Plutus Powergen Share Discussion Threads

[nw99] 16/12/2019 06:44

Exactly that's why they must be voted out .

[gretagarbo] 15/12/2019 22:46

Ok!! But try finding something positive on the internet about Tatnall !!! That would be a struggle !!!! The diesel issue is that lots of companies chased after the tax breaks five years ago . Seemed a good idea to lots of comps then and it's bitten everyone on the bottom !!! Gas hasn't happened down to lack of funding and that is purely down to Tatnall and Longley

[rhug1966] 15/12/2019 21:44

Greta, posting regurgitated info off the internet about David Horner doesn’t make him the saviour. He is only interested in getting some returns on his already doomed Chelverton fund. He also was duped into investing into PPG which also makes him as gullible as the rest of us. Paul Lazarevic is also culpable for the mess that PPG finds itself in. Investing in diesel when gas was the way to go makes his expert direction questionable. Looks like everyone is clutching at straws at best. This is a dead duck.

[pbanus] 15/12/2019 20:59

I don't go along with Bishop's view that the erstwhile director has "oven ready" deals, if they have been "oven ready" then they should have been cooking in the oven long since. It would appear that the plan to unseat the board is a last ditch attempt to resurrect some value from the company before it folds rather than having any grand plan. Moves should have been made by the large shareholders 12 to 24 months ago to unseat the current BOD, the major shareholders appear to be very slow in making this move, at best this is an 11th hour move.

[gretagarbo] 15/12/2019 20:07

Sammu; I'm pretty perplexed that anyone should doubt the attraction of the proposed new board. Just a quick glance at David Horner who would be CEO shows a man in a totally different league to Tatnall;

David is an acclaimed fund manager, specialising in small and mid-cap quoted investment and SME unquoted investment. He has 30 years’ experience in corporate finance assignments, identifying, structuring and managing investments as well as purchasing and managing private equity, specialist listed and AIM portfolios. He qualified as a chartered accountant in 1985 and has held senior positions in Deloitte, 3i Corporate Finance and Strand Partners Limited, with numerous public and private company directorships. In October 1997, David set up Chelverton Asset Management Limited to provide the investment management for the investment trust now known as Chelverton Growth Trust PLC, and was responsible for launching, in May 1999, Small Companies Dividend Trust PLC; both funds he still manages. He has co-managed MI Chelverton UK Equity Income Fund since its launch, the success of which consistently earns him a Citywire AAA fund manager rating.

Funding is only achievable if due diligence is successfully passed. The current team have shown consistency only in their inability to raise funds and I see no chance of that changing. David Horner and Nigel Burton are hugely respected figures.

In addition; you miss a crucial point about Rockpool. There is still a 20mw gas site to be built which could very well be put together by Lazaravic. If that is the case then surely it is better to have him back in Plutus , earning management fees for the years while it is being built.

[sammu] 15/12/2019 14:57

I don't see any way that the contracts would be renegotiated/put back in place with PL back on the payroll. Aren't RP looking to sell these companies - so what do they need a management contract for - they had already given notice before PL left. This idea IMO is pie in the sky.
The proposed new board don't seem to give any reasons why they will be able to do a good turnaround job and their history seems mixed at best - others will know their track record better. Significant dilution would seem certain - something that the current board have fought hard against.
I'm not saying the current board have done well but it has been a very difficult environment and I see nothing to make me think this new lot would have done better, or indeed will do better.

[nw99] 15/12/2019 09:52

Awesome let's do that

[bishopawn] 15/12/2019 08:12

He knows the industry very well.....and I would imagine that he could have possible projects/deals all "oven ready" to go, with Rockpool back in, provided we can get control at the EGM on 10th January.

So very important that we vote all our shares to REMOVE AND REPLACE the current directors for a prosperous 2020.

[pbanus] 14/12/2019 04:38

they seem to be suggesting something regarding the large "administration expenses"

[1renard] 13/12/2019 21:11

I've been speaking with someone at Rockpool. They really like Paul Lazaravic. I can't say any more.

