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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Davenham | LSE:DAV | London | Ordinary Share | GB00B0P32071 | ORD 1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.95 | 0.00 | 01:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| - | O | 0 | 0.95 | GBX |
Davenham (DAV) Share Charts1 Year Davenham Chart |
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1 Month Davenham Chart |
Intraday Davenham Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 03/10/2011 | 17:47 | DAV ONE OF TARA*S TEN FOR 2010 | 1,877 |
| 05/3/2010 | 12:10 | Davenham -- prospects for growth | 986 |
| 16/11/2009 | 16:30 | Worth Ј3325M [Two years ago] NOW JUST 7P, OR TWO MILLION | 14 |
| 23/11/2005 | 13:25 | the start of something good????!!!! | 1 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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| Top Posts |
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Posted at 22/1/2011 17:03 by lufc5 Davenham revival plan revealedJanuary 20, 2011 Share Article| Submit Comments | Printable Version Previous | Next 1/1 Play Slideshow Close Map Embattled finance firm Davenham Group says it may revive parts of its business despite previously announcing plans to close its loan book. The Manchester-based lender's board revealed it is in talks with Davenham's largest shareholder, London-based Kingswood Property Finance, about reconstructing the company. It comes after Manchester-born businessman Tony Murtagh, who has a six per cent stake in the firm, requested a second special meeting calling for existing managing director Paul Burke and chairman James Kerr-Muir to be ousted. A previous extraordinary general meeting was requested by former Hitachi Capital chief executive David Anthony, who has a 15 per cent stake in Davenham, who said he believed the pair had not done enough to keep it afloat. Mr Anthony argued the AIM-listed firm's trade and asset lending divisions should be kept alive but was defeated in a vote last week. In a statement Davenham said: "The board announces that it is currently assessing with the company's largest shareholder, Kingswood Property Finance, whether a reconstruction of the group may be achievable, so as to permit one or more of Davenham's divisions to recommence writing new business both in the short term and thereafter." It added: "The board continues to consider that it is likely that there will be no value for shareholders' current shareholdings in Davenham (irrespective of whether a proposal for the reconstruction of Davenham is made by Kingswood Property Finance)." The company said it was too early to say what parts of the business could have their loan books re-opened. Mr Murtagh has written to Davenham requesting the special meeting, reiterating calls for the existing board to be removed. He told the MEN he was unimpressed by the firm's latest announcement. Mr Murtagh said: "What the company needs is a turnaround plan with a new board. It needs turnaround specialists in place in the short-term before it can start lending again." Mr Anthony added: "It is hard to see how anybody could believe the existing board could lead a reconstruction of Davenham given the way in which it has been run in recent years." Davenham's results for the year to June 2010 showed revenues plummeted by 35 per cent to £32m, with pre-tax losses of £23.3m. Shareholders rejected a request from the board to de-list the company but it was announced the firm would cease writing new business. After today's announcement, Davenham's shares were down 5.1 per cent at 4.25p from 4.88p. |
Posted at 21/1/2011 08:53 by mandalsputin Murtagh launches second bid to oust Davenham board21st January 2011 By Mike Fahy - Assistant Editor BUSINESSMAN Tony Murtagh has written to the board of troubled Manchester-based lender Davenham requisitioning a second extraordinary general meeting (EGM) of shareholders. Murtagh, who now owns more than 6% of the company's shares, has also requested that the firm ensures that its shareholders' register is up to date and that the firm posts his request for the EGM on its website, so that all shareholders are aware of it. He has thrown his support behind ex-Hitachi Capital CEO David Anthony's bid to oust current chairman James Kerr-Muir and group managing director Paul Burke in a bid to revive the trade and asset finance arms of Davenham Group. Anthony's proposals were voted down at an EGM last week, with holders of 4.4m shares voting in favour of his plan and holders of 10m shares voting against. However, holders of a further 12m shares did not vote, with some (including Murtagh) arguing that they had not been informed that the meeting was taking place. The company said it was "content that it has complied with all of its obligations" in terms of keeping shareholders informed. Murtagh, who made his fortune through The Manchester-based