Mapeley Share Discussion Threads

[deanforester] 17/12/2008 17:52

From Page 20 of the 2007 Annual Report:

Assets in the HMRC Portfolio are held in
the financial statements as Property, Plant
and Equipment given the existence of
the outsourcing contract which comprises
these assets. The HMRC Portfolio was
acquired in 2001. The transaction involved
the acquisition of freehold and long
leasehold properties and rack-rented
leasehold properties under a purchase
and leaseback agreement for a 20-year
duration.

[utsushi] 17/12/2008 10:48

Gsands, i must be missing something but as i understand it most of MAY tenanted portfolio is to HMRC on leases approx 10 years old, taken out in 2001, so set to expire 2011.

I understand HMRC's rationale, but what is material to MAY is that they are legally bound tenants, perhaps aside from writedowns, the market fears a large untenanted portfolio coming on the market in 2011, with few takers and a mountain of debt interest to pay off.

It seems in a cul de sac, unless real estate suddenly becomes a asset de jour?

[gsands] 16/12/2008 16:40

Santori,

Apparently not. In fact HMRC's whole rationale for selling off their portfolio was that they planned to close down more offices in the future as the business of tax collection changed over the years. I understand that the biggest change is the fact that more and more tax returns are being done online and therefore fewer clerks and less office space is required to process them.

Clearly this is something that Mapeley knew about, but perhaps when times were better they expected that they could either sell off these properties (if freehold) or re-let those properties on long leases to other users.

[utsushi] 16/12/2008 11:24

Hello Gsands, no surprises to see you still here at 118p!

Even if HRMC closes 90 offices, are they not still legally bound to continue paying rent, or assign the lease to another party whilst still being liable for any short-falls?

[gsands] 11/12/2008 09:46

This poster warned us about this:


nashwan123 - 26 Oct'08 - 20:11 - 1331 of 1467


gsands

You ask what evidence I have for HMRC office closures. Several as I work for them they are restructuring through a program called Work Force Change.If you don't believe me just ask HMRC or someone who works for them. There are campaigns going on all over the UK where the union (PCS) is campaigning to fight wholesale office closures.Over 25 thousand jobs have been cut thus far with more to come. The FT reported this weekend that traders are waiting up to 3 months for payments from HMRC that should be settled in 4 weeks. The answer is too many job cuts. So Mapeleys share price crash is not just credit crunch but simple business fundamentals.

[gsands] 11/12/2008 09:37

Hmm...this is quite bad news actually.

I am suprised that Mapeley's business plan was allowed to have such a glaring weakness in it.

Those offices will go begging in this climate.

[rochdale] 11/12/2008 08:19

already in the price!

[rochdale] 10/12/2008 08:09

Mapeley's falling share price and HMRC

[gsands] 05/12/2008 13:21

There is no liquidity so large amounts of stock attract lower prices.

Fairly common with stocks like this.

[james t kirk] 05/12/2008 08:59

This is up and down like a yo-yo. I've never seen such strange quotes as I just tried three differenet quantities and got quoted different prices for each. Current sell limits below??

Sell 500 @ 110.58
Sell 1000 @ 110.13
Sell 2000 @ 108.76

[rochdale] 05/12/2008 08:23

Mapeley lost another 12¼p to 107¾p after its controlling shareholder, Fortress, the US hedge fund, stopped investors cashing out of a key fund.

[corbys finest] 02/12/2008 23:27

Don't leave "at best" orders open in these markets when things go into auction.

I nearly got stung that way on Friday.

[gsands] 02/12/2008 22:50

Nothing traded at this level. I reckon it was just a hole in the order book.

[orchestralis] 02/12/2008 20:13

Tried to buy this am at 30p but couldn't get any.

[chopsy] 02/12/2008 17:32

Wow, down to about 30p for 15 mins this am. Probably no liquidity, was there? I wasn't looking.

[gerd212] 02/12/2008 08:59

mitzis - You're not kidding!!!

[corbys finest] 02/12/2008 08:09

that I couldn't see

That you were always there behind me.

[mitzis] 02/12/2008 08:08

Its hard to believe.

[alitak] 24/11/2008 21:15

Did you avg down GS, I did at 114p for better or worse! Banks shd be running more normally by April when refi is due, if not we are all doomed! I don't believe the deflation story, I think cash is going to be f-cked by the middle of next year. FWIW.

[gsands] 24/11/2008 16:55

Sentiment should not be of concern to you.
In fact low sentiment is a buying opportunity.

[void concept] 24/11/2008 12:04

GSands,

My concern is thier debt. Yes intrest rates are moving down but is capital availiable at these rates? I see most banks at 2% over Libor on investment finance - even for amazing covenants like the Government. Plus massive adjustments in loan to value

Plus the sentiment...still a ver very sick market.

[gsands] 20/11/2008 21:09

There goes the lows of 2003:

[gsands] 20/11/2008 21:08

Mapeley's banking covenants are not public knowledge as the company consider them to be commercially sensitive.

However, they have repeatedly stated that they have plenty of headroom.

Besides, it is going to be very difficult to value propery assets in an economic climate where interest rates are somewhere between 0 and 1% and Mapeley have a portfolio yielding 8% on long leases to Government grade tenants.

This company is being valued at less than break up value, with no value attributed to the fact that it is a trading concern in the outsourcing market.

This market is very sick, which is great as I am a very patient long term accumulator.