Ultimate Leisure Share Discussion Threads

[lbo] 21/4/2007 15:03

Is that a touch of sour grapes! Fact is those who have kept faith and supported the company and even not taking part in the placing but still bought down around the placing level have sold out for a nice profit.

[jeffian] 16/4/2007 12:00

Depends when people bought in, LBO. Those who followed the Reubens in at 270-ish (without the opportunity to average down through a friendly placing) might not be doing so well (hence my previous comments about timing), but certainly looking well-supported now.

Regards, Ian

[lbo] 16/4/2007 10:29

Looks like all of us who bought are being rewarded.

[maiseymouse] 26/2/2007 22:02

this made me almost pee meself. poor old charlie stanley has become less bearish on the stock. i dunno. anyway here's the link

[Abuse team] 12/2/2007 18:37

Post removed by ADVFN

[lbo] 12/2/2007 18:27

Ultimate Leisure, the Newcastle-based late-night operator, has announced it is to raise £25m by way of a conditional issue of shares as it looks at a number of acquisition options.

The company said it intends to issue 14,792,900 new ordinary shares of a price of 169p per share, which will be acquired by Reuben Brothers and the Dawnay, Day Group, its two largest investors.

The investment would increase the interests in relevant securities of Ultimate of each of Reuben Brothers and Dawnay, Day to more than 30%, the level at which the Takeover Code normally requires a general offer to be made to all shareholders.

However, the Panel on Takeovers and Mergers has agreed to waive this requirement if shareholders, other than the Reuben Brothers and Dawnay, Day, approve on a poll 'whitewash' waivers at an Extraordinary General Meeting to be called in due course.

Ultimate said that it believes it has now reached the stage where more substantial acquisitive growth may now be contemplated and it is reviewing a number of acquisitions.

Mark Jones, chairman of Ultimate, said: "With the repositioning of the business through an extensive investment in refurbishment, marketing and training, largely completed we are now looking to take the group forward to the next stage of its development.

"We are delighted that our major shareholders have demonstrated their confidence in our plans."

Last week the company acquired the "The Cotton Factory" bar and lounge in Huddersfield from Daisy Chain Inns for £3.3m, taking its estate to 36 sites.

The company also reported a 1% increase in like-for-like sales for December.

[lbo] 22/1/2007 13:23

Well the market seems to like it and its moving up. If they wanted to take it over they would have done so by now but they have not!

Ultimate Leisure to raise 25 mln stg via placing; reviewing acquisitions
LONDON (AFX) - Bar and nightclub operator Ultimate Leisure Group PLC said it plans to raise 25 mln stg by conditionally placing 14.79 mln shares at 169 pence each with its two largest investors, Reuben Brothers Ltd and Dawnay, Day.

The company said Reuben Brothers will acquire 7.76 mln shares and Dawnay, Day 7.03 mln, adding the price is a 5 pct discount to the stock's closing price on Friday.

Ultimate Leisure said the the placing raises the stakes held by Reuben Brothers and Dawnay, Day to above 30 pct, the level at which the takeover code normally requires a general offer be made to all shareholders.

However, the company said the Takeover Panel has agreed to waive this requirement if shareholders, other than Reuben Brothers and Dawnay, Day, give their consent at an EGM, which will be called in due course.

Ultimate Leisure added it is reviewing a number of of acquisitions and Reuben Brothers and Dawnay, Day have indicated they would support a new equity issue

[arthur_lame_stocks] 22/1/2007 12:41

So any comments on today´s news? Isn´t this a bit of a stitchup?

The Dawnay Day gang are as dodgy as it gets. They seem to have a habit of buying stakes in companies and then taking control through issuing shares or warrants on terms that suit themselves or giving themselves contracts that would cost too much to get out of and then shafting all of the other shareholders.

[arthur_lame_stocks] 16/1/2007 17:10

I notice that Alka Bali is also a director of Dawnay Day. Could there be something afoot with their property portfolio. Some kind of sale ,leaseback and return of capital to shareholders might deliver some value.

[lbo] 16/1/2007 14:01

Sounds like the business could be turning around but long term who knows

Ultimate Leisure Group PLC said it has had a "satisfactory"December with a 1 pct increase in like-for-like sales from last year, benefiting from both its reinvestment programme and its increased investment in marketing.In a trading update, the company said its current trading is in line with its expectations, adding that the new businesses are performing in line with the company's hopes.

[lbo] 15/12/2006 14:20

Man Financial have upped their stake

""The sign of CFD interests normally surfaces with a notice of holdings with either Man Financial or Cantor Fitzgerald on it," said one analyst. "You would use contracts for difference (CFDs) if you didn't want the takeover panel to know about your interest."

[lbo] 08/12/2006 15:26

Thats not what really happended in Ireland but who knows how it will effect the UK

AGM statment today:

Following today's AGM of Ultimate Leisure Group plc, the bar and nightclub
operator, at which all of the resolutions were passed, Chairman Mark Jones said,

"Our refurbishment programme is on track for completion by Easter 2007 and so
far 22 bars have received investment and the performance post refurbishment,
supported by enhanced marketing spend, has been encouraging.

We have disposed of two non-core nightclub sites so far this financial year for
a total cash consideration of #2.2 million, in line with book value.

