Mice Group Share Discussion Threads

[scburbs] 16/1/2007 13:06

The non-core assets which they hold in the international division and could be sold to reduce debt are:

Blackpool Zoo
Bournemouth Aquarium
Windermere Aquarium

I am not sure on the profitability of these, although I think Blackpool Zoo is c.£1-1.5m per an EVO note. A £5m investment was made in the Zoo last year. Based on this the Zoo must be worth say £15m and would cut c.30% off MEG's debt and leave it at a much lower level.

A sale (or sale and leaseback if the profitability is worth keeping) of these assets must be the sensible way to reduce debt if required.

[scburbs] 15/1/2007 22:27

Evening Boadicea, I would be alarmed at a share issue unless the future growth prospects are even better than they have indicated. There is no point growing turnover and profits unless eps grows as well. Given the last share issue was at 34p they have not made enough progress since then to make another issue sensible at the current price (although the business has progressed despite being at a lower share price). I would prefer the sale of Zoo etc. to help focus on the core business.

[boadicea] 15/1/2007 20:40

LSE : 8 trades, ~108k shares
PlusM: 16trades, ~155k shares.

A predominance of small sells (esp. on PlusM)

The large buyers that used to mop up a month or two back have gone very quiet.
I would not be at all surprised if they have been approached for a placing in the near future. While I do not find this alarming (speaking as a ltb&h), it would mean existing holders requiring considerable patience to get proper value.

[may45] 12/1/2007 21:12

may be downside???

[thistimenextyear] 12/1/2007 02:19

boadicea >>> many thanks - will monitor this as well as normal Market trades in future.

[boadicea] 11/1/2007 21:56

This is the page for Plus Markets.



Enter 'MEG' (or whatever you're following) in the search box and then click on MICE Group. (Note: If there is any ambiguity such as another name beginning Meg... there will be several options at this point.)
You should now be displaying the last 5 trades as in the following link



Click on 'more' to get a fuller listing.

[thistimenextyear] 11/1/2007 17:47

boadicea - thanks for the info. I would be interested to know a free website link where you can see the trades on plusmarkets. Could you inform us please.

Cheers,
TTNY

[boadicea] 11/1/2007 16:16

Trades on PlusMarkets (8 trades, 93k shares, all apparently sells) outnumber LSE (3 trades, 42k, all buys) which explains the drift down.
Company doing well but tight on cash. Could there be fears of an imminent placing?
Even allowing for that they still look cheap to me on fundamentals.

[martinc] 10/1/2007 18:51

Thanks for your thoughts!

[boadicea] 10/1/2007 17:35

At least today's drop seems to have brought in some buyers.
The number of trades on Plus Markets (10) actually exceeded those on LSE (8), although the aggregate quantity at ~160K was slightly less (LSE: 217k).
There may well be some large background trades not yet showing.
Like scburbs, I have been happy to use this dip to add to those mainly bought when it was around 25p some time back - again using proceeds from RTD.

[scburbs] 10/1/2007 15:51

Hi MartinC,

Indeed I am concerned by their apparent failure to address cashflow and debt. Originally I thought I had invested in a business with a very slowly growing turnover and, therefore, should be able to improve cashflow to pay down debt.

Whilst debt is still high priority it appears that the organic growth opportunities to MEG are higher than expected. Everything being equal I would rather be invested in an undervalued growth company than an undervalued mature company (provided the debt does not become unmanageable). This is for the obvious reason that the potential upside in an undervalued growth company is much higher.

H1 saw:

- 26% growth in UK turnover;
- 32% growth in US turnover;
- significant investment in opportunities which will generate turnover growth in international division including contract wins in the middle east.

It is unrealistic to expect this growth to be achieved without an increase in debt due to working capital.

Therefore, whilst debt remains a concern we are facing with a growing business. What I am keen to see is the profit upsurge from the growing business. This is intimated by the fact that divisional margins improved in H1, but this improvement was swallowed up by the increased central costs which are a much higher percentage of profit in the seasonally weaker H1.

