Basepoint Share Discussion Threads

[sandbank] 07/9/2004 22:59

I think today's debacle is very much a personal kick in the teeth for the BNT CEO who'd had a lot to do with setting up the Fareham deal. When this gets aired again in the papers tomorrow morning it'll put more downward pressure on an already weak share price.
Seems to me the management have brought this on themselves by writing big development cheques before having the title deeds to the land. They need a more professional approach rather thana "let's wing it and hope for the best" attitude.

[mainsail] 07/9/2004 10:36

This must make BNT vulnerable to takeover . It's got all the classic ingredients. A naff board, plenty of assets and a depressed share price.

[sandbank] 07/9/2004 10:35

RNS Number:6584C
Basepoint PLC
07 September 2004

BASEPOINT PLC

Breakdown of site acquisition negotiations

Basepoint plc ("the Company") announces that the landowners of a site for the
development of a new Managed Business, Innovation & Enterprise Centre ("MBEC")
at Farnham have withdrawn from the site disposal at the final stage of
documentation. This is expected to have a material impact on the results for the
financial year to 28 February 2005.

The Company has incurred considerable costs in the design and planning of this
development and had already obtained a detailed planning consent. The building
contract has also been tendered and a contractor selected for a scheduled start
on site this month.

The Company estimates that the loss of this development at such a late stage in
the procurement process will impact on the results for the current financial
year, with a one-off charge for abortive costs of #130,000. In addition to the
substantial abortive costs charged in the six months to 31 August, there will be
an associated loss of development revenue anticipated for the second half of the
financial year amounting to #270,000. The Company does not anticipate any impact
on current dividend levels.

Elsewhere, work is progressing well on securing new contracts for the
development of MBECs for Regional Development Agencies which, subject to
confirmation, are currently expected to contribute to second half profits.
However, the Company does not anticipate that it will be possible to accelerate
work on our other, alternative private sector development proposals to replace
Farnham or to benefit materially the current financial year.

Robert Cleaver, Chief Executive, commented on the situation:
"In seeking to develop new MBECs, we are always exposed to the risk of incurring
abortive costs. That we have been successful in avoiding any such costs on all
thirteen of the schemes developed to date demonstrates the level of expertise
that exists within the Company, but does not alleviate our disappointment at the
termination of the Farnham project at this late stage. We always seek to keep
the Company's risk exposure to a minimum, but it is inevitable that we must
commit costs to a scheme to investigate viability, environmental issues,
planning and construction aspects whilst simultaneously seeking to reach
agreement on the legal format for land acquisition, be it freehold or leasehold.
In our experience losses of this nature are very rare and we will strive to
ensure that any similar situation is avoided.

Looking ahead we remain confident in our ability to deliver new, successful
projects from our existing pipeline."

Contacts for further information

Robert Cleaver, Chief Executive
Tel: [phone] e-mail [e-mail]

David Boakes, Finance & Operations
Tel: [phone] e-mail [e-mail]

Nicola Horton, Director Smith & Williamson Corporate Finance Ltd
Tel: [phone] e-mail [e-mail]

[cambium] 07/9/2004 08:32

Just when the Bournemouth Park is due to open too.. THey only have one unit let so far .....mmmmmmm

[sandbank] 07/9/2004 08:17

£400k written off because the plug was pulled on the Farnham development plus loss of revenue etc. The weak share price for the last month and the sales on Friday were straws in the wind - someone knew!

This disaster ought to be weatherable for BNT as part of the risks of the game - just so long as they took every step they could to protect the company against such losses and took action to mitigate them when they became inevitable. Whether they did is open to question. They should certainly not get this far into any project without having guarantees to protect the company against potential losses. After all this isn't roulette.

There must be a head to roll at BNT for this. Someone somewhere at the negotiating end has failed to keep the sellers sweet and allowed another party to creep in with a better offer - no doubt gazumping BNT. The RNS is a bit delphic - we could do with more detail - and some resignations.

Meanwhile NAV per share is still around 180p so long term this will climb back.

[cockneyrebel] 15/7/2004 11:46

Racing away lol -the mm's were asleep!

CR

[cockneyrebel] 15/7/2004 11:40

I think the MM's were sleeping don't you lol!

No move for 20 mins then Pow! up 10p like that.

The NAV on these has to be well over £2 now - you get the rest of the business for free!

What a steal - if these were taken over you're looking at £3 imo.

CR

[cockneyrebel] 15/7/2004 11:19

Have you read that trading statement just out?

'93% occupancy', 'trading in the first 4 months boyant'

These are trading at about 20% below NAV now I should say, cheap!

CR

[sandbank] 30/6/2004 10:37

Thanks for your thoughts BF. I will hang on to see what happens - I hate giving money away to the market!

[bigfarmer] 30/6/2004 09:24

Well the results were good but sounded a mild note of caution, I think 'consolidation' was the word. I don't think there is a problem, just no real incentive for people to buy in a quiet market. I'm pretty sure they will come back, its just a matter of time. I am monitorng closely, they seem like a good company to me.

