Davenham Share Discussion Threads

[grlz] 20/1/2011 14:01

..another chunky 112,731 buy went thru this morning on plus.... Murtagh buying again?

[grlz] 20/1/2011 13:57

fast moving situation, the BoD can't really argue Murtagh's point as their working with Kingswood on restarting parts of the business for new lending, so there is probably some inside knowledge the Creditor banks will extend existing facilities past March imho

[spaceparallax] 20/1/2011 13:30

Once again our scumbag BoDs reiterate the matter of lille or no worth to shareholders. If they think so little then why not hand over their significant holdings. It's a shame that they weren't so capable of anticipating the problems for which they were responsible.

[lufc5] 20/1/2011 13:24

Just out today.

BUSINESSSMAN Tony Murtagh has written to the board of troubled Manchester-based lender Davenham requisitioning a second extraordinary general meeting (EGM) of shareholders.

Murtagh, who now owns more than 6% of the company's shares, has also requested that the firm ensures that its shareholders' register is up to date and has requested that the firm posts its request for the EGM on its website, so that all shareholders are aware of his request.

Murtagh has thrown his support behind ex-Hitachi Capital CEO David Anthony's bid to oust current chairman James Kerr-Muir and group managing director Paul Burke in a bid to revive the trade and asset finance arms of Davenham Group.

Anthony's proposals were voted down at an EGM last week, with holders of 4.4m
shares voting in favour of his plan and holders of 10m shares voting against.

However, holders of a further 12m shares did not vote, with some (including Murtagh) arguing that they had not been informed that the meeting was taking place.

Murtagh, who made his fortune through The Manchester-based Mortgage Group but is now running Truro-based debt advisory firm The Money Group, also said that he would be willing to get involved in the company's turnaround if requested.

"If David Anthony wants me to help with the turnaround I'll do it. If it means me coming back to Manchester for six or seven months and working for nothing I would. I'd take my reward in the increase in value of the shares."

Murtagh added that he didn't want to falsely raise hopes of smaller shareholders - his purchases have pushed up the firm's share price from 2.25p last week to almost 5p at lunchtime today (20th January).

He said that a turnaround might not be possible and that its banking syndicate could decide against renewing the company's loans when they fall due in March, sparking a potential administration.

However, he has also written directly to the lead bank, Royal Bank of Scotland, stressing his commitment to maximising their returns.

"I'm not saying that it can definitely be saved. I'm just saying that fir six months or so they'd be better letting us have a go than have it limp along as if it's already in administration."

Davenham has itself announced today that it is in talks with the company's largest shareholder, Kingswood Property Finance, about potentially reopening parts of the business.

Kingswood is currently Davenham's biggest single shareholder, having acquired a 29.13% stake in Davenham last month from ACP Capital.

A statement from Davenham's board said that is "currently assessing whether a reconstruction of the Group may be achievable, so as to permit one or more of Davenham's divisions to recommence writing new business".

"The Board wishes to emphasise that this assessment (which also encompasses a dialogue with certain members of the Group's Banking Syndicate) is at a very initial stage and may not necessarily lead to any firm proposals being put forward."

It added that it continues to believe that there will be "no value for shareholders' current shareholdings".

The last figures available for Davenham show that in November its outstanding loan book was valued at £90m while its debt to the banking syndicate was £111m.

[grlz] 20/1/2011 13:23

Looks like the BoD better check their D+O insurance as its questionable whether they are performing their fiduciary duty to represent the best interests of shareholders.

Dodgy deals with a pecuniary interest and campaign of not informing shareholders of upcoming votes / plans etc may very well land them in trouble and unlimited personal liability to shareholder losses..

[grlz] 20/1/2011 13:18

Murtagh buys up Davenham shares and calls for second EGM
www.thebusinessdesk.com

Mike Fahy

By Mike Fahy - Assistant Editor

TONY Murtagh, the entrepreneur behind The Money Group, has increased his shareholding in troubled Manchester-based lender to more than 5%, giving renewed vigour to investor David Anthony's campaign to take control of the firm.

Murtagh said that he was one of a number of Davenham shareholders who were not informed by the company of last week's extraordinary general meeting tabled by Anthony, where his proposal to remove the company's current board was rejected.

He has said that he now plans to requisition a second extraordinary general meeting and has pledged his support for Anthony's proposals, which involve the removal of current chairman James Kerr-Muir and managing director Paul Burke. Anthony wants to appoint himself as chair and Gary Jennison as CEO.

