Security Res. Share Discussion Threads

[battlebus2] 28/11/2014 08:07

Seems to have forced another few sales this morning...

[cfro] 28/11/2014 07:45

Totally agree with your comments Davidosh.

Also eeza'a point about being a false market between results day and the delisting announcement.

Lots of investors must have known. I was one who was buying during that time so i do feel well and truly shafted. The delisting should have been announced on the results day.

About time some new rules and regs were bought in surrounding the issue of delistings.

Unfortunately i have now sold at a loss but if i still held i would certainly be voting against!

[yump] 27/11/2014 23:44

That's going to be one phone line that's engaged for large part of the day then, because I'm phoning as well and so are some folk in a share group I know.

Delisting isn't arranged in a few weeks and I would not have invested if I had known delisting was even being discussed. A false market indeed.

Being involved in charitable causes doesn't excuse questionable behaviour in other walks of life.

[stegrego] 27/11/2014 21:29

Actually, thinking about this more and reading these comments, I think I gave the chairman an easy ride yesterday. Might ring him again tomorrow and give him some hassle.

[eeza] 27/11/2014 21:23

Nothing had changed in a short time.
As I posted yesterday #166

"Given that the de-listing documentation is being posted today ( and the time needed to discuss, prepare docs, legal approval of content, printing, arrange venue etc) the decision to de-list must have been taken before Nov 5."

[anisha] 27/11/2014 21:21

looks as aim companies are run for the benefit of the directors wether trading is goinbg right as in this case or not
pis get shafted either way
who wants to get locked in for 3 years and can you trust that you will get a fair deal as pi s on the sale
iam out with a 10% loss in a company that is doing very well as per last rns
what can you trust on aim companys

[battlebus2] 27/11/2014 21:21

Even stranger was the previous RNS to say the strategic review was complete but no mention they had delisting or selling the businesses on their agenda.



TIDMSRG

Security Research Group plc ("SRG")

Conclusion of Strategic Review of Property Information Business

The strategic review announced by SRG on 7 May 2014 of its options concerning
its wholly owned subsidiaries, PSG Franchising Limited and its subsidiaries and
PSG Financial Services Limited (together "PSG") has been concluded.

In light of the strong trading in PSG and across its franchise network, the
Board has concluded that it is in the best interests of SRG and its
shareholders for PSG to continue focussing on the development of its business
as a wholly owned subsidiary of SRG.


Enquiries:

Security Research Group plc
Jonathan Mervis, Chairman 020 7881 0800

[davidosh] 27/11/2014 21:12

eeza 27 Nov'14 - 20:50 - 179 of 180
Certainly allowed a false market to build between interim results statement Nov 5 and de-listing announcement. Shares advanced from ~40p up to 62p, approx 50%.

eeza....exactly ! I am sure that the insiders knowing about the delisting were not buying even though the excellent results and chairmans confident tones sucked in lots of innocent private investors who then had to sell or will have to before the delisting.

If I had lost money over this....I would want a detailed explanation from the chairman and the advisers as to what changed in such a short time and why the delisting was not suggested within the results to caution buyers who may not want to hold off market ?? Simples

[davidosh] 27/11/2014 21:04

The numbers of votes for a delisting are significant but in truth looking at the register that looks to be no more than five holdings and could even be less in number of decision makers as some are held by one individual I understand.

How bad would it look if a hundred private individuals voted against due to the lack of information and poor communication and just five wanted a delisting ?

I think individual investors need to stand up and be counted....and just watch how the nominee account system works against us all on that score too. The system gets played by directors and their friendly advisers in my honest opinion and I have seen it all before. If I am wrong the company will be happy to adjourn and give us a fair meeting.

Why not tell Jonathan Mervis,the Chairman or John Warwick the Finance Director on 0207 881 0800 exactly what you think of their ill timed plan and ask for an adjournment ?

[eeza] 27/11/2014 20:50

Certainly allowed a false market to build between interim results statement Nov 5 and de-listing announcement. Shares advanced from ~40p up to 62p, approx 50%.

[battlebus2] 27/11/2014 20:34

Totally agree with all you have said David, I have already said similar to the chairman. Unfortunately the numbers in this case don't make it likely the vote can be blocked. There is no real explanation of the benefits of delisting that's anyway plausible in my mind.

[davidosh] 27/11/2014 20:26

Just a few points from me...

1. I am far from impressed that a chairman sings about the performance of the company in results statements just three weeks ago then announces a delisting which he fully knows will materially affect the share price in a very negative way as most private investors do not like to hold delisted company shares.

Why did they not announce the delisting at exactly the same time in the results announcement as they had clearly been to see their major holders and discussed the possibility ?

2. Shareholders need to fully understand what the rationale is behind the need to delist as the listing costs with no PR and no broker coverage are certainly no more than £30k a year and the extra visibility of reporting half yearly and having to announce things is far better for individual investors as the big boys with 60% are no doubt constantly in touch with the company.

That begs the question that if the chairman is keen to explain himself to shareholders and meet us to show we are in good hands why has he chosen three working days before Christmas to have a meeting and to start at 9.30am ???

That tells me he wants nobody there and this is being done as much under least protest as possible and they know many will be forced sellers but simply do not care !

3. Do they really think that the cost of listing is going to erode a significant part of the returns to shareholders or do they prefer to do it without a significant number of shareholders knowing what is going on and off market ?

