Auhua Clean Share Discussion Threads

[davius] 23/3/2010 13:29

Steve Evans still holds 44% of the shares, a couple of other directors 4% each or so I believe.

[wilba] 23/3/2010 12:41

Autofocus

As a consequence of the announcements relating to the discovery of dishonest evidence from employees of Autofocus in September 2009, the Group has enjoyed improving relationships and has negotiated more efficient settlement protocols with a number of insurers and solicitors acting on their behalf. A limited number of larger well known insurers and their solicitors have, however, remained supportive of Autofocus and persevered with their evidence in an attempt to reduce the recoverability of our hire charges.

As previously reported, the Group was successful in obtaining permission from HHJ Waine in the Chesterfield County Court to commence committal proceedings against two former employees of Autofocus in respect of their submission of dishonest evidence in the cases of Glossop v Salvesen Logistics and MB Glass v Den Boon. The action against one of these former employees has been stayed on the basis that she has given Undertakings to the Court which involve her co-operating with Accident Exchange and providing evidential support in respect of the principal action against Autofocus in the High Court. The committal hearing in respect of the second former employee, Helen Whyshall, was heard in the Northampton County Court on 15 March 2010 before HHJ Waine. It is a matter of public record that Helen Whyshall admitted that she was in contempt of court by verifying a witness statement for use in proceedings with a statement of truth when it was false to her knowledge or when she did not believe it to be true. Miss Whyshall informed the court that she was also guilty of three further similar contempts of court.



HHJ Waine imposed an order committing her to prison for 28 days and ordered her to pay costs. In mitigation Helen Whyshall said, through her counsel, that she was a relatively senior employee of Autofocus at the time of her contempts. She said that she took part in a system whereby she signed off reports which were in fact prepared by someone else and that she did so with the consent of a Director [of Autofocus]. She said that the bonus arrangement was such that she was paid additional income depending on the number of reports she produced. She said that she had ceased to be employed by Autofocus in September 2009. Her prison sentence was suspended for 12 months based on her honesty in admitting the offences.

The Group has also received permission from the Court of Appeal this week giving leave to appeal "out of time", based on evidence discovered after the trial was heard, in the case of Archer v Skanska Corporation. This was the case in August 2009 where our initial suspicions around the evidence given by an employee of Autofocus were triggered and where we did not recover our hire charges at the levels expected because of the submissions in Court by Autofocus. The appeal has been flagged by the Court of Appeal as a case which they would like expedited.

With regard to the principal action for damages against Autofocus, Accident Exchange Limited issued proceedings against Autofocus in the High Court in October 2009 alleging deceit, conspiracy to cause harm by unlawful means and conspiracy to cause harm to our business. Autofocus made an application to the High Court to have the claim against them struck out because, they argued, they were protected by the principle of witness immunity. Mr Justice Mackie gave Judgment against them in respect of that application on 2 January 2010. In giving his Judgment, Mr Justice Mackie said:

"If the facts alleged by the Claimant [Accident Exchange Limited] are true, as I must assume for the purpose of this application, it has sustained financial loss as a result of disgraceful and dishonest conduct by the employees or agents of the Defendant [Autofocus]."

In light of the conclusion of the matter against Miss Whyshall and based on an increasing volume of direct evidence obtained elsewhere, it is now becoming increasingly evident that the matters complained of in the action against Autofocus are true. The case against Autofocus is listed to be next heard before the High Court on 31 March 2010.

The Group has commenced a forensic exercise to collate the total number of instances where Autofocus rate data procured by insurers or their solicitors was used to reduce the level of recovery made by the Group and where it is clear, in the Board's view, that the judgement can now be shown to be unsafe. There are in excess of 6,500 cases where currently we believe Autofocus evidence has been deployed and, of those cases, approximately 2,650 where the case has been concluded. In light of the judicial finding of fact in Whyshall, and supported by the decision of the Court of Appeal to allow us to serve fresh evidence in cases that have been concluded on the basis of unsound Autofocus evidence, instructions will be issued to our panel solicitors to launch individual appeals on a number of cases commencing with those involving Miss Whyshall.

