London Scottish Bank Share Discussion Threads

[andrbea] 18/9/2008 08:41

what's up?

[davius] 18/9/2008 08:10

I've frankly no idea, but if they don't get the refinancing sorted by the end of next month then they'll effectively have to put themselves up for sale. That would very likely result in a lower price than if another party is separately interested.

I suppose my main concern (and hence quite small holding in these) is that they may want to raise the remaining shortfall via a rights issue, which would probably be at around 2p per share I'd have thought. The problem I have is that I only hold these in my ISA now, so can't just add funds to take part in a rights issue. My holding would be heavily diluted.

Let's hope they get themselves sold in the next month. Heck, I'd take 8.88p per share now (break even).

[city girl] 18/9/2008 08:09

I've just caught up with this 'management statement' and it stinks!

There's no P&L - why not? This statement is supposedly being released under the Transparency rules but it doesn't seem very transparent to me, it's just a weak attempt at putting some spin on what seems to be a worsening financial position.

In all their positive blather it's disclosed that the UCC division alone has lost £16.7M and there are further losses mentioned elsewhere. Just how bad is it guys?

This statement is just not good enough, a proper announcement of trading results so far this year and perhaps a profit warning should be put out, not this drivel.

[cyclingnut] 18/9/2008 07:24

davius,

can you see someone taking over LSB or will they just walk away?

[davius] 18/9/2008 07:12

Well the board seems to think so. It could all be bluster of course, but unless there has been a really serious deterioration (and RW is still making a profit) then the net asset value should be 20p or more per share.

[cyclingnut] 17/9/2008 21:53

so even without a possible takeover do you guys feel LSB can successful restructure and get up off the floor?

[grlz] 17/9/2008 19:45

Not totally clear if the RW loan covenant requirement that calls for a minimum £32.5 of RC is the same as the regulators minimum RC level [Bankers could be demanding more cover than the regulatory minimum] - if they are the same (big if) then LSB are £12m off, which is good news imho

Problem is a £12m fundraising against a £6.3m MK before discount!

or I could be reading it wrong....

Still happy to hold here, but only because my adjusted average is .000221p :)

all imho

[davius] 17/9/2008 19:20

Fear not oh nutty one...

Net debt is short and long term debt, less cash and equivalents. It does not include assets.

The accounts to the 30th April showed £422m of assets and £367m of liabilities. A net asset value of £55m. Only £3.6m of that was in intangibles.

They didn't give a figure for net debt with the April Interims but it looks to me like the net debt has fallen significantly. The sale of LSIF will have had a big contributory effect:

"As announced on 31 July 2008, the Group successfully completed the disposal of its subsidiary company LSIF to Hitachi Capital (UK) PLC. LSIF was the invoice discounting and factoring subsidiary of the Group. This disposal was part of the Board's strategy to refocus the Group on Robinson Way's successful debt purchase and debt collection business and to reduce the capital employed in its lending divisions. The proceeds from the disposal have been used to reduce the Group's net borrowings."

I'd guess that the share price reaction today was more to do with the lack of any significant announcement regarding a possible buy out and the fact that they still have a regulatory shortfall, albeit only £12m.

[cyclingnut] 17/9/2008 17:59

net debt £238m...then surely it's curtains here?

[davius] 17/9/2008 15:26

IMS out, still in talks, share price tanking...

Shortfall in regulatory capital is £12m (31 August)

Net debt £238m

"The Group remains engaged in discussions with a number of interested parties, which may or may not lead to an offer being made for the Group."

[davius] 16/9/2008 14:45

As I posted elsewhere, the comment on working lunch was that there was no way they'd let AIG fail, it's too entrenched and would cause a global melt down if it went under. They also commented that Barclays could buy the choice parts of Lehmans at a cut down price.

The DOW is tantilisingly close to level but can't quite make the push up. Yet.

[johnspain] 16/9/2008 14:40

Hi,

it will come alive when the action starts, can't be long now.
quite happy with the way this is holding up in present market.

Dow is looking a lot better and fed may cut rates. I think aig too big to fail and barc may buy leh

[cyclingnut] 16/9/2008 14:37

Hey John,

Shame this thread is so dead eh?

[johnspain] 16/9/2008 14:33

I think not, in fact quite the opposite.
consolidation in the banking sector is front page news.

[cyclingnut] 16/9/2008 14:29

In light of ML,Lehman and AIG going pop might this not cause the potential bidders here to catch a cold and walk away from LSB?

[cyclingnut] 16/9/2008 08:01

looks like the 50k man is cutting loose eh?

[cyclingnut] 15/9/2008 14:18

andrbea,


we are already in takeover talks we are just awaiting the outcome!

[andrbea] 15/9/2008 14:02

maybe the ailing banks will now think about sector consolidation. In other words more likelihood of mezrgers and acquisition (for survival's sake)

[cyclingnut] 15/9/2008 13:54

good move Davius, I picked up 20,000 more at 7.45p!!

[davius] 15/9/2008 13:16

I was fortunate enough to dump a few (only 10K) last week at 7.6p. Some real bargains in the banking sector now I think, but I won't be in a rush to buy them back just yet.

[johnspain] 15/9/2008 12:50

'that' is people panicking because of the lehmans news I guess.

don't think anyone expected news just yet.
I will be buying dips.

[cyclingnut] 15/9/2008 12:47

looks like that was that!!

[tomandgerry] 14/9/2008 09:41

I'm still here but know nothing - hence my silence!

[cyclingnut] 14/9/2008 08:49

m4p,

looks like everyone has gone underground again......weird..........