Security Res. Share Discussion Threads

[meijiman] 26/10/2016 11:51

Indeed. I had shares in Pure Wafer which has to date made three returns to shareholders without any whinging or nonsense about costs. As an earlier poster pointed out there is a significant opportunity cost here whilst the Board mess about/mess up.

[skyship] 26/10/2016 11:37

ATTN: John Mervis....cc John Warwick

Mr Mervis

You may recall we spoke c6weeks ago, just before you were off on holiday. I was too & upon my return forgot to get back to you as promised.

We were discussing the costs of making a capital repayment to shareholders.

In written correspondence you have recently stated this to another shareholder:

"As each return to shareholders is a costly business in so far as it incurs legal fees, stockbroker fees, registrars fees, printing fees etc.

we are waiting to see the outcome of the present marketing initiative before progressing a return to shareholders any further."

Sounds perfectly reasonable; but the problem is that it is entirely fallacious and perhaps deliberate obfuscation. I'm sorry, but it is difficult to put it any other way.

There are many listed companies making capital returns to shareholders. I show below just one I approached - DUET Real Estate.

They confirm the cost of a £5.5m distribution was just £6200!

Another company (AXA Property Trust) made an £11m repayment/redemption for just £7500:



If you speak to your former brokers they will confirm this.

I am concerned at your reticence; and suspect an ulterior motive. Why for instance when I phoned did you answer the phone:

NEW VENTURES?

Why on 29th July was your FD speaking to another shareholder regarding a prospective acquisition?

I have dealt before with Directors tempted to treat shareholder funds as their own, wishing to extend their control and continue employment contrary to shareholder wishes. Take a look at Lionheart plc back in 2001/2.

If you fail to act soon with an appropriate cash return, then I and other shareholders will have to consider our position; so as to protect our investment from possible misappropriation.

I hope to receive a reply answering some of the points raised herewith.

[meijiman] 26/10/2016 09:12

Many thanks for the above posts. Nice to know they have not done a runner with the money. Anyone hazard a guess at the final return to shareholders?

[battlebus2] 25/10/2016 22:06

Thanks IC2, I've had similar replies, the costs imv are minimal given the small shareholders register but unfortunately we are at the mercy of JM. Our only hope is a sale some time soon but I'm not holding my breath.

[interceptor2] 25/10/2016 21:55

Below is an E Mail exchange I had with Finance Director John Warwick just over one week ago. So he did confirm that the second payment for Audiotel had been received,and also that my estimated 32p per share cash and equivalents figure was about right. Lets hope that the present marketing initiative will mean that we see some positive news first.

See Emails below.

Dear Sir/Madam

I am a shareholder in your company and have been waiting patiently for a return of funds since the announcement of delisting on 26th November 2014.

The companies original intention was to return a payment equivalent to 15p per share in April 2015, I know that you issued a statement on 5th April 2015 saying that due to additional cost of making ad hoc payments, that you would make an enhanced payment after funds were released from a disposal of one or more of SRG's operating segments.

On the 2nd September you announced that Audiotel had been sold for £1.0m, with a cash payment £500,000 received at that time, and a further and final cash settlement of £500,000 to be paid in September 2016, so I must make the assumption that the second payment has now been received.

Looking at the most recent full year accounts I see that you have £5,698m cash and equivalents, adding on the £500,000 received last month would mean cash and equivalents of £6,198m, or 32p per share.

As your original intention was to return shareholder funds in two payments, I think a payment now of between 20p and 25p would not be an unreasonable expectation, which would still leave plenty of cash for working capital requirements. And it would be welcomed as a goodwill gesture from the company, and of course will give investors back additional funds that they can use to continue to make worthwhile gains in the stockmarket.

Yours Sincerely


I refer to your recent letter addressed to Jonathan Mervis.

We have now received the £500,000 that you referred to and as you suggest our cash per share has increased to around 32p per share.

We came close to selling PSG but not quite close enough and are now re-marketing it and are hopeful of a sale. As each return to shareholders is a costly business in so far as it incurs legal fees, stockbroker fees, registrars fees, printing fees etc. we are waiting to see the outcome of the present marketing initiative before progressing a return to shareholders any further.


Kind regards

[meijiman] 27/9/2016 11:01

Anything going on here?

[battlebus2] 02/8/2016 17:27

I hope that's a sale and return of funds.

[patientcapital] 29/7/2016 23:14

Reference Onzima I suspect.PatientCapital - 29 Jul 2016 - 22:52 - 421 of 421 - 0Now that you are an 'insider' under the Act you should no longer be commenting in public unless doing so through official channels, i.e. by way of the Regulatory News Service.

[battlebus2] 27/7/2016 08:36

Why would we relist as another company when SRG was doing fine imv on the market..
Just sell up and give shareholders their cash please....

[skyship] 26/7/2016 12:02

Well, so long as its non-TECH I for one would look at any proposition.

However, I would not be happy for them to start spending money on searching and researching acquisition prospects, without first referring to shareholders for approval of a change in strategy.

[eeza] 26/7/2016 11:55

Shades of LMS.

[skyship] 26/7/2016 11:41

Fido - to use SRG cash, or something else entirely?

This is what it cost APT for an £11m repayment/redemption last time around - just £7500:

[skyship] 26/7/2016 10:24

Interesting to see that conversion of share options raised £149,000.

# 319,048 issued at 25p
# 161,112 issued at 43p

Others lapsed at 54.7p; so perhaps gives us an indication of what we might eventually expect: 50p-60p/share...
====================================

Share premium account:

The share premium account amounts to £604,765. This has arisen in previous years due to the issue of 350,000 shares at a premium of 1.5p per share, 1,580,952 shares at a premium of 30p per share and 138,888 shares at a premium of 52p per share and in the current year due to the issue of 319,048 shares at a premium of 5p per share and 161,112 shares at a premium of 23p per share.
====================================

Still appalled that they are not intending to make an interim return of OUR CASH. It would cost less than £10k to make an interim payment of 25p/share. SRG is earning c0.5% on the £5.8m bank deposit. I can get 5.3% from RECP!

I'll be speaking with John Warwick again.

[battlebus2] 26/7/2016 08:44

Check back in a year then.......

[battlebus2] 26/7/2016 08:43

Thanks eezy...still waiting on my paper copy... cash 5.698=28.77 per share net assets 10.5 million....return of funds within the 3 years timeframe...
Disposal of the three businesses
It was previously announced that following a review of the businesses, the board had determined that the best available route for shareholders was for the company to pursue a strategy of disposing of each of its three businesses, with the intention of returning surplus cash to shareholders within three years. In the year under review the loss making specialist electronics business was sold. The board and its advisers are now focussed on securing appropriate terms for the disposal of the property information services business and the smaller packaging solutions business and our commitment to concluding the sale process in the shortest period of time remains paramount.

[eezymunny] 26/7/2016 08:19

2016 AR

hxxp://www.srgroupplc.com/documents/2016%20Security%20Research%20AR.pdf

Just over £7m net curr assets. £5.7m cash. Profitabilty maintained. Still no cash return :)

Looks like they may be spending a bit on automating some of the PSG functions.

Whatever.

FYI.