Griffin Share Discussion Threads

[encarter] 16/12/2005 22:25

Price was agreed as part of the sell off deal, all it means is directors have made a killing but not at the cost of GFF. P/E is now 4.4, £1.65M cash £900k investments. Plus all the cash they've made on deals since September. Do the math, the only way these can go is up.

[rarther] 16/12/2005 16:13

the us arm lacks any potential so the directors have run off with it.

also.. 4.5m shares (approx 15% of company) crossed at 3.25p (less than half price)!

what the hell

[rarther] 16/12/2005 16:12

Final Results

RNS Number:8212V
Griffin Group PLC
16 December 2005


GRIFFIN GROUP plc
("Griffin" or the "Company")

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2005


Financial highlights:

* Turnover up 220% to #10.58m (2004: #3.31m)

* Net Profit before exceptional items up 107% to #938,597 (2004: #453,642)

* Goodwill impairment write off amounting to #372,712 treated as exceptional
item

* Earnings per share before exceptional items up 48% to 1.38p (2004: 0.93p)

* Net current assets #2,557,016 (2004: #1,115,638) including cash at bank of
#904,451 and publicly tradable investments of #925,152

* Net assets #1,913,909 (2004: #1,700,375) equivalent to 4.71p per share
(2004: 4.3p)

* UK operations continued to be buoyant achieving six new AIM admissions and
completed a number of corporate transactions

* US operations have continued to struggle in difficult market conditions in
their sector resulting in a trading loss of #65,591 before goodwill
amortisation of #105,744 and the exceptional goodwill impairment write off
of #372,712

* Disposal of the US operations to the US management team completed shortly
after the year end date


CHAIRMAN'S STATEMENT

I am pleased to be able to report another year of record results for the Group
reflecting a further significant improvement in the performance of the Group
during this last financial year.

In the year ended 30 September 2005, turnover increased 220 per cent. to
#10,585,325 (2004: #3,310,569) as a result of an increase in completed
transactions in the period. Administrative costs rose as a result of the
additional business at #4,426,320 (2004: #1,495,352). Net profit before taxation
and the exceptional goodwill write off amounted to #938,597 (2004: #453,642) and
earnings per share (excluding the exceptional goodwill write off) amounted to
1.38p (2004: 0.93p). Shareholders' funds increased to #1,913,909 (2004:
#1,700,375) equivalent to 4.71p per share. The Directors do not propose to
declare a dividend (2004: nil). At the end of the year, the Company had cash on
hand of #904,451 and investments held as short term stock of #925,152.

Griffin Corporate Finance Limited ("Griffin UK")

Griffin UK has undertaken ten corporate transactions in the year and established
six new AIM flotations and one Ofex flotation. The corporate transactions and
publicly floated companies cover various industry sectors. The corporate finance
fee income amounted to #3.16 million and trading of investments totalled #5.8
million.

The new AIM and Ofex admissions promoted by Griffin UK are as follows:

Interbulk Investments plc Initial investment into an intermodal transport
business

Ionian Estates plc Initial investment into a Croatia property
development business

Process Handling plc Initial investment into an international pneumatic
conveying solutions business

Euro Investment Fund plc Initial investment into a specialist packaging
business providing a Child Resistant Senior
Friendly solution to the pharmaceutical industry

Croatia Ventures plc Under new management

Nanotech Energy plc Under new management

Firenze Ventures plc Just admitted to Ofex at the year end

Griffin UK's policy is not to maintain large long-term holdings in these
companies and, whilst a management agreement exists whereby Griffin provides
administrative support to these new AIM companies, Griffin UK looks to input
appropriate new executives into these companies at an early opportunity, once
the strategic direction of each company is determined.

Griffin Securities Inc ("Griffin US")

Your Company has today completed the disposal of the US subsidiaries and trading
operations to the US management team. The disposal is effective from 1 October
2005 and the disposal proceeds were $825,885 all payable in cash on completion.
The disposal proceeds represent the net assets disposed of plus $200,000
goodwill.

Trading performance in the US operations has been disappointing and lacks the
growth potential that your Board is seeking for the Group. The results of the US
operations in recent years are set out below:

2005 2004 2003
# # #
Turnover 1,563,826 1,681,627 396,452

(Loss)/Profit before taxation
and goodwill amortisation (65,591) 140,600 (222,212)

Goodwill amortisation (105,744) (105,748) (105,748)
Goodwill impairment write down (372,712) - -

(Loss)/Profit before taxation (544,047) 34,852 (327,960)


The board has decided that it was in the best interests of the Company to
dispose of the US operations due to the lack of potential growth and profits
from the US business, to ensure management time remained focused on the
profitable operations in the UK and to obtain an inflow of funds from the
disposal of the US operations by converting the US balance sheet assets into
cash.

At the same time as the disposal the US directors on the Group board, Adrian
Stecyk and Chrystyna Bedrij, resigned as directors of the Company to concentrate
on the management of the US operations. Your board wishes to thank them for
their hard work over recent years and wishes them every success with the future
trading of the US operations. No remaining members of the Group board have any
interest in the US operations disposed of.

