Quadrise Share Discussion Threads

[targatarga] 02/11/2011 11:50

It appears were being sold down for a reason....

[jibba_jabba] 31/10/2011 14:38

Not a holder but came across this...

[red army] 30/10/2011 18:03

Its a little worrying that this one has been left behind the sector indices going up which indicates weakness for whatever reason.

[edward hopper] 28/10/2011 20:57

Ronny you still here?

[7he colonel] 28/10/2011 17:21

More knowledgeable posters may put a better spin on it but as far as I can see GBP355m of GBP400m target commitment for April 2016 achieved.


Interim Management Statement
Date : 10/08/2011 @ 07:00

Finance

In terms of the two financial milestones, we continue with our efforts to move towards a position of cash flow neutrality and extending the debt maturity profile of the Group. The Company is working towards reducing voids across the business, and has successfully concluded a number of small lettings as well as rigorously controlling overheads. With regard to our target of extending debt maturities, Barclays has agreed to extend their loan facility of GBP35m to April 2016. At the same time it has increased the quantum to GBP50m with immediate effect, and with the prospect of an additional uplift next year to GBP60m. We have now achieved extended maturities on GBP355m of our GBP400m target commitment for April 2016 (either outright or through option arrangements).

[zeuseq] 28/10/2011 16:19

Guys is this scaremongering?

A note from property analysts at Bank of America Merrill Lynch has outlined how "mid-cap" companies such as Unite, Quintain, Safestore and Big Yellow all have potentially higher-than-average refinancing risk, and could need to undertake dilutive rights issues to mitigate the effects.

Unite has £98m of debt maturing next year and £237m in 2013. Big Yellow has £275m of maturing in 2013. Quintain has £110m maturing in 2013, while Safestore has £305m maturing in 2013.

"We believe refinancing issues are probably bigger for the private sector than for the listed sector, as the listed sector benefits from its ability to equity repair, and generally has stringent disclosure standards that provide additional comfort to lenders," said Bank of America.

"Still, in our view, the listed sector could potentially have some issues. Can a company wait until its debt matures to find out if that debt will get rolled? If debt does not get rolled, either alternative debt financing needs to be secured promptly or fresh equity will be required to repay the loan.

We think, for some companies, equity may be the only solution, but it would be dilutive.

[w1ndjammer] 28/10/2011 08:33

wendsworth hope you are right
i have money to add, just waiting for the right moment.

WJ.

[wendsworth] 27/10/2011 16:27

WINDJAMMER : I think the share price has 'bottomed' and you will see a significant upside in the next six months. Laxey are astute and I've little doubt corporate activity will ensue.

[w1ndjammer] 24/10/2011 20:14

david

32p was end of november last year so not quite 1 year
i was refering to the chart, suport has been broken so looking for
double bottom. the traders will come flooding in around there.
i have been hear since the days of 10p bought and sold a few along the way
but allways maintained a position. lets see what happens maybe laxey will
buy some more before we get there.

WJ.

[horndean eagle] 24/10/2011 18:22

David - I wouldn't go as far as say they have colluded with the valuers to come up with false valuations. What I imagine they have done is fed them with parameters to come up with valuations. In their June 09 NAV they had factored in price falls of 10% at Wembley and 16% at Greenwich. Neither of these scenario's played out and pricing at Greenwich is probably higher now than at the peak of QED valuation. Yet we have recovered barely a fraction of the write down in 2009. They increased the discount rate used in the valuation to 15% I think. In theory each year we progress the NAV should rise 15%. Obviously not happened and no real sign of it happening either. Caledonia stumped up the cash because they probably didn't want to lose everything. In hindsight I imagine they might wish they had let it go down the pan.

[davidosh] 24/10/2011 17:24

HE....That would suggest there has been collusion with valuers to agree false valuations surely ? They are independently assessed valuations not in house estimates of future value. In any event Caledonia are the largest shareholder and they were comfortable enough to put in the largest amount in the issue and have a director on the board. Surely he would have spotted a deep rooted problem if there was one re valuations ??

