Ultimate Leisure Share Discussion Threads

[jeffian] 15/7/2005 17:59

frizsand2,
No, you're not the only one left, tho' I must be bonkers not to follow the persistent example of all Directors up to and including Chairman selling.....and yet......and yet.......as you say. Clearly there is something there that interests Mr. Lyne and the heavy involvement of Cantors in such a minnow smells of stakebuilding under the guise of spreadbets (a trick used to an extreme extent by Robert Bonnier at Regus). There is an article in the paying section of citywire about it but I haven't accessed it.

If there's an Irish connection, I hope it's not the Murphia...........!

8-)

Regards, Ian

[frizsand2] 15/7/2005 16:22

Am I the only small shareholder left, couldnt even get a quote yesterday. They were being vac'd up by, it seems, cantor fitz, and others. I did decide to buy some though because obviously insider stuff happening, but too many big fish taking up. My girlie intuition says have a go. I'll Probably get trashed but makes life interesting I will go back to Alexander Mining for safetly.
There is going to be some interesting news soon or the shares would have crashed and burned by now, seems that there are several stake builders, but as yet no single winner unless you guys know different.
Perhaps a good break up for freeholds etc.
Regs, Ju

[jeffian] 12/7/2005 20:33

Sean Lyne (who he?). Yes, everyone's dumping 'em which, as you say, is hardly a vote of confidence, but they did it before (except Rankin) and I wish I'd followed the old adage "do as they do, not as they say". Interesting, however, that someone's hoovering 'em up as quick as they're offered, although I suspect Cantors' holding will be hedging spreadbets.

Regards, Ian

[stevemarkus] 12/7/2005 18:58

Actually he's dumped two lots of 500,000. One yesterday and one today. Today he's been joined by a number of the other directors, including Craig Bell, the FD I spoke to. He now has 4500 shares left in the company - a great incentive to perform. On the other hand, someone else seems to be building a large holding - now over 5%. Sean someone I think?

[peart] 12/7/2005 09:49

I'm out - has a bad smell to this one - somethings not right.....

[jeffian] 11/7/2005 23:20

You weren't the only one selling, stevemarkus. Chairman Rankin dumped 500,000. Think that says it all, really.

Regards, Ian

[stevemarkus] 11/7/2005 18:24

YOu're not talking to yourself jeffian, however you may be from now on, as I sold my shares today on the back of the recovery in the price later on. I've had enough of the way this company operates - first the director sales, which were clearly a case of insider dealing despite strenuous denials from their FD, who I had contact with on several occasions, and now this. I shan't be back.

[jeffian] 11/7/2005 11:09

Anyone else out there or am I talking to myself? Today's 'Trading Statement' (read 'profit warning') another stinker which raises more questions than it answers. Firstly, it doesn't fill one with confidence in the accounting system that, having said only 2 months ago that they would at least match 2004 PBT in 2005, that now does not seem to be the case. I am also confused that, having said profits are driven by new openings, they are now talking about significantly less profit in 2006 when, presumably, the new outlets whose delayed opening caused this year's warning will be on stream. Eh? Expliquez-moi, SVP. The relative resilience of the share price can only be the result of stakebuilding by Dawnay Day and the reported threats of major shareholders to force a sale. Sooner the better IMHO.

Regards, Ian

[jeffian] 16/6/2005 11:16

Hmmmmm. This has been decidedly perky since Directors' ill-timed sales effectively put it 'in play'. Some biggish trades going through today; will be interesting to see if any of the 'players' are increasing their holdings.

Regards, Ian

[jeffian] 03/6/2005 17:33

Having Dawnay Day on the shareholders register should stir things up a bit!

"Dawnay, Day Properties Ltd and its associates hold 847,463 ordinary shares
representing 3.43 per cent of the Company and 2,735,542 long CFD's representing
11.07 per cent of the Company's issued share capital."

Regards, Ian

[whipround] 26/5/2005 11:53

Could be interesting.

[jeffian] 26/5/2005 09:52

This is what The Times said this morning:
"May 26, 2005

Stock markets

Ultimate braced for bid by Gallic raider



ULTIMATE LEISURE is expected to be put on full bid alert amid persistent rumours that Guy Naggar, the Gallic corporate raider, has built a near 15 per cent stake in the Newcastle-based bar operator.
Shareholders are still reeling from last month's shock profit warning which, coming just weeks after Tim Wynn, development director, sold stock for £308,000, wiped 17 per cent off the share price.



