Rize Circular Discussion Threads

[stegrego] 29/5/2012 18:21

Disgrace really that this sort of thing happens time and time again.

Should never have floated if they need cash so soon and at such a discount.

Massive destruction of value for those holding.

[goliard] 29/5/2012 17:07

Yes. It is underwritten by Numis. They also have irrevocbles on the EGM vote for over 75%, so they will be able to get authoirty for the placing and issuance of the shares, but with today's slide in price I wouldn't like to be Numis! They must be desperately hoping that all those who gave irrevocables for the EGM vote also subscribe, but if was running a fund I would be tempted to let Numis take the pain and buy cheaper (if at all).

[bozzy_s] 29/5/2012 16:59

Is the placing underwritten @ 70p?

[zaksab] 29/5/2012 16:50

market clearly saying that this was an emergency raise. 35p share price would imply that the business was worthless pre the raise.

[double6] 29/5/2012 16:39

Will anyone now buy .... current share price 43p!

[donalc] 29/5/2012 16:22

Goliard
"complete uncertainty and PCT paralysis."

I work with in NHs and as a director of small private company in NHS. Uncertainty and paralysis have always been there!
Dont get too big too fast.

[goliard] 29/5/2012 08:41

38% discount to ge the placing away and a 70% discount to the float price less than one year ago! Without it they would have gone into administration and yet the CEO says he could not be more proud of what they have achieved. I doubt shareholders see it that way.

[goliard] 29/5/2012 08:35

Can't believe this was a surprise and it is tanking. Thought this was a great short when it floated and wish I had followed my gut feeling. Almost impossible for private companies in the NHS at the moment due to complete uncertainty and PCT paralysis.

[scrawny dawny] 08/3/2012 21:31

Does anyone know how they intend to raise extra capital - are they thinking of floating the healthcare division or would it just be a placing against the holdings?

[goliard] 03/3/2012 17:57

They signalled a likely fundraising. Not popular these days and really stupid from an investor relations perspective. They need a better IR person or advisors as they aren't reading the market well at present.

[analyst] 02/3/2012 13:03

Why is this plunging the depths?

[stegrego] 10/11/2011 13:02

Press Release 10 November 2011

Circle signs historic Hinchingbrooke contract

Circle Holdings Plc (LSE:CIRC) is pleased to announce that Circle Health Limited ("Circle"), the social enterprise co-owned by employees, clinicians and Circle Holdings Plc, has today signed a definitive contract (the "Contract") to run Hinchingbrooke Health Care NHS Trust in Huntingdonshire, which will see Circle manage an estimated GBP1 billion of revenue over the 10 year contract period. The contract is scheduled to commence in February 2012.

NHS Midlands and East (the Strategic Health Authority for the region) selected Circle as its preferred partner in November 2010 following a rigorous 14 month procurement process involving 19 initial bidders. Circle will become the first ever non-state provider to deliver a full range of NHS district general hospital services when the contract commences in February 2012, and will seek to transform Hinchingbrooke by pushing boundaries on clinical excellence, hospitality and patient experience. Circle will share surpluses generated over the term of the Contract with all who contribute to the transformation process, including reinvestment in the local health economy and historic debt repayments.

Should the hospital fall into deficit as part of the transformation, Circle has agreed to make working capital contributions of up to GBP5m. The Contract allows either party to terminate if the Trust incurs more than this GBP5m in aggregate deficits, at which point Circle is also required to pay a further GBP2m termination fee to Hinchingbrooke. Circle's liability under the Contract is capped at GBP7m. The Contract can also be terminated at any time on a "no cause" basis; in such an event, Circle would be compensated up to a capped amount.

Circle has a strong social mission focused on re-engineering the delivery of healthcare to make it simpler, better and smarter value for patients. It operates under a unique partnership model, where those who work for Circle are co-owners in the business. Circle has a track record of transforming NHS services through clinical leadership, devolved decision-making, and a rigorous quality improvement operating system in Nottingham, and of redefining patient experience by combining clinical excellence with luxury hotel-style hospitality and award-winning building design in Bath.