Early indications are that four large and well known insurers and two firms of defendant solicitors account for the most material number of instances where we have under recovered our hire charges as a result of what we believe to be the systematic production of fraudulently submitted hire rate data. Discussions with those insurers about whether they wish to incur the incremental cost of re-opening those cases will be initiated shortly.


Ends

CONTACTS:

Accident Exchange Group Plc

Steve Evans, Chief Executive
08703-009 781

Martin Andrews, Group Finance Director
08703-009 781

Singer Capital Markets Limited
020-3205-7500

Shaun Dobson, Joint Head of Corporate Finance

Bankside

Steve Liebmann or Simon Bloomfield
020-7367-8883 / 07802-888159



Looks like someone has a feeling about the losses and re-finance position end of April.

What shares do the board still hold??

[davius] 23/3/2010 12:37

What must it be like to be Steve Evans? In 2006 he sat on a paper fortune in ACE shares worth of the order of £125m. That may have put him in the to 500 on the Times Rich List. Today that stake is worth £2.5m or so. It must be like winning a huge rollover jackpot to find the winning ticket has just been through the washing machine.

Market cap now £5m and looks priced to go bust.

[wilba] 23/3/2010 11:57

Priced down with little volume.

[markie7] 22/3/2010 15:31

will be way out of date. collins stewart hardly cover small caps anymore.

[sir brainy] 22/3/2010 14:36

Maybe 11.0p

[dyfiman] 22/3/2010 14:30

I thought Brainy was winding folk up, but just seen on Citywire
that the 'BUY' rec. and 110p target for the share price is a fact.
Are Collins Stewart analysts completely off their rockers? Or, as I asked on another BB, do they know something that has escaped shareholders, the MM's and the bears in particular?
I'm a bit gobsmacked by this given Ace's current difficulties.
Regards

[sir brainy] 22/3/2010 11:10

Didn't realise it was April 1st ;-)