[gretagarbo] 13/12/2019 21:06

it won't be pretty!!

[pbanus] 13/12/2019 16:51

assuming the newco BOD is appointed and they review the books I wonder what they'll find?

[2pablo] 13/12/2019 16:24

Everybody band together and we'll oust these charlatans.

Next week we should get the nod from our nominee holders asking how we would like to cast our votes. Everyone make sure you vote,vote FOR all the requisitioners' resolutions and then a few days later get confirmation from your broker that they have cast your vote.

[montynj] 13/12/2019 15:59

I bought a small 1,000,000 this afternoon

[nw99] 13/12/2019 15:55

The time is right for change

[bishopawn] 13/12/2019 15:55

21st November 2018 RNS

Plutus' acting CEO James Longley said, "We are delighted to be advancing our strategy to move into the construction of higher-margin gas-powered FlexGen sites with our first project in Kent soon to commence development. We have an historical relationship with Rockpool that has successfully developed multiple sites across the UK and we look forward to continuing this as we develop Medway. Furthermore, discussions are continuing to secure funding for additional majority owned gas sites across the UK and we look forward to updating the market on our progress."

No update and no progress was forthcoming.

The above quote is just one example of many misleading positive statements that came to nothing. Another regular statement was often trotted out about having 300MW of sites in the pipeline.

[1renard] 13/12/2019 09:49

The problem with the board's statement is that it is full of excuses for poor performance and attempting to machine gun the requisitioners . The current board are a bye word for poor performance. Just look at Stranger, Papillon and Fandango where investors money is literally unreachable. Look at the failure to get funding, look at the share price performance over the last two years.

[gretagarbo] 13/12/2019 09:15

This is the only bit that shareholders need to read. The board's defence is waffle at best and defamatory at worst.

Dear Shareholders

Introduction

We are the two largest institutional shareholders in Plutus PowerGen plc ("PPG" or the "Company"), with a combined holding of in excess of 9%. We are highlighting here our concerns about the Company and explaining the background to the requisition that we have recently served.

As institutional shareholders, we consider that it is only right and responsible for us to take an activist approach where we consider that circumstances are such that drastic action is necessary. We have done this because we believe that there are now limited options to preserve shareholder value in a situation where the Board is unwilling to accede to, and/or dismissive of, wholly reasonable shareholder demands.

In summary:

-- the Board has rejected numerous approaches by us over several months aimed at providing improved financial performance, governance and expertise to PPG;

-- the Company's shares have fallen by over 93% since early 2018; and
-- the replacement of the Board is the only way that the Company will be able to raise sufficient funds to survive and have a viable chance to thrive.

We therefore believe that the only way forward now is for us to seek to remove the existing board in its entirety, appoint David Horner, Nicholas Lee and Nigel Burton (each of whom have consented to act as directors of the Company) to the board, and to reinstate Paul Lazarevic as a director. Paul being the only recent board member with the relevant sector experience. Whilst we regret the need to deal with this matter in the public arena, we have made no progress dealing privately with the Board and therefore cannot see any alternative but to approach shareholders directly to support us.

We are aware that the sector in which the Company operates has recently been difficult given the issues with the capacity mechanism ("CM)") and the phasing out of the triad payments. Whilst we were pleased to learn that CM is to be reinstated, in the short term, we do not believe that this does anything to help the Company's current financial position. We remain very concerned about the complete lack of any progress by the Company over the last two years and the serious weakening of its financial position.

