Public Recruitment Share Discussion Threads

[tiltonboy] 11/7/2006 12:50

empire,

I didn't ask specific questions, but when you are in various industry's you get to know the movers and shakers.

In a bizarre twist of fate, the firm I work for has been taken over today, and rumours abounded months ago from within the financial services community. The first we heard about it was when outsiders were telling us who it was.

A couple of things they did say that was interesting is that Hays are making a move into the sector, and Adecco remain on the prowl. HLO themselves are on the lookout for acquisitions.

The problems with the NFA means that the smaller companies in the sector will struggle to survive, so consolidation is inevitable.

When I described PUG's valuation as absurd, Kate agreed, and said it was absurd.

tiltonboy

[empirestate] 11/7/2006 12:41

so where are these rumours doing the rounds tilton, is it board chat ?

[tiltonboy] 11/7/2006 11:46

amberspyglass,

You're a little fibber!

I met Kate this morning and she said she's not going to dinner with you tonight!!!

Kate and Diane came in and presented the company this morning. Despite the problems on the NHS and with the National Framework Agreement, HLO seem to be prospering. The problem thay have got is recruiting enough people to fill position. Approximately half of the positions they fill are with foreign locums, and this is set to rise further next year.

This obviously bodes well for JCJ, and I get the impression that HLO would like to get hold of them. I don't think they would bid for PUG as a whole, because they don't want the educational side, but HLO do have a small social care side, so that part of the PUG business might also interest them. From rumours that are doing the rounds they think PUG will receive approaches before long.

I've just taken 50K at 39p.

tiltonboy

[pictureframe] 11/7/2006 11:25

only a matter of time before the value comes through on this imho. Shouild be at least double the share price

[empirestate] 11/7/2006 11:20

up on the bid, a bit of interest should move the price quickly

[amberspyglass] 10/7/2006 17:07

pr just pr - aren't we doing great we have £18m of new contracts versus we have won a bit more business but on lower margin. 100% PUG is the better deal. very buffetish of you.

[kimboy2] 10/7/2006 09:49

Well FWIW I don't think that HLO can raise the necessaries to buy PRG at a price that I would expect Baird to be willing to sell at. I have no doubt HLO are looking at acquisitions but not PRG.

I am certain Baird can see what has happened as well as we can.

I also don't believe that PRG will sell any part, barring a ridiculous offer. It is contrary to the strategy.

I think HLO is an interesting comparator company for PRG. It more or less has the same turnover, profitability and debt as PRG and the same strategy.

However PRG has 2 key advantages for me.
1. It's half the price.
2. It has greater diversity.

However lovely the aforementioned Ms Bleasdale is I can't see why anyone would hold HLO in preference to PRG, but I would say that wouldn't I.

[amberspyglass] 07/7/2006 17:08

for whatever she thinks is good methinks. she has a fan base out there. is city friendly.

[amberspyglass] 07/7/2006 14:00

Ms K has backing...

[kimboy2] 07/7/2006 10:05

FWIW I don't think that HLO is in any position to bid for PUG. They already have debt of the order of £16m and the shares are on a prospective P/E of 7. Given the likely price they would have to pay (speaking as a shareholder) I cannot see any likely scenario of debt/equity that would really stack up for HLO.

If the HLO shares became higher rated then the story may indeed be different which is maybe what Ms Bleasdale is up to for all I know.

They may of course sell a division, but I would doubt it unless they feel the debt is too burdensome or they see better opportunities elsewhere. One of the advantages that I see PUG having over HLO is the greater diversity of divisions.

As for Baird they are obviously the key to any such decisions. They are presently unrepresented on the board as Michael Fell has left Baird. No doubt completely unrelated to the advice to convert the debt he gave shortly before the profit warning.

They presumably have some sort of exit strategy envisioned, as indeed they will have done when they converted at 133.5p. The fact is that nothing has really changed on the trading front since then. The fall in the share price has limited options on acquisitions and debt reduction, but I would be pretty sure they would view that as short term (I hope).

IMV PRG will issue a good set of interims which will hopefully be supported with a good current trading and outlook statement and a strong report from Bridgewell (speaking as a shareholder again).

I would be very disappointed at a sell out for 50-60p.

[amberspyglass] 07/7/2006 07:54

tiltonboy... yes APN looks really really good.

[tiltonboy] 06/7/2006 22:15

amber,

She won't tell me, as simple as that. I will try a line of questioning and see if I can pick up any clues. I would lose my job if I was found guilty of insider trading, but people do not give out that sort of information.

I meet a lot of companies, and find some interesting one's. I met EDI today, and they look cheap, but I will monitor them for a few months before I make any decision.

The most exciting company I have met recently is APN.

tiltonboy

[amberspyglass] 06/7/2006 21:47

if kate b tells you if she is going to buy and you post it here, will you loose your job and if you do can i have it. sounds a good gig.

[stemis] 06/7/2006 16:24

Kate B ?

Presumably Kate Bleasdale CEO of Healthcare Locums?

[tiltonboy] 06/7/2006 15:58

All I get is a presentation in my office.

tiltonboy

[amberspyglass] 06/7/2006 15:50

thats funny so am I. after dinner we go to a show, and then my pumpkin turns up.

[kimboy2] 06/7/2006 15:11

It would seem to me the most likely one to buy it out would be Baird, though I don't know what they said to the Takeover Panel about the conversion last September.

Who is Kate B ?

[tiltonboy] 06/7/2006 15:03

amber,

I'm seeing Kate Bleasdale next Tuesday; I will ask her.

tiltonboy

[amberspyglass] 06/7/2006 15:01

mr baird and co dont expect every corn cob to turn into gold, so their view will only reflect best get out, not 'we are owed a return'. rumours came from someone who said it was all the talk at a recent medical staffing confernce. plus kate b is said to have lined up £30m. jcj has been transformed into the best of breed under prg stewardship, is winning tons of new business and if anyone wants to be serious about medical recruitment it has to acquire either this company or medacs (owned by CSV). all of course imho

[kimboy2] 06/7/2006 13:17

amberspyglass

I would be interested to know where you heard these rumours.

Granville Baird own 44% of PUG and they have invested £5.5m in 11/02, £0.4m in 4/03 and £4.6m in 12/05. The total amount is £10.8m against a present makt cap of £10.6m.

I don't think they would agree to anything near the present level. The agreed the conversion last December was at 133.5p.

If someone were to take it over though there is probably £7m+ of EBITDA this year as well as £11m of admin costs to eat into, as well as £23m+ debt to take on.

There may be benefits at the right price but are there any competitors capable of financing it.

Also can't help but notice that these alledged rumours have done sod all to the share price

[amberspyglass] 06/7/2006 12:41

rumours are out there. jcj is for sale. prg is for sale... which is true if any.. i dont know? but selling jcj would leave a glorious company behind with no debt.

[empirestate] 05/7/2006 15:29

need a bit of retail interest, good to see we r moving in a positive direction though