The turnover growth in H1 bodes well for good profit growth in H2 when the central costs which represent a lower percentage.

Nonetheless I will be looking closely at all of these factors (operating margins, cashflow and central costs) in the next set of results and any indications in the probable April trading statement.

[martinc] 10/1/2007 15:12

Are you concerned by their apparent failure to address cashflow & debt?

[scburbs] 10/1/2007 14:46

Hi TTNY, Difficult game bottom fishing. I think of it as building a position in MEG that I am happy with as opposed to trying to top up at the absolute bottom. If it drifts further I will buy some more. Provided you do not end up with an unsustainably large position this process should prove beneficial when the big move [upwards!] comes.

MEG remains only my 4th largest holding, behind CCT, AHT and FWY, so I have a capacity to buy more should it drift a little further.

[thistimenextyear] 10/1/2007 14:13

Hi Scburbs - Been very quite on here. I have been thinking along similar lines for a while but not sure whether the Sp will drift a little further. Hope next half results are solid.

[scburbs] 10/1/2007 14:09

Have added 32,127 at 32p for my ISA with some of my RTD proceeds. Starting to get very cheap again. Forecast of c. 3.7p eps this year, 4.3p next year. So current year P/E 8.6 and prospective 7.4. No news immiment so we may drift further, but the quiet time is the best time to buy in if you think it is good value as once it moves you will be chasing the price up.

[Abuse team] 19/12/2006 16:40

Post removed by ADVFN

[thistimenextyear] 19/12/2006 16:38

scburbs - yes good to see AXA continuing to increase their holdings:

18/12 26,850,671 15.18%
22/11 25,400,671 14.34%
20/11 24,667,914 14.06%

Best wishes,
TTNY

[scburbs] 19/12/2006 13:38

Congratulations on AXA having made the push and overtaken HSBC. Just the 30.17% held by these two.

Mice Group PLC
19 December 2006
MICE Group Plc ('the Company')
Holding in Company

MICE Group Plc, the international marketing services group, has today been
advised by AXA Investment Managers UK Ltd on behalf of AXA SA and its Group
Companies that it has an interest in 26,850,671 ordinary shares of 4p each in
the Company representing 15.18% of the issued share capital of the Company.

Mice Group PLC
10 October 2006

MICE Group Plc ('the Company')

Holding in Company

MICE Group Plc, the international marketing services group, has today been
advised by HSBC Holdings plc and certain of its subsidiaries that it has an
interest in 26,574,957 ordinary shares of 4p each in the Company representing
14.99% of the issued share capital of the Company.

[profiting] 13/12/2006 21:39

Keen to get back into these but still appears big seller around see 1m sell at close at 33p today but doubt if they will go much lower and previous support has been at 30p - 32p level.

[boadicea] 13/12/2006 16:38

Large blocks changing hands again, 1M sold, 0.5M and several 100K+ bought, and a non-volatile price.

[boadicea] 06/12/2006 18:20

Had a top-up target of 34.25p but, feeling it might not be reached, settled for 34.35p - to tuck away for a year or two.

[mistertibbs] 05/12/2006 21:31

IC generally positive and also reckon a sale of some aquariums and Blackpool zoo, cosidered as non core could be sold to raise between £7-£12m and use to cut debt. EPS expected to hit 3.7 due to higher tax but although never a high p/e share, a rating of 10 they say is too low.

If those who sold out read and digested what was said in the previous finals, they would see the message is and has been the same. The rise in debt seems to scare people and don't appreciate immediate investment costs for the long term benefit. Or are there simply better oportunities for quicker profits elsewhere?

I continue to hold and consdider further top up after examining the interims which are only ever a pointer anyway.

Try b&q for a patio heater man

[fadilz] 04/12/2006 21:54

Seems Investors Chronicle repeted it's Good Value rec last week - anyone have more details?

F

[waldron] 04/12/2006 13:47

might be a silly question

is meg in the patio heating business?

if not are there quoted companies in the business?


cheers

[besbury] 28/11/2006 16:48

The majority of MEG trades appear to be going through on the Plus Market. 31 yesterday and a further 10 today.