Real Affinity Share Discussion Threads

[johnmp] 30/4/2008 13:44

LGB buying RAF after disposals, what would be the point?

I am negative on the news, it could be that clearing all debt with the current disposal, including 14m of turnover and being left with a turnover of 6m could possible make RAF profitable? but then the management would need to disappear and they all work in a cardboard box under a bridge somewhere.

Its nearly a fire sale, so will be difficult to get a good price. Re-read the last chairmans statement? add 1 to: lies, damn lies, statistics and now statements from chairmans.

[dusseldorf] 30/4/2008 13:36

dweagle - no - the only connection was that duffer Pearson. Basically they've admitted RAF is effectively going into administration, but before it dies are giving the only successful business unit a chance of survival by passing to another firm.

I believe there will be no cash left once disposals are complete, though I could be wrong...risky to hold

[dweagle] 30/4/2008 13:31

anyone think this could be connected to the pending resurection of LGB?

[johnmp] 30/4/2008 13:26

gulp,

"
They also believe that it is in the best interests of Real Affinity shareholders for Real Affinity to dispose of substantially all of its business activities with a view to being deemed an investing company under the AIM Rules.

"

All depends on how much RAF gets for all of its business activities? take away all its debts and the difference will be left in the share price Using the current sp, RAF would need to have above 500,000 pounds left. For every 500,000 pounds after that we will see RAF double/triple etc.

Thats a simplistic way to see it, as an " investing company " it could be the Directors just take out the cash and the shareholders end up with nothing?

So how do you value a turnover of 20 million pounds in a market with no cash to buy anything. Probably need 5 million just to pay off all debts and have 500,000 left?

The one thing I can say is its a management cop out, they have failed in bringing down the companies costs and have not become profitable on 20m turnover over the last few years?

[dusseldorf] 30/4/2008 13:22

The key line from the RNS is :
In advising the directors, HB
Corporate has taken into account the commercial judgement of the directors.

i.e. HB Corporate accept no responsibility for the shocking robbery performed in this transaction and blame it on believing the directors 'commercial judgement'

[dusseldorf] 30/4/2008 13:17

double6 - knack all. This is a shocking transaction to reduce company debt by selling off what I believe is the only profit generating arm(!)....RAF loses a profit contribution of £300k and £13m turnover to eliminate debt of £2.1m and may even have to pay in the region of £500k cash for the privilage.

Daylight robbery - nothing less

p.s. I don't hold

[double6] 30/4/2008 13:01

So what will RAF end up with after the disposal ?

[chimpynosebest] 30/4/2008 12:26

Anyone got level 2?


clive needs to throw himself off it.


and B.T.W. abbreviations should have full stops between them, and idiots such as yourself clive, deserve nothing,

and let's face it clive, the reason you wrote "cap 'c' is because you're unsure if the word 'capital' ends 'ol' or 'al'.


Mind you clive, I'd like to take this opportunity to thank you for your extremely swift response to my post, and here's hoping that pressing the refresh button on A.D.V.F.N. is something that you only do occasionally, rather than for a living.


clive, repeat after me..."My name's clive and I'm a" ......what?





Rupert.

[knowing] 30/4/2008 12:10

Long time !

Hope you are well. BTW Clive is spelt with a cap "C".

[chimpynosebest] 30/4/2008 12:08

LOL !!!!


Well done clive.



Rupert.

[knowing] 30/4/2008 12:06

They came out Sept last year.

[badhshah] 30/4/2008 12:05

When are full year results due, does anyone knows?

[knowing] 30/4/2008 11:04

Online size has now been cut down to 5M

[knowing] 29/4/2008 22:05

Need some more action to kick this one into life.

[knowing] 29/4/2008 11:34

Yes now they have narrowed the spread and raised the price buyers are coming onboard.

[akramms] 28/4/2008 16:40

big buys coming through!

[badhshah] 28/4/2008 12:06

No, but I can see the number of shares in my account.

[knowing] 28/4/2008 11:39

Bad have you asked your broker why your trade has not been reported?

[badhshah] 28/4/2008 11:20

Actually 42.8% shares are held by large holders according to its website.

[knowing] 28/4/2008 10:20

There is life in here yet.

[knowing] 28/4/2008 10:07

Still no sign of that trade.

[knowing] 28/4/2008 00:17

Probably gamblers selling up.Maybe time to make some money here.

[suncanaria] 26/4/2008 12:27

Langbar may be relisting by the end of this year, so there may be a chance to make a second RAF takeover approach.

Fairly remote, I would think Langbar if it hasn't changed its name by then would seek something bigger. I think Langbar shareholders should opt for more shares rather than a payout in cash, a company with £25m+ cash goes a long way in this market

I am still rather curious as to why shareholders here are off loading at such a loss, there is no longer any material tax relief to be gained.

[badhshah] 25/4/2008 20:47

36.5% shares are tightly held by big holders including over 7% by current chairman and over 7% by ex-chairman.

[lord santafe] 25/4/2008 20:28

Langbar may be relisting by the end of this year, so there may be a chance to make a second RAF takeover approach.