Essenden Share Discussion Threads

[battlebus2] 23/5/2014 07:10

Slightly ahead....

At the AGM, Nick Basing, CEO of Essenden, will make the following comments:

"Trading, since we last reported to the market in March 2014, remains slightly ahead of our expectations. Like for like sales for the 20 week period to 18th May 2014 are up 6.1% across the estate, continuing the encouraging trend that commenced in the final quarter of last year. Considering the challenge of warmer weather during April, due in part to Easter being later this year than last year, trading has remained solid and despite the hot temperatures at peak times in May, sales for the first two weeks of the month are up 4.9% on a like for like basis.

This level of performance is underpinned by the business continuing to focus successfully on our key operating drivers.

The like for like sales growth is being converted into improved site performance, more than compensating for the reduction in the number of sites compared with this period last year (following the closure of those on short term leases).

Whilst the next few weeks may be impacted by the World Cup, we are encouraged by the sales growth that we have delivered. We anticipate that 2014 will be a year of further financial progress.

We expect to report our interim results in September 2014."

[eezymunny] 15/5/2014 12:11

Yes Shanklin "By way of illustration, in the event that the Closing Price determined at the end of the Pricing Period is £1.01 (being the market price of an Ordinary Share on 21stMarch 2014, the latest date prior to this announcement), Essenden could enforce its Call Option in respect of the 66 Redeemable Shares for which Notices have been received and elect either to pay a cash payment in aggregate of £497,488, or issue 492,562 new Ordinary Shares (again assuming a price of £1.01 on the date of issue). In the event that Essenden elects to issue Ordinary Shares, participants are required under the terms of the Scheme to hold them for 2 years before selling."

I think total 200 redeemable shares were issued and 134 outstanding, so maybe another c. million shares to be issued potentially...can only guess as dependent on share price

Suspect neither the loan note conversion "bonuses" nor extra shares reflects the big picture - which is do we have continued buoyant trading and great cash flow and wtf do they plan in terms of capital raise/acquisitions?

It's an interesting one...can't see any other funnies but I'm very lazy....

[shanklin] 15/5/2014 11:12

I see two of the directors were due to be paid £2.2m for getting the loan note conversion through and the share incentive scheme looks like it will, at best, see a fair number more shares issued.

It would be nice to see a clean set of ESS accounts without management incentives greatly affecting them. Are there any other arrangements which might affect how one would value this company?

[eezymunny] 15/5/2014 09:53

Bought a few of these for the EezyMunny portfolio today FWIW



I guess the AGM will be interesting! Current weakness due to existing holders unwilling to support a giant placing perhaps?

[battlebus2] 14/5/2014 07:46

Harewood through it's three funds now holds over 34%, as you say Drsmessguide these are looking cheap again. Still holding the majority of mine.

[drsmessguide] 14/5/2014 06:45

Not I, these are starting to look interesting again. Eps this year with the increased share numbers looks likely to be >8.5p, strongly cash generative. Having sold at 95p I might have another dip if this fall continues

[davidosh] 13/5/2014 20:17

How many of you are coming to the Agm next week ? It is Friday 23rd May at 11am in London W1 btw

[battlebus2] 07/5/2014 16:39

Essenden PLC Results of General Meetings
Print
Alert
TIDMESS TIDMES.P

RNS Number : 4797G

Essenden PLC

07 May 2014

7 May 2014

ESSENDEN PLC

("Essenden" or the "Company")

Results of General Meetings of Shareholders and Noteholders (the "General Meetings")

Essenden announces that the Resolutions proposed at the General Meetings, held earlier today, were all duly approved by Shareholders and Noteholders respectively.

Following the passing of the Resolutions, the Loan Notes will be withdrawn from trading on ISDX and disabled in CREST, with effect from 4:30 p.m. today.

As described in the circulars sent to Shareholders and Noteholders respectively on 14 April 2014 (the "Circulars"), 28,494,511 new Ordinary Shares have been issued and allotted to Noteholders today on the basis of 1.33 new Ordinary Shares for every Loan Note held. Fractional entitlements to Ordinary Shares have not been allotted to Noteholders and, where necessary, entitlements have been rounded down to the nearest whole number of Ordinary Shares. Such fractional entitlements amount to 393 new ordinary Shares in aggregate and will be sold with the net proceeds of such sale being retained for the benefit of the Company.

Application has been made to the London Stock Exchange for the 28,494,904 new Ordinary Shares issued today in total to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that dealings will commence at 8.00 a.m. on 8 May 2014.

Following the issue of the abovementioned new Ordinary Shares, the Company's issued share capital will consist of 49,919,644 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares.

