Prem. Bar & Res Share Discussion Threads

[petlover] 22/4/2009 09:14

the value in accounts for freeholds is the value,the fact that only 24 are freeholds makes them pretty expensive.these values are immaterial in the current market.

[jeffian] 21/4/2009 18:09

The freehold assets may, or may not, be worth £54m but of the total of 48 sites, only half (24) are freehold. That means that they still claim that their leases are worth £16m and they claim another £27m in "intangibles" and 'investment property'. Hmmmmm!

[growthhunter] 21/4/2009 16:35

....you mean the unaudited, unpublised June '08 accounts ??????

...and the HO is above a tesco!

[petlover] 21/4/2009 13:11

from june 08 results , nbv must have been hammered since....


The Group has a solid balance sheet with a strong freehold asset base, the net book value of the
freehold assets following the £14m impairment charge is £54.1m. Net debt (including a £5.9m
cash balance) was £41.0m.

[jeffian] 14/4/2009 23:14

In that case, if I were the Reuben brothers, I'd go for a 'pre-pack' administration whereby they send in a Receiver and immediately buy back the viable parts of the company. Under this process, you can walk away from the leases you don't want leaving them with the bust company and put any viable assets into shiny 'Newco'. It would depend on the banks, of course, but a firesale of assets would leave everyone out of pocket. Either way, as I said before, I suspect this will be a carve-up between the Reubens and the banks and doubt there will be anything left for other shareholders.

Regards, Ian

[petlover] 14/4/2009 20:29

the assets

[jeffian] 14/4/2009 17:49

Not quite following you there, petlover. "Pick (what) up"? The assets or the company? My point was that the leases are likely to be a liability rather than an asset and the stated NAV in the (historic) accounts is likely to be illusory. It's beginning to look distinctly like a dead duck (and you can certainly buy those cheap!).

Regards, Ian

[petlover] 14/4/2009 16:44

Ian,banks are taking haircuts on most debt/loans now,so if anyone has cash they can pick these up for not a lot

[jeffian] 06/4/2009 17:25

Sorry, petlover, absolutely no idea. I haven't looked at it in a long time. All I would say is 'probably nowhere near what they're carried in the books at'. When it was Ultimate Leisure, the attraction was that all its properties were freeholds. When it became PBR and expanded by buying Bel & Dragon and Living Room chains etc., it picked up a lot of leaseholds. Leases are a nightmare in a falling property market -- they can actually have negative value (i.e. you may have to pay someone to take them off your hands) and the 'asset value' is invariably tied up in fixtures and fittings which normally have to be written off in a disposal. It was the leases which killed Surrey Free Inns (SUF).

Regards, Ian

[petlover] 06/4/2009 16:11

Ian,ignoring what people paid for shares,what is the business/assets worth today?

[jeffian] 06/4/2009 15:23

I'm slightly out of touch with this one but if the Reuben brothers still hold their stake there may be a bit of cat-and-mouse going on with the bankers. When PBR was called Ultimate Leisure, the Reubens built a stake of 29.9% at around 270p/share and they subsequently raised this to 38% via a Placing of new shares at 169p. I think the average cost of their total holding was around 217p. Unless there really is no equity value left here and the Reubens are prepared to walk away from their investment, the bank will be trying to get them to put in more equity and the Reubens will be trying to resist without pushing the bank into foreclosure or a dilutive debt-equity swap. Therefore, something may yet come out of this (though I fear not) but in that case it will either be the bank or the Reubens who come out on top with little left for any other shareholders IMHO.

Regards, Ian

[petlover] 06/4/2009 14:11

what are assets worth, £20m in curent market? Debt is over £40m?

[growthhunter] 06/4/2009 12:59

they will not exist after this

[petlover] 06/4/2009 09:50

sell off then?

[tjs2] 16/2/2009 08:02

Premium Bars & Restaurants (PBR), the troubled operator of Living Room, is understood to have appointed a chief restructuring officer - tasked with creating a viable business plan for the group.

Gavin Gracie, a former chief executive of Zenith Hygiene Group and former chief operating officer of the English Hockey Association, has been asked to identify ways the business can address its £40m debts.

It is thought that the lending banks to PBR, led by Royal Bank of Scotland, will make a decision over whether to continue supporting the company based on Gracie's conclusions.

A chartered accountant who qualified with Arthur Young in Cape Town, Gracie moved to the UK in 1989. Groups he has worked with also include Hunting Aviation and Shanks, and he has a track record in corporate recovery.

Shares in PBR were suspended from Aim after the group missed a six-month deadline for filing accounts, which were delayed because of ongoing discussions with its banks over a refinancing of the business.

Its £40m debts are thought to equate to between eight and 10 times underlying profits.

[jeffian] 29/1/2009 11:23

That's what several investors said about SUF before it was suspended then collapsed. Make sure you completely understand the "asset base" before making any decisions based on published NAV. Depends on the terms (or if!) it comes out of suspension, but buying this sort of think is equivalent to going down the doggy-track, spotting a nice 300/1 odds and thinking 'I'll have a bit of that'.

[tjs2] 29/1/2009 11:06

Good asset base I understand, I'd be tempted to buy a few if they get the funding sorted. Surely people won't stop going out!!!

[madmick] 20/1/2009 13:21

I wonder if they get it before next Friday for the AGM

[madmick] 18/1/2009 11:48

Petlover In the following link they say its about £5m they require.

[tonka10] 14/1/2009 13:03

yeh they have moved and shut the newcastle offices

[petlover] 07/1/2009 16:08

they only need short term cash per rns but no idea how much

[growthhunter] 07/1/2009 15:51

............lots

by the way, did they actually go ahead and move the ho to manchester?

[petlover] 07/1/2009 15:30

anyone know how much cash these guys need?