Under the AIM Rules, as Adrian Stecyk and Chrystyna Bedrij are both directors of
the Company and interested in this disposal, the transaction is to a related
party. Accordingly the terms of the disposal have been reviewed by Stephen Dean
and Vince Nicholls, the independent directors, who after consultation with the
Company's Nominated Adviser, believe the terms of the disposal to be fair and
reasonable insofar as the shareholders of the Company are concerned.

Directors' Share Dealings and Shareholdings

In relation to the disposal of the US operations, as set out above, Adrian
Stecyk and Chrystyna Bedrij have today disposed of 1,305,113 ordinary shares of
5p each at 3.25p per share and no longer hold any shares in their personal names
in the Company. First Financial Securities Limited, a company in which Adrian
Stecyk holds a beneficial interest, has today disposed of 3,134,593 ordinary
shares of 5p each at 3.25p per share and now holds 5,422,643 ordinary shares of
5p each (13.33%). Global Investments Limited, a company in which Stephen Dean
holds a discretionary beneficial interest, has today acquired 1,539,706 ordinary
shares of 5p each at 3.25p per share and now holds 8,000,000 ordinary shares of
5p each (19.67%). Vince Nicholls has today acquired 2,900,000 ordinary shares of
5p each at 3.25p per share and now holds 4,000,000 ordinary shares of 5p each
(9.83%).

Group Financial Overview

During the year, the Group has achieved pre tax profits (excluding the
exceptional goodwill impairment write off) of #938,597. Due to the disposal of
the US operations after the year end, the goodwill in the group's balance sheet
has been written down to #100,000 representing the excess over net assets
achieved from the disposal. The Group's net assets as at 30 September 2005
amounted to #1,913,909 equivalent to 4.71p per share. Earnings per share
(excluding the exceptional goodwill write off) have increased by 48% to 1.38p
(2004: 0.93p) which, based on the current share price of 6.13p, puts the shares
at a p/e of around 4.44.

As at 30 September 2005, the Group's cash balances were #904,451 and the Group
also held investments (publicly tradeable on markets in London and New York) at
book values totalling #925,152, all held for short term disposal. The Group's
only debts are the convertible loan notes totalling #925,000. #175,000 of these
loans is due for repayment or conversion in March 2006. The new loans of
#750,000 were entered into just before the year end date and are repayable or
convertible by 28 September 2007. The cash balances at 30 September 2005 do not
reflect the receipt of the new loans of #750,000 as the funds were in transit at
the year end date. The Directors consider that the Group's financial position
and its trading position are very satisfactory.

We believe the Group's financial performance for 2005 supports the Directors'
belief that the economic climate is conducive to the smaller company markets in
which we operate in the UK. The Directors are actively seeking strategic
opportunities for the Company. In the last year, we have increased the Group's
profile, developed the UK operating business and increased shareholder value
substantially. The Directors believe the current year will present substantial
opportunities for the Group's future success.

The employees and advisers of the Group have worked hard to achieve these record
results and the Board would like to thank all of them for their continuing
support and loyalty.

Stephen Dean
Chairman

[encarter] 15/12/2005 22:27

DOVEDALE VENTURES PLC came to OFEX yesterday.


They also have Worldwide Natural Resources plc. Either one of which would add substatial value to GFF if they can pull of a deal. The directors have their fingers in so many pies i think they will come up with something.
Before that we will see a great set of results next week.

[encarter] 13/12/2005 22:38

I expect the share price to reach 10p intra day once results are out.

[encarter] 11/12/2005 12:35

What makes you think that?

[encarter] 05/12/2005 23:47

It seems they have got their act together now and come up with a formular for making money. They made a bundle from Pearl Street and have recently floated Worldwide Natural Resources on Ofex with Dovedale Ventures to follow on Dec 14.
Watch these fly once results are confirmed. The more money they make the more investment clout they'll have. 10p short term, 20p in a year.

[pljohnson] 05/12/2005 22:58

roll on results. notwithstading the issues raised re management, if they are able to produce £1mn profit in last year and issued a positive statment re ner future, there is no reason this cant be valued at 20-25p giving a pe of 20X ish, and reflecting the huge growth curve the company is on.

IMHO

[pljohnson] 05/12/2005 22:58

roll on results. notwithstading the issues raised re management, if they are able to produce £1mn profit in last year and issued a positive statment re ner future, there is no reason this cant be valued at 20-25p giving a pe of 20X ish, and reflecting the huge growth curve the company is on.

IMHO

[encarter] 04/12/2005 21:08

p/e of 5 gives us 12p from next results.

[pljohnson] 01/12/2005 22:24

But they dont have to audit them to rns finals. Are they not usually issued as prelims.

[encarter] 01/12/2005 22:15

Everythings good results released shortly. Email from Vince Nicholls, "accounts to 30/9/05 are currently being audited."

[encarter] 30/11/2005 22:01

Hope your're right, i'll be out at 10p.

[goldrush] 30/11/2005 20:56

Is this about to get moving again?

g

[encarter] 30/11/2005 12:52

LOL! loan note holder would want a mark up of at least 25% so it's not even an option until the share price reaches 8p. The " high pressure sales crew" would have to offer the stock at at least 7.5p so i don't think they'll sell much when you can pick it up for 6.25p.