Mortgage Group but is now running Truro-based debt advisory firm The Money Group, also said that he would be willing to get involved in the company's turnaround if requested. "If David Anthony wants me to help with the turnaround I'll do it. If it means me coming back to Manchester for six or seven months and working for nothing I would. I'd take my reward in the increase in value of the shares." Murtagh added that he didn't want to falsely raise hopes of smaller shareholders - his purchases have pushed up the firm's share price from 2.25p last week to almost 5p at lunchtime today (20th January). He said that a turnaround might not be possible and that its banking syndicate could decide against renewing the company's loans when they fall due in March. The current board have stated that that they have the support of the banking syndicate and that its banks may recall their loans if Anthony's bid is successful. Murtagh said that he has also written directly to the lead bank, Royal Bank of Scotland, stressing his commitment to maximising their returns. He argues that the existing management team have not been able "to produce any kind of profitability" in a sector where competitors such as Manchester-based Jerrold Holdings have thrived. "I'm not saying that it can definitely be saved. I'm just saying that for six months or so they'd be better letting us have a go than have it limp along as if it's already in administration." Davenham has itself announced today that it is in talks with the company's largest shareholder, Kingswood Property Finance, about potentially reopening parts of the business. Kingswood is currently Davenham's biggest single shareholder, having acquired a 29.13% stake in Davenham last month from ACP Capital. A statement from Davenham's board said that is "currently assessing whether a reconstruction of the Group may be achievable, so as to permit one or more of Davenham's divisions to recommence writing new business". "The Board wishes to emphasise that this assessment (which also encompasses a dialogue with certain members of the Group's Banking Syndicate) is at a very initial stage and may not necessarily lead to any firm proposals being put forward." It added that it continues to believe that there will be "no value for shareholders' current shareholdings". The last figures available for Davenham show that in November its outstanding loan book was valued at £90m while its debt to the banking syndicate was £111m. |
Posted at 20/1/2011 13:24 by lufc5 Just out today.BUSINESSSMAN Tony Murtagh has written to the board of troubled Manchester-based lender Davenham requisitioning a second extraordinary general meeting (EGM) of shareholders. Murtagh, who now owns more than 6% of the company's shares, has also requested that the firm ensures that its shareholders' register is up to date and has requested that the firm posts its request for the EGM on its website, so that all shareholders are aware of his request. Murtagh has thrown his support behind ex-Hitachi Capital CEO David Anthony's bid to oust current chairman James Kerr-Muir and group managing director Paul Burke in a bid to revive the trade and asset finance arms of Davenham Group. Anthony's proposals were voted down at an EGM last week, with holders of 4.4m shares voting in favour of his plan and holders of 10m shares voting against. However, holders of a further 12m shares did not vote, with some (including Murtagh) arguing that they had not been informed that the meeting was taking place. Murtagh, who made his fortune through The Manchester-based Mortgage Group but is now running Truro-based debt advisory firm The Money Group, also said that he would be willing to get involved in the company's turnaround if requested. "If David Anthony wants me to help with the turnaround I'll do it. If it means me coming back to Manchester for six or seven months and working for nothing I would. I'd take my reward in the increase in value of the shares." Murtagh added that he didn't want to falsely raise hopes of smaller shareholders - his purchases have pushed up the firm's share price from 2.25p last week to almost 5p at lunchtime today (20th January). He said that a turnaround might not be possible and that its banking syndicate could decide against renewing the company's loans when they fall due in March, sparking a potential administration. However, he has also written directly to the lead bank, Royal Bank of Scotland, stressing his commitment to maximising their returns. "I'm not saying that it can definitely be saved. I'm just saying that fir six months or so they'd be better letting us have a go than have it limp along as if it's already in administration." Davenham has itself announced today that it is in talks with the company's largest shareholder, Kingswood Property Finance, about potentially reopening parts of the business. Kingswood is currently Davenham's biggest