Avanti Capital Share Discussion Threads

[kylie69] 15/12/2013 09:55

Mblox stake shown as 51p a share, net current assets as at 30/6/13 17p per share,espresso stake 4p per share, cash from recent sale after payment of divi is 42p per share. Is the share price still too low?

[eezymunny] 13/12/2013 16:15

Yes, hence the buyers above 160p were arguably pretty dim. I'm completely out. The value of the mblox stake is the big question. In the books at £4m isn't it but might be worth a lot less (or more!). I've looked quite hard for accts for mblox and what I've seen is neither detailed nor up to date. Lots of revenue but loss-making and weakish balance sheet, so AVA stake may or may not be hard to dispose of at any sort of value. Good luck if you're still in.

[lbo] 13/12/2013 16:06

Well its £1.05p in cash in the next few weeks and over 50p per share left with the Mblox stake and other cash

[dc74] 13/12/2013 12:30

Had to get out in 500 share chunks between £1.50 and £1.60, valuable lesson in how to get out of an illiquid share even when volumes are high.

[eezymunny] 13/12/2013 11:43

Exactly. But there are some right mugs out there....

[mjcrockett] 13/12/2013 11:40

You cannot sell at this level. Disgraceful behaviour by MM's.

[eezymunny] 13/12/2013 11:36

Some fairly ill informed penny punters buying here 160p+ methinks...

[eezymunny] 13/12/2013 10:45

About as we thought, 105p divi goes ex just in time for Xmas :)

Reckon currently about 130p+ cash +net curr assets, then mblox valued £3m in for free. What it's worth remains a mystery to me!

[errollc] 11/12/2013 10:40

Divi of 100p+ in Jan, leaving shareholders with some cash (£3m?) and Mblox. Maybe a good shell for a reversal...still cheap at these levels.

[lbo] 02/12/2013 11:44

So just Mblox shareholding left! AVA own somewhere between 4.5% and 5% of mBlox or another 50p per Avanti share



"the board of Avanti Capital plc have taken a prudent approach in determining the carrying value of its investment in mBlox. Accordingly, a provision of £1 million has been made against the carrying value as at 30 June 2012 in order to bring down the carrying value to cost"

"As at 30 June 2013, after including the provision referred to above, the carrying value of the group's investment in mBlox was £4.0 million (2012 – £5.2 million) equating to 51 pence per share"

[whealan] 28/11/2013 19:26

It happened! So far so good.

[lbo] 28/11/2013 10:12

Ecletic bars floated today and Avanti get £11.8m in loan repayment and sold all shares



-- In addition, a further 2,835,861 Ordinary Shares held by the Group's principal shareholder, Avanti Capital plc ("Avanti"), will be sold at the Placing Price pursuant to the Placing for approximately GBP4.5 million enabling Avanti to sell down completely its shareholding in the Company.

Eclectic will use the net proceeds of the Placing to repay a shareholder loan owed to Avanti of approximately GBP7.3 million

[whealan] 21/11/2013 22:15

If it all happens......

[eezymunny] 20/11/2013 17:22

Yes, you're right Whealan. And I agree about mblox disposal. Seem keen to wind this whole thing up?

Also should factor in Kleiner clawback on an mblox disposal so best to say perhaps £3m there.

So now I've calmed down c. £13m total value there or 160p/share with still about 130p+ of that in cash+nca. Gotta be too cheap still...

[whealan] 20/11/2013 17:08

EezyMunny

They actually wrote mBlox down by another £1m to "cost" of £4m in the final a/cs. Not sure how they got above cost but that is still 51p a share. With Eclectic out of the way I expect they will be concentrating on disposing of mBlox at the earliest opportunity. I think I'll go to the AGM and find out.

[eezymunny] 20/11/2013 16:05

We can only make an educated guess but I reckon this trades at a cash return adjusted equivalent of about 160p+ after the cash return scheduled for "early 2014"

eg if 100p/share returned to s/holders in Jan, I reckon share price will be about 60p. Even at 128p to buy that's a quick 25+%

Just an educated guess as I say...

[errollc] 20/11/2013 15:58

By the way have a look back to fxdealer3's post in April.....very funny.

[errollc] 20/11/2013 15:55

Reckon they'll give back c.£7m....

[eezymunny] 20/11/2013 15:23

From the interims



Eclectic Bars £7.3m (now £9m)
Espresso £0.4 (sold £0.34m)
mBlox £5.0
Net current assets including cash £1.3m

Total £15.64 or c. 194p/share of which c. £10.6m will be cash+NCA or 131p/share

If my sums are right. I bought more again!

[eezymunny] 20/11/2013 15:03

Yes, I've just bought a few more. Price just looks wrong here. Only risk is they hold back a lot of cash and do summat daft with it - but that doesn't look to be the case. At 120p mblox stake being valued at almost nothing. Can't be right?

[euclid5] 20/11/2013 14:49

If they return all the £9m / 7,648,148 shares in issue = approx 117p

so far if they do this the rest of the business is valued at zero

" Avanti will receive (net of costs including carried interests) approximately £9m" - Following completion of the IPO formalities, the intention of the board of Avanti to return the substantial majority of the sale proceeds (net of carried interests) to its shareholders in early 2014"

[eezymunny] 20/11/2013 14:43

Yes, great. £9m is about 112p/share, so a "substantial majority of the sale proceeds" sounds indeed like we might get £1+/share returned.

That leaves mblox and other bits (currently valued at £5m, non?) in for free. I reckon right price closer to 180p.

[adam] 20/11/2013 14:34

I am hoping they will promptly return £1+ to shareholders. Market then will start to give some value for mBlox & Espresso once they show discipline and the inclination in creating and returning value to shareholders.

[paxman] 05/11/2013 11:14

The IPO might not proceed but IPOs have been going to premiums and at a current year 8.5 times EBITDA ( at £30 m post money) valuation Eclectic is a good growth at a reasonable price story I think.

Low growth, arguably over indebted, listed pub chains are valued at that multiple.