I had a recent similar experience with WHI. They ticked up fairly quickly from mid 50's to 95p. I sold then, results came out which were good but priced in. Then there is nothing to drive the stock price in the short term, the shares drifted for several of months. I then bought back in last week at 67p with results approaching again. They have since moved up to 81p and I expect more.

These days results have to smash expectations for a stock to rise post results.

[sandbank] 29/6/2004 17:08

BIG FARMER: Far from dipping my toe - I think I've stubbed my toe on this one.

I can only conclude there must be something nasty in the woodshed for the decline to continue like this. I was told by the company today that the Chairman will issue a statement on 15 July when the AGM is to be held but that they are "not aware of any particular factor which is influencing the share price". What's your guess - if I may ask?

[bigfarmer] 29/6/2004 15:28

Drifting a bit faster now, down 7.5p today.

Think I might wait for it to bottom out nicely before thinking about dipping my toe again.

[bigfarmer] 28/5/2004 10:05

Couldn't really disagree with you there SANDBANK.

Just suited me to take a nice profit in these markets. Still going to track them. I just can't see them roaring away at the moment....

[sandbank] 26/5/2004 16:21

Well - apart from post results profit-taking all the indicators seem to show BNT is set for a further steady rise.Most of today's transactions have been buys at around 187...Could be the moment to get back in BIGFARMER.

[bigfarmer] 26/5/2004 14:43

and very pleased I did so, now 181

[bigfarmer] 20/5/2004 08:08

After a cursory glance, generally very good results.

Slight note of caution for next years results though, or that's my interpretation of the Chairman's statement.

Taken my profits for now.

[cambium] 13/5/2004 20:45

Indeed, the company is also prepared to develop and manage centres for other organisations such as local authorities or government agencies for a fee. According to government figures, there are now close to 4 million businesses in the UK. 99% of these are sole traders or employ fewer than 50 people. These companies provide an astonishing 44% of all the jobs in the UK. This is a clear indication of the scale of Basepoint's potential market.

Given that fact, the really surprising thing about Basepoint is that its shares should be trading at a discount to net asset value (Bizspace is afflicted by the same curse). You'd expect this of a pure property company, but Basepoint is certainly not one of those, especially since it is distancing itself from full ownership of its sites.

Valuation

At the end of its last business year, which ended in February, expect NAV to be over 180p a share (you'll be able to confirm that on May 20, when its full-year results are due). You can see from the price chart that only today have the shares reached that value.

It isn't because of poor profits either. Profits have grown without interruption from 0.27 million pounds in 2000 to 0.88 million pounds in 2003, with 1.5 million pounds forecast for its next set of results to be announced next month. The forward PE of 13.5 is very low for its sector, despite delivering double-digit earnings growth. Furthermore, the company has a progressive dividend policy and has pushed up the dividend every year since it floated.

For all of these reasons, the shares should push ahead steadily, helped by the restricted supply - institutions or directors hold about 60% of them. Basepoint is only about a third of the size of Bizspace in terms of the number of centres it has open; but if it performs anything like as well as Bizspace has, you'll be well satisfied.

[wilco99] 11/5/2004 09:35

The reason that Bizspace' NAV didn't increase much was due to the large issue of shares. If it wasn't for this share issue, the NAV probably would have been around the 50p mark.

[cockneyrebel] 10/5/2004 22:07

25% gain over 2 years but a lot of that gain may have been in the valuation last year, depends when they re-valued the assets last.

BNT has a much better model imo and should be trading well over nav imo. They have a cracking business growing earnings at a pace yet trade around NAV? I think the earnings will be well above 10p, next years eps forecast will be upped again too imo.

Forward PE probably something like 13 in reality, trading at around NAV, 43% earnings growth, not the 11% BIZ achieved.

Expect them to get tipped heavily on the results too - director buys at not that much below this level suggesats they have belief in the results too imo.

CR

[cambium] 10/5/2004 21:51

The worrying thing with Bizspace was the NAV.

The CEO was boasting that they have sold Tottenham and another site at a 25% gain over 2-3 years, and yet they haven't increased there NAV much.

[cockneyrebel] 10/5/2004 10:05

Well Bizspace results well receive - pre-tax up 44%, eps up 11%.

But now look at Basepoint, pre-tax was up 110% in H1 converting to a rise of 43% in eps. These have a superb record of long term earnings growth too.

Results due on May 21 - 11 days time.

Plenty more in this great little ompany imo.

CR

[cambium] 09/5/2004 22:19

I ahve fallen asleep on this one, should do well tomorrow with the BIZ news due.

[cockneyrebel] 07/5/2004 08:08

Up 7.5 on no trades showing, must have been a biggy pre-open I guess

Still cheap as chips imo.

CR

[cockneyrebel] 06/5/2004 14:57

BIZ up more today, BNT too.

Still trading around about NAV with the asset growth in H2 imo, perhaps below NAV still.

45% earnings growth this year - basically you get a great business for free when you buy these assets.

CR