single shareholder, having acquired a 29.13% stake in Davenham last month from ACP Capital. A statement from Davenham's board said that is "currently assessing whether a reconstruction of the Group may be achievable, so as to permit one or more of Davenham's divisions to recommence writing new business". "The Board wishes to emphasise that this assessment (which also encompasses a dialogue with certain members of the Group's Banking Syndicate) is at a very initial stage and may not necessarily lead to any firm proposals being put forward." It added that it continues to believe that there will be "no value for shareholders' current shareholdings". The last figures available for Davenham show that in November its outstanding loan book was valued at £90m while its debt to the banking syndicate was £111m. |
Posted at 20/1/2011 13:18 by grlz Murtagh buys up Davenham shares and calls for second EGMwww.thebusinessdesk. Mike Fahy By Mike Fahy - Assistant Editor TONY Murtagh, the entrepreneur behind The Money Group, has increased his shareholding in troubled Manchester-based lender to more than 5%, giving renewed vigour to investor David Anthony's campaign to take control of the firm. Murtagh said that he was one of a number of Davenham shareholders who were not informed by the company of last week's extraordinary general meeting tabled by Anthony, where his proposal to remove the company's current board was rejected. He has said that he now plans to requisition a second extraordinary general meeting and has pledged his support for Anthony's proposals, which involve the removal of current chairman James Kerr-Muir and managing director Paul Burke. Anthony wants to appoint himself as chair and Gary Jennison as CEO. Murtagh's purchases helped to push Davenham's share price up from 2.25p last week up to 3.4p yesterday morning, before falling back to around 2.75p. He said that Gary Jennison "would make a great CEO" and argued that their stated strategy of reinvigorating Davenham's asset and trade finance arms of the business should be given a chance. Anthony's resolutions to remove Davenham's current directors received 4.4m votes in favour last week, and just under 10m votes against. However, there are more than 26m shares in circulation, so shareholders responsible for around 45% of the company's total equity did not vote. Anthony conceded that an element of this was likely to be due to voter apathy given the share's lowly value and the minimal chance of a return on their investment. However, he believes that although the board was able to call on the support of a few key investors including Kingswood Property Finance - the London-based firm which bought a 29.13% stake in Davenham in December - many of the smaller shareholders who had not been notified of the meeting would be in favour of his plan. Anthony added that Davenham had not posted his document spelling out his reasons for the EGM on its website, although it did distribute it to shareholders alongside the EGM notification. He acknowledged that the firm hadn't breached rules by leaving it off the website, but felt that it should have been included to ensure shareholders were properly informed. "People have said that I should requisition another meeting, but I would only do that if I were satisfied that these issues would be dealt with. Otherwise, what's the point?" Other shareholders have also expressed anger at the fact that they were not informed of the meeting. Jason Snowdon, who owns around 0.65% of the company, said he was "appalled" by the fact that he was not notified. He added that he "fully supports" Anthony's view that the current board should be removed. A spokeswoman for Davenham said that the firm was "content that it has complied with all of its obligations" in keeping shareholders informed. Davenham is in the process of winding down its loan book and has told investors that there is not likely to be any value left in their shares. The last figures published by the firm in November showed that it had £90m of loans left to collect but it owed its banking syndicate £111m. Its circular to shareholders prior to the EGM stated that the board had the support of the banking syndicate. It also warned that if Anthony's resolution was passed, the syndicate could recall its loan, sparking an insolvency process. Murtagh questioned this logic, arguing that the banking syndicate should be willing to speak to anyone with a reputable plan to recover its assets and hailed the turnaround that Jennison embarked upon in his last role as CEO of Secure Trust Bank. He also said that the salaries of Burke and Kerr-Muir combined amounted to more than £300,000 - money which he believed would be put to better use by employing more collection staff. "If I were looking to turn it around, I'd be willing to work for nothing and take my reward if the share price came back again," he said. He has said that he intends to call another extraordinary general meeting "in due course" and has told shareholders who hold shares via trusts or nominee accounts that they should make it known to nominees if they intend to vote. |
