Litcomp Share Discussion Threads

[discosef] 30/9/2009 08:30

The link to the website has been down for a while. Hopefully we will here something soon.

[foodcritic] 30/9/2009 07:13

Is it the 30th today? I can't see results anywhere and the link to their website is down!

[lgpixels] 28/9/2009 18:59

we will get the results before the end of the month (Wednesday).
Happy to sit tight as I don't think they would get shareholder backing for a bid at this level (would have to be a least double, and this would still look very cheap)

[philjeans] 28/9/2009 15:36

We can't let this happen - just look at the chuffing chart!

We're almost on the bottom still - rip off city!

[abc125] 28/9/2009 11:23

I have emailed but received a pretty stanndard response. We will know for sure whats happening after october 31st - a successful bond conversion and the comapany will remain listed imo.

I don't think its insiders at play here trying to take take the company private on the cheap. They wouldn't be putting out positive press releases otherwise.

[lbo] 28/9/2009 10:41

Put the pressure on!

[e-mail]

[e-mail]

[abc125] 26/9/2009 19:15

Now that I think about it, there could be a less sinister explanation to the mooted offer.

A high number of redemptions could deplete their cash balances below the minimum required for regulatory bonding purposes. This would mean they would have to stop writing new business and the book would be placed into run-off. Not only that, but the many client relationships they have built up over the years could be damaged irrevocably as a result of this.

So the company could be simply hedging their bets in the event of a bond conversion failure. The survival and continued smooth running of Elite Insurance must take precedence.

On the other hand, if one takes a bleak view, this could be an old fashioned stitch-up by various vested interests to appropriate all future profits for themselves – it would not be the first time something like this has happened.

Greed can bring the worst out in people.

[lbo] 25/9/2009 09:25

Get emailing is my advice!

[e-mail]

[lgpixels] 24/9/2009 21:26

Don't think a bid a 33p would be successful, as this appears way to low!


Sitting tight!

[glasshalfull] 24/9/2009 21:14

Have to say I'm as confused & the multiple posts on this thread suggest that I'm not alone.

First thoughts are that the bid was derisory....unless trading has deteriorated or some other mitigating factor. The fact that the company have failed to clarify why the delay in results between trading update on 23rd June and 24th September...a whole 3 months does muddy the waters somewhat.

I had high hopes with an investment in LIN but extremely disappointed that the bid "appears" to be low ball and that we have yet to receive satisfactory clarification.

On change of advisors. Perhaps conflict of interest with the advisors of bidder?
Who knows? Certainly not me.

Regards,
GHF

[laserdisc] 24/9/2009 19:15

shame really but we may get higher offer , so they will issue accounts late because another party or large shareholder would like to have a nice read of them & do a dd first.?
If talks are at an advanced stage & a formal offer is made what was the basis of their offer, they must have seen some figures then again could be management buy out as they would know already what the co is worth
expect we will find out soon

[sham71] 24/9/2009 19:09

Something fishy going on here.

LIN did not release results on time because the share price would have galloped away. The 33p offer would have then looked derisory. Now they have successfully put an effective cap on the share price.

The question is, are they working in shareholder interests? It would appear NO!

Whose behind the offer? That will reveal all.

[lbo] 24/9/2009 18:23

LOL



Current Trading and Prospects 18 December 2008

The Group continues to perform in line with the Directors' expectations and we are confident as to future prospects.

Douglas Smith
Non-Executive Chairman




23/06/2009

Trading during the 12 months ended 31st March 2009 remained strong. However the Company has made prudent reserves against certain claims and other risks arising during the period. As a result the Company believes that despite revenues for the period being broadly inline with management expectations, profits were
slightly below market and management expectations. Commenting, Chairman, Doug Smith said, "The Directors are pleased that the Elite business has continued to grow profitably, but in the present economic circumstances it is felt that it is appropriate to adopt more conservative reserving policies, particularly against claims."

The Company has continued to trade profitably after the year end

[laserdisc] 24/9/2009 17:37

so did they fall out with previous advisor ? wonder why the change, if these discussions about an offer are at an advanced stage perhaps they should have informed us sooner have they broken any rules with the nomad

[lgpixels] 24/9/2009 17:24

I'm sitting tight!

[lbo] 24/9/2009 16:51

And if you are still not happy with the explanations! :0



AIM Regulation
To contact AIM Regulation, please email [e-mail] or call [phone].

[lbo] 24/9/2009 16:28

Or email them! ;)

[e-mail]

[e-mail]

[lbo] 24/9/2009 16:25

Ask them! :)

Jason Smart, Chief Executive Officer Tel: [phone]

Paul Lavender, Finance Director

Seymour Pierce Limited Tel: [phone]

[the big fella] 24/9/2009 16:21

LBO - I agree 100%. If it goes through at 33p it sucks. There must be more to it IMHO, but what it is... your guess is as good as mine.

Edit.. ABC made a valid point earlier re the bond conversion which may give a clue.

[lbo] 24/9/2009 16:10

The new independent Director (Mr. Christopher Francis Collins) only appointed in July to Litcomp plc and the non executive Chairman Mr Douglas Smith could not possibly recommend a takeover at 33p! At the very least it must be upped a few pence.

Fully converted the £2.5m loans would mean 14,638,286 shares in issue x 0.33p = £4.83m cash bid for a company with £3m cash and over £1m profits pa!

LOL

[the big fella] 24/9/2009 15:55

Unfortunately from what they have announced it is. If it were for 250K then i might think differently

[johndee] 24/9/2009 15:38

25,000 bought at 35 pence after the announcement...its certainly unlikely to be sold at 33 pence............

[abc125] 24/9/2009 15:35

ABB is in a similar field looking to expand:

[lbo] 24/9/2009 15:12

Mr Hangman after its taken over at 35-40p! LOL

[abc125] 24/9/2009 15:10

I've got another bit of pointless conjecture (bear with me)

Maybe they did not have enough willing convertees without jeopardizing their cash balances, so what better way of demonstrating 'value' by revealing a potential cash offer at 33p.

Surely most bond holders will now convert?