're old and tired and been around a bit, Jools (at least in my case). If I try and play the comedian, my children say it makes them cringe ('tho that can be an incentive!). Respect, dude! (see what I mean?).
The Regus thing was a bit of a scam where a share-support ring was using CFD's to bolster the share price of the company while it was in trouble to give it time to re-structure itself and raise fresh capital. The beauty of that was that the parties didn't have to disclose their identities but the FSA eventually got involved and the racy financier Robert Bonnier (ex-Scoot etc.) got his knuckles rapped. The FSA are already having a look at the Directors' sharedealings in ULG just prior to the profit warning, so I wouldn't be surprised if they don't have something to say about this stakebuilding soon. Whilst holding CFD's does not count as a 'shareholding' for the purposes of triggering a bid, I think they would have a long hard look at it if Dawnay Day's interest (via various associates etc.) exceeded 30%.
|money multipier: Sunday Telegraph
FSA to examine Ultimate share sales
By Edward Simpkins (Filed: 08/05/2005)
Ultimate Leisure, the Newcastle-based pubs and nightclubs operator, is facing questions from the Financial Services Authority into share sales by a director and the brothers of the chairman effected within weeks of a profits warning.
Shareholders in Ultimate Leisure were shocked by the profits warning issued on 28 April, which wiped 17 per cent off the value of the company. They have demanded explanations from the board as to why the share sales took place.
A spokesman for the FSA said: "We don't comment, but as a matter of routine we would look into unusual share movements or allegations of insider dealing."
A statement by the company 12 days ago warned that a competitive trading environment, lack of development opportunities and slippage in its refurbishment programme meant that market expectations of profits for the year to June 2005 would not be met. The announcement knocked the company's share price.
However, on April 13 the company disclosed that Tim Wynn, the development director, had sold 100,000 shares at 308p, worth £308,000, leaving him with just 34,850 shares. Following the profits warning the shares fell to just over 240p.
Ultimate Leisure was set up by Allan Rankin, the executive chairman, and his brothers Stephen and John. Recent records show that Allan owned about 3m shares or 12.35 per cent of the company, Stephen owned 2.9m shares and John held 1.6m shares.
Over recent months, Stephen and John have sold the majority of their holdings. On 29 March the company announced that Stephen no longer had a notifiable interest in the group. A notifiable interest is 3 per cent.
On March 22 Ultimate announced that John Rankin no longer held a notifiable stake and that Scottish Widows Investment Partnership held just over 5 per cent. It also appears that, at about the same time, Standard Life increased its stake in the group to 5.68 per cent.
Bob Senior, the chief executive, who spent Friday visiting Scottish institutional investors with Allan Rankin, said: "Obviously, we got questions from investors and we explained to them that everything was done within Aim guidelines."
He denied that either Wynn or the Rankin brothers were aware that a profits warning would be issued when they sold their shares. "There was no impropriety," he said, adding that he would be offering a fuller explanation this week. "There is a huge presentation. It takes more than an hour to deliver, and you need to hear it all to get a full understanding of all the factors."
The role of Brewin Dolphin, Ultimate's financial adviser and broker, could come under the spotlight.
Brewin Dolphin recently placed shares in Ultimate with its institutional clients. A spokeswoman for the broker said it was unaware that the company was about to issue a negative statement. "We are comfortable that we observed best practice throughout," she said. "All share sales were signed off by the chairman and the board."
Allan and Stephen Rankin are close business associates and also own more than 50 per cent of Metnor, the £40m engineering and services group, which is run by Stephen Rankin, the chief executive.|
|nghomi: I think Market Makers are playing big games on ULG to say the least. Looking at JDW share price, it was up 3% today with PER of 17.5!!! ULG PER is now less than 9. Even compared with URM, ULG is under priced by 15% to 20%. With £53m assets, I would not get surprised if JDW or URM will make a bid for ULG. Does anybody see any reason that such a proposal would not be possible?|
Looking into the directors dealing in the last couple of months, I agree with you that something is fishy, as it appears that all of them are selling! In fact, Senior's today purchase is a fraction of what he sold last month.
Are you suggesting that directors think that the share price will hit 145-187p, hence they decided to cash before it goes under water? It could only be possible if ULG makes a loss in the second half of this financial year in my opinion. I will be surprised if it is the case, as they should make a profit warning as it has a material effect on the share price The fact that a director sells 100,000 shares indicates that ULG is not about to make a profit warning in the coming days. Otherwise the director would have been in "closing period" and he could not sell. On the other hand, the question of why all of directors have been selling remains a mystery.|
Ultimate Leisure share price data is direct from the London Stock Exchange