Murtagh's purchases helped to push Davenham's share price up from 2.25p last week up to 3.4p yesterday morning, before falling back to around 2.75p.

He said that Gary Jennison "would make a great CEO" and argued that their stated strategy of reinvigorating Davenham's asset and trade finance arms of the business should be given a chance.

Anthony's resolutions to remove Davenham's current directors received 4.4m votes in favour last week, and just under 10m votes against.

However, there are more than 26m shares in circulation, so shareholders responsible for around 45% of the company's total equity did not vote.

Anthony conceded that an element of this was likely to be due to voter apathy given the share's lowly value and the minimal chance of a return on their investment.

However, he believes that although the board was able to call on the support of a few key investors including Kingswood Property Finance - the London-based firm which bought a 29.13% stake in Davenham in December - many of the smaller shareholders who had not been notified of the meeting would be in favour of his plan.

Anthony added that Davenham had not posted his document spelling out his reasons for the EGM on its website, although it did distribute it to shareholders alongside the EGM notification. He acknowledged that the firm hadn't breached rules by leaving it off the website, but felt that it should have been included to ensure shareholders were properly informed.

"People have said that I should requisition another meeting, but I would only do that if I were satisfied that these issues would be dealt with. Otherwise, what's the point?"

Other shareholders have also expressed anger at the fact that they were not informed of the meeting.

Jason Snowdon, who owns around 0.65% of the company, said he was "appalled" by the fact that he was not notified. He added that he "fully supports" Anthony's view that the current board should be removed.

A spokeswoman for Davenham said that the firm was "content that it has complied with all of its obligations" in keeping shareholders informed.

Davenham is in the process of winding down its loan book and has told investors that there is not likely to be any value left in their shares. The last figures published by the firm in November showed that it had £90m of loans left to collect but it owed its banking syndicate £111m.

Its circular to shareholders prior to the EGM stated that the board had the support of the banking syndicate. It also warned that if Anthony's resolution was passed, the syndicate could recall its loan, sparking an insolvency process.

Murtagh questioned this logic, arguing that the banking syndicate should be willing to speak to anyone with a reputable plan to recover its assets and hailed the turnaround that Jennison embarked upon in his last role as CEO of Secure Trust Bank.

He also said that the salaries of Burke and Kerr-Muir combined amounted to more than £300,000 - money which he believed would be put to better use by employing more collection staff.

"If I were looking to turn it around, I'd be willing to work for nothing and take my reward if the share price came back again," he said.

He has said that he intends to call another extraordinary general meeting "in due course" and has told shareholders who hold shares via trusts or nominee accounts that they should make it known to nominees if they intend to vote.

[jimmylufc] 20/1/2011 13:09

Cheers LUFC, I suspected that was the case and like you I think that things will happen pretty quickly. IMHO.

good luck to all holders

[mandalsputin] 20/1/2011 13:08

Davenham assesses reconstruction
Thu 20 Jan 2011

DAV - Davenham Group

Latest Prices
Name Price %
Davenham Group 4.62p -5.13%

FTSE AIM All-Share 952 -1.07%
Financial Services 6,249 -1.88%
LONDON (SHARECAST) - AIM-quoted Davenham says that it is in talks with its major shareholder about a reconstruction of the business but management continues to warn that shareholders will probably not get any value from their shares.

In December, ACP Capital sold its 29.1% stake in Davenham for £133,000, or 1.75p a share. These shares were bought by Kingswood Property Finance.

Kingswood and Davenham are exploring the possibility that a reconstruction of the group could enable one or more of its division's to recommence writing new business. This could include an opportunity for shareholders to invest more cash in the company. There is no guarantee that any proposals will be forthcoming from the assessment.

Despite the warnings by management shares in the asset-backed finance provider have risen by 153% in the past month.

Anthony Murtagh has increased his stake to 6.01% in recent weeks.

At the end of 2010, Davenham defeated an attempt by David Anthony, who owns 14.9% of Davenham, to have Gary Jennison and himself appointed to the board and the two existing directors, Paul Burke and James Kerr-Muir, removed from the board. More than two-thirds of the votes cast for the resolutions supported the existing board.

[lufc5] 20/1/2011 12:59

Jimmy. Yes he still does and things may be happening behind the scenes. ;)

[jimmylufc] 20/1/2011 12:46

Presume that DA still has the ability to call a 2nd EGM and replace the current board with the required support from the majority of the shareholders ?

