Colliers Intl Share Discussion Threads

[scburbs] 29/3/2012 10:41

Envirovision,

Unfortunately we may never see the cashflow statement to 31 December 2011, but I agree there is a big problem here. Proving it is anything other than CEO incompetence would be very difficult.

There is no doubt that First Service have acted very opportunistically and will probably make a lot of money (the business could easily be worth $100m in a few years). However, unless they made an implicit or explicit agreement to finance the expansion the responsibility falls to the CEO IMV.

The CEO should have ensured he had explicit First Service financial backing before implementing the expansion strategy. If he did then there is a very serious problem here. If he didn't then he is not a very good CEO to put it very mildly.

There is definitely a problem with pre-pack administrations and perhaps something could be done to stop existing shareholders making offers to buy businesses in administration. Alternatively the rules could be changed such that if an existing shareholder wants to buy the business they must offer other shareholders the opportunity to participate in the new entity (albeit that they would have to stump up to do so).

[envirovision] 29/3/2012 10:26

Scburbs theres a big problem here.

They purposely went about expanding Colliers UK and did so without the resources to do so, expanding into administration.

The 90% owner of Colliers worldwide happily allowed and from what I can tell possibly encouraged this expansion.

As a result it picks up all of Colliers UK from prepack and the other equity investors are the ones who footed the bill. These other people are people like you and me and Mrs Jones down the road doing her best to save for her pension through some private pension fund manager.

That cant be right can it ?

FFS they are so pleased with the expansion into prepack they have rewarded the UK management team and Tony Horrell with continued roles including EMEA on the Board of Colliers International Governing Committee.




I wonder if they will all get fat pay rises and extra benefits later this year ? we probably wont know, but I would imagine yes they probably will.

Others can think what they like, but as far as I am concerned, this type of thing is completely and utterly out of order and equity holders need some form of protection from it. Naming and shaming as Loverat suggests sounds useful but what will that achieve ? and also you're talking about trying to shame people who £800-£1500 per hour media lawyers are pocket change to, and the likes who could probably shut you up in the blink of an eye.

[scburbs] 29/3/2012 08:06

Loverat,

I wasn't saying that it was intentional to run it into the ground and allow First Service to buy it out of administration!! I was saying that based on the strategy he was following if he hadn't negotiated financing from First Service then this was a likely result if First Service were to play hard ball. Given it has come to pass just 4 months later, it is difficult to disagree with those views!

He definitely agreed the strategy with First Service as it is mentioned in an interview. So to have agreed the expansion strategy without getting the financial support ...

There is a question mark over the role of First Service in approving an expansion strategy in a company that doesn't have the financial strength to implement it, particularly when First Service then takes advantage of that lack of financial strength! However, primary responsibility for that must lay with the CEO.

[bubble pricker] 29/3/2012 08:05

Hi Loverat, so you lost money here too? Good luck with your "campaign" group. You just don;t seem to get that it is YOUR fault if you lose money investing in shares.

[loverat] 29/3/2012 05:49

Agree Langbar is different and speaking in terms of how newsworthy this actually is in comparision. However, the share price decline coupled with the strategy and stitch up with FS does suggest a little more than simple incompetance IMO. I am sure this will be debated however and we can reach a consensus. Did this strategy have the backing of First Service? He might be a complete fool but are we saying they are too? Sometime back I think it was you (apologies if I am wrong) who suggested that this company was deliberately being run into the ground. The other point is why no trading update was ever released. Who was the Austrian who was buying big share lots - surely not another fool?

So many questions I think before we can simply conclude the man is one of the biggest idiots on AIM.

Your view some months back. Be interested in others too.

scburbs - 16 Nov'11 - 16:48 - 1053 of 1277

With the shares worth tuppency halfpenny you might have expected some cuts, but the recruitment drive continues! Either Horrell is a nutter or the market is. Unfortunately I suspect Horrell is not the man to lead COL through a finance constrained market, which is not the right time for a death or glory CEO!

