MWB Group Share Discussion Threads

[lbo] 17/12/2009 10:30

Will be 30p by the time of the placing and small shareholders have no say as its been all squared with the big boys IMHO

[scburbs] 17/12/2009 09:03

Puckerty,

That's a given!

[phuckerty] 17/12/2009 09:01

Hi
You can always vote NO to the placing.
Regards

[scburbs] 17/12/2009 08:47

Not much consideration of existing shareholders here (given no rights issue or open offer) as NAV attributable to existing shareholders is slashed. A covenant breach would probably have been better for existing shareholders!

Plenty of conflict issues on this placing (i.e. would the Executive Directors be pushing for the best pricing for existing shareholders?). Looks like a lot of nest feathering going on, although it is officially described as a demonstration of strong commitment!

"The Executive Directors and persons connected with them (including the Trustee of the 2009 EBT) have each undertaken to subscribe as Placees for a total of 18,066,666 New Units under the Placing at the Issue Price, making a total subscription of £5.42 million under the Placing. The Board considers this demonstrates their strong commitment to the financial security of the Group."

[lbo] 17/12/2009 08:15

Nobody ever listens!

[scburbs] 06/12/2009 10:30

With MWB close to its financial covenants the sensible move would for it to sell one of its business units. The most logical would be Liberty given the improving retail climate and the fact that MWB is primarily a property group. A disposal at around the current share price of Liberty would be worth 55p per MWB share. These funds could be used to reduce group debt which is 116p per MWB share.

After this the group debt would be 61p per share vs group assets of 225p. This represents a ratio of 27% compared to 41% at the moment which would be a significant improvement (this is not the gearing of the group as there is also debt at the subsidiary level).

Another alternative would be to sell one of the two hotel chains. This wouldn't make so much sense operationally, but would put to the test the following assertion from the half year results:

"The Board is confident that the value of the Group's 82.5% interest in the Malmaison and Hotel du Vin business is significantly higher than the £137.2m or 190p per share for this business within adjusted equity attributable to shareholders of MWB Group Holdings Plc, thus demonstrating a further enhancement in underlying equity value of the Group above the adjusted figure of 164p per share in the table above."

If they achieved a sale of one of the hotel chains at significantly above their book value then that would do wonders for the share price.

[scburbs] 06/12/2009 10:21

"Looking towards the next three months, 61% of respondents are either optimistic or very optimistic about their hotel's trading performance.

...

Occupancy expectations for Q4 are mixed, with general manager sentiment clearly divided. However since the last Hotel Confidence Monitor, the proportion of respondents who envisage either growth or no change to occupancy have increased by 15 percentage points to 58% (current quarter compared to Q4 2008). The trend is unquestionably positive.

Of the 107 general managers who completed the survey, a quarter of the respondents did not project a decline in average room rate during Q4. As a result, rooms revenue (RevPAR) expectations have risen dramatically with 33% of respondents predicting either growth or no change during the current quarter compared to Q4 2008.

"Occupancy and average room rate expectations have continued to improve since January, ending 2009 with more optimism and improved confidence." said David Bailey, deputy managing director, TRI Hospitality Consulting."

[envirovision] 04/12/2009 21:03

A decisive move, Lets hope we have turned a corner here.

[utsushi] 03/12/2009 08:23

At the Interim Statement, they stated lack of covenant headroom, does anyone think that is a hint of a forthcoming capital raising?

Most of the divisions appear to have stabilized, at lower operating levels.

[envirovision] 30/11/2009 17:25

Hmm a 250,0000 (£1.1Mill) negotiated trade today at 44 pence then the share price quicky gets marked up 1.5p offer to close the day. Make of it what you will, but that one whacking great trade, could get a rns here, luck to all.

[envirovision] 27/11/2009 14:38

Retail sector has been upgraded today. Having sold at 66p I buy again today

[explorer88] 11/11/2009 10:23

morning folks

i've been researching / tracking MWB for some time

i think we'll see sale of Liberty (and possibility hotels too) to Asian investor very soon.

initial purchase of 20,000

good luck !

[johnv] 11/11/2009 10:05

Its been two months since Pyhrro increased their holding from 7.4m to 10.4m, (14% now)mostly taking these from Deutsche Bank. But where are they going to get more from?

[dnfa1975] 06/11/2009 19:09

Insolvencies up nearly 30 per cent

Friday 6th November 2009

The latest industry statistics reveal that there were 35,242 individual insolvencies during the third quarter of this year, which is an 28.2 per cent increase on the same period a year ago.

[abergele] 06/11/2009 18:09

pbracken,
that was my chief concern,
a market cap of £37+ million ..........72million + shares in issue.

if covernants are broken, the banks could perhaps ask for a debt for equity swap. in part or whole, don't know how they would/may work it,
but would cause a major dilution of the price.

Also a knock back in growth in the city and provinces would perhaps deter hotel income also Liberty's ability to go for growth.

This may not be the case, because a lot of cash is still sloshing about with the big spenders and the retirement of the babyboomers with pensions and cash
to get rid off.

I am still out and pondering, but if all is well and we start to expand the ecconemy as hoped by the government, this should be a steady return to a bigger share price, it was over £2-50p 2 years ago, so looks a better return than the building society account....2-4% if you are lucky and tide in to boot

[pbracken] 06/11/2009 14:26

Anyone besides me nervous of the capital structure of this business (as well as the £30 unsecured loan)?

Edit: also, I can't find a single note from PMUR relating to the stock.

[abergele] 06/11/2009 11:35

Have been running a view to buy over this share,,

looks to be breaking out again, but it's that £30million on gearing of unsecured debt that stops me at the moment,have to think a bit first....

otherwise its there for growth...imho

[scburbs] 04/11/2009 16:29

IMS due from MWB in the next week or two (deadline is around mid November).

[envirovision] 02/11/2009 23:24

well if its any help to anyone, i was able to sell 20k today easily

[envirovision] 02/11/2009 11:19

7500 firm left at 53 then it ticks up again

[envirovision] 29/10/2009 14:20

7500 left at 50p then it ticks up on the offer.

[envirovision] 28/10/2009 12:34

Just bagged 20K at 47.56p seems like a bargain.