Posted at 20/1/2011 13:08 by mandalsputin Davenham assesses reconstructionThu 20 Jan 2011 DAV - Davenham Group Latest Prices Name Price % Davenham Group 4.62p -5.13% FTSE AIM All-Share 952 -1.07% Financial Services 6,249 -1.88% LONDON (SHARECAST) - AIM-quoted Davenham says that it is in talks with its major shareholder about a reconstruction of the business but management continues to warn that shareholders will probably not get any value from their shares. In December, ACP Capital sold its 29.1% stake in Davenham for £133,000, or 1.75p a share. These shares were bought by Kingswood Property Finance. Kingswood and Davenham are exploring the possibility that a reconstruction of the group could enable one or more of its division's to recommence writing new business. This could include an opportunity for shareholders to invest more cash in the company. There is no guarantee that any proposals will be forthcoming from the assessment. Despite the warnings by management shares in the asset-backed finance provider have risen by 153% in the past month. Anthony Murtagh has increased his stake to 6.01% in recent weeks. At the end of 2010, Davenham defeated an attempt by David Anthony, who owns 14.9% of Davenham, to have Gary Jennison and himself appointed to the board and the two existing directors, Paul Burke and James Kerr-Muir, removed from the board. More than two-thirds of the votes cast for the resolutions supported the existing board. |
Posted at 18/1/2011 11:49 by lufc5 Take special notice of the very last part of this article!!!!!TONY Murtagh, the entrepreneur behind The Money Group, has increased his shareholding in troubled Manchester-based lender to more than 5%, giving renewed vigour to investor David Anthony's campaign to take control of the firm. Murtagh said that he was one of a number of Davenham shareholders who were not informed by the company of last week's extraordinary general meeting tabled by Anthony, where his proposal to remove the company's current board was rejected. He has said that he now plans to requisition a second extraordinary general meeting and has pledged his support for Anthony's proposals, which involve the removal of current chairman James Kerr-Muir and managing director Paul Burke. Anthony wants to appoint himself as chair and Gary Jennison as CEO. Murtagh's purchases helped to push Davenham's share price up from 2.25p last week up to 3.4p yesterday morning, before falling back to around 2.75p. He said that Gary Jennison "would make a great CEO" and argued that their stated strategy of reinvigorating Davenham's asset and trade finance arms of the business should be given a chance. Anthony's resolutions to remove Davenham's current directors received 4.4m votes in favour last week, and just under 10m votes against. However, there are more than 26m shares in circulation, so shareholders responsible for around 45% of the company's total equity did not vote. Anthony conceded that an element of this was likely to be due to voter apathy given the share's lowly value and the minimal chance of a return on their investment. However, he believes that although the board was able to call on the support of a few key investors including Kingswood Property Finance - the London-based firm which bought a 29.13% stake in Davenham in December - many of the smaller shareholders who had not been notified of the meeting would be in favour of his plan. Anthony added that Davenham had not posted his document spelling out his reasons for the EGM on its website, although it did distribute it to shareholders alongside the EGM notification. He acknowledged that the firm hadn't breached rules by leaving it off the website, but felt that it should have been included to ensure shareholders were properly informed. "People have said that I should requisition another meeting, but I would only do that if I were satisfied that these issues would be dealt with. Otherwise, what's the point?" Other shareholders have also expressed anger at the fact that they were not informed of the meeting. Jason Snowdon, who owns around 0.65% of the company, said he was "appalled" by the fact that he was not notified. He added that he "fully supports" Anthony's view that the current board should be removed. A spokeswoman for Davenham said that the firm was "content that it has complied with all of its obligations" in keeping shareholders informed. Davenham is in the process of winding down its loan book and has told investors that there is not likely to be any value left in their shares. The last figures published by the firm in November showed that it had £90m of loans left to collect but it owed its banking syndicate £111m. Its circular to