Avanti Capital Share Discussion Threads

[growbag] 17/10/2005 16:25

Er ... like. Results?

[adam] 04/10/2005 15:24

I think if it was sold they would have to announce it straight away. I would suspect that the newspaper rumours that offers were tabled were true, but what they and we don't know is if they were acceptible. Perhaps not.

[hugepants] 04/10/2005 14:30

Results were out in October last year. The modest drop the last few weeks smells to me like someone knows there isnt going to be news of a sale of Po Na Na. Hope Im wrong.

Anyone have views on LGB? Price is 65p but has 90p of cash and another 110p of cash that is earmarked for the purchase of property in Spain/Portugal.

SOV is smaller. Share price is 8p, Cash about 10p and another 5p of listed US investments.

[jeff h] 27/9/2005 19:36

7.5k HP thought 5k today...best of luck to all holders

[hugepants] 27/9/2005 15:40

Jeff

Out of interest how many did you sell?

[jeff h] 27/9/2005 13:09

Got bored and sold!.....an eternity to sell a bar chain when lots
of others have been sold....an eternity to produce their results when
some can publish them in August....never mind.

[hugepants] 15/9/2005 08:03

OK trading statement this morning from Luminar.

[arthur_lame_stocks] 10/9/2005 16:25

Much more than that I think growbag.

All figures are off the top of my head but:

Barvest has 5m of external debt (banks and current liabilities). So down to 10m already. But then AVA get 2m for Loan notes + interest @ 30% pa. so down to 7.5m roughly (very roughly!!!). Then they get 75% of remaining money for equity stake = 5.5m.

So total is about 8m which is over 80p a share.

Sorry those figures are really bad but I think that AVA will cash in a lot more than 28p if Barvest goes for 15m.

Remember though they don't say how much has been offered, ony that 15m was being asked earlier, conditions are perhaps a bit tough in their market.

But I take some comfort from the managements willingness to buy in shares at 1.50, at least they believe that represents good value.

Arthur

[growbag] 09/9/2005 14:22

The £15m comes from Avanti's quoted enterprise value in the last accounts.


Wouldn't £15m for Po Na Na only equate to 23p per share (or 60% of that)? They're citing 4op odd in the last accounts for the uplift. Confused.

[hugepants] 09/9/2005 13:25

15M would be great but I wonder where they got this figure. Out of a hat?

[hugepants] 09/9/2005 12:54

From today's Times

RUMOUR OF THE DAY

Avanti Capital held steady at 154.5p on AIM, despite word Soho Bars and Restaurants has tabled an offer for its 28-strong Po Na Na nightclub chain, which was put on the market earlier this year for £15 million. CanDu entertainment is also said to be bidding.

[jeff h] 09/9/2005 08:06

...just bought 7.5k as a punt on the next consolidation move in the bar industry....see The Times today for alleged approaches....

[growbag] 06/9/2005 10:41

Been holding this one since the days of E-Capital Investments (just thinking
about Virtual European Office -VEO, makes me cringe).

Need about 250p per share to break even - from a 4-4.5p average per share in old money.

Obviously pleased about the Po Na Na and MBlox situations, but is there anything else to add to shareholder value on the horizon?

The Board continue to draw salaries from the original E-Capital fundraising while eroding shareholder funds. Should have returned cash years ago.

Any one think it is worthwhile holding?

I noticed this from the last set of results:


SQC RESEARCH ESTIMATE OF PORTFOLIO VALUATION

Asset Value per share
Cash (less liabilities) 136p
Mblox (at cost) 18p
Mblox (SQC uplift) 20p
Po Na Na (cost) 21p
Po Na Na (uplift) 41p
Other investments 6p
Property 4p
Total 246p *


That looks pretty healthy. But why is the share price languishing down here?

[currypasty] 19/8/2005 14:46

sometimes its accounting policies that dictate what investments are valued at, which the company has to stick to, even though they know the investment is worth alot more.

[lqs] 19/8/2005 13:59

Why are Avanti being so prudent when valueing their mBlox stake? Its in the books at cost of 1.8M but the latest round of funding valued AVA's 7.7% stake at 2.6M. So uplift of 8p-9p on mblox stake. If there has been a fundraising at a higher price I dont see whats wrong with revaluing the original investment.

[lbo] 18/8/2005 16:38

Hopefully we will get good news! Seems buyers are coming back in now

[currypasty] 18/8/2005 10:31

blue again today !

[ecapital] 17/8/2005 13:11

Somebody likes this - 20k purchase today

[adam] 16/8/2005 08:26

The problem with "investment" companies is how good they (the management) are in the round. So far the carried forward deficit (hence tax loss) implies they are nothing short of atrocious. They will argue that was from the bubble, but then they would have said how brilliant they are if they had sat on the cash and not blown it. The Barvest deal was clearly good as they got 60% originally for a pittance and a bond with a massive yield that was then mostly refinanced with the banks.
mblox looks good too, but it has to be remembered that this was a remnant from the bubble days, so it would be remarkable if management were now claiming this as a feather in their cap at the same time as arguing the losses were excusable.
All that aside...



If Electra buys other pub and club operators, it may yet win the operational cost savings and revenue enhancements that can come when two similar businesses are brought together

See my messages numbered 79 and 83 for context.

[hugepants] 15/8/2005 12:52

I checked the Urbium results and they did EBITDA of 17.5M for 12 months. Barvest was 2M EBITDA for 45 weeks. AVA hold 75% of Barvest so that works out about 2M EBITDA over a 12 month period. Urbium has freeholds but if Urbium worth 100M surely Barvest worth at least 4M (40p a share)?

Has there been any uplift in the mblox valuation to account for recent fund-raising?

Last NTAV was 185p. Is the justification for invesment companies trading at a discount to NTAV not due to capital gains tax on profits on disposals? If so it doesn't apply to AVA since they have over 19M of tax losses to use up.

I think these shares are too cheap. Someone convince me otherwise before I buy any more.

[hugepants] 15/8/2005 12:10

Yes and Urbium up 11% this morning. I hold a few thousand shares in AVA but tried to spreadbet as well this morning on IGINDEX but will be paying £1.585 for the december futures which is a bit steep.


Tiger Tiger owner falls prey to £100m Electra bid
By Guy Dennis (Filed: 14/08/2005)


Urbium, the owner of the Tiger Tiger bar chain, has received an offer of more than £10 per share in a proposed takeover that would value the group at more than £100m.

The new all-cash offer is understood to have been made by Electra Partners, a private equity firm, which outbid several other private equity houses. Urbium's shares are likely to soar on the news tomorrow. They closed last week at 905p.

Urbium, which has 34 bars, mostly in London, has effectively been up for sale since Regent Inns, which runs the Walkabout and Jongleurs chains, wooed the company with a series of approaches earlier this summer.

Regent walked out of the bidding last month after a cash-and-shares bid valuing the company at 975p per share was rejected by Urbium.

When Regent quit the auction, Urbium's shares fell by 4.7 per cent to 897.5p, but speculation about private equity bids has helped the stock rise again. Over the past three months the stock has soared by 71 per cent, largely because of the bid speculation.

[adam] 14/8/2005 16:15

I would hope so. Urbium sold for £100m with 34 bars, and PoNaNa has 28. Of course not a direct comparison because Urbium generates pots of cash, and has Freehold, but Barvest is in Avanti books at £600k.

[hugepants] 12/8/2005 13:33

A lot of bearish views here, no doubt justifiable. I dont suppose the London bombings will have helped either but do posters here still expect Avanti to make a profit on the PoNaNa investment?

[adam] 29/7/2005 12:34

perhaps of interest: mblox