Griffin Share Discussion Threads

[wole] 26/9/2005 11:47

sdavis - see the thread header.

In addition, they very often float new cash shell on the AIM, find a client to reverse the shell into, shamelessly offload their stake, make a packet but usually end up leaving the co almost worthless! I'm not sure how sustainable that model is!

I made a profit on this last June. Today's RNS has tempted me back.

[sdavis] 26/9/2005 11:36

I need educating.... what do they do?

[english bigblls] 26/9/2005 11:16

p/e of 2??

What is the real market cap?

[wole] 26/9/2005 11:01

For the year ended 30 September 2004, Griffin reported turnover of #3,310,569
and profit before taxation of #453,642. The Company's un-audited management
accounts show that turnover for the year ending 30 September 2005 is expected to
be not less than #10,000,000 and that the profit before taxation will be not
less than #900,000.

[stewacg] 08/9/2005 20:57

This company fascinates me although I suspect that the fact that Mr.Dean is in charge has had a paralytic effect on the share price. That apart, this £2m company made profit of £452,000 at the interim stage and claimed an asset value of 5 pence per share (with marketable investments of £1.1m). The value of most of their AIM investments has since fallen radically, although many have been sold. I calculated that they had sold something like £2.3 million of equities since that time (can't square this with the £1.1 marketable investments). The shareprice has fallen precipitously since a while after their results.

They did announce a promising looking deal to buy a mothballed stockbroker for small money once assets were taken into account. This has mysteriously been pulled today - odd since it seemed a sensible plan. I don't know whether they are planning other UK floats, and what business is planned in the USA.

So what is the state of the finances? Have they had to fire-sell shares to cover loans (there were borrowings of ~£3m)? Is the whole enterprise going pear-shaped like Artisan almost did? Or is there a real success story buried in here with the possibility of better quality coompanies being floated in time? When the city doesn't like the management of a company, a change of the latter can work wonders on the shareprice.

Can anyone cast any light on this murk?

[andysand] 27/6/2005 15:08

I think that is very true. It's certainly possible to make a profit here but it needs monitoring closely. I am out for now as I needed the money for other things. Will keep watching..

Andy

[nappers] 14/6/2005 11:38

Way too cheap - any decent tip and these will fly over 10p.

[hugepants] 14/6/2005 10:30

Just had a quick look but the fundies on this share but looks gobsmackingly cheap on current fundamentals.

Market cap = 3.2M

Pre-tax profit for H1 = 0.5M (before goodwill write-off)
Pre-tax profit for whole of last year was 0.55M (before goodwill write-off)

Cash + investments worth 1.5M

Even if H2 this year only matches H1 then pre-tax 1M profit (H2 last year was more than double H1 last year).

If you are being prudent it would probably be unwise to assume H2 is going to exceed this years H1. Even so, the narrative in the results doesn't suggest any downturn in trading is on the cards.

Perhaps Steven Dean's track record is to blame for the current low valuation. Or perhaps question marks as to the sustainability of the profits.

One question. How is licence fee income being paid. Is it being paid in shares on the companies they float? Cant see much in the way of cash flow.

[nappers] 13/6/2005 15:03

some good chunky trades going through here...

[jimbo11] 13/6/2005 14:29

huh? profit is even better than it looks - its really over 500,000 pounds because of the goodwill is included - and thats just for half a year
major bargain

[nappers] 13/6/2005 12:25

yep - way too low for the growth - maybe the Yanks will sniff a bargain when they start trading ?

[maestro.] 13/6/2005 11:56

can't believe market cap is only 2m....is that right?

[nappers] 13/6/2005 11:48

bit cagey this MM, been buying at 7p all morning and shows it now - any more for 8p b4 it goes ?

[maestro.] 13/6/2005 10:22

nice 100k buy

[nappers] 13/6/2005 09:58

nice 60k at 8p there - bid is now 7p judging by the sells. When I called this morning the market was
6p for 250,000 - 7p for 50,000.

I took his 50,000 at 7p so my guess is after todays action that the main MM is 500k short - any decent tip or coverage and he will be covering his position rapidly.. Also, I believe there is only one main MM on this one so there may be some dirty tricks played with the share price over the next few days...

[andysand] 13/6/2005 09:50

Come on chaps, wakey WAKEY! This is a bargain. An easy 50% to be made here. Some people......

When I first bought sportingbet at 40p, nobody was interested, Now I am out with my profits (at 340p!) everyone is trying to get in. Funny old world...


