Eatonfield Share Discussion Threads

[mike111d] 30/12/2010 16:09

As is the norm these days, the January sale started early - LOL.

[tara7] 30/12/2010 15:51

Not to keen to sell stock now are they.?

[mike111d] 30/12/2010 15:44

No but I will be watching for the all resolutions passed RNS, from which point on it might then get interesting.

[tara7] 30/12/2010 15:40

AGM in the morning anyone going.??

[liquid millionaire] 30/12/2010 15:05

Well respected real estate fan and poster tara7 is buying in to my fav highly speculative real estate play EFD

EFD have started to tick up on the back of this

[induna123] 30/12/2010 14:35

I can only see big dilution here. Yes, the company may survive but another 500m shares looks likely.

[induna123] 30/12/2010 14:29

Cheaper than the 0.7p you paid Tara?

[tara7] 30/12/2010 13:52

More so as 10% cheaper to buy now, than the new cash put in this year at .05p

[mike111d] 30/12/2010 13:38

You are not alone in thinking that Tara.

Certainly not for widows and orphans but it could be very rewarding and worthy of a punt.

[tara7] 30/12/2010 13:35

.45p to buy, if not going bust a very good price.!!

[mike111d] 29/12/2010 17:26

Buy now or hold out for the January sales?

[argy2] 29/12/2010 14:50

I suspect the tone of the RNS was to ensure a lower placing price.

[wig123] 29/12/2010 14:27

Looking dire!

[mike111d] 24/12/2010 10:31

Well FWIW I am happy that the results are out today as this confirms that they do indeed have the support of the banks, as without this the accounts would not have been signed off and they would not have been allowed to release them. See the statement below from the 10/12 RNS for clarification of this point:


From the AGM notice issued on December 10th:

As previously notified, the Group remains in discussions with its banks and continues to progress a range of strategic options, including the disposal of certain of its land assets as well as plans to raise further equity. The directors intend to finalise the Annual Report and Accounts for the year ended 30 June 2010 once these matters have been concluded.


From the results RNS today it would seem that post the AGM they still intend to raise funds whilst selling off certain assets during the next few months:

"The board announced on 20 December 2010 that the Group's existing financial resources will provide it with sufficient working capital funding until late January 2011. This was on the basis that the Group continues to defer payment of amounts due to certain of its senior lenders and trade creditors to a later date and that these creditors do not demand payment in the meantime. The ability of the Group to continue as a going concern beyond this date is dependent upon the continuing support of the Group's banks, the likely requirement to raise further equity funding within the next few months and the successful sale of certain of its land assets (all as previously announced) as well as agreement of related house building contracts."

So whilst this remains a high risk / reward play I am happy that the accounts are out ahead of the 31/12 deadline and in advance of the AGM and that they have the continued support of the banks to allow for this. It would seem to me from reading the results statement that they are executing to a business plan that the banks see as being viable and as such I believe that there is a decent chance of things finally coming good here.

[comedy] 24/12/2010 08:54

took 250k at 0.467p. who knows if they survive? will wait to see how low they take it.

[thedayafter] 24/12/2010 08:34

Eatonfield losses rise to £15.4m
24th December 2010
By Chris Barry - Editor, North West
CHESHIRE property group Eatonfield has declared a annual pre-tax loss of £15.4m, up from £5.6m, after a "very challenging year."

The Tarporley-based company said its ability to sell some assets in Wales would be fundamental to its future.

Its auditor, Baker Tilly, also flagged up "material concerns" over the group's future, stating there is an "existence of material uncertainties which may cast significant doubt on the group's ability to continue as a going concern".

Eatonfield only has enough resources to continue to trade until the end of January, and admits it is "likely to require" further equity funding in the next few months.

Executive chairman Brian Corfe said: "It has been a very challenging year.
Conditions in our core markets have remained problematic and the recent public sector spending cuts have contributed further to the uncertain outlook. Added to these difficulties, the Group has been under substantial cash flow pressure throughout."

Mr Corfe said the company was focused on tackling a number of 'ongoing challenges' to secure a meaningful future.

He added: "Fundamental to the Group's ability to continue as a going concern is the finalisation of negotiations with the potential purchaser of the Welsh Sites, the agreement of the related follow-on house building contract as well as similar arrangements next year for the Corus and Birkwood sites, the likely equity fundraising required and the continuing support of the group's banks.

"Whilst the board acknowledges the ongoing challenges facing Eatonfield, we will continue to work very hard to secure a meaningful future for the Group."

Eatonfield owes lenders, which include Royal Bank of Scotland and Allied Irish Bank, £26.7m, some £1.9m down on last year.

