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Real-Time news about Urbium (London Stock Exchange): 0 recent articles
|jazza: The share price is at a big discount to those £10 'indicative offers'.
Seems the market's not at all convinced that URM will in fact, be taken out.|
|scburbs: Interesting reaction from REG, clearly they don't want to be used as a stalking horse to flush out a higher bidder. Given other bidders at the table the share price reaction looks overdone as REG have the ability to reinstate their offer in the event another party makes a bid or to make an offer in the event it is recommended by Urbium.|
|cockneyron: Regent Inns PLC - Response to Urbium statement
Regent Inns PLC
13 July 2005
13 July 2005
Regent Inns plc ("Regent" or the "Company")
Response to statement by Urbium plc
The board of Regent Inns notes the rejection of its final* proposed offer ("the
Final* Offer") released earlier today by Urbium plc ("Urbium"). In response to
this statement, it makes the following observations:
1. Urbium states that it has considered the conditionality of the Final*
Offer in arriving at its conclusion to reject the Final* Offer. It
should be noted that the conditionality of the Final* Offer is not
unusual for a proposal of this nature. It should further be noted that
the requirements relating to the completion of due diligence
investigations under the non-waivable pre-condition referred to in
yesterday's announcement are likely to be less onerous then those
of a private equity bidder for Urbium.
2. Urbium states that it has recently received serious expressions of
interest from a number of parties who have expressed a desire to make
conditional all cash offers for Urbium and suggests that it may receive
further such approaches. Following its request to the Panel on Takeovers
and Mergers for the imposition of a put up or shut up deadline, Regent
Inns is surprised that Urbium appears to be running a public auction
process and inviting offers from third parties.
3. Regent Inns requests Urbium to confirm whether the prices of the
approaches received are at a premium to the Final* Offer, the level of
conditionality associated with these approaches and whether these
proposals have been reconfirmed subsequent to the tragic events of last
4. Urbium states that it has yet to carefully evaluate the approaches from
other parties yet has rejected the Final* Offer out of hand.
Regent Inns reserves the right to increase the Final* Offer if a Rule 2.5
announcement in relation to Urbium is made by a third party.
In accordance with Rule 2.4 of the City Code, Regent Inns reserves the right to
reduce the share element of the Final* Offer for Urbium and/or to reduce the
cash element of the Final* Offer, in either case where the offer is recommended
by the board of Urbium.
Bob Ivell, Chairman of Regent Inns said:
"We fail to understand how Urbium has concluded that it is in the best interests
of its shareholders to refuse us access to due diligence information. Based on
Regent Inns' current share price, our Final* Offer of 975 pence represents a 54%
premium over Urbium's pre-offer period share price and a premium of 70% over
Urbium's share price of 573.5 pence on 12 May 2005. It further offers Urbium
shareholders the opportunity to realise 45% of the value of the Final* Offer in
cash and to benefit from the future upside available to the combined group."
Regent Inns 020 8375 3000
Bob Ivell, Executive Chairman
Close Brothers 020 7655 3100
Richard Grainger / Christopher Lewey
Panmure Gordon 020 7459 3600
Merlin 020 7653 6620
Vanessa Maydon / Rebecca Penney
The directors of Regent accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the directors of
Regent (who have taken all reasonable care to ensure that such is the case), the
information contained in this announcement is in accordance with the facts and
does not omit anything likely to affect the import of such information.
Close Brothers Corporate Finance Limited ("Close Brothers"), which is regulated
in the United Kingdom by The Financial Services Authority, is acting for Regent
and no-one else in connection with the matters referred to in this announcement
and will not be responsible to anyone other than Regent for providing the
protections afforded to customers of Close Brothers or for providing advice in
relation to the matters set out in this announcement or any transaction or
arrangement referred to herein.
Panmure Gordon & Co, which is regulated in the United Kingdom by The Financial
Services Authority, is acting for Regent and for no-one else in connection with
the matters referred to in this announcement and will not be responsible to
anyone other than Regent for providing the protections afforded to customers of
Panmure Gordon & Co or for providing advice in connection with the matters set
out in this announcement or any transaction or arrangement referred to herein.
* Regent Inns reserves the right to increase the Final* Offer if a Rule 2.5
announcement in relation to Urbium is made by a third party.
This information is provided by RNS|
If Regents make a recommended offer you will probably be able to sell close to 975p.
However, if Urbium reject the current offer the share price could fall sharply unless another bidder materialises.
From my perspective I think Urbium will struggle to deny access as Regents appear to have made a reasonable offer that most shareholders will be interested in. Urbium will respond to Regents statement quickly. If they give access share price should move close to 975p.|
I feel thre are two reasons for the fall in share price.
1) Concern what the smoking ban may do to such businesses
2)The general slowing down of growth in the economy
Perhaps a third reason which is the fact that the business is seasonal and we may have wait until December to here good news.
I too got out at a good price and look to get back in sooner or later.|
|aldasoa: What has happenned to this share price? Fortunately, I got out at 7.15, but TW
has now been sacked as my t1pster. I am looking to get back in at a decent price ....|
|jeff h: My thoughts are probably the same as most people....a good positive
statement, but disappointing market reaction...well for now anyway.