Collins Stewart has a buy and 110p target for Accident Exchange

[boris pifle] 21/3/2010 13:39

EPIC

Date

Broker name

New

Price

Old price target

New price target

Broker change
AG Barr BAG 19-Mar Shore Capital Hold 900.50p - - Reiteration
Accident Exchange Group ACE 19-Mar Shore Capital Sell 8.63p - - Reiteration
Admiral Group ADM 19-Mar Goldman Sachs Neutral 1,280.00p 1,058.00p 1,340.00p Reiteration
Advanced Medical Solutions AMS 19-Mar Investec Securities Buy 38.75p 47.00p 50.00p Reiteration
Aegis Group AGS 19-Mar Citigroup Buy 124.40p 135.00p - Reiteration
Aegis Group AGS 19-Mar Nomura Neutral 124.40p 127.00p 139.00p Reiteration
Amino Technologies AMO 19-Mar FinnCap Buy 33.00p - - Reiteration
Amlin AML 19-Mar Goldman Sachs Neutral 408.20p 455.00p 460.00p Reiteration
AstraZeneca AZN 19-Mar Ambrian Hold 2,942.00p - - New Coverage
Autonomy Corporation AU. 19-Mar Panmure Gordon Buy 1,836.00p 2,098.00p - Reiteration
BBA Aviation BBA 19-Mar Citigroup Buy 191.00p 150.00p 230.00p Upgrade
Barclays BARC 19-Mar Seymour Pierce Sell 357.60p 276.00p - Reiteration
Bellway BWY 19-Mar Panmure Gordon Buy 747.50p 895.00p 868.00p Reiteration
Booker Group BOK 19-Mar Evolution Securities Buy 43.56p 44.00p 50.00p Upgrade
C&C Group CCR 19-Mar Citigroup Buy 295.00p - - Reiteration
Cineworld Group CINE 19-Mar Altium Capital Buy 189.25p 180.00p 230.00p Upgrade
DSG International DSGI 19-Mar Seymour Pierce Buy 35.20p - - Reiteration
Dignity DTY 19-Mar Panmure Gordon Buy 655.00p 872.00p - Reiteration
Enterprise Inns ETI 19-Mar Panmure Gordon Sell 125.10p - - Reiteration
Fuller Smith and Turner FSTA 19-Mar Panmure Gordon Buy 555.00p - - Reiteration
Game Group GMG 19-Mar Seymour Pierce Buy 99.90p - - Reiteration
GlaxoSmithKline GSK 19-Mar Ambrian Buy 1,286.50p - - New Coverage
GlaxoSmithKline GSK 19-Mar Evolution Securities Buy 1,286.50p 1,500.00p - Reiteration
GlaxoSmithKline GSK 19-Mar Shore Capital Hold 1,286.50p - - Reiteration
GlaxoSmithKline GSK 19-Mar Charles Stanley Accumulate 1,286.50p - - Reiteration
Go-Ahead Group GOG 19-Mar Panmure Gordon Buy 1,471.00p 1,700.00p - Reiteration
Greene King GNK 19-Mar Panmure Gordon Hold 430.40p - - Reiteration
Hiscox HSX 19-Mar Goldman Sachs Buy 341.00p 395.00p 400.00p Reiteration
Imagination Technologies IMG 19-Mar Seymour Pierce Buy 220.00p 245.00p - Reiteration
Imagination Technologies IMG 19-Mar Panmure Gordon Buy 220.00p 250.00p 270.00p Upgrade
Legal & General Group LGEN 19-Mar ING Barings Sell 82.50p 52.00p - Reiteration
Legal & General Group LGEN 19-Mar Panmure Gordon Buy 82.50p 99.00p - Reiteration
Lloyds Banking Group LLOY 19-Mar Seymour Pierce Sell 60.13p 41.00p - Reiteration
Lloyds Banking Group LLOY 19-Mar Shore Capital Hold 60.13p - - Reiteration
Lloyds Banking Group LLOY 19-Mar Charles Stanley Hold 60.13p - - Reiteration
Marston's MARS 19-Mar Panmure Gordon Hold 92.50p - - Reiteration
NCC Group NCC 19-Mar Brewin Dolphin Buy 382.50p 450.00p 455.00p Upgrade
Nighthawk Energy HAWK 19-Mar Daniel Stewart Buy 20.75p 45.00p - Reiteration
Old Mutual OML 19-Mar Goldman Sachs Buy 126.50p 139.00p 145.00p Reiteration
Punch Taverns PUB 19-Mar Panmure Gordon Sell 80.95p - - Reiteration
Rio Tinto RIO 19-Mar Ambrian Buy 3,670.00p 4,400.00p - Reiteration
SSL International SSL 19-Mar Panmure Gordon Buy 792.50p 885.00p - Reiteration
Sage Group SGE 19-Mar Panmure Gordon Buy 247.90p 284.00p - Reiteration
Standard Life SL. 19-Mar Panmure Gordon Hold 207.60p 234.00p 225.00p Reiteration
Standard Life Investments Property Income Trust Ltd. SLI 19-Mar Singer Capital Markets Buy 60.00p - - Upgrade
Tullett Prebon TLPR 19-Mar Panmure Gordon Buy 360.00p 430.00p - Upgrade
Unilever ULVR 19-Mar JP Morgan Overweight 1,945.00p 2,300.00p - Reiteration
Vectura Group VEC 19-Mar Citigroup Speculative Buy 45.50p 150.00p - Reiteration
Vectura Group VEC 19-Mar FinnCap Buy 45.50p - - Reiteration
office2office OFF 19-Mar Panmure Gordon Buy 150.50p 220.00p - Reiteration

[davius] 21/3/2010 12:33

I suspect Sir Brainless is probably replying despite the fact he knows I've had him on filter since he changed from Ed the Brainless, and the myriad of other accounts losers have to keep creating...

