Eatonfield Share Discussion Threads

[induna123] 20/4/2011 12:16

Well this is the crunch time now. If they don't attract investment with this presentation then they could go under next month. Rob will have be at his most persuasive.

[gdasinv2] 20/4/2011 09:46

So far....all the funding and working capital available are good sign? All good sign, still by valuation it should be at least 7p.

I have loaded.


Wednesday 20 April, 2011
Eatonfield Group plc
Working Capital Funding Update
RNS Number : 2481F
Eatonfield Group plc
20 April 2011




20 April 2011

Eatonfield Group plc

("Eatonfield" or "the Group")

Working capital funding update



On 31 March 2011, the board of Eatonfield announced that the Group had sufficient working capital funding through to mid April 2011. On 11 April 2011, the board announced details of the proposed exchange of contracts for the sale of the Welsh sites and the proposed revised facilities with Royal Bank of Scotland plc ("RBS") to include a new £0.25 million working capital facility. The board is of the view that formal agreement of these matters is now imminent.

Eatonfield continues to defer payment of amounts due to certain of its senior lenders and trade creditors. On the basis that (i) the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support; and (ii) the proposed exchange of contracts for the sale of the Welsh sites takes place imminently, which will in turn provide the Group with access to the new £0.25 million RBS working capital facility, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until early May 2011.

The board confirms that all of the Group's existing bank facilities remain available at the date of this announcement.

The Group has now also commenced presentations to potential investors, with a view to raising further equity to fund Eatonfield to the point where its contract housebuilding operation is forecast to start generating net positive cash flow later this year. The board is seeking to conclude this fundraising by early May 2011.



For further information please contact:

Eatonfield Group plc


Tel: [phone]

Brian Corfe (Executive Chairman)




Rob Lloyd (Group Chief Executive)




Duncan Syers (Group Finance Director)









Evolution Securities Limited


Tel: [phone]

Joanne Lake/Peter Steel









Optiva Securities Limited


Tel: [phone]

Jeremy King









Threadneedle Communications


Tel: [phone]

Graham Herring/John Coles

[uru investor] 20/4/2011 09:29

TOPINFO - 7 Apr'09 - 22:07 - 2 of 63


Anyone in at 4p?? Wish I was.!!!

[moreforus] 20/4/2011 09:26

rns

The board is of the view that formal agreement of these matters is now imminent.

[rougepierre] 18/4/2011 14:09

hmmm maybe some of what was posted has struck a chord...including in the market...very quiet on here...where's tara and the other rampers?

[rougepierre] 15/4/2011 16:28

RL's sinlge-minded determination; supported by Jenard, plus the banks being caught being between two stools:

they aren't going to lend any more, but if they pull the plug, the land would have to be 'fire-saled' and they might get only a fraction back after massive administration fees...

what would you do?

virtually the entire sales revenue was from house sales which, coming from a commercial property company sums up their prospects of selling land...they need planning permission to revalue land; they're clearly up against limits;

for comparison, look what happened to Modus, which was much bigger than EFD. Let me repeat...I think RL would rather take this private with Jenard's support than let it go down...

it'll be interesting to see how the roadshows go...GFRD was able to raise £100m to buy land, but they are a very much more robust comoany with a different business model...

remember few expected CNT to go down and then the banks pulled the plug...

[induna123] 15/4/2011 12:28

pierre. If the situation is as bleak as you suggest then why didn't the company just fold? Why continue? Why did the banks agree to let EFD continue trading? There must be some sort of business plan they put forward that made economic sense for the banks to allow efd to remain a going concern.

[rougepierre] 13/4/2011 16:00

In other words, either EFD is reinventing itself as a housebuilder or...maybe...RL will either sell/hive off the housebuilder or take the commercial property private...

can I reiterate...I neither want nor expect EFD to go bust but, if this isn't being teed up to go private, it's going to have to be mightily diluted (last time 90%) to survive and banks still aren't lending on property...

oh and before that last statement is rebutted cf RBS, it's only a £250k working capital facility which will probably finance no more than 2/3 houses at a time and seems expedient seeing that RBS will only see its money back if EFD starts generating real income from housebuilding...

I say again...look at the Trilandium business model and their redefinition of land 'sales'; look at the timescales, which may be agreed, but are by definition speculative until the houses are actually built AND sold...

finally, the RNS implies that ALL the welsh sites have been sold (to repay debt) and that leaves EFD with Corus and the rump of Birkwood by my reckoning...given the depression settled over Workington and the difficulty of getting planning permission for Birkwood, these don't set me on fire either...

so, to restate...I've sold the shares to buy the rights/post-placing...and I won't be getting carried away...

[mike111d] 12/4/2011 18:50

Trilandium acquires sites from Eatonfield
Last updated: Tue 12th April, 2011 | Time: 07:57am

Leeds-based Trilandium has agreed a £9.4m deal to buy residential sites in Wales and Scotland from cash-strapped property developer Eatonfield.
A deal has been struck for Eatonfield to sell seven residential sites in Wales to Trilandium Celtic and part of a site at Birkwood near Glasgow to Trilandium LLP.

Trilandium will pay £9.4m over the next three-and-a-half years.
The sale of the Welsh sites has credit approval from Royal Bank of Scotland which holds a first charge over the sites.