In recent months, senior clinicians, including GP commissioning leaders, hospital consultants and union representatives, have written to the Prime Minister on repeated occasions expressing their support for the franchise to Circle. Hospital consultants cited their belief that Circle 'would facilitate the improved productivity and better health care value gains which are so important in the present financial climate.' GP commissioners described Circle as 'a helpful enabler to achieve better productivity and value for money,' commenting: 'We have been impressed by the approach adopted by Circle and believe that we can work together to mutual advantage.' Circle's Chief Executive, Ali Parsa, said: "At a time when some healthcare commentators say the solution for small district general hospitals is simply to merge or be shut down, we believe NHS Midlands and East's courage and zeal for innovation will enable us to show how clinician and staff control can provide a more sustainable alternative. Our partners have now met hundreds of Hinchingbrooke staff, and we know that we share a core value of prioritising patients above all else, and a passion for reengineering healthcare delivery to make it simpler, better and smarter value for the patients. Circle arrives not with a top-down plan to impose change, but with a proven methodology of unleashing NHS professionals' talent through clinical leadership and devolved decision-making."

Dr Stephen Dunn, the Strategic Health Authority's Director of Policy and Strategy, said: "This is a momentous day. Circle secured this operating franchise following an open competition. They outshone the best of the best from the NHS and independent sectors. This will usher in a new era, unleashing innovation into the NHS, with staff and patients firmly at the centre."

Nigel Beverley, interim Chief Executive for Hinchingbrooke Health Care NHS Trust, said: "We have been bowled over by Circle's enthusiasm and the efforts they have taken to engage with staff, patients and our other partners. Circle recognises our excellent achievements at the hospital, and we look forward to working with them to build on our successes.

[quickmind] 22/9/2011 14:27

... "The conclusion is stark. Over the past decade, the denominator of the equation has tripled, whilst the nominator - patient experience and clinical outcomes - has improved incrementally." ....

nominator???
The other thing that puzzles me is why an image of crop circles is chosen - the company's business can't be a hoax!?

[stegrego] 17/6/2011 08:04

·      The Company's principal asset is its holding in Circle, a healthcare enterprise co-owned by its consultants and employees.  Circle's patient-focused mission is to empower doctors, nurses and healthcare professionals to redefine the healthcare delivery in the UK for the benefit of their patients
 
·      The market capitalisation of the Company is approximately £95.4 million
 
·      As announced on 14 June 2011, the Company raised £45.3 million (before expenses) by way of placing 16,633,551 new shares at 152 pence per share through new and existing investors and a private placement of new shares on 24 May 2011
 
·      Circle has a unique model that shares ownership and control among all contributors: the work of those who deliver services, the entrepreneurs' drive and the financial institutions' resources.  Circle is therefore owned by two entities: 
o  Circle Holdings, which owns 50.1% of Circle and is the vehicle for financial institutions that provide the capital needed to grow. Some of the shares in the Company are held by the Chief Executive Officer and co-founder who is also a member of the Circle Partnership;
o  The Circle Partnership, which owns the remaining 49.9%, is 100% beneficially owned by Circle consultants, employees and healthcare professionals
 
·      Circle's unique and innovative operating model has been successfully applied and proven at Circle's day surgery hospital in Nottingham, which treats NHS patients, and at its first independent hospital, CircleBath, where clinicians are empowered to achieve the greatest levels of patient care and efficiency through co-ownership and active participation in managing operations.  In addition Circle operates two independent clinics, in Windsor and Stratford
 
·      The net proceeds raised will allow the Company to fund its immediate planned future growth, including the commissioning and development of additional independent hospitals in particular CircleReading, which is expected to open in late 2012, and to fund working capital commitments for NHS transformation programmes, including Hinchingbrooke Health Care NHS Trust ("Hinchingbrooke"). Hinchingbrooke is the first NHS hospital trust to be franchised
in England and Circle was granted preferred bidder status in November 2010 through a competitive tender
 
·      Numis Securities Limited is acting as Nominated Adviser and Bookrunner alongside Investec Bank plc which is acting as Lead Manager
 
·      Existing shareholder Balderton Capital III L.P. has subscribed for the expected Balderton participation in the Offer of 3,289,474 ordinary shares directly with the Company rather than as part of the underwritten offer as described in the Admission Document. 
 
Ali Parsa, co-founder and Chief Executive Officer of Circle, said: "Circle's social mission is now backed by some of the most respected and long-established financial institutions in the City. We are proud of the vote of confidence that our investors have given to our social ethos, mutual ownership and innovative business model.