Andy

[maestro.] 13/6/2005 09:01

got in at 6.88p...looks like a good un...market cap is very low

[nappers] 13/6/2005 08:43

correction to previous post - 5p of net assets = 2mn, not 5mn - apologies

[andysand] 13/6/2005 08:43

Mmm, hopefully during the day and tomorrow when it is in the press, we will see a continuation of this rise.


Andy

[nappers] 13/6/2005 08:27

Yep - I bot DAN when they had a similar rating - 2mn mkt cap with looks like 1mn full year = PE of 2 - throw in 5mn of assets and you have a win win situation which is seriously undervalued - as with all small caps however, we may have to wait for the punters to realise this value

[andysand] 13/6/2005 08:20

With this kind of growth rate, surely the shares will be re-rated soon. Let's be conservative and give them a p/e of 7 (!), even that lowly rating gives a target of 10p (7*1.4p=9.8). A more sensible p/e of 10 gives a 14p target so current share price still ridiculous.


Andy

[wole] 13/6/2005 07:46

Well, the results are out at last. Cracking headline figures. Let's see how the share price responds...


RNS Number:4587N
Griffin Group PLC
13 June 2005


13 June 2005



Griffin Group plc
("Griffin" or the "Company")

Interim Statement

For the Six Months ended 31 March 2005
(the "Period")

Highlights:

* Turnover up 309% to #4,701,297 (2004: #1,149,615)

* Pre tax profit up 225% to #452,225 (2004: #139,196)

* Earnings per share of 0.70p (2004: 0.45p)

* Net assets per share 4.99p (2004: 3.82p)


Adrian Stecyk, Chief Executive said: " the Directors are delighted with the
strong results for this six month period that reflects our strategy to establish
a number of AIM traded investment companies. We continue to review possible
investment and business development opportunities both in the UK and the US ".

Enquiries:
Stephen Dean, Chairman Tel: [phone]
Adrian Stecyk, Chief Executive Tel: [phone]

GRIFFIN GROUP PLC
Chairman's Statement
I am pleased to make this interim results announcement on behalf of our Company,
which demonstrates the further success we have achieved.

The fee income for the business has grown substantially in the six months ended
31 March 2005 to #4,701,297 compared to #1,149,615 in the same period to March
2004. As a result, profit before tax increased from #139,196 to #452,255 and
earnings per share increased from 0.45p to 0.70p. The weakness of the dollar in
comparative terms has held back the performance of the US operations when
translated into Sterling. As at 31 March 2005, the Company had cash balances of
#629,254 and marketable investments of #1,108,397.

In the US, we completed over US25 million of fund raising for our clients during
this first six months. In March, Griffin Securities, Inc. was ranked in the top
ten by number of private placements for 2005 year to date. Importantly, the
investors introduced by our investment bankers to these transactions have
received to date a good return on their investments. Complementing our
investment banking operation is our stock research operation, which continues to
build an excellent brand for us, both with the users of funds as well as with
the sources of funds. Since we began our stock research three years ago, our
analysts have recommended stocks which on a cumulative basis have more than
tripled in value. The increasing visibility of our stock research has also
started to increase the volume of open market transactions processed by our
brokerage operations.

In the UK, business has continued to be buoyant. We have initiated and
facilitated the creation and flotation of 6 AIM investment companies, both as an
investor and agent. These AIM investment companies and our existing AIM
investment companies have also created a number of corporate finance deals, some
of which have been completed with the remainder in progress, including:-

i) Tower plc which was admitted to trading on AIM in
September 2004 made its first investment in December 2004 and has recently
issued a re-admission document to its shareholders to complete the acquisition
of Maskina AS, subject to approval by its shareholders at the scheduled EGM.
ii) Pearl Street Holdings plc which was also admitted to
trading on AIM in September 2004, made its first investment into The Health
Group Limited, which has launched an innovative corporate and personal health
fund scheme that has received national press coverage and is successfully
securing high profile corporate clients.
iii) Interbulk Investments plc was admitted to trading on AIM in
December 2004 and has made its first investment into a business specializing in
the transportation, storage and discharge of bulk solid materials using
ISO-Veyors, an inter-modal transport, storage and discharge system, with
interests in the UK, Europe and China.
iv) Ionian Estates plc was admitted to trading on AIM in February
2005 and made its first investment into a Croatian property development business
that operates by partnering with reputable local builders and developers in
Croatia, and is primarily focused on leisure and holiday projects in the
property development sector.

Your Board continues to seek strategic acquisitions and investments to enhance
the Group's position and services offered. In addition your Board will continue
to seek ways to provide a better share price for its shareholders. On behalf of
the Board I wish to thank the staff and the Company's advisors for their
continued support and advice.

Stephen Dean
Chairman

GRIFFIN GROUP PLC
Group Profit And Loss Account