shareholders prior to the EGM stated that the board had the support of the banking syndicate. It also warned that if Anthony's resolution was passed, the syndicate could recall its loan, sparking an insolvency process. Murtagh questioned this logic, arguing that the banking syndicate should be willing to speak to anyone with a reputable plan to recover its assets and hailed the turnaround that Jennison embarked upon in his last role as CEO of Secure Trust Bank. He also said that the salaries of Burke and Kerr-Muir combined amounted to more than £300,000 - money which he believed would be put to better use by employing more collection staff. "If I were looking to turn it around, I'd be willing to work for nothing and take my reward if the share price came back again," he said. He has said that he intends to call another extraordinary general meeting "in due course" and has told shareholders who hold shares via trusts or nominee accounts that they should make it known to nominees if they intend to vote. |
Posted at 18/1/2011 09:04 by lufc5 Errrr.......HummmmmmMurtagh buys up Davenham shares and calls for second EGM 18th January 2011 By Mike Fahy - Assistant Editor TONY Murtagh, the entrepreneur behind The Money Group, has increased his shareholding in troubled Manchester-based lender to more than 3%, giving renewed vigour to investor David Anthony's campaign to take control of the troubled firm. Murtagh said that he was one of a number of Davenham shareholders who were not informed by the company of last week's extraordinary general meeting tabled by Anthony, where his proposal to remove the company's current board was rejected. He is urging Anthony to requisition a second extraordinary general meeting and has pledged his support. Murtagh's purchases helped to push Davenham's share price up from 2.25p last week up to 3.4p yesterday morning, before falling back to around 2.75p. He said that Gary Jennison "would make a great MD" and argued that their stated strategy of reinvigorating Davenham's asset and trade finance arms of the business should be given a chance. Anthony's resolution to remove Davenham's chairman James Kerr-Muir and managing director Paul Burke received 4.4m votes in favour last week, and just under 10m votes against. However, there are more than 26m shares in circulation, so shareholders responsible for around 45% of the company's total equity did not vote. Anthony conceded that an element of this was likely to be due to voter apathy given the share's lowly value and the minimal chance of a return on their investment. However, he believes that although the board was able to call on the support of a few key investors including Kingswood Property Finance - the London-based firm which bought a 29.13% stake in Davenham in December - many of the smaller shareholders who had not been notified of the meeting would be in favour of his plan. Anthony added that Davenham had not posted his document spelling out his reasons for the EGM on its website, although it did distribute it to shareholders alongside the EGM notification. He acknowledged that the firm hadn't breached rules by leaving it off the website, but felt that it should have been included to ensure shareholders were properly informed. "People have said that I should requisition another meeting, but I would only do that if I were satisfied that these issues would be dealt with. Otherwise, what's the point?" Other shareholders have also expressed anger at the fact that they were not informed of the meeting. Jason Snowdon, who owns around 0.65% of the company, said he was "appalled" by the fact that he was not notified. He added that he "fully supports" Anthony's view that the current board should be removed. A spokeswoman for Davenham said that the firm was "content that it has complied with all of its obligations" in keeping shareholders informed. Davenham is in the process of winding down its loan book and has told investors that there is not likely to be any value left in their shares. The last figures published by the firm in November showed that it had £90m of loans left to collect but it owed its banking syndicate £111m. Its circular to shareholders prior to the EGM stated that the board had the support of the banking syndicate. It also warned that if Anthony's resolution was passed, the syndicate could recall its loan, sparking an insolvency process. Murtagh questioned this logic, arguing that the banking syndicate should be willing to speak to anyone with a reputable plan to recover its assets and hailed the turnaround that Jennison embarked upon in his last role as CEO of Secure Trust Bank. He also said that the salaries of Burke and Kerr-Muir combined amounted to more than £300,000 - money which he believed would be put to better use by employing more collection staff. "If I were looking to turn it around, I'd be willing to work for nothing and take my reward if the share price came back again," he said. |
