Lavendon Share Discussion Threads

[rubberbullets] 28/12/2016 14:32

Will Blue Prism Group plc be the next ARM Holdings after today’s profit upgrades?
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Peter Stephens | Monday, 21st November, 2016 | More on: MCROPRSM




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Robotic process automation (RPA) specialist Blue Prism (LSE: PRSM) has released an excellent trading update today. It shows that the company expects to report financial performance for the year to 31 October which is comfortably ahead of previous expectations. As a result, its shares have risen by over 10% today. Could it become a major UK technology company, thereby becoming the next ARM Holdings?

Blue Prism’s momentum in the first three quarters of the year continued into the final quarter. It achieved strong new business wins, with 39 customers won in the fourth quarter of the year. This takes its total customer base to 153 versus 57 at the same point last year. Blue Prism has been successful at upselling products and services to existing customers, while its channel partner ecosystem has continued to gain traction.

Blue Prism has brought forward investments that were previously scheduled for 2017 into the second half of 2016. Alongside greater investment in growing its US sales team, this provides it with a bright long-term outlook. In fact, the RPA market continues to demonstrate encouraging signs of rapid growth. With Blue Prism having a sound balance sheet with £11.8m of net cash, it’s in a strong position to capitalise on long-term growth trends.

[sell it high] 28/12/2016 14:24

Paragraph 3 of today's 'increased cash offer' document is interesting...

3. Amendment to debt facility agreement

Loxam further announces that the Interim Facility Agreement, a summary of which was included in paragraph 8.3 of Section V (Additional Information) of the Original Offer Document, has been amended for a second time, so as to increase the facilities available to Loxam to EUR795 million and to increase the portion of the facilities available for cash consideration to EUR570 million

Given that today's offer is £442m then at an exchange rate of 1.17 that is around EUR517m. As Loxam have availability for cash consideration of EUR570m that would imply they have room to go another 10% if they need to which is around 285p per share. I think I am reading that correctly.

[aishah] 28/12/2016 14:23

Debt facility was a concern people had with the Loxam offer, but not so:

3. Amendment to debt facility agreement

Loxam further announces that the Interim Facility Agreement, a summary of which was included in paragraph 8.3 of Section V (Additional Information) of the Original Offer Document, has been amended for a second time, so as to increase the facilities available to Loxam to EUR795 million and to increase the portion of the facilities available for cash consideration to EUR570 million. Copies of the amendment documentation will be available on Loxam's website at www.loxamgroup.com.

Rothschild and Deutsche Bank, financial advisers to Loxam, are each satisfied that sufficient resources are available to Loxam to enable it to satisfy, in full, the cash consideration payable to Lavendon Shareholders by Loxam under the terms of the Second Increased Recommended Offer.

[jeffian] 28/12/2016 11:22

Seems a long time ago when we were talking about the 'safe option' being to pocket the 205p initial bid! Fortune favours the brave (or, in my case, the frozen-in-the-headlights!). Well done. Market seems to think there's a bit more to come.

[dr_smith] 28/12/2016 10:30

My guess is TVH will offer 261 or nothing..if it is to be nothing, I just hope they say so sooner than later, not just drag heels for spite.
Market share price (say 262) implies 20% chance of 270 final bid from loxam (after 261 TVH) IMO.

[sailing john] 28/12/2016 08:04

AISHAH/Snowy - looks like Mr Market agrees!?

[snowydays] 28/12/2016 08:01

I think there is more to come. Notice that Loxam have not said that this is their "final" offer. I hope TVH do not come back with a 261p offer.

[aishah] 28/12/2016 07:58

TVH considering options. 275p final bid?

[sailing john] 28/12/2016 07:43

Loxam 260p as expected - personally think that is it - but happy to be proved wrong!

[dr_smith] 24/12/2016 09:13

Imo, tvh are beaten and so doing a screw you on loxam. When they come back with a 260 bid tvh can sell their slice to them and recover some of the costs.