[horndean eagle] 24/10/2011 17:06

scburbs - I think you may be falling for the spin that management peddle out here regarding their targets. Is communication really much better? Did you know they had actually purchased Dashwood earlier this year? Why are they stretching their balance sheet by buying more assets instead of actually working to realise value from the ones they have. They have failed to get a JV partner in for Wembley to help push the development along despite the obvious attractions of the site. Without the fund raising the company would have gone to the wall. Had they actually reported NAV correctly at the time I imagine a lot of investors wouldn't have come near QED. Worth remembering that they actually reported a fall in NAV last year. How the hell you can manage to do that when London house prices have been very strong and the investment market in London equally so. The only way you can manage that is by reporting a dodgy NAV figure when your backs are up against the wall and you need to raise cash. I looked at QED at the very depths of the recession at 8p and thought to myself they won't be able to survive. The only reason they did was by reporting a phantom NAV.

[davidosh] 24/10/2011 16:09

scburbs...Can you email me via TMF as I need to contact you ?

[scburbs] 24/10/2011 15:37

Davidosh, You are hardly likely to be in a minority with those views (unless you happen to be in a meeting for Directors!).

[davidosh] 24/10/2011 15:18

Windjammer....Why use the low from a year ago for valuation purposes ? The business has become much stronger since the low of a year ago and reached 66p six months later to reflect that surely ? scburbs highlighted all the positives in progressing the business a couple of posts back I am curious as to why investors will only come in if it falls below a previous low ? Is it not a bargain at these levels already based on what we know and the potential upside v downside if they had to sell various stakes in their assets ? Laxey will not have been stakebuilding without a plan.

[w1ndjammer] 24/10/2011 15:05

think 32p was the low over 12 months
might get some more if we get down there
no interest at the moment.

in the current market QED would have struggled to raise cash
so yes well done with the rights issue, well timed.

WJ.

[davidosh] 24/10/2011 14:58

scburbs....I fully agree that progress is being made. Whilst I accept the rights issue was totally necessary and very fair does it not suggest that the management had led the company into a very distressed situation where QED was overly geared and that they should be the ones that share the burden coming out of the hole ? I only see higher salaries big bonuses and great share options going forward. I am probably in a minority but cyclical stocks like this need fairer reward systems in place which should include high water marks that need to be surpassed before bonuses or higher salaries can be paid. All benefits beyond acceptable salary levels should be issued in shares and locked in for three years minimum.

[scburbs] 24/10/2011 14:40

It is all to easy to criticise management with the low share price.

However progress is being made:

1. Communication is much better with regular news releases;
2. Disposals have been achieved in the student sector (Wembley and Dashwood at profits to book value);
3. iQ fund performing strongly;
4. Finance extended (or extension option) to 2016;
5. Small office disposal;
6. Further 10,500 sq ft letting at Mitre Passage.

Where more progress needs to be made:

1. JV for Wembley LDO + acceleration of leasing programme;
2. Greenwich resi to be progressed.

Item 1 is critical as Wembley is such a high proportion of QED's NAV and they need to prove this value is realisable (of which the Keystone sale was one step). I suspect the economic climate has slowed down negotiations on this.

I recall QED's rights issue coming in for a lot of criticism here. However, it offered shareholders a chance to participate (as opposed to those following discounted placings) and it raised £190m of cash. I wonder how QED would be doing now if it had carried on with £190m less capital (it would be unfair to subtract that from the current market cap lest you conclude the share price would now be nil!)

Whilst those shareholders who took up their rights may now be regretting it, the simple fact is that the management made the right decision to raise that capital, they did it in a fair way (excepting those with insufficient capital to take up the rights - who now may be feeling grateful for that) and a lot of progress has been made (from a business perspective) since the end of 2009.

[zeuseq] 24/10/2011 13:49

Is there a danger it may run out of finance for ongoing projects and more fund raising might be on the horizon? Or is it just a waiting game until value is outed?

[hugepants] 24/10/2011 13:35

Looks like these clowns Laxeys have stopped buying then. Can buy at 36.75p now so valued at 31% of the 116p NAV.

[targatarga] 21/10/2011 15:09

looking at the chart it looks like the buyers have given up.... imho

[red army] 19/10/2011 13:39

Laxey have approx 65m shares and I just hope that they have carried out their due diligence thoroughly.

[chinahere] 19/10/2011 00:21

Yes, I am starting to doubt the management here.