Posted at 14/1/2011 11:54 by lufc5 THE MAN looking to take charge of beleaguered Manchester lender Davenham has argued that the loss of all value in the company's shares seems inevitable unless shareholders are prepared to remove existing directors and back his bid to salvage parts of it.David Anthony, a former CEO of Hitachi Capital, which was once one of Davenham's major commercial lenders, has tabled the motions for the removal of Davenham's current chairman James Kerr-Muir and Group managing director Paul Burke. He is asking shareholders to appoint him as chairman and former Secure Trust Bank CEO Gary Jennison as his new CEO. "I believe there is potential for a return to shareholders," he told TheBusinessDesk.com. "The business is salvageable - or at least part of it is." Davenham has endured a disastrous couple of years marked by huge write-downs on its property-related loan book, which was closed to new business in October 2008. The company undertook a strategic review last year, which reported in June last year that there was likely to be no value left in its shares and recommended that its remaining loan book is wound down. The company then began a process of winding down all of its remaining businesses. It also attempted to delist from AIM - a move that was resisted by its shareholders. In November, Davenham reported that its outstanding loan book had been reduced to £80m but that it still owed a banking syndicate led by Royal Bank of Scotland £111m. Anthony insists that "there is a deal to be done" either with its current banking syndicate or through a merger with another financial institution. He is proposing a restructuring of the business which would allow for new equity investment to be brought in in a bid to retain both the asset and trade finance arms of the business. He built a 15% stake in Davenham in September last year and approached directors to discuss a turnaround plan. He said that despite signing non-disclosure agreements, he has been unable to access key information and therefore had no option but to requisition next week's meeting to remove the current board. "I'm unable to gain any evidence that there is a reorganisation plan in place," he said. In a circular sent to shareholders ahead of the meeting, the current Davenham board argued that it had already been through a strategic review process which flushed out 60 interested parties, but none of these were willing to offer anything like the sum which would be needed to repay its banking syndicate. Moreover, the board argues that following a meeting with Mr Anthony in November, the banking syndicate made it clear that it "did not wish to see any changes to the board". The board said that it believes that if Anthony's resolution to remove them is passed, the banking syndicate will recall its loans and the company will be placed into receivership. It said that if Anthony's motions were passed, they would "deprive shareholders of any remaining chance of a solvent reconstruction of the group that might see some element of value for the company's shareholders". The company also argues that it has the support of the company's largest shareholder, Kingswood Property Finance Limited Partnership, which bought ACP Capital's 29.13% stake last month. However, Anthony argues that its banking syndicate should be willing to negotiate with potential new investors. "Banks are pragmatic - what they want is the best possible outcome they can get." He said there is "a big shortage of supply" in both asset and trade finance lending to SMEs, and there is a genuine opportunity to build market share using Davenham's remaining talent and infrastructure, although this will weaken the longer that the current state of affairs remains. He said that Davenham "used to be an excellent business" when it was being run by founder Colin Davenport. "The tragedy is what has happened since the flotation," he said. |
Posted at 08/12/2010 16:00 by superjane Still waiting - The reality is David Anthony has not purchased a single share over .75, even after the share price fell back. He would have needed to notify Davenham if he had. He won't win a vote to remove directors or appoint himself CEO with just 14%Certain advfn posters seemed to have detailed information about the situation and where given what looks like a free run to ramp and then deramp the share price - Strange that David Anthony and his advisors remained silent for 3 months. Davenhams board have repeatedly said there is no value in the shares. Strange that advfn posters like grzl successfully ramped the share price to 4p, then just as easily deramping back to 2p by speading porkies about David Anthony selling... Again complete silence from the David Anthony camp? Strange that after the share price falls ACP decides to sell its controlling stake at 1.75p Raading the case studies on Kingswood