There have since been suggestions that Ultimate's four biggest shareholders have approached Brewin Dolphin, its stockbroker, to put the business up for sale, but these have been categorically denied. However, followers of Ultimate hear that Mr Naggar's Dawnay Day has been quietly picking up stock at the 250p level, partly through contracts for difference.

London-based Mr Naggar is best known for his bid two years ago for Groupe Chez Gérard, the steak-and-frites restaurant operator, now part of his Paramount vehicle, steady at 34¼p, which he is in the throes of taking private. Dawnay Day also holds 29.5 per cent of Austin Reed, 1p better at 118½p. As with previous targets, Mr Naggar is thought to have been drawn by Ultimate's property assets which, while down in its books at 215p a share, have not been revalued for some years. AIM-listed Ultimate eased 1½p at 257½p, with the FTSE 250 up 17.6 at 7,019.3."

Regards, Ian

[jeff h] 26/5/2005 08:43

I bought this morning.....Guy Naggar holding 13% (or approx 15%
according to The Times) and decent value from a trading perspective

[jeffian] 24/5/2005 20:06

Hmmmmmmmm! What are we to make of this, mateys?

"Ultimate Leisure Group PLC
24 May 2005

Circular to Shareholders

The Company announces it has today issued a circular to shareholders to
requisition an extraordinary general meeting of the Company to seek
shareholders' approval to buy back shares."

It's not that unusual for a company to seek powers to buy-in shares for cancellation, but it is a bit odd to run around calling EGM's at short notice to do so (it would normally simply be added on as a special resolution at the AGM) so one must assume it's their 'defense' against grumpy institutions who are upset by the profit warning immediately following share sales by Directors. If so, what are they trying to achieve?

Regards, Ian

[ridlerminder] 19/5/2005 10:42

Is it me or is this a springwood leisure re run

[whipround] 19/5/2005 10:20

Now would seem to be a good time to buy these, can't see them getting any lower than this, I think with all the fuss over nothing Mr Rankin might take them private rather than suffer the whinging fund managers, just because they've only gone up 150% over the last few years.

[jeffian] 18/5/2005 12:11

The fact that the share price shot up on the story and is now declining on the company's denial of it should give the management an idea of what the market thinks about them!

Regards, Ian

[stevemarkus] 16/5/2005 19:36

Yes, and I made that very pint to Mr Bell. Clearly he couldn't say anything more revealing, and as you say management were damned either way.

[jeffian] 16/5/2005 10:32

They're ducking the issue, of course, stevemarkus. This isn't about whether they followed AIM rules for their share sales (that's simply a question of getting the Chairman or an authorise Board Committee to approve planned share sales) but whether the profit-warning should have been made at an earlier stage and certainly before those sales. Good grief, Wynn's the Operations Director; if HE didn't know/understand the impact that delayed openings would have on the bottom line, who would?! And if a building/refurb contract is running 6 months behind schedule, how can they have not known that 2 weeks before? Management is damned either way - they were either duplicitous or ignorant, either of which are capital offences for which it looks as if they'll get the chop.

Regards, Ian

[stevemarkus] 16/5/2005 07:50

Yes, I saw the Times article too, and agree with the moves. Although I've had an answer from Craig Bell, it does no more than reiterate that the directors had acted in accordance with AIM rules - when I pressed him on the sale by Tim Wynn 2 weeks before the warning, there was no further explanation other than that.

[jeffian] 16/5/2005 00:48

This from the Sunday Times:

"The Sunday Times



May 15, 2005

Investors push for Ultimate shake-out
Louise Armitstead and Matthew Goodman



A GROUP of top institutional investors is plotting to arrange the sale of Ultimate Leisure, the AIM-quoted nightclub and bar company, from under the feet of its management.
Scottish Widows, Artemis, Gartmore and Standard Life, the four biggest shareholders, secretly approached the company's broker and asked it to sell the Newcastle business after losing confidence in the management. Investors are angry after revelations that one Ultimate director and the chairman's brothers sold shares in the group just weeks before a profit warning.



A source close to the company said: "This management has lost all credibility."

