Avesco Share Discussion Threads

[salonie] 10/4/2013 18:20

Alloa, is it not worth holding in the short term? If the markets take there usual setback due to the sell in May brigade, surely AVS is a safe bet with the Disney payout imminent.

I have added recently.

[alloa2003] 10/4/2013 16:49

I think fair value could easily be £3 a share - and possibly more - but anything over £2.50 is getting towards selling territory in the short term.

[typo56] 10/4/2013 14:45

I think "the market" probably hasn't fully grasped the costs/tax situation regarding the dosh. I certainly haven't.

[michaelmouse] 10/4/2013 14:00

stoxx67 - Personally I think simple calculations and some common sense are the two most essential ingredients in successful investing.

Basically at the current £2.20 share price (assuming they receive around £1.50 per share from the Disney case) then they are at a 27% discount to tangible NAV (If you assume tangible NAV = £1.50 (current) + £1.50 (Disney) = £3.

Avesco is a growing business which has prospered through one of the deepest recessions in living memory. Outstanding for any business, but particularly for a business like Avesco which is sensitive to economic conditions.

Imo it appears that the market still hasn't fully grasped the above, and at £2.20 per share is attributing no value to the business at all.

Avesco has significant intangible value yet to be recognised, and the shares are imo still very cheap.

Michael.

[alloa2003] 10/4/2013 08:03

The stock is well bid first thing today - you can sell online but there is no quote available to buy. Momentum seems to be building with this one :)

[stoxx67] 09/4/2013 06:04

when should we be hearing about when Avesco plan to return the funds to shareholders?

it has been well flagged for a long time that the money is to be returned , so the only question now is to timescale... 3 months, 6 months?

if Avesco is trading at £2.57 , for ease of calculations, at the time £1.57 is returned then this would then leave Avesco trading at £1 per share XSD, and if NAV is £1.49 then this leaves company 50% undervalued in relation to NAV...

is this a fair calculation, i realise all kind of assumptions are made in the above but just as a very basic calculation , would it be fair?

[williemanjaro] 08/4/2013 11:29

Well the spread appears extreme but at least AVS is inching up......so thinly traded-a couple of big buys could smash this higher.

[rogash] 08/4/2013 11:01

Avesco will get from Disney in effect 157p per share.That puts avesco on a pe of 5.

[funchalman] 21/3/2013 09:03

disney got a $1.5 billion 364 day credit agreement with lenders yesterday.
maybe the post judgement interest is more than I thought , or did the judge give them a smack for their frivolous en banc call.

[quepassa] 20/3/2013 10:02

Link to full Edison report:-



ALL IMO. DYOR.

QP

[quepassa] 15/3/2013 09:33

FINNCAP YESTERDAY ISSUED AN UPDATE BROKER NOTE AND SIGNIFICANTLY INCREASED THEIR TARGET PRICE ON AVESCO FROM 185p to 255p.


ALL IMO. DYOR.

QP

[quepassa] 14/3/2013 08:32

Stated NAV of 149p per share.
Plus about 154p to come from Disney litigation ( $60m divide by 26m shares at 1.5 fx).

Value of Company = 305p per share.

Reiterated policy is to grow ongoing shareholders dividends.

An oft-repeated intention to pay the majority Disney moneys as a Shareholder special Dividend

STRONG results for last Quarter.

VERY POSITIVE Outlook.

Penetration of new China markets beginning to feed through.

At an share price of 210p bid, this company looks highly, highly undervalued in my opinion.

ALL IMO. DYOR.

QP

[liquid millionaire] 14/3/2013 07:45

Thursday 14 March, 2013


Avesco Group PLC

1st Quarter Results


RNS Number : 9426Z

Avesco Group PLC

14 March 2013




EMBARGOED UNTIL 7.00am, 14 March 2013



AVESCO GROUP plc



Results for the three months ended 31 December 2012



Avesco Group plc ("Avesco" or the "Group") (AIM: AVS), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its preliminary results for the three months ended 31 December 2012.