[snowydays] 24/12/2016 08:55

So we know who's playing Scrooge this year.

[davidosh] 23/12/2016 19:48

TVH have tonight announced another higher bid up from their previous £2.30 and above the competing bid by Loxam that was £2.50 but only by a penny lol

TVH Group N.V. ("TVH") announces an increased cash offer (the "Second Increased Offer") of 251 pence per share for the entire issued and to be issued share capital of Lavendon Group plc ("Lavendon") by Libra Bidco Limited ("Libra Bidco").

Must be getting close to the end now if they only want to go above by a penny. I rather think Loxam offering £2.60 would end the bidding war. I wonder who the Board prefer to do a deal with ie. which gives best long term certainty of employment or pay off for them and senior staff...

[dr_smith] 23/12/2016 19:07

Tvh now upped offer to 251. Looks petty IMV.

[dr_smith] 23/12/2016 13:15

Gonna be quiet another 4 days now...surprised considering speed of previous response.
I expect it will be 2017 now before we hear more as big cheeses won't want to work over xmas.
Merry xmas all, whether holding or not.

[sell it high] 20/12/2016 11:52

Eerily quiet. Looking at todays lack of volume and lack of news it feels like TVH are working behind the scenes to come back with something between 260 - 275 with enough backing from the institutions (together with what they hold themselves) to make it a slam dunk. Not long to wait now. My guess is 265p or the share price would be a tad higher now.

[dr_smith] 20/12/2016 09:22

Cheers XXX I didn't know that...with your posting time, I suggest you sleep on it ;-)

I was perplexed this morning, no new bid, share price still at 256-160 range so market still expecting another bid and TVH have been quick to date of placing bids.

I can only guess current state of bids is ahead of TVH game-plan, so more meetings/time needed to agree higher price justified and check finance available. IMO..well more a guess.. :-)

[xxx] 20/12/2016 04:03

TVH tried to just outbid Loxam last time, so my guess is a return at 2.60, with Loxam coming back with a 2.75 final.Lets see...

[dr_smith] 19/12/2016 09:51

snowydays..don't follow how TVH can "up" squeeze from current psotion and sp, without making a higher bid, with the hope of it being countered by Loxam..if under 250 is their desired final bid.
Surprised no rns this a.m. though we've had them late morning before now..
The waiting game resumes.
I would expect an anouncement by whatever party decides "no further bids but last (lower)bid still holds" sort of thing. IMO. :-)

[snowydays] 19/12/2016 08:26

bedlam, yes.

I think it's worth holding on. Even if TVH are not seriously going to make a higher offer, remember that they own nearly 25M shares in LVD. They are sitting on a nice profit of about £10m at the moment, but they will want to squeeze as much as possible out of Loxam. Another 20p would be worth £5m to them.

I think we will see another offer from TVH, even if it is just a bluff.

[dr_smith] 16/12/2016 11:43

QS00 - That's a co-incidence..Coats just popped up on BBC business live:


I wondered earlier and now I see it.. cotton reels.
My dear departed Mum had.. I think.. their cotton reels in her needle work box.

[qs99] 16/12/2016 11:12

Ok no worries, it was always a turnaround play with resolution of pension as the upside IMO....with pension resolution and visibility now on yield and broker upgrades IMO momentum was and is with it....

cheers

[dr_smith] 16/12/2016 10:58

Off topic, QS99
I tend to go for slow and steady co's, demonstrating management can hack it in good times and bad, so like to see a good 5Y track record and steady not too volatile share price over say last 5 years.

I don't believe COA offers this, I don't know their name and have no sixth sense for the market they operate in, so feel it is not for me - but do appreciate the pointer.

[qs99] 16/12/2016 10:27

Dr S did you get into COA? Nice surprise RNS this morning about their pension scheme and up 10% already....DYOR but reckon it has much further to go....have been in since 20ps, recent trading update was upbeat and ahead as well....gla...