Tim Wynn, development director, sold 100,000 shares at 308p on April 13. After the April 29 profit warning the shares plummeted to just over 240p. They closed on Friday at 249p, valuing the firm at £62.5m.

Stephen and John Rankin, who founded the business with their brother Allan, the chairman, have sold the bulk of their stakes. Stephen had 2.9m shares, about 12% of the group, but on March 29 Ultimate said he no longer had a "notifiable interest" in the business. A notifiable interest is 3% or more. John Rankin held 1.6m shares. Ultimate announced on March 22 that he no longer had a notifiable interest in the shares.

Ultimate has denied that either Wynn or the Rankins knew of the profit warning when they disposed of their shares. The company faces questions from the Financial Services Authority about the directors' dealings."

[jeffian] 09/5/2005 09:40

I agree, stevemarkus, and would certainly be interested to hear any further comments you receive from the company. I used to be in this business and the 'slippage' of fitting out/refurbishment contracts from April to December is not only hard to explain but would certainly have been known to Directors at the time of their sales, as would the impact on profit projections. The company's comments in the Telegraph article look disingenuous, to say the least.

Regards, Ian

[stevemarkus] 09/5/2005 08:40

It certainly smells to me - Tim Wynn must have been aware that the delays in new sites coming on stream would affect profitability, and therefore his share sale in advance of the negative statement was executed with the benefit of insider knowledge, something which the average shareholder would not have been privy to. I have raised this with the company and received an anodyne and unsatisfactory explanation back from Craig Bell - and I am still waiting for a response to my further questioning.

[money multipier] 08/5/2005 18:59

Sunday Telegraph

FSA to examine Ultimate share sales
By Edward Simpkins (Filed: 08/05/2005)


Ultimate Leisure, the Newcastle-based pubs and nightclubs operator, is facing questions from the Financial Services Authority into share sales by a director and the brothers of the chairman effected within weeks of a profits warning.



Shareholders in Ultimate Leisure were shocked by the profits warning issued on 28 April, which wiped 17 per cent off the value of the company. They have demanded explanations from the board as to why the share sales took place.

A spokesman for the FSA said: "We don't comment, but as a matter of routine we would look into unusual share movements or allegations of insider dealing."

A statement by the company 12 days ago warned that a competitive trading environment, lack of development opportunities and slippage in its refurbishment programme meant that market expectations of profits for the year to June 2005 would not be met. The announcement knocked the company's share price.

However, on April 13 the company disclosed that Tim Wynn, the development director, had sold 100,000 shares at 308p, worth £308,000, leaving him with just 34,850 shares. Following the profits warning the shares fell to just over 240p.

Ultimate Leisure was set up by Allan Rankin, the executive chairman, and his brothers Stephen and John. Recent records show that Allan owned about 3m shares or 12.35 per cent of the company, Stephen owned 2.9m shares and John held 1.6m shares.

Over recent months, Stephen and John have sold the majority of their holdings. On 29 March the company announced that Stephen no longer had a notifiable interest in the group. A notifiable interest is 3 per cent.

On March 22 Ultimate announced that John Rankin no longer held a notifiable stake and that Scottish Widows Investment Partnership held just over 5 per cent. It also appears that, at about the same time, Standard Life increased its stake in the group to 5.68 per cent.

Bob Senior, the chief executive, who spent Friday visiting Scottish institutional investors with Allan Rankin, said: "Obviously, we got questions from investors and we explained to them that everything was done within Aim guidelines."

He denied that either Wynn or the Rankin brothers were aware that a profits warning would be issued when they sold their shares. "There was no impropriety," he said, adding that he would be offering a fuller explanation this week. "There is a huge presentation. It takes more than an hour to deliver, and you need to hear it all to get a full understanding of all the factors."

The role of Brewin Dolphin, Ultimate's financial adviser and broker, could come under the spotlight.

Brewin Dolphin recently placed shares in Ultimate with its institutional clients. A spokeswoman for the broker said it was unaware that the company was about to issue a negative statement. "We are comfortable that we observed best practice throughout," she said. "All share sales were signed off by the chairman and the board."

Allan and Stephen Rankin are close business associates and also own more than 50 per cent of Metnor, the £40m engineering and services group, which is run by Stephen Rankin, the chief executive.