KEY HIGHLIGHTS



· Revenue of £30.1m (three months ended 31 December 2011: £33.6m)

· Operating loss of £0.2m (three months ended 31 December 2011: loss of £0.3m)

· Trading loss of £0.1m (three months ended 31 December 2011: profit of £0.1m)*

· Trading EBITDA of £4.3m (three months ended 31 December 2011: £4.7m)*

· Basic losses per share of 2.2p (three months ended 31 December 2011: loss per share of 2.6p)

· Adjusted basic losses per share of 2.1p (three months ended 31 December 2011: loss per share of 1.2p)*

· Disney litigation funds now at the collection stage



* As described in note 3, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.





Richard Murray, Chairman, commented:



"Although the financial year 2012/13 has started slowly, with lower capital expenditure requirements this year and promising signs for much improved trading in the Far East, we remain positive regarding the outlook for the year as a whole. Our focus remains to generate cash, reduce debt and grow dividends, whilst maintaining a sound balance sheet.



The Group is well positioned, with the financial and operational capabilities in place, to continue its progress through 2013 and beyond.



The judgement in the Disney litigation, in which the Group maintains an interest, is now collectible although it is expected that there may be a delay of a few months before receipt of funds by the Group. The Group's net interest in the award is estimated at approximately $60m."



For further information please contact:






Avesco Group plc








Richard Murray, Chairman


01293 583400




John Christmas, Group Finance Director




























finnCap

Ed Frisby/Rose Herbert, Corporate Finance

Brian Patient/Victoria Bates, Corporate Broking




020 7220 0500




Chairman's statement



As reported in my statement in January, the financial year 2012/13 has started slowly. In the UK some corporations appeared to have used much of their 2012 budgets on the Olympics, while continuing economic problems in the Eurozone and uncertainties in the US linked to the presidential elections and the "fiscal cliff" have all contributed to a reduction in activity, which is reflected in the Group's results when compared to the equivalent quarter in 2011.



Results



Revenue in the three months ended 31 December 2012 fell 10% to £30.1m (three months ended 31 December 2011: £33.6m). The quarter did benefit from the inclusion of the Paris Motor show whereas the prior year included two major events in the Middle East (the Arab Games and the UAE 40th Anniversary celebrations). Excluding these events from the comparison between the two periods and adjusting for the disposal of our Full Service business in Monaco shows a 4% decrease in the underlying revenue.



Operating losses were £0.2m (three months ended 31 December 2011: operating loss of £0.3m). Gross margins improved to 35% (three months ended 31 December 2011: 32%). Excluding restructuring costs and the loss on disposal of the Monaco business, trading EBITDA reduced to £4.3m (three months ended 31 December 2011: £4.7m) and the trading loss was £0.1m, (three months ended 31 December 2011: trading profit of £0.1m). On this basis, the adjusted losses per share were 2.1p (three months ended 31 December 2011: loss of 1.2p).



After the Group's significant spend on new equipment last year, we are planning a much reduced net investment during 2012/13. As a result, net investment in fixed assets for the quarter fell to £6.2m (three months ended 31 December 2011: £10.6m). When combined with a reduction in working capital of £0.2m (three months ended 31 December 2011: an increase of £4.4m), the payment of an interim dividend in October 2012 of £0.3m (three months ended 31 December 2011: nil) and other minor factors, our net debt cash outflow reduced to £2.6m (three months ended 31 December 2011: £10.6m) leaving net debt of £27.7m at the end of the quarter (three months ended 31 December 2011: £22.7m). As a result, the Group's gearing (being net debt divided by net assets) ended the quarter at 73% (three months ended 31 December 2011: 62%), although we expect this level to reduce significantly by the end of the financial year.



On 31 December 2012, the net assets of the Group were £37.9m (31 December 2011: £36.4m) or £1.49 per share (31 December 2011: £1.44 per share).