We have acquired three new businesses, two bars in Belfast and a freehold bar in
Newcastle. Additionally the Prohibition brand has opened a 5th bar at No1
Bishopsgate, in the City of London."

Trading remains in line with expectations. In the first 22 weeks of the
financial year (up to 3rd December) group sales are now 4% higher than for the
corresponding period last year. Total like for like sales for the same period
are 3% below last year.

[lbo] 05/12/2006 14:19

Luminar - sells entertainment and non core units, sees cash on completion of £76.8m, to return cash to shareholders.

[jeffian] 28/11/2006 10:49

I wonder if it's time to call bottom on this now? A few days sustained recovery from the low and now a couple of days' stability despite very weak general market conditions. What do you think?


Regards, Ian

[jeffian] 20/10/2006 15:00

Agreed, which is why I'm still hanging around here!

Regards, Ian

[arthur_lame_stocks] 20/10/2006 11:11

I wouldn´t disagree with you there Jeffian.

Fundamentals should come first, but having activists on the register can be interesting as an outer of value as you´re probably aware from Lupus.

I´m not buying these, but I thinks it´s worth keeping an eye on because of all the property on the balance sheet. There´s a number of retail/consumer spending related stocks that i´m keeping an eye on as possible contrarian investments and all have a pretty good balance sheet.

[jeffian] 19/10/2006 23:55

Hi Arthur,

If you look back up this thread, you will see that both individual posters and the Independent article made a case for buying the share, in spite of very poor fundamentals, on the grounds of underlying asset value with the Independent concluding that "anyone buying into the stock now will profit". Well, will they? The rationale is that rich and successful entrepreneurs always get it right ("Shareholders such as these are unlikely to allow Ultimate to continue to underperform. If its management cannot enact a recovery it is very likely that the group will end up being taken over"). Gyllenhammer piled into EUC (and no doubt plenty followed him); it did continue to underperform; it was (is being?) taken over, but by existing management on unfavourable terms. My point is that rich men don't always get it right and when they do, it's not necessarily going to be to the advantage of other shareholders.

If Rowlinson's departure is an indication that things are getting worse - or no better - at the operational level, I'm not sure that the presence of entrepreneurs and activist funds alone make this a 'buy'.

Regards, Ian

[arthur_lame_stocks] 19/10/2006 20:32

Not sure what you mean about Gyllenhammar at EUC Jeffian. JVP in which he´s a major shareholder made a 1m profit out of the 29.9% stake they sold to Steve Smith.

Gyllenhammar has taken a bit of a bath on the second stake he built up in EUC, it´s Steve Smith that has screwed all of the other shareholders after running the company at a loss for the last couple of years.

But if your point is that large shareholders are in it for themselves then it´s a fair one, that doesn´t mean it can´t work out well for small shareholders.

[jeffian] 19/10/2006 16:12

Hmmmmm......looks like Mr. Rowlinson didn't cut the mustard.



To those who think that the presence of rich men and 'active funds' on the shareholders' register signifies untapped value for all shareholders, have a look at EUC (Peter Gylenhammer played the part of the Reuben Brothers there). Unless you know the agenda of these people and understand their end-game, it's a dangerous game to play. For example, one might be relaxed about paying 250/share for a 29.9% stake if it put you in pole position to pick up the rest for next to nothing. "They are different to you and me, the rich" (misquote, probably!); they are in this for themselves and certainly will not be looking out for the interests of other shareholders.

In the meantime, to lose one's new(-ish) Business Development Director at this stage looks ominous at the operational level so let's hope
a) that there is some good underlying asset value left there and
b) the Reubens don't snaffle it from under shareholders' noses.

Regards, Ian

[arthur_lame_stocks] 26/9/2006 17:18

Some interesting names on the register. Are the Reubens property investors. I know Dawnay Day are. The interest from these people and the private equity bods may be due to the possibility of seperating the operating business from the property portfolio. That´s pretty classic private equity behaviour.

[jeffian] 21/9/2006 00:23

Arthur,
I think the answer must be 'yes' ("Are these worth keeping an eye on as a possible contrarian punt?") but a word of caution over the NAV thing. If you look back at my post #491 you will see that the two issues I warned about are a major feature of the latest results:
1) the impact of the change in licensing on the late-night bar/club sector (if any old pub can trade until dawn, why move on to a 'late-night bar'?) and
2) the damage that can be caused to the balance sheet by "asset impairment" write-offs.

So far as the assets are concerned, I have no reason to doubt that they have a nice freehold portfolio but the question is whether, in trying to spend/invest their way out of trouble, they are actually going to blow this. You say they are "cash generative before all the exceptionals" but they are certainly not after them. And what are those "exceptionals"? Well, a big chunk is investment in new bars and refurbishment. They wrote off £8.5m last year in "asset impairment" and a further £4m this year so a) it's beginning to look like a habit rather than an exceptional and b) are today's 'investments' (which turn cash-positive to cash-negative) tomorrow's 'write-off'?

Personally, I'd like to see that they'd turned it round - or even stabilised it - at the operating level before getting too excited (L-4-L down 8% and one of their headline bullet points "Current trading tough"!). In the meantime, I fear it could go lower before it goes higher. IMHO.

Regards, Ian