[mike111d] 20/1/2011 12:36

LUFC5, I am certainly not supporting the BOD just interpreting events as they unfold. It would appear that the BOD in conjunction with Kingswood (supported by the banking syndicate) have out manoeuvred those attempting to gain control here. I believe that this RNS is effectively saying that we might be able to get things back on track but to do so will require a very large placing which would effectively wipe out existing shareholders.

[lufc5] 20/1/2011 12:24

SW. They are obviously devoid of any moral values. All they seem to be interested in is themselves, not the good of the company.
Things will happen here imho and in not too long a timeframe either.
GL.

[mike111d] 20/1/2011 12:23

LUFC5, it would appear that the BOD have a plan in play which will not benefit current holders, they have been very upfront about this per prior RNS statements. As such I will not be buying back in here but I do wish you well and hope that somehow it comes good for you.

Based upon this RNS it is quite likely IMO that those who have recently built a stake may well have to accept the fact that they move on and presumably sell down their holdings if they are not going to be able to progress these plans. This RNS effectively scuppers their plans IMO.

[still waiting] 20/1/2011 12:21

there's the nil value comment, why don't existing bod just resign and let others get on with it.

[lufc5] 20/1/2011 12:20

Cheers Solarno.

Ps...ditto.

regards.

Lufc5.

[solarno lopez] 20/1/2011 12:18

LUFC5 just been reading the posts and want to echo the sentiments that you are a good guy and thanks on behalf of shareholders, although I am not one.

Efforts like yours take a lot of time as I know from experience good luck on this one.

Great match last night and your guys deserved better

[lufc5] 20/1/2011 12:18

mike.......Bullkaka to the above.

[mike111d] 20/1/2011 12:16

As I have been saying and per the RNS just released, there is no value here for current ordinary shareholders:

"The Board continues to consider that it is likely that there will be no value for shareholders' current shareholdings in Davenham (irrespective of whether a proposal for the reconstruction of Davenham is made by Kingswood Property Finance)."

[mandalsputin] 20/1/2011 12:13

DJ Davenham Group PLC Statement re Assessment of Reconstruction

TIDMDAV

RNS Number : 8220Z

Davenham Group PLC

20 January 2011

20 January 2011

Davenham Group plc

("Davenham" or the "Company" and, together with its subsidiaries, the "Group")

The Board announces that it is currently assessing with the Company's largest shareholder, Kingswood Property Finance, whether a reconstruction of the Group may be achievable, so as to permit one or more of Davenham's divisions to recommence writing new business both in the short term and thereafter. The Board wishes to emphasise that this assessment (which also encompasses a dialogue with certain members of the Group's Banking Syndicate) is at a very initial stage and may not necessarily lead to any firm proposals being put forward. This initial stage assessment also includes a review as to whether it may be possible to offer existing shareholders in the Company the opportunity to invest further funds in support of any such reconstruction.

The Board continues to consider that it is likely that there will be no value for shareholders' current shareholdings in Davenham (irrespective of whether a proposal for the reconstruction of Davenham is made by Kingswood Property Finance).

Further announcements will be made as appropriate.

- Ends -

For further information, please contact:

Davenham Group 0161 832 8484

Paul Burke, Group Managing Director

Hawkpoint Partners Limited (Nominated Adviser) 020 7665 4642

Lawrence Guthrie / Shaun Holmes

MHP Communications

Katie Hunt/Reg Hoare/Giles Robinson 020 3128 8100

This information is provided by RNS

The company news service from the London Stock Exchange

END
STREAAFEAFEFEFF

(END) Dow Jones Newswires

20-01-11 1212GMT

[joe the plumber] 20/1/2011 10:36

Lufc you welcome my dear friend hope and pray it really goes well for you buddy
I sold out at a loss behind the reason there is no value but hope you really do well

[lufc5] 20/1/2011 09:12

Would not be at all surprised if Tiger Tony has yet another buy order in.

[grlz] 20/1/2011 08:32

won't be long before a 2nd EGM is called imho

[lufc5] 20/1/2011 08:14

Joe.

Rarely on these bb's do you come across many with a kind word. Most are normally bitter and twisted and have an urge to stab one in the back.

Your words are a breath of fresh air and I thank you.

I said weeks ago that I thought there maybe a twist/sting in the tail of DAV.......and there still could be.......

Kindest regards.

Mick

[golfer25] 20/1/2011 07:41

I reckon Murtagh is in concert with Anthony. Time for the Takeover panel to step in

[joe the plumber] 20/1/2011 07:08

I sold out at a loss but so happy for the guys who held on lufc is a wonderful great guy good comes to those who wish others well I sold out my mistake you live and learn but no way would I deramp and wish you all good