The Group's underlying trading since the start of the second quarter has shown encouraging signs, and, with our operations in China now trading profitably, we remain positive regarding the outlook for the year as a whole.



On 27 February 2013, we announced that the United States Ninth Circuit Court of Appeals voted to deny Disney's petition for a rehearing en banc in relation to the judgment and award in the litigation in which the Group maintains an interest, and on 7 March 2013 the Court issued its order returning the case to the trial court, an act which had the legal effect of making the judgement collectible by Celador International Inc. ("Celador"). The Group's net interest in the award is estimated at approximately $60m. Payment to the Group is via a third party under the terms of a sale and purchase agreement dated 1 December 2006, by which Avesco sold its interest in Celador. It is expected that there may be a delay of a few months before receipt of funds by the Group.





The Avesco Group's businesses continue to be widely regarded as leaders in their fields and, following substantial investment in new equipment during 2012, the Group is well placed to maintain the high levels of service that our customers around the world have come to expect. With lower capital expenditure requirements this year and promising signs for much improved trading in the Far East, our focus remains to generate cash, reduce debt and grow dividends, whist maintaining a sound balance sheet. The Group is well positioned, with the financial and operational capabilities in place, to continue its progress through 2013 and beyond.

[pappupops] 13/3/2013 09:45

anyone know when results due ?

[salonie] 10/3/2013 12:30

Interesting points michaelmouse on the valuation and net asset value. AVS appears undervalued, regardless of the Disney payout. Well done with the initial 20-30p investment. I have been in since 90p with an average price around £1.20.


ATB

[funchalman] 09/3/2013 11:42

avesco could go down the route of the system RQIH use.I have invested in them for years , for the twice a year return of money (they dont use the word dividend)they pay.you just elect to take the money as either capital or income.

or you could look upon it another way,as the the shareholders wallets have been savaged in a most brutal way by the big bad wolf should the compensation be subject to any tax.

[simon cawkwell] 09/3/2013 03:28

Gentlemen,

This is all very interesting. For instance, the dividend could be spread over two or more tax years so to avoid higher rates.

Or the cash could be used to buy stock in - so generating a capital gain which would be taxed at 28% top rate.

I hasten to add that I am uncertain as to the tax position here confronted.

Or some bid might be received for the lot.

At a pre-tax level, the only residual difficulty is that the USD cash pot is degraded by wipe out inflation in the US. I grant you that one has to be a little paranoid to fear this result. But it is not absolutely impossible.

Of course, the overriding comment must be that Disney are a really dreadful lot of shysters. Why can't they just pay up now and stop wasting everybody's time?

Simon Cawkwell

[funchalman] 08/3/2013 15:19

rogash , if they pay it as a special dividend then like ordinary dividends it will be paid net of the 10 percent tax credit.for highworth individuals they will be liable for further taxes but unfortunately that does not apply to me.of course prior to gordon brown those that hold these shares in pension funds such as sipps (like myself) would have received it gross with no tax taken off.
all the above is just my opoinion and i could be totally wrong , if someone would like to comment please do so.

[alloa2003] 08/3/2013 14:34

I think 250p in the short term is fair value

[rogash] 08/3/2013 14:28

Well spotted fun.What about UK tax?I suppose if they pay most in a special dividend,it will be paid gross.

[funchalman] 08/3/2013 14:16

ref tax of the award.
see rns dated 22.12.2010 , note the word "after".
i will hold avesco to that.

[bagpuss67] 08/3/2013 12:39

Thanks. But even in a breakeven profit year they make £20m Ebitda because depreciation is so huge. They have £1.5m finance costs not sure why they dont cut the debt from the disney proceeds and hence cut the finance cost and use that saving to up the dividend a bit..net debt including finance leases is £25m which actually makes it quite highly geared relative to net assets but on a confortable Net debt/ EBITDA multiple..anyway..i've bought some and hope for £3.