Bglobal Share Discussion Threads

[eeza] 03/6/2014 00:54

Article in Daily Mail.

[pondhopper29] 03/6/2014 00:39

It's effectively an MBO so execution risk should (hopefully) be tiny. I think they are being very conservative with the holdback, but that is probably the lawyers. My view is we'll get our 11p next quarter and maybe 4p in a year's time - so NPV of at least 13p, not risk-adjusted. Nice profit if you want to go for it, but probably too small to attract serious risk arbers. For me, I'll hold, pick up a big IRR over twelve months, but not expect anyone to take me out before then.

[skyship] 02/6/2014 18:03

Mach100 - Personally quite relaxed with that "Up to" terminology. No reason to pay out less; but I do take the point. Also have kept powder dry to take on more should they slip back a tad; still well underweight at the moment.

The buyer is a Northern PE specialist, so likely the tyres have been well kicked and due diligence already completed. Shouldn't be any unexpected last minute hitches:

[septimus quaid] 02/6/2014 18:01

A little way off but just for info:

The AGM has been set for 12 noon on Thursday 25th September 2014 at the offices of our solicitors Travers Smith, 10 Snow Hill, London.

[hpcg] 02/6/2014 16:06

The main restriction on the arb is the size of the company and the liquidity. This is only attractive to individuals really, there isn't much of an opportunity to move the needle for even the smallest institution. Plus there is some risk. Even for individuals it is only attractive if carried out on a tax free basis.

This is why we have seen the fair price settle where it is. In option terms we don't yet know the premium (delta between purchase price and capital return), we don't know the strike price (the pence per share returned to holders) and we don't know the strike date (final capital return).

Even if only 9p is returned in the short term, and 11.4p returned ultimately then that is still a tremendous rate of return on the option.

[mach100] 02/6/2014 15:17

Hi skyship. It does say UP TO 11P which is my concern. like one of Debenham's UP TO 50% OFF SALE. I reckon it might pay to wait a few days or so. It fell back a little mid-morning. I agree it is a good arb oppportunity but surely some people will be cashing in on the rise rather than have cash tied up and a little uncertainty.

[skyship] 02/6/2014 12:24

Never heard of this Company - just saw it topping the leaderboard today.

Taken a look and it seems with have a good addition for my SL thread - companies in Self-liquidation.

Have to agree with hpcg - these are looking very cheap as a purchase @ c10.4p is more than underwritten by the first 11p payout. If that happens, then you are left with a cash shell with a finite indemnity both in time and value.

Makes it a great buy; though need to read and learn more, so have only bought a few at this stage.

[weatherman] 02/6/2014 11:50

If they had about £3.5m in the bank then £16.1 + £3.5m is approx. £19.6m. But we will be left with £16.8m. So Utilisoft is seemingly taking a big chunk of cash from the business, which raises the question whether the actual amount paid is really £16.1m?

[weatherman] 02/6/2014 11:04

Presumably the cash in the bank is after costs to kpmg etc. If this becomes a cash shell will the Kennedys' wish to take it back for their own plans?

[hpcg] 02/6/2014 11:01

That's how I read it. The entire cash pile is to be returned, but in two tranches. The second tranche is held back to settle any claims. So there are a few risks:

1. The sale is not approved, fairly remote I would think.
2. The deal falls through. The short time frame is both a risk and a mitigation.
3. There are claims and the remaining pot reduces.
4. The directors do something wacky like decide to continue trading.

Even with item 1 the offer itself underpins the value of the business.

I have taken some at 10.4. I'll get my money back quickly and have a free ride on the rest with, at a guess, a 33% return in 12-18 months. I'm taking into account assorted costs such as the kpmg work, director pay and so forth.

[weatherman] 02/6/2014 10:19

11p is the initial return, there is hope of another ~5p return around time of delisting. Presumably the co will be near a cash shell.

[orange1] 02/6/2014 09:54

The statement this morning talks of delisting "in due course" not after returning 11p to shareholders.

[lennonsalive] 02/6/2014 09:46

Because it will delist from AIM, after returning 11p to shareholder and they will be left with paper.

[weatherman] 02/6/2014 09:12

I see its an MBO...

[mjcrockett] 02/6/2014 08:47

I agree with you there weatherman. I am not quite sure why the price has not gone higher this morning.

[weatherman] 02/6/2014 08:37

Wow - this is still under valued and will have nav of near 15-16p assuming no come back...

[septimus quaid] 23/4/2014 15:47

Short piece in today's Times (page 36), paraphrasing RNS only but useful publicity.

[vatteton] 23/4/2014 08:26

Well EAS thought it was a good deal, went up 20p on the day !!!
I just wonder now will we continue to trade as BGBL or will there be
a name change as we are now basically a software company..

[vatteton] 22/4/2014 09:29

Bglobal plc (AIM:BGBL), the leading provider of smart energy solutions and services to the UK energy market, is pleased to announced it has reached an agreement with Energy Assets Group plc to dispose of the entire issued ordinary share capital of its metering business, B Global Metering Limited ('BGM'), for a cash consideration of GBP2.3m, which includes payment of GBP0.2m for the cash balance of BGM on completion. The disposal is made on a debt free basis with a working capital adjustment mechanism in place post completion. The sale and purchase agreement contains warranties and indemnities that are customary for a transaction of this nature

[weatherman] 22/4/2014 09:13

Back of the envelope calculations - they get £2.3m, and had £2.5m cash = £4.8m. They need to pay off £1m debt. So net cash £3.8m, minus a bit for recent losses and we might say £3.5m cash after this transaction.

The bit that stays - Utilisoft - may have annualised turnover in the coming year of £7m with margins of 20% and pre tax profit of £1m to £1.4m.

At current market cap of £7m it seems good value to me. I would be looking for 10 to 12p in next 12 months from here.
All imo

[vatteton] 22/4/2014 07:54

Bglobal PLC Disposal of B Global Metering Limited
Peter isn't going to be very happy..

[septimus quaid] 07/4/2014 19:57

Perked up a little today.

[vatteton] 12/2/2014 16:27

weatherman
Yes, a usefull period for BGBL. quite a bit of activity today in the way of buying,
will the metering sale cover the dept ?

[weatherman] 12/2/2014 16:09

It would seem BGBL are paying back half of the debt owed in installments - 450,000 out of 950,000, then the remainder in July. The terms allow for conversion at 17p, but as the price is 8p then that is half of the original. They hope to sell the meter business soon.

[septimus quaid] 10/12/2013 08:19

Interims out just now, highlights pasted below. Overall results seem typical of a small company at turnaround phase, focusing down on useful parts and emphasis on controlling costs.

Plus, always comforting to see a healthy cash balance in these situations.

Highlights:

Revenue of £6.17 million (2012: £5.82 million from continuing operations)

Recurring revenues increased by 2.1% to £4.04 million (2012: £3.95 million from continuing operations), up 47.4% in the Software and services segment offsetting losses in metering business

Gross margin up to 62.5% (2012: 54.1%)

Adjusted Operating loss £0.91 million1 (2012: £1.16 million loss2)

Adjusted loss before taxation of £0.95 million loss1 (2012: £1.19 million loss2)

Loss before tax of £2.16 million (2012: £0.83 million loss)

Cash balances at 30 September 2013 £2.52 million

Two new entrants brought in via "supplier in a box" since 1 April 2013, plus the extension of software and services to a supplier who has launched a new residential brand in the market