If you want ShareSoc (www.sharesoc.org) to take a close look at this then it will need one or two of you to request it. You need to act fast but at the very least this meeting should be adjourned to mid January and a time and place accessible to the vast majority so at 11am or 2pm in London.

[yump] 27/11/2014 15:26

Its going to do the monthly average in a couple of days at this rate !

[wjccghcc] 27/11/2014 12:47

Barclays will transfer delisted shares from your ISA to your marketmaster for free. If you want to reregister it to yourself in certificated form, they will charge £30.

[interceptor2] 27/11/2014 12:44

For info

Searching on google it seems that TDW does allow delisted shares to be transferred to their trading account, in a straight forward transaction. But Barclays didn't unless they have changed their rules.

[stegrego] 27/11/2014 10:05

I got the impression that Audiotel was, if anything, a drag. He said great having blue chip clients and good products but that is no good without orders.
I personally wouldn't expect much from the sale of it.

[eezymunny] 27/11/2014 09:41

Your thinking largely matches mine inter, tho inclined to think they will simply sell up rather than hold onto Audiotel.

Agree property bit could/should fetch current market cap (or more), but beauty is in the eye etc so only time will tell. I may be entirely incorrect but I've been buying on that belief.

Don't forget the delisting vote only requires 75% of votes cast and with many PI shares in nominee accts (many/most of which won't be voted) I think we can assume the delisting is a done deal. That, as I've said is fine with me other than the complete pain with ISA holdings/CGT implications etc.

I'm pretty sure shares can't be held in ISA once delisted (have to sell or bed and un-ISA within 30 days of delisting I believe.

[battlebus2] 27/11/2014 09:27

I doubt management will buy Audiotel or they would have already done so. Directors age may also have a part to play.

[interceptor2] 27/11/2014 09:24

Appreciate your efforts in contacting the Chairman Stegrego, unfortunately I feel that PIs would be the last people he would give any useful information to. He has a vested interest in playing his cards close to his chest at this stage. When his historic background in mergers and acquisitions is taken into account, he would have a very good idea of how much each division is likely to be worth.

Best to try and look on the situation as if you were the Chairman imv.

The strategic review of the PSG division was announced 7th May, and concluded 15th August, where it was stated due to strong trading it was in the interest of the company to keep PSG. In the review period competitors would have been well aware of the situation and I wouldn’t be surprised if some interest was expressed.

Period year end was 30th September, the board knew that trading was strong, so it would make sense to wait until after 5th November until yesterday’s announcement was made. Now interested parties can study the results, and a better price could now be achieved.

Even though the company stated that it could take 3 years to conclude the sale of each division, I think the whole process could be concluded much quicker, within one for the PSG and Audiotel. It makes sense to state a 3 year time scale, because if for example a 1 year time scale was given, then potential acquirers would know that the company is in a rush to sell, and would have the upper hand imo.

PSG, The reason I think this will go quickly is that it operates in a hot sector, has the highest margins and in a dominate position in its niche market place. Wouldn’t at all be surprised if they have interest parties already here. FWIW I can see a return to shareholders of nearly the current share price from this major division

Audiotel, This is an interesting one, and is the division that I thought management were keen to hold onto and make a core holding. Also note that in yesterday’s update they inserted the word difficult marketplace, but on the 5th November the tone was rather more upbeat imo. I wonder if there might be a management buyout of this division, and they have just slightly toned down their optimism in their own interests. Audiotel also has the potential at some point in the future, of winning another huge contract from the MOD.

If I am right and management plan to buy this division, then once SRG is delisted, we will be in hands of management to treat us fairly here. At least we know that historically they have returned excess cash to shareholders in a fair way imo.

M&B, I am sure a suitable acquirer will be found, they seem a decent business with good margins, strangely enough there was a large acquisition announced this morning in this sector by RPC, perhaps the timing could prove fortunate.

One final thought, SRG already have 69% acceptance and just need another 6% to reach the 75% level, might there be orders in the market to pick up this extra stock at these low levels?

All just idle speculation from me, but it would interesting if other investors have had similar thoughts, or even that I am talking utter rubbish :o(

[eeza] 27/11/2014 06:58

1st step - contact your broker to see if it can be held in your ISA. Could save a lot of expense and bother.

[esfsadfa] 26/11/2014 23:59

Having some in an ISA with an execution only online broker, if I wanted to hold after delisting would I need to move them back into the non-ISA account and then into certificate form or is there any other alternative? Any additional steps needed?
Thanks!

[yump] 26/11/2014 14:57

I guess while its listed, there's a good reason for publicising the current state of business - kind of free sale publicity.

[eeza] 26/11/2014 13:49

Mervis' outlook statement from 5 Nov

"Outlook

The Directors are confident that with improving performance in each of its
divisions the outlook for the Group is decidedly positive."

Given that the de-listing documentation is being posted today ( and the time needed to discuss, prepare docs, legal approval of content, printing etc) the decision to de-list must have been taken before Nov 5. So a tad misleading IMO.

Still, the MM's must be well pleased @ 10% turn on each transaction.

[envirovision] 26/11/2014 13:06

I don't see why not, if people can hold commercial property in a sip then i'm sure an unlisted share will be just fine.

I've held unlisted stuff in my ISA's in the past without any problem (Other than when there's a cash distribution you sometimes have to tell them to chase the registrar or company secretary).

[stegrego] 26/11/2014 13:00

Will you be able to hold them in your sipp when they aren't listed?