website They could be acting as an agent for David Anthony, Davenhams board will probably look to confirm this under 8.3 of the City Code. If Kingswood are working in concert then under City Code they are obliged to make an mandatory offer at no less than 1.75p. Davenhams position is unstable, its banking facility is now on-demand so could be placed in to administration instantly at the creditor banks discretion. Kingswood or David Anthony will probably not need to pay a premium to 1.75p Looks like a sitch up now that 44% of the shares are held by 2 entities. No wonder David Anthony never published a shareholder circular giving us clear reasons why he should be CEO or even explain who he is. That was all leaked out by certain advfn posters like grzl. David Anthony didn't even set up an action group to play the investors champion to encourage a vote for his proposals. All very strange. |
Posted at 01/12/2010 22:54 by howdlep The story gets better and better. Whoever buys the ACP holding (minimum 1.75p per share) may then compete with David Anthony for control of the company. Davenham's Aim exit thwarted By David Blackwell Published: December 1 2010 17:35 | Last updated: December 1 2010 17:35 A 29 per cent stake in Davenham, the Aim-quoted asset-backed lender, is up for sale via an auction that concludes on Sunday. The stake has been put up for sale by ACP Capital, a Jersey-based investment management company also quoted on Aim. It announced last week that the minimum acceptable bid would be 1¾p a share, or £132,874 for the stake. EDITOR'S CHOICE ProPhotonix delays Aim move - Nov-28Iron ore scramble puts investors on their mettle - Nov-24Aim to benefit from Plus departures - Nov-22Aim right on the money as banks put up their shutters - Nov-17Small companies need to tread carefully - Nov-10Gun, oil and phone groups set for Aim - Nov-08It will be interesting to see if any buyer emerges. Davenham is winding down its loan book after running into trouble in the property bubble. At the close on Wednesday the shares were 1.07p, valuing the company's equity at just £279,000. The price reflects the extent of Davenham's woes. When it arrived on Aim in 2005 it raised £27m at 254p. Two years later ACP Capital indicated a possible cash offer at 325p a share, which would have valued the equity at £84.6m. Davenham said the offer was "not one which fairly reflects the value" of the company. Davenham always described itself as an asset-backed lender to small and medium-sized companies. But much of its lending was to small property developers who typically would buy a rundown Victorian house, convert it into flats and sell them on at a profit. The short-term loans would be repaid by money raised from the likes of Northern Rock and Bradford & Bingley. A strategic review concluded in June that the company should cease to write new business and leave Aim. The board said that there was "likely to be no value for ordinary shareholders". It also announced its intention to quit the junior market, joining the long list of companies that over the past couple of years have concluded there was little point in continuing to rack up the costs of retaining a quote. Accordingly it called for a general meeting in August in order to obtain the necessary 75 per cent shareholder backing for the cancellation. But instead of winning approval, the company gained the distinction of being the only one in recent memory that has been thwarted in its desire to leave Aim. Only 67.5 per cent of the shareholder votes cast at the meeting were in favour of the move. ACP Capital was among those voting against. It is itself returning capital to shareholders and is then planning to ask them to back a recommendation that it delists from Aim and be put into liquidation. The surprise is that it expects to find a buyer for the Davenham stake. Announcing first-half pre-tax losses of £29.8m on revenues of £32m, Davenham said it had net liabilities of £24m. It added that by November 23 its loan portfolio had been reduced to about £80m, while its bank facility had been reduced from £130m to £111m. In other words, for one of the lesser- known victims of the credit crunch, it looks like game over. But in a further twist to the saga, David Anthony, who amassed a 15 per cent stake in September, has asked for an emergency meeting to vote on replacing the board. Mr Anthony's purchases in September sent Davenham's shares up sharply. Even when the company reiterated its view that the equity was worthless, the price closed up 84 per cent at 4¼p. Mr Anthony was head of Hitachi Capital (UK), which was quoted on the main market for 10 years until its Japanese parent took it private in 2007. Mr Anthony, who retired from Hitachi this summer, believes that there is further value to be unlocked at Davenham although he will not be bidding for the ACP stake. |
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