Leeds Share Discussion Threads

[langland] 09/9/2002 18:55

I too topped up with another 10k today but this co. remains friendless despite shareholder funds around 22mn against a mkt. cap of not much more than 5mn. Still, I suppose when it's obvious to everyone that the shares are cheap, it will be too late to get on board. I notice 2 lots of 100k today. Be interesting to see if they are directors' purchases or PG's.

[wirralowl] 09/9/2002 13:25

Just noticed - down 25% on back of this statement !

Edit - Oh well, didn't think the statement was that bad - in fact they even re-iterated their intention of paying back capital from the disposals to shareholders eventually. German & Dutch subsidaries performing satisfactorily, Leeds Leasing is growing nicely as well... Nemesis is the only problem, (which they will sell in due course), and will result in a small loss for the year. Personally, I think its overdone, so I bought a small holding this afternoon, and will add to them on weakness.

[wirralowl] 09/9/2002 13:22

azalea & langland,

Thanks for your inputs.

Trading update just released. Seems nthing will happen until Nemesis is sold off, and further drifting of price would leave LDSG vullnerable to a PG offer, as you say :



RNS Number:9158A
Leeds Group PLC
09 September 2002


Issued by Leeds Group plc
Date: Monday 9th September 2002



Leeds Group plc
Trading Update


Trading at Leeds Group's Italian subsidiary, Nemesis S.p.A., continues to be
disappointing, with second-half losses expected to be above the level of the
previous year. Leeds continues to make every effort to improve the Nemesis
trading performance and to investigate satisfactory routes to separate Nemesis
from the Group.


The reorganisation of the Group's German and Dutch subsidiaries, Hemmers and
Itex, is nearing completion. Progress has been satisfactory and the trading
performance of the division soon to be centred on Hemmers is meeting our
expectation. The cost of consolidation, highlighted in the interim report, will
be charged against operating profit at the year-end.


Levels of new business at Leeds Leasing and expectations of profit growth in the
year continue to be satisfactory. We remain optimistic about its growth
prospects going forward, although profit next year will be restricted by the
need, as the Group's sole UK business, to absorb a greater share of the
establishment expenses currently included within Head Office costs.


Overall the result for the year is expected to show a small loss before the
reorganisation costs in Germany and Holland and the exceptional losses on sale
of businesses, which were included in the interim accounts.


The Group remains committed to a resumption of dividend payments, and a
repayment of capital to shareholders, but it is unlikely that this can be
achieved until Nemesis has left the Group.


Enquiries


Malcolm Wilson (Managing Director)

Dawn Bowler (Finance Director)


Tel : [phone]

This information is provided by RNS
The company news service from the London Stock Exchange
END

[langland] 08/9/2002 18:14

Unclear about departure of CE. His position may have been becoming redundant since the compnay is aiming for the sale of the remaining textile businesses-certainly Nemesis anyway. On plus side, I am pleased that FD has taken over and net effect should be to save on central costs. However, not pleased with share price performance since this leaves co. vulnerable to cheap bid from Gyllenhammer. LDSG, unfortunately is not understood - hence low s/price. However, figures mentioned in previous posts are still broadly correct (IMHO) so that, in the absence of a bid from PG, we should be able to look forward to acapital return of about 20p in due course. Group will then be left with a growing leasing business making profits (for this year) of £1.1mn. On conservative estimate I would have thought co. was worth double current share price.I think that current UK cash balances should be approaching £10mn.

[fried slice] 07/9/2002 18:39

Simple Graph(1.1)

[jimtad] 07/9/2002 18:17

Simple Graph (1.1)


Simple Graph(1.1)


alt="Your browser understands the <APPLET> tag but isn't running the applet, for some reason."
Your browser is completely ignoring the <APPLET> tag!


.

[azalea] 07/9/2002 18:10

I too have been watching (for a long time now). The 'resignation' by the CEO is likely to be a 'push' and recognition of his failure to turn things around fast enough. The prospects for LDSG were lauded by all and sundry in the heady days of circa 90p; now having moved to the AIM mkt and no div - to conserve cash, I do not think the risks are outweighed by the potential benifits. Currently, I can think of a number of companies providing a much a sounder platform for profits and paying a good div.

[wirralowl] 07/9/2002 11:10

Been watching these for a while now, after reading tiredoldbroker's excellent research. News yesterday that CEO has resigned and new replacement already installed. Anyone know if this is good or bad news, and will the stated strategy to sell off the group and concentrate on Leeds Leasing still continue ?


LONDON (AFX) - Leeds Group PLC said it appointed Malcolm Wilson, currently finance director, as group managing director.
The appointment follows news earlier today that Leeds chief executive Chris Marsden has resigned.
Leeds said it appointed Dawn Bowler as its new finance director.
[e-mail]

[cg1953] 27/6/2002 08:47

rodney hobson at citywire clearly does not share our optimism on ldsg.
but then i think his research has been less than thorough!

[cg1953] 26/6/2002 00:15

langland.excellent post which i have been waiting 3 years for.thank you.

i first bought a small position several years ago at 1.10 [on the way down from 3 pounds!!]
then quadrupled up at -40 plus,
then more recently doubled again at -26 plus,

i appear so far to have got this mega wrong alongwith gyllenhamar, the directors,and no doubt many others.

lets hope -25 was a never to be repeated base, and watch the directors buy again after the results.i believe gyllenhamar could have been precluded[company law] from buying during this last tumble to -25.

[addict] 25/6/2002 08:24

I bought several weeks ago-I think there is huge potential.Note the shareholdings-makes it a good each way bet for significant upside.One which seems to have been missed.Cautious investors may wait for the transformation to be completed.The more adventurous should get in now IMHO.

[cg1953] 03/5/2002 05:43

down.down.down.
so much for gyllenhamer's involvement!!!
this stock is a disaster for all concerned now; a 20 year low.
mea culpa!!!

[cg1953] 20/2/2002 10:35

will someone tell me what fair value is for this company?.to my mind it seems grossly undervalued; too small to survive as a finance company; surely our fellow scandinavian shareholders would welcome and could deliver a quick/clean exit after what has so far proved to be a less than rewarding investment.but at what price?

[sazulu] 13/2/2002 00:44

Two things have attracted the 'serious investors': a share price well beneath the company's tangible net asset value; and its ongoing transformation under new management into a profitable fast growing lease-hire business from its old textile business which it is selling off. It's possible management will take the company private at some stage.

Recent sales of parts of the textile business are expected to realise about £10m, compared to its current capitalisation of £13.4m at 36.5p. A reconstruction of share capital is planned in order to return funds to shareholders, and it has just announced a its tranfer to the AIM market to facilitate its corporate restruccturing.

The serious investors include Peter Gyllenhammar, who specialises in small company restructuring and recovery, who holds 19.3% of the company with his assocaite Jon Claesson holding a further 12.8%. Acorn Income fund, run by Peter Webb - also a specialist in the same area - holds 6.7%, i.e. just short of 40% between these three. These look to be the key driving force behind the transformation of the business.

Current trading as reported at the agm yesterday confirms the sense of the change in direction. The old textile business, which is rapidly being disposed of, continues to decline in contrast to the newer lease-hire business which is going from strength to strength, even in the current economic environment (profits grew by 15% and its lease book increased by 35%.

The leasing business includes plasma TV screens, which is likely to get a boost from demand this summer during the football World Cup.

Regards,
sazulu

[inlovewithpre] 05/2/2001 09:12

Tipped by the Telegraph.. as a holder its about time too!!

Lots of serious interest from serious investors according to the ST.. Perhaps one for a long term view?