:0)

Cyling time, I look forward to his next filtered reply when I get back. Watch this space, lol.

[sir brainy] 20/3/2010 22:26

D - as I am certain you are aware, dual-listed (on a recognised exchange) AIM stocks ARE allowed in an ISA.

Eg RCG.

Check JTC's thread for a longer list.

[davius] 20/3/2010 21:33

Gear, fortunately "poxy little AIM stocks" aren't allowed in an ISA. Neither are decent AIM stocks for that matter :0)

Will probably go for a high yielding defensive FTSE 100...

And continue trading RBS.

[sir brainy] 20/3/2010 17:07

SK: it is hard to be as honest as I would wish to be as ACE are a litigious lot.

Let's just say the prices charged and methods used to win new business are different to those one might expect.

There is no virtuous circle of contented customers and their insurers recommending ACE's services to friends, family and clients.

[gearstick5 fusebox] 20/3/2010 14:26

Davius, whatever you do, do not buy a dog of a stock going by the name of Elektron (EKT).

[davius] 20/3/2010 14:17

> So Dav where are you putting your pot now you have got half out of ACE?

I'm 50% in cash in my ISA at present and unsure where it should go. Have been trading RBS with some of it with reasonable success on 20K or 30K shares at a time, but can't decide on good priced stock ready for a decent run up...

[ls lowry] 20/3/2010 12:42

My take here is huge debts to pay and no certainty how that will pan out. Unethical practices charging customers exhorbitant fees for hire rates.

SC,

I wouuld be interested to hear what your take is on this company have you a position here?

[simon cawkwell] 20/3/2010 07:17

Sir Brainy,

I am in no position to comment. But how is the business model fatally flawed?

Simon Cawkwell

[sleveen] 19/3/2010 18:50

May I, as a former holder and £4k the poorer, be allowed to comment?

Sir Brainy ( a new avatar?) mentions Honest John the Daily Telegraph motoring chap. His advice is second to none IMHO.

Honest John wrote an article about motoring accident/deaths and concluded that that the main thing that reduced accidents/deaths was high petrol prices...not seat belts not the breathalyzer.

As you will know petrol prices are on the up... ACE have reported a substantial reduction in business.
Are the two related.... you might think that I couldn't possibly comment.

I guess the only positive is the AF news.

I sold at 12.5p and 14.5p

Good luck

[thenorth] 19/3/2010 18:10

Poorly thought... hmmmm i suspect Auto Focus thought that too.... Still theres always one village idiot....

So Dav where are you putting your pot now you have got half out of ACE?

[dyfiman] 19/3/2010 16:11

And what might corporation do you head up, Sir Brainy??? Sounds a bit like my
82-year-old Mum telling Capello that playing five across the middle is
a poorly-thought-out tactic on the basis that defence is one short. No offence intended, of course.
Best regards

[sir brainy] 19/3/2010 14:55

ACE is simply a poorly thought out business, I am sure I am typical of many who having read the horror stories (Honest John etc) whould not touch them with a bargepole as a user.

[dyfiman] 19/3/2010 14:37

Hi, at the current price I think I should launch my own takeover. Three
sherbet fountains, two toffee arrows and a bag of Murraymints should just about swing it!
On a more serious note, I don't think it will be long before we get the bad/good news about the Banks and some sort of refinancing that would steady the ship/sink it. A factor in all the discussions might be Ace getting a more even
playing field in the wake of the Autofocus debacle. There is also the slimming down process re. staff, cutting the fleet as well as focussing on prestige etc
etc. And how good a manager is Steve Evans really??? Is stabilisation
and something of a recovery mid-term beyons him even if the Banks get onside??
Best regards Knowing and Davius.

[knowing] 19/3/2010 12:33

Dyfiman I wonder if it would be easier for Autofocus or someone involved to buy ACE than pay £22M if they lose the case.