RSM Tenon Share Discussion Threads

[bonio10000] 12/5/2011 12:38

I wonder how much of it is based upon what happened at Vantis?

Of course Vantis was different, in that they took on the Stanford work and got shafted by the Courts so they had to write off all that work in progress they had accumulated.

Certianly the last update warned of nothing so specific, which they would be obliged to do if it were the case. More just "just economic issues".

On the plus side of Vantis, TNO did pick up some decent assets for a song.

[johncraven] 12/5/2011 12:31

if tno are not going bust then very undervalued/oversold. Trade it back to normality and thats not at this price!

[druinsky] 12/5/2011 11:06

Any views on this one

[dnfa1975] 11/5/2011 18:45

Johncraven - 11 May'11 - 11:36 - 365 of 373

Didnt the share price fall to 5p or so 8 years ago.




never knew it got to 5p

[qs9] 11/5/2011 14:56

Possibly, but management need to reassure and provide some decent credibly messages before major buyers return. Debt reducing and noises about that will help.

[bonio10000] 11/5/2011 14:51

Oxman - presumably there is some justification for H2 weighting?

December year ends, high insolvency work in the new year, tax planning around April?

[its the oxman] 11/5/2011 14:47

have held in the past - but personally I will now wait till 14th July update - management need to reassure on trading, debt reduction and I want to know div is not under threat or money raising on the cards. Always a bit more nervous when management talk about business being 2h weighted. Difficult to see buyers returning in the meantime but reckon the share price will hold in the 20's with luck

[bonio10000] 11/5/2011 14:47

Seems that the share element of the consideration for Bentley has already been paid as well and the cash payment outstanding might well be less that £6m p.a. if performance targets are not being met. This means there will not be a downward spiral in the price from having to issue shares at ever lower prices to met milestone sums due. This was a major issue with Vantis, from memory.

All imho and dyor.


The consideration for the proposed acquisition shall be a maximum of GBP76.3
million which will be satisfied by the payment of initial consideration of
GBP40.0 million in cash and the allotment of new Ordinary Shares up to the value
of GBP17.5 million to the shareholders of RSM Bentley Jennison Limited. Deferred
consideration of up to GBP18.8 million is also payable in cash in equal annual
tranches over three years, subject to the meeting of specific performance
criteria. Up to an additional GBP9.0 million may become payable (satisfied by up
to GBP5.0 million in cash and the allotment of up to GBP4.0 million of new
Ordinary Shares) dependent on the realisation of contingent assets in RSM
Bentley Jennison of at least equal value.

[woldarb] 11/5/2011 13:19

Looks like BOB MORTON will not be happy with this investment ????

[wjccghcc] 11/5/2011 13:17

bonio, debt is not serviceable from PBT, only from cashflow and so far they've had lousy cashflow. Hopefully that's improving as they clamp down on working capital. I don't think bankruptcy is an issue either but a further fundraising may well be.

[bonio10000] 11/5/2011 12:30

I was sceptical at 50p but see it as a buy at these levels.

PBT of circa £30m means the debt is easily serviceable, even with the contingent amounts due, which are not huge.

Specialist tax is only circa £20m out of £250m in revenues anyway and there are the integration savings coming on line this year too.

If the dividend is maintained then there is a hefty yield as well.

Not sure I see bankruptcy as an issue at all.

[johncraven] 11/5/2011 10:36

Didnt the share price fall to 5p or so 8 years ago. Could it do the same. Only hold 50k shares so not that worried but deciding whether to go in alot more.

[still waiting] 11/5/2011 07:30

it's already heading that way, alot of director shares were priced at 50p and over.

each day sees that value decreasing.

sp back in 2001 was 180p....

[still waiting] 10/5/2011 22:09

this is after all a people business and if people & clients leave the debt will still remain!!!

[its the oxman] 10/5/2011 22:05

not sure they need to, but if they do look to raise funds this will go lower. great shame to see the share price where it is but with newsflow likely to be disappointing for a while yet it will probably stay cheap and drift or go lower.

[dnfa1975] 10/5/2011 21:51

breach bank covenants in terms of interest cover?

[johncraven] 10/5/2011 21:43

i cant see the 2m trade so could hit the teens then

[still waiting] 10/5/2011 18:00

I guess those that took shares for their practices will be wanting to cash in before any future fund raisings imho.

[ashtree2] 10/5/2011 17:57

2 million shares sold so that would account for the fall in share price,

[nicedude1976] 10/5/2011 14:35

it does, however it looked overpriced a month ago (perhaps less acutely so)

[johncraven] 09/5/2011 15:39

too cheap looks oversold at present

[bobsidian] 09/5/2011 14:34

Why have Brewin Dolphin chosen to turn so negative ?

Are they leading or following the share price movement ?