Revenue in the year to the end of June fell to £5.7m from £8.4m last year, while losses from operations rocketed from £2.9m to £12.5m.

[showmethemoneyhoney] 24/12/2010 07:50

Tim...good song....trouble or a multi bagger

[discoverytim] 24/12/2010 07:26

structured disposal of assets, net liabilities down by some 2+Mil. On going sales backed by works contracts.....NOT a fire sale then. And still with the Jenard draw down facility to prop this up for a while yet
"Should I stay, or should I go now?
If I go there might be trouble....If I stay it might just double!!!"

[showmethemoneyhoney] 24/12/2010 07:20

Get the sale of land and bank support and it is game on!

[liquid millionaire] 24/12/2010 07:20

Friday 24 December, 2010Eatonfield Group plc
Final Results
RNS Number : 5689Y
Eatonfield Group plc
23 December 2010




24 December 2010




Eatonfield Group plc



("Eatonfield", "the Company" or "the Group")



Final Results for the year ended 30 June 2010



Eatonfield Group plc announces its final results for the year ended 30 June 2010.



Summary



· Loss for the year: £13,812,005 (2009: Loss £4,352,555)

· Net bank debt: £26,751,873 (2009: £28,679,317)

· Negotiations continue for the structured disposal of a large part of the Group's residential land portfolio and agreement of follow-on house building contracts

· Audit report disclaimer of opinion and going concern uncertainty covered in notes 2 and 3 of this announcement



Commenting on the results, Brian Corfe, Executive Chairman of the Group, said:



"Fundamental to the Group's ability to continue as a going concern is the finalisation of negotiations with the potential purchaser of the Welsh Sites, the agreement of the related follow-on house building contract as well as similar arrangements next year for the Corus and Birkwood sites, the likely equity fundraising required and the continuing support of the Group's banks. Whilst the Board acknowledges the ongoing challenges facing Eatonfield, we will continue to work very hard to secure a meaningful future for the Group."



For further information, please contact:



Eatonfield Group plc

Brian Corfe (Executive Chairman)

Rob Lloyd (Group Chief Executive)

Duncan Syers (Group Finance Director)


Tel: [phone]



Evolution Securities

Joanne Lake / Peter Steel



Optiva Securities Limited

Jeremy King




Tel: [phone]





Tel: [phone]

Threadneedle Communications

Graham Herring / John Coles


Tel: [phone]












Chairman's statement



Introduction

It has been a very challenging year. Conditions in our core markets have remained problematic and the recent public sector spending cuts have contributed further to the uncertain outlook. Added to these difficulties, the Group has been under substantial cash flow pressure throughout.



The board announced on 20 December 2010 that the Group's existing financial resources will provide it with sufficient working capital funding until late January 2011. This was on the basis that the Group continues to defer payment of amounts due to certain of its senior lenders and trade creditors to a later date and that these creditors do not demand payment in the meantime. The ability of the Group to continue as a going concern beyond this date is dependent upon the continuing support of the Group's banks, the likely requirement to raise further equity funding within the next few months and the successful sale of certain of its land assets (all as previously announced) as well as agreement of related house building contracts.



Despite the aforementioned difficulties, the board and all of Eatonfield's employees remain focussed on seeking to stabilise the Company's financial position and securing its long-term commercial viability. To this extent, we can report that we are in negotiations for a structured disposal of seven sites from the Group's Welsh land portfolio ("the Welsh Sites"), the proceeds of which would be used to reduce the associated bank loans advanced to fund the Group's initial purchase of the Welsh Sites. As part of the arrangements for the proposed disposal, we are seeking to agree for the Group to be engaged as contractor to build over 200 houses on behalf of the purchaser of the Welsh Sites. We are also in early stage discussions to agree similar disposals and follow-on house building contracts for the Group's Corus site in Workington, Cumbria and its Birkwood site near Glasgow. All of these transactions would require the consent of Eatonfield's senior lenders. Initial discussions have also taken place with the Group's Joint Broker, Optiva Securities Limited, with a view to raising further equity funding. We will update shareholders on developments in each of these areas as appropriate.



Financial results

The loss for the year amounted to £13,812,005 (2009: £4,352,555); net bank debt at the year end amounted to £26,751,873 (2009: £28,679,317).



Overview

Despite the significant cuts made to the overhead and cost base in the spring of 2009, cash management was the key focus during the year. This has included raising additional equity, which has been vital to providing much needed working capital.