The above figure of 49,919,644 Ordinary Shares may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Essenden under the Financial Conduct Authority's Disclosure and Transparency Rules.

Defined terms used in this announcement have the same meaning as defined in the Circulars, unless the context requires otherwise.

[battlebus2] 21/3/2014 16:16

Great finish to the week then :))

[glennborthwick] 20/3/2014 22:00

placing coming then. Lets see what the price is.

[battlebus2] 20/3/2014 16:19

But what are you buying for you buck??

[loafingchard] 20/3/2014 16:13

£100m of fresh equity that would be some serious dilution .

[ricgains] 20/3/2014 14:38

There's a big piece in today's Times which will interest holders.

[paxman] 20/3/2014 14:30

+ £4m in EBITDA battlebus2.

Every 1% increase in turnover is worth £300,000 in EBITDA as per yesterday's RNS.

At LFL growth of 13.5% Essenden's EBITDA will double.

So Essenden is still cheap - likely current P/E of 8 - even after the rise and loan conversion if LFL growth continues for the rest of the year. P/E more like 7 if we allow for the cash on the balance sheet in say 6 months.

[battlebus2] 20/3/2014 07:31

What can this do for the bottom line ...

As for the current year, however, LFL sales were up an impressive 13.5% in the 11 weeks to March 16th.

[battlebus2] 20/3/2014 07:29

Essenden, the holding company of the Tenpin bowling alley chain, saw its share price rocket on Wednesday after swinging to a profit in 2013 and reporting a strong start to the current year.

Chief Executive Nick Basing said that Essenden is 'fitter and stronger than ever' and confident that 2014 will be a 'defining moment in the company's future'.

The group, which has 29 Tenpin-branded sites in the UK, reported a profit before tax of £3.6m for the 52 weeks ended December 29th, compared with a loss of £0.1m the previous year.

Meanwhile, the cash position also turned positive, moving from net debt of £0.7m at the end of 2012 to net cash of £2.1m at the end of 2013.

Essenden said it implemented a number of 'operational improvements' during the year to support sales growth, including technological changes to maximise lane bookings and unlock areas of inefficiency.

Revenue totalled £45.6m, down from £47.1m previously, while like-for-like (LFL) sales increased by 0.6%.

As for the current year, however, LFL sales were up an impressive 13.5% in the 11 weeks to March 16th.

'The return to GDP growth and rising employment should in time help our business which depends on confidence in consumer spending,' Basing said.

- See more at: hxxp://www.ifamagazine.com/news/essenden-shares-surge-on-profit-turnaround-strong-start-to-2014-295157#sthash.c2HoysIN.dpuf

[nightyard] 20/3/2014 01:11

Smithie, you are a disease

[glennborthwick] 19/3/2014 13:00

In at 44. Out at 62. Back in at 65 out at a quidish

[glennborthwick] 19/3/2014 12:58

Time for me to move on. Thank you ess. You did well for me. Good luck to holders and new investors.

[drsmessguide] 19/3/2014 12:54

Smithie6

The 20m loan notes were always there and anyone doing the most superficial research, would i hope take that into account when calculating EV. They have merely turned them into shares. You are though correct to draw attention to the adjustment needed in calculation of eps on the 50m share total which should now be used in calculations. The increase in revenues does point to a very significant increase in profits and given the market is already looking ahead to earnings, the rise in share price seems appropriate. I almost sold out today as these microcaps tend to fall back after such steep rises but i cancelled the transaction, after which it rose another 10%. happy holder.

[battlebus2] 19/3/2014 11:34

£1 would you believe it :))

[loafingchard] 19/3/2014 10:25

You shorting this now too ? Like Globo , another poor choice .

[smithie6] 19/3/2014 10:19

anyone not aware....in EPS calcs. etc...be aware of the massive dilution from conversion of the loan notes

[smithie6] 19/3/2014 10:18

Management incentive arrangements

Completion of the Conversion Proposals will also give rise to the loan note incentive, a scheme introduced and approved in October 2009, pursuant to which Nick Basing and Richard Darwin will become entitled to a cash payment of approximately GBP2.2m in aggregate (subject to income tax and NI).

-----

I dont hold any shares but imo shareholders should vote NO to most of the loan note conversion.....since it would give 1 shareholder 34%.......if that holder wants conversion then imo they need to first agree to limit max. holding to 30%....

having a holder of over 30%.....always a bad idea imo..too much power...

[drsmessguide] 19/3/2014 09:27

'transforming' my portfolio at the moment, catastrophically I sold half the day before the first announcement though