Air Music&Media Share Discussion Threads

[crawford] 09/7/2008 09:17

100p is still cheap, very good results today.

[davidosh] 09/7/2008 09:15

If they restructure and pay a third of the profits as a divi as most company generating decent steady profits will do then ...Hey presto we are on a yield of nearly 15%, a super strong balance sheet with net cash and something to see as an outer. The income seekers will then take a close look too.

This really should be over £1 even within the current market conditions when that is achieved IMO and it would then make the yield a more sensible 8% but by lifting the share price to do so...Win/Win

Any thoughts on the FD leaving...I note Lisa signed off the accounts statement ?

[edmundshaw] 09/7/2008 08:42

Thanks goonertone. Seems a reasonable system; I was unaware of the possibility of going to court to restructure the balance sheet.

That does sound simpler.

[estseon] 09/7/2008 08:36

In simple terms, when a company buys a business there will often be a difference between the price paid and the fair value of the tangible assets. When the accounts are consolidated, cost of investment in the parent company's balance sheet is replaced by the tangible assets and the balancing figure, which is goodwill. So writing off goodwill is writing down the value of the business and is the writing down of an asset. It is only in the consolidated balance sheet. There remains £17million of goodwill to write off.

[8trader] 09/7/2008 08:15

It's done it's usual surge on results and is currently 58-60p.

Should be worth at least 100p on those numbers but we all know
the drill with Amu now.

[goonertone] 09/7/2008 08:12

is it just me or is ADVFN broken.

I'm getting 58-60 via barclays or up 14%

GT

[goonertone] 09/7/2008 08:04

Edmund

i'm not sure that its thats complicated. Dividends can only be paid out of retained profits therefore due to the write off's AMU's retained profits are -£7m. However they have a share premium account of £21m which they can't use therefore they can apply to the court to have the share premium account cancelled and transferred to distributable reserves this would cancel the negative reteined profit/loss account and allow future earnings to be paid out as dividends. This would require an EGM and the consent of shareholders and they would need to show the court that the balance sheet structure currently is not a true reflection of the companies current position and that the company could pay dividends if the restructuring took place ie they cant just do it if they are loss making in order to continue paying dividends.

They could enhance this by doing a complete write off of the share premium account transfer say £16m to reserves and allocate £5 mill to a special dividend of approx 30p cashflow permitting.

[edmundshaw] 09/7/2008 07:54

The main thing it means is that the next interims will show more cash and a basic as well as underlying profit.

And hopefully a nice dividend.

[hugepants] 09/7/2008 07:53

Eps = 24.9p



These results are better than forecast. Current PER is 2.1. Unreal

"...The Group generated £6.0 million cash from operations before movements in working capital (2007: £5.6 million)..."

[8trader] 09/7/2008 07:51

They still seem to be generating 4 mil a year and true to their word
they have gone from debt to cash positive.

Another year like this with no price movement and you will have a company
worth 9 mil with 6 mil cash in bank making 5 mil profits...lol..it's all
getting a bit silly again with Amu.

As for those accounting queries, i will leave that to Tanners who i'm sure
will let us all know what it all means.

[edmundshaw] 09/7/2008 07:31

As I understand it, the exceptional goodwill is a requirement of IFRS, the accounting standards now being used.

This has been explained in the results, as it should be.

Restructuring the shares should enable a very decent dividend IMO. Rolls Royce did this a few years back when they were short distributable reserves by creating a new holding company after an AGM or EGM motion (Rolls Royce shares cancelled, new "RR group" shares issued on a 1 for 1 basis); I cannot see why AMU could not do the same.

[s50cam] 09/7/2008 07:18

So results are out ! !

Operating Profit of 5.9m
EPS of 24.9p (before exceptionals)

Results would of been outstanding by my view, if it were not for the 'exceptional goodwill'.

Any accountants or more experienced investors available to comment on this, why and where has the £12.4m gone.

Talk of dividends in the future is also positive.

EDIT - Also could anyone explain this a little more please
"In order to rectify this anomaly, the Board is investigating ways in which the Group may be able to distribute cash to its shareholders. The Group expects to
announce a proposal to restructure its share premium account and thereby position the Group with distributable reserves in due course. "

[8trader] 08/7/2008 22:21

Just cast your mind to the last results were everybody agreed
they were great pre-market then Wins had the audacity to open
up -6p at around 53p offer, within a hour the price was up 10p.

Who knows in this market what will happen, i suppose it all depends
on Amu's cash position, still think it could be a very good day, they
have risen sharply on results for the last 3 years, it's inbetween that
the shareprice drifts sharply downwards.

[cockneyrebel] 08/7/2008 20:03

Ah, so you have kept me unfiltered - I told you. you'll never find any real bargains now if you do that - you'll have to stick to losing your shillings on the gee gees lolol.

CR

[cockneyrebel] 08/7/2008 19:50

No, you need to read more then - I posted several places I was buying while the US charts rose and sold when they started rolling over - ignore the charts at your peril - and you and Frauddy do! Brown nosing Frauddy is the lowest form of sychophantic behavior Hate Trader - I thought even you might be above that but I guess I over estimated you - he's the guy that blew a Bentley GT on SCS in a few weeks with quotews like 'with all that cash they ain't going bust' which they promply did - and you can't get up his crease any further or your toes won't be peeping out lolol.

CR

[cockneyrebel] 08/7/2008 19:27

Hate Trader:

"Dont you love the experts that come along certain threads in
a bear market preaching the obvious !"

Are you referring to yourself - tolling about as if you are have a pocket full of winning longs when in the next breath you're owning up!

Hate Trader, the troll that hates trolls lolololol.

CR

[liarspoker] 08/7/2008 18:29

Any picks for the Tour Quotes ?

[edmundshaw] 08/7/2008 18:18

Well, at least in 14 hours we should have something to talk about.

[market maker2] 08/7/2008 17:29

8trader - looks like ur going to lose big time here.

[estseon] 08/7/2008 15:08

Don't see why these results have taken so bloody long. If they really were having 'discussions' they'd have had the figures for those. If they are waiting for the economic outlook to improve...well, the captain and 1st officer have well and truly steamed HMS Britannia on to the rocks. Rumour has it that they were watching 'all our yesterdays' instead of where the ship was headed. Someone told them that RADAR was the same back to front so the looked at it in the mirror and thought that they were being chased by the Russians. Anyway, I don't see that there can be anything particularly complicated in the accounts.