Following completion of the deal, Eatonfield has secured a contract to build 243 houses on the Welsh sites for Trilandium. The value is estimated to be £25m over the next three to five years.

In a statement to the Stock Exchange, Eatonfield said: "The board is of the view that the exchange of contracts over the Welsh sites will provide the group with a potential pipeline of future work and increase the scale of its housebuilding activities."

[stuart little] 12/4/2011 10:08

Induna,

I don't think we'll have too long to wait. They must have the figures in mind to take to the investor roadshows.

stuart.

[induna123] 12/4/2011 09:11

It won't rocket until the terms of the placing are announced.

[gdasinv2] 12/4/2011 08:50

Set to Rocket the Price....at any time, they have decided some sell some land and so good value at this cheap price.

[induna123] 12/4/2011 08:34

pierre, they'll be wanting to sell their other land/property assets to pay of the AIB loans. Will AIB extend that loan repayment beyond August 2011? Wait and see.

EFD had £27m worth of debt, we knew that. We also knew they had to sell off the land/property assets to reduce that debt to manageable levels, which they have started to do and will continue to do. We knew that a placing would be coming too, question is at what price, 0.50p? None of this is of any sursprise pierre. What were you expecting?

What's important here is that they have reduced debt, not all of it but some of it. They still need to reduce it further before they are out of danger.

[induna123] 12/4/2011 08:06

Bid 0.55p They want your shares.

[dahmmy] 11/4/2011 23:08

shucks

is Mikey locked in here as well as ERX????


surprised he still has the audacity to preach to us uneducated masses in sar and pyc ...


lesson to learn...


don't worry about who your neighbors wife is sleeping with, when your own wife is sleeping with the postie :o

[tara7] 11/4/2011 19:49

The derampers can be found with all their posts on the NTA threads when th stock was 2p, now 6 years on £1.33p.!!

All stocks have risk some of us buy when the likes of these guys live in fear, why they ever get near shares i do not know.!!

Value can be found here

[stuart little] 11/4/2011 19:27

I've gone through it a couple of times...hard going in places but ultimatley I see it as a good RNS.

Still high risk but there is a plan and with the board imminently presenting investor roadshows they must be confident of their story. With a m/cap of £2m I see plenty of upside (with only £2m downside!)

As of yesterday EFD were emptying the coffee machine and swear box every 2 weeks to stay afloat. I guess they could have folded umpteen times over the last couple of years, indeed many of their peers have.

As of today I think we can say-

1/ debt has peaked,
2/ We still have the backing of the banks, indeed RBS lent them some more to start the houselbuilding contracts,
3/Housebuilding contracts worth at least £25m over 5 years with further contracts on the table from Jenard(major shareholder in EFD!)
4/ Investor roadshows imminent to assist in a placing to further reduce debt.
5/ a m/cap of £2.2m

Today we are in a better place than yesterday imo.

rougepierre, you've made your point now I always tend to move on once I've sold out of a share......its the polite thing to do.

Stuart.

[rougepierre] 11/4/2011 18:30

I have no wish for any company to fold...and very few quoted companies do...but when the writing's on the wall that there seems to be more downside than up for all the reasons given (oh and topinfo/taras naked ramping...)

[mike111d] 11/4/2011 18:28

You are trying way to hard RP.

I am happy with the RNS today but it seems to have unsettled you, given your desire to see the company fold.

Anyhow, I can't stop to chat as it is time for a workout.

[rougepierre] 11/4/2011 18:28

sorry...tortuous is the word I was looking for...

oh and where's the trading their way out with knock down deals that barely cover the debt (if at all) and a drawn out housbuilding deal from a subsidiary that isn't even EFD's core business, but was an expedient to make money out of land that won't sell...

just read all the references re trilandium; olive-tree; construct target; etc....

[rougepierre] 11/4/2011 18:25

ask yourself why Trilandium and Eatonfield have had to come up with this complex and slow way of contracting if land is selling like hot cakes...

[rougepierre] 11/4/2011 18:24

just trying to help...caveat emptor...

[rougepierre] 11/4/2011 18:23

You must be joking!

I am not a deramper, but I've actually done the research and gone through everything in detail as the above shows...

just do the maths...read all the RNSs...and apply some commonsense...

do you know what's REALLY happening in the residential land market?

cheers

[mike111d] 11/4/2011 18:16

Rather obsessive posting there RP from a non holder, now who else do I know that suffers from the same condition – LOL.

Time for you to spare yourself any further embarrassment and accept that Eatonfield are trading their way out of the past and difficult situation that they found themselves in.

[rougepierre] 11/4/2011 17:48

it starts out by saying the land will be sold for net proceeds of £6.65m plus there's a housebuilding contract...

but the net proceeds will repay debt to keep the wolf from the door (but not £7.1m due to AIB by Aug 2011)...

now look at the schedule of payments and how long it stretches out...

and finally, the financing mechanism of the Trilandium developments...minimal working capital...drip fed payments sale by sale, dependent on price achieved...

looks to me like Eatonfield Homes is being teed up for a sale...might fetch a mill or so with these contracts in place...maybe their former owner will buy it back?