The placings undertaken in November 2009 and (on a much smaller scale) June 2010 raised, net of expenses, a total of just under £7.2 million. Access to further equity funding was provided through the agreement of an Equity Drawdown Facility with Jenard Properties Limited ("Jenard"), a company with whom the Group has enjoyed a close trading relationship in recent years. This facility was established in March 2010 and, by the end of the year, the Group had drawn down £900,000 of the facility to provide further working capital funding.



The support of both existing and new shareholders of the various equity fundraisings undertaken during the year is much appreciated by the board.



Aside from the focus on cash management, the Group's principle trading subsidiary, Eatonfield Developments Limited, built residential property under contract for two Housing Associations in South Wales. This work realised some encouraging gross returns and, because of standard monthly valuations, it has been cash efficient. The Group also undertook house building under contract for Jenard, which was also self-funded by monthly valuations.



Apart from these activities, the Group also sold 11 of the 22 completed flats on its development in Buckley, North Wales and its entire portfolio of completed apartments at Heathwood Road in Cardiff, South Wales. This realised a total value of approximately £2.6 million, which was used to repay the associated debt.



In addition to the building related activity undertaken during the year, we have continued to make efforts to identify ways of realising the value tied up in the Group's land and property portfolio, to enable the Company to repay the associated loans and interest. As described above, we are in negotiations to agree the structured disposal of the Welsh Sites and there is a possibility of a similarly structured sale of the land at the Group's Corus and Birkwood sites. The board believes that the follow-on house building contracts that the Group is seeking to agree as part of these arrangements would in the future provide Eatonfield with a more stable less volatile source of revenue and cash.



Board changes



I would like to thank my predecessor, Paul Williams, who stepped down as the Group's Executive Chairman during the year, for his contribution to the Group during a very difficult period in its history. I was appointed to the role of Executive Chairman on 1 June 2010. On the same day, Duncan Syers was appointed as Group Finance Director.



Eatonfield remains in a position where it has no non-executive directors. The board intends to initiate the process of recruiting one or more new non-executive directors once the Group's financial position has been stabilised and there is sufficient headroom to bear the associated costs.



Going concern and disclaimer of audit opinion



The following is an extract from the audit report of Baker Tilly UK Audit LLP ("Baker Tilly") in relation to the Group's financial statements for the year ended 30 June 2010:



"Opinion: disclaimer on view given by the financial statements

In forming our opinion on the financial statements, we have considered the adequacy of the disclosures made in the accounting policies to the financial statements concerning the following matters:



· The successful outcome of the group negotiating an extension of its current facilities with certain of its banks;

· The renewal of the group's facility with The Royal Bank of Scotland plc is dependent on the group securing the sale of certain of the group's land bank and agreement from the other banks that they are willing to consent for The Royal Bank of Scotland plc to obtain a floating charge over all the group's assets;

· The renewal of the group's facility with Allied Irish Bank plc on similar lines to the one to be agreed with The Royal Bank of Scotland plc;

· The uncertainty as to the ability of the company being able to obtain further equity investment to ensure adequacy of working capital.



The disclosures indicate the existence of material uncertainties which may cast significant doubt on the Group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern. Because of the potential significance, to the financial statements, of the combined effect of the four matters referred to in the paragraph above, we are unable to form an opinion as to whether:



· the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 30 June 2010 and of the group's loss for the year then ended;

· the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;

· the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

· the financial statements have been prepared in accordance with the requirements of the Companies Act 2006."



The full text of Baker Tilly's audit report and the going concern accounting policies note to the financial statements has been reproduced in notes 2 and 3 respectively of this announcement.



Related party transactions and transactions with Directors



Details of related party transactions and transactions with Directors entered into during the year have been provided in notes 6 and 7 respectively to this announcement.



The future

Fundamental to the Group's ability to continue as a going concern is the finalisation of negotiations with the potential purchaser of the Welsh Sites, the agreement of the related follow-on house building contract as well as similar arrangements next year for the Corus and Birkwood sites, the likely equity fundraising required and the continuing support of the Group's banks. Whilst the Board acknowledges the ongoing challenges facing Eatonfield, we will continue to work very hard to secure a meaningful future for the Group.



Lastly, earlier in my statement the Board offered its thanks to the Company's shareholders for their ongoing support. I would like to take this opportunity to also thank the Group's banks for their continued cooperation and my fellow Directors and employees for their continued hard work in the face of considerable pressure and uncertainty.







Brian Corfe

Chairman

23 December 2010

[wig123] 24/12/2010 07:05

Game over by the looks of things.

[ray164] 22/12/2010 14:44

The position of this company brings to mind the words:

"Trust me I'm a banker"

From this simple statement an investment strategy can be formed.

If you feel bankers can be trusted then these are a sure bet, if you don't then avoid like the plague.