I am not sure that a plan to expand it to death (as sufficient liquidity will not be available) and then allow First Service to buy it out of administration is quite in line with his fidicuary duties! Either that or First Service provide the liquidity to fund the expansion and then suddenly change their mind and pick up the pieces afterwards! I do have a cynical mind, so hopefully neither of these are the plan, but my confidence in Colliers leadership is very low

[scburbs] 28/3/2012 23:00

No Scam here (but definitely some people for the Directors from hell list!).

Just pure and simple poor leadership in a tough market. Given Colliers is not the only one to go under (DTZ), it isn't going to stand out like Langbar!

The main issue here is the CEO was poor and had the wrong strategy (extremely ill advised to anyone with any common sense, but presumably at least he believed it!). Not too much else to see here IMV. Unfortunately the penalty for well intentioned incompetence is non-existent.

[loverat] 28/3/2012 22:23

Indeed envirovision.

I have specifically been waiting for events here to unfold. Colliers I believe is a well known and respected brand and this is not the sort of company you would normally associate with ripping off investors in such a cynical and calculated way. This is what is going to make it so newsworthy and strike a chord with investors everywhere.

The events over the last year, the destruction of the share price, First Service and finally the theft of shareholders funds completes the story. Let's see whether in a year's time this company and their directors regret the day they went down this path. Coverage also on the carpetbaggers - First Service.

Anyway - lets see if we can get things started.

[envirovision] 28/3/2012 22:10

Sounds an excellent idea. What we need to do is bring the scams which frequently occur with listed companies to the general public. We need to highlight the systematic wealth destruction of investors equity carried out on a daily basis by many listed companies (Colliers being the latest), also the total lack of care and responsibility of funds managers throwing others peoples money about should be included, as should the failings of the regulatory systems and the stock exchange itself. An emphasis should be on AIM and the scale of almost monthly frauds and failings of the stock exchange should be priority.

[loverat] 28/3/2012 21:47

Evening folks.

Read the news today with interest.

For some time now I have been thinking of setting up a small campaign group. Not an action group or a futile attempt to recover money here. The money has gone and your investments into the pockets of a few millionaires who presided over this scandal.

The point of this is primarily to publicise this story - on the internet and national press. I am in the process of setting up a website - 'Directors and companies from hell' based on the solicitors model. As well as publicising this story through some contacts I have, I will be featuring this as the first story on the site.

The reason being is that it is the best example I think I have come across since Langbar and a company called London Asia Capital. But what is possibly more helpful here is that two of the directors and those of First Service have very high profiles in this sector and the company has a good reputation up to now. (excluding amongst the majority of their shareholders obviously). What is interesting most is how this was played out and manipulated for the past year and Horrell's recruitment and expansion strategy which scburbs warned was foolhardy. This is really very newsworthy and the publicity from this will raise awareness of similar scams carried out by other AIM directors.

I am quite busy at present but would be keen to know if anyone is interested in joining a few shareholders in this venture. No real effort or any costs are necessary - just a few people trying to achieve something positive from this scandal. I have quite a few ideas but also would welcome the views of others.

Finally, I would like to know more about our Austrian friend if anyone knows anything concrete. A new thread soon also I thought - just to get things started.

[wakeland] 28/3/2012 17:34

I took the hit at 1p and hopefully I can learn something from this, looking back I should have got out when the non-exec bailed about six months ago, it now seems obvious he was getting rid of the shares he'd bought about a year earlier.
As for Georg, I suspect he'll do ok for making his sacrifice, officially he was not in concert but he must have enough good contacts within the group to know the score.
Jo Jo who was egging everybody on to keep holding has not posted today, maybe he didn't have a position after all.

[scburbs] 28/3/2012 14:56

Price paid $22m, 2011 turnover $100m (down in H2 on last year).

Rather poor quote from Horrell that he now has the financial resources to pursue his strategy! I suspect he should have thought about that a bit earlier! Muppet!