Our concerns

We list below a selection of our concerns that have come to light over recent months:

-- PPG has lost its management contracts with Rockpool Investments LLP ("Rockpool"), which were the Company's only source of income, amounting, we believe, to over GBP500,000 per annum. Also, this apparent breakdown in the Rockpool relationship does not bode well for the proposed development of the Company's first gas site with Rockpool;

-- there is a lack of cost control with administration costs appearing to be very high given the scope and scale of the Company's operations. The GBP500,000 raised from the placing in November 2018 has been spent when financial prudence should have been observed and administration costs reduced;

-- the Company failed to get planning approval on the site in Devon which is a blow given the excitement and expectation when it was first announced;

-- the potential funding for the gas sites does not seem to be any further forward;
-- Paul Lazarevic, the only board member with any relevant sector experience and important relationships within the sector and the person responsible for operations has now left the Company so, in our view, the current board is no longer fit for purpose;

-- PPG's share price has fallen significantly since early 2018, at one stage reaching 0.11 pence, valuing the Company at around GBP960,000;

-- the Company appears to be very short of cash - on 30 May 2019, it announced that, as at 30 April 2019, it only had a cash balance of GBP64,000 even after the GBP500,000 placing in November 2018. Now it would appear that the figure at that date was in fact lower still at GBP45,177 - the current cash balance must now be almost zero. Given the Company's recent share price performance we believe that the current team will struggle to raise new funding;

-- the recent publication of the Company's results for the year to 30 April 2019, moments before the deadline to avoid suspension in trading of the Company's shares, has done more to heighten our concerns as opposed to allaying our fears; and

-- the Company's financial situation and prospects have now clearly deteriorated further since its year end as a result of the loss of the Rockpool contracts. The Company's auditors appear to agree with this analysis, stating that the Company will need to raise new working capital and including a material uncertainly paragraph within their audit report.

The way forward

We are confident that PPG does have the potential to do well in what will ultimately be an attractive sector, however, we believe that there is an urgent need to change the board in order to secure the Company's survival. The proposed new directors have the relevant experience and access to capital in order to stabilise, refocus and grow the Company. Furthermore, we believe that a new board will provide all stakeholders with renewed confidence in the Company which may even enable the Company to encourage Rockpool to consider the reinstatement of the management contracts.

Interestingly, once our requisition to effect change was announced by the Company, the share price rebounded from a low of 0.11 pence to 0.165 pence, an increase of some 50%, thereby confirming investors' appetite for change at the Company.

Action to be taken

In summary, we strongly urge shareholders to vote in favour of the resolutions that will be proposed by us at the forthcoming general meeting of the Company as we believe that this is the only way for shareholders to take affirmative action with a view to protecting our investment in the Company.

Yours sincerely

David Horner Nicholas Lee
Managing Director Investment Director
Chelverton Asset Management RiverFort Global Opportunities plc

[gretagarbo] 13/12/2019 08:12

The defence of their position is rambling and pathetic

[gretagarbo] 12/12/2019 17:43

Looks like Tatnall and Longley can't count....unless announcement arrives in the next hour. What plonkers

[pbanus] 12/12/2019 16:51

yes Bishop certainly pushed the directors line for a long time to the extent it was surmised he was one of the directors.

[bishopawn] 12/12/2019 14:28

Yes I feel sure too that once the decks are cleared the finance will come in with the restored confidence that a new board of directors will produce.

[2pablo] 12/12/2019 14:10

Correct Bishop, a lot of support exists to topple these useless Board members. Then, and only then, can we get the finance to get this company moving again

[bishopawn] 12/12/2019 13:58

We can all be misled by Company statements of imminent progress from directors. I believed in good faith what they were telling us about future prospects for Plutus, in particular the raising of finance for projects. It all looked solid but it would seem that once prospective lenders looked under the bonnet, they walked away...For example, the listed bond for several million pounds never materialised, which Longley predicted would be an important milestone for the Company.
High salaries without justification in my opinion, plus expenses, provided the directors with a very comfortable living at shareholders' expense over several years.
Glad some of the largest shareholders have blown the whistle and called "time".

[ochs] 12/12/2019 12:24

Good to see your current stance bishopawn, but I hope you're just a little bit ashamed of your previous long term support of the BOD and telling people to buy at 0.3p etc earlier this year!