Hopefully will see a gradual rising share price.....broker/press
recommendations would help.
Not seen much so far except:-
"Late night operator Urbium is the latest company to release positive figures, revealing a two per cent sales increase to December 31.
This falls in line with figures for Barracuda and Inventive Leisure, which both showed sales increases over 2 per cent. Troubled group SFI also revealed a one per cent rise in sales.
In a further vote of confidence Panmure Gordon analyst Douglas Jack increased target share prices for all high street groups this month, although clients were advised to hold on Mitchells & Butlers (M&B), and continue to sell JD Wetherspoon stock.
Mr Jack commented: "It supports our belief that High Street supply, demand and pricing is stabilising, with positive implications for Regent Inns, Luminar, Urbium and Restaurant Group." (The Publican)
Bar operator Urbium celebrated strong Christmas trading with a rise of 6p to ahead of last year's record with its West End bars leading the charge. 632½p. For the five-week period to 31 December, total sales were a stonking 20%Chairman John Conlan confirmed that profits for the full year will meet analysts' expectations. Numis's target price is 780p. (thisismoney/Daily Mail)
Evolution now on 'Add' rather than Buy with a small drop in forecast.
Hang on in there I say!|
|besbury: Trader Horne.
I sold because I became concerned about the possible action by HMG to crack down on binge drinking and smoking in public places. Even though URM bars are not likely to be affected, I considered that the resulting publicity would likely have an adverse effect on the share price. I always had the intention of buying them back at the right price and did so recently, as I felt the fall had been overdone.
Since the share consolidation, there are so few now in issue, that they are IMO good value at the present price. I have no doubt that we will see 604p again before too long.
|jazza: All too typically disappointing share price movements recently.
Yes it's true that they are still to publish a clean set of results (and that won't change for FY04) and this is frustrating BUT the EPS figures are (last I heard) 70 & 80 for FY04/FY05 i.e. URMs forward P/E is less than 7 falling to 6.
That seems way too low. Also, if you divide enterprise value (market cap + debt) by cash flow you get a figure less than 6 - which is the very least an MBO would be pitched at and way short of the required level for a 3rd party bid - yet even a recent IC tip has done nothing for the share price.
Makes you wonder what is driving this one and just who might sell at these levels and why.|
|old boy returns: Outstanding post 1044 by jazza (copy below to save you looking). I think the bears have really been getting stuck into Urbium since the demerger. Not only does it have a weak balance sheet (a favourite of shorters in a bear market) but it is very liquid for a small cap and so easy to short in volume. The tough conditions in the leisure industry and the ongoing travel and terrorism fears also weigh on the market when it comes to URM. However, the company does have leading brands and strong management and providing it continues to get support from its bankers and remains cash generative it is unlikely. With the market turning to neutral or even, dare I say it, mildly bullish the bulls may return to URM and the value could well start to move back towards an earnings valuation. It is certainly starting to look tempting as a value recovery play.
jazza - 25 May'03 - 20:07 - 1044 of 1059
URM is an interesting company in that, depending how you choose to value it
you get very different answers for what is 'fair value'.
This is 'cos, although underlying EPS growth is strong, the balance sheet is weak.
Based on the balance sheet :
The NAV is £25.3m of which almost £18m is intangible assets (probably all goodwill from acquisitions). That leaves a net tangible asset value of just
£7.5m or 1.4p per share.
Therefore arch-bears would say the company is worth 1.4p (at best).
Based on EPS growth :
Underlying EPS of 1.21 rising to (probs) 1.35 this year. At a PEG of 1 against
the forward EPS the share price should be 16p.
A PEG of 1 is quite small btw, therefore a "moderate bull" would suggest the
company is worth at least 16p.
Herein lies the debate - what value an URM share?
Is it 1.4p? or 16p ?
In bull-market conditions (like in the late 1990's) the bull argument would have
won through - in fact the moderate bull would have been swamped by arch-bulls
calling for a PEG of (say) 1.5 and a share price of about 25p. Tangible asset
values wouldn't matter 'cos there would be no apparent fear of the company
going bust, it would be all about EPS growth and the PEG ratio and therefore
the price would be somewhere in this 16-25p range.
In bear-market conditions (like now) the bear argument would be that URM will
'do a SFI Group' i.e. go bust and then (no doubt) be broken up - leaving shareholders with just that 1.4p per share (if they're lucky). Of course a
fire-sale may lead to the shareholder getting nothing.
With the share price currently struggling to get above the 5p mark the market
is strongly (although not totally) skewed towards the bear-case.
You have to ask yourself is this reasonable? Are URM likely to go bust?
In the final results published a few months back, bank loans stood at £32m
out of an available £55m. The results statement spelt out the intention to
decrease this debt 'significantly' in 2003.
Therefore it seems bankruptcy is out of the question (barring catastrophe).
At some point the UK equity market will recover (it may have already started)
and the EPS/PEG case will win out over the tangible NAV case. At the same
time those strong cash-flows will be used to strengthen the balance sheet
and resume the dividend payment - weakening the bear-case as they do.
In all, a very good long-term buy IMHO.
Urbium share price data is direct from the London Stock Exchange