[joeblogg2] 28/3/2012 09:00

:(( £4k down the pan . I hope Ritblat can look at himself in the mirror after this mess.

[scburbs] 28/3/2012 08:48

Tony Horrell, JLL and Colliers - another one to keep on your watchlist to avoid at all costs.

Expanding a company to death is a serious offence. They carried on recruiting like crazy even when it was obvious that it was a serious threat to shareholder value (i.e. who he is supposed to be working for). Incompetence on a massive scale (and incompetence which continued despite the obvious growing risks as the economy slowed). I suspect the results to 31 December 2011 were really bad, hence they have avoided releasing the information.

Whether he may have other areas of expertise, he was patently not capable of acting as CEO here. He was undoubtably operating in a difficult market place, but expanding having not sorted out core profitability (despite the positive start made by his predecessor) was obviously the wrong strategy. At the same time as carrying out the wrong strategy he failed to obtain the financial backing required for that flawed strategy compounding his errors. Definitely one to avoid.

As an aside, what on earth was the Austrian doing! He should maybe team up with Horrell!

[gerryjames] 28/3/2012 07:56

How's that for an update.

[loverat] 24/3/2012 06:47

Indeed - what is even more staggering is that some of these directors are actually old hands and respected in the industry. Horrell joined this company announcing to shareholders the intention to review and restructure the business.

He has gone on a recruitment drive and expanded the operations. You would think all of this is good. Nope, seems some posters may have been right to suggest that all this was planned all along. Decimation of shareholder value by around 95% since his appointment and when there was nothing to suggest the fortunes of the business have significantly declined. The company called it the 'DTZ affect' when the share price collapsed in November 2011. I wonder if they were trying to tell us something then.

The justification for offering nothing to shareholders is the debt. Well, that was there all along and there was never any suggestion that this company needed 'rescue' by a company of carpet baggers.

Horrell and Co may think wiping out a few small shareholders will not make one jot of difference to their reputation and standing. Well, if this goes the way the RNSs suggest they had better think again about that. This is a scandal of epic proportions which they are trying to quietly brush under the carpet. Perhaps they hope that this extended offer period will weaken the resolve of shareholders and they will quietly sell out and move on.

The company might do well to continue to read these boards. There might be one or two 'updates' for them in due course.

[loverat] 21/3/2012 13:12

I suppose one explanation is that FS just got rid of the management, replaced them with their own and did not tell anyone. That might explain the fact the RNSs seem as if they have been written by some fool intent on giving away the company.

Has anyone heard from them since FS had that meeting with them a couple of months ago?

[scburbs] 21/3/2012 13:01

Is the board of Colliers awake?

[mathisvale] 21/3/2012 10:29

Disappointing RNS spurs initial sales this morning.

But wait, buyers have just stepped in and snapped up these 'worthless' shares. Why would anyone want such shares. Perhaps they aren't worthless after all. Could it be that someone wants to make you think that they are so that you will sell and they can buy

You couldn't make it up

[loverat] 21/3/2012 08:20

Indeed - the management(relatively recent appointments) have presided over one of the worst declines in shareholder value seen in recent times on this market.

The fact that they are attempting to give it away for a song compounds the appalling performance of this company and the management.

I said before - the directors are accountable to us. And they have failed miserably in those duties.

[loverat] 21/3/2012 07:16

LOL

They really are a complete bunch of clowns.

[joeblogg2] 20/3/2012 17:10

Offer extension. Not sure who they are trying to kid but why bid if they see no value?
FirstService is continuing constructive discussions with the Company's key stakeholders with the firm intention of completing a transaction shortly. The precise nature of such a transaction is yet to be determined and it may provide negligible, or no value for shareholders. It will, however, secure the future of the Group's operations, provide stability for employees and ensure uninterrupted service to all clients.

[loverat] 20/3/2012 13:21

Indeed Wakeland - it was one of the most absurd RNS I have ever read.

And agree with everything else. We will see what transpires here. The reputation of the CEO is on the line here.