Volution Share Discussion Threads

[techtrend] 06/8/2009 09:33

tsmith2, that's what I'm anticipating too. These are an absolute steal if the company manages to reduce the debt via disposals and cashflow over the next couple of years.

Any sign of them executing this already stated strategy should see a pretty immediate re-rating IMO

[tsmith2] 06/8/2009 08:05

TU seems to have been well received.

If they manage to get away the sporting divisions, pay down the debt this should recover very sharply

[death by donut] 05/8/2009 12:07

Views on the update info?

Also what does the account timing change mean?


DbD

[tsmith2] 24/7/2009 11:49

egoi

who would that be?

[egoi] 24/7/2009 11:47

Or someone 'averaging up' from 10p! -:))

[techtrend] 24/7/2009 11:28

probably delayed reporting from yesterday

[tsmith2] 24/7/2009 10:38

1M bought at 17p..price unch!

[techtrend] 24/7/2009 09:02

I wonder how discussions on the MBO of the football business are going. I see any progress there as a key driver for a re-rating here as it will show management acting on intentions to reduce debt. Maybe we will here something with the trading update?

[argy2] 24/7/2009 05:45

No but I'm sure we are due a ramp from the t1ps camp soon given they recently 'averaged down' at just 10p.That will at least allow those locked in for so long to release a few.

[death by donut] 23/7/2009 17:50

Hmm , tick up again , any info?

DbD

[dodge meister] 22/7/2009 10:35

Hopefully should see a trading update in about 2/3 weeks...hopefully forward movement from there. If they survive...in a couple of years the share price should have rocketed if they can get their costs under control.

[egoi] 29/6/2009 11:29

Good response greengiant, not sure I'd go quite as far as irrrelevant though. The admin expenses perhaps acquisition related, but then that was the case with Infonic!!

[greengiant] 29/6/2009 10:29

egoi, thanks - personally I think they will recover - but I would say that :-)

The one factor that I take comfortin within the interest line is the following -

Although the interest costs are shown in the accounts as being £2.3m an analysis of the notes within the accounts (Note 3) shows that the majority of this is irrelevant. Irrelavant in that the company can easily match $ loans with the $ revenue it receives. This has been a change in accounting rules whereby a company has to rebase its loans based on a movement in exchange rates - a natural hedge however, negates this effect.

For example - of the £2.3m, the following should be considered in the context that they are non reoccuring and should actually go the other way now that the £ has strengthened against the $.

Unwinding of discounts on deferred consideration
Foreign exchange movement on deferred consideration
Foreign exchange movement on loan
Amortisation of issue costs of bank loan

So in effect about £1.3m should be eliminated from that interest cost. Strangest accounting rule I have ever come across. Of course there is the full year effect of the increase in Loans and the interest related charge, but similarly there is the revenue from the acquisition.

My major concern was the fact that GP increased by £1.8m, but this increase was all sucked up in additional Admin expenses. The key question is why?

gg

[egoi] 29/6/2009 09:58

Glenn if you want my honest opinion I don't think they will pull through; their marketplaces might be picking up, and the Newcastle deal should help the footy side, but the debt is (bit like Disperse if you remember?) crippling them imho. As to how long I think they can keep going, if I had to guess, maybe a few months to a year?

Greengiant for your sake, of course I hope I'm wrong, they can sell enough non-core to survive and eventually recover.

[glennborthwick] 29/6/2009 09:44

yes one for the gambling pot. Interesting though , if they get the football business to bite, pay down some of the debt. The theatre market is doing alright at the minute.

[greengiant] 29/6/2009 09:34

egoi, I agree with you, the lending bubble inflated reality and companies borrowed huge amounts without ever considering what would happen if the cash ran out.

I think that this is just common sense returning to the market - and favour this kind of statement - cash is reality and altho' down on my investment here, I continue to hold, and watch this company deleverage. Happy to see them sell off parts of the business and focus on the Media side.

gg

[egoi] 29/6/2009 09:29

I think one only need read these bits to see what state the finances might be in; the company remains 'focused on cash management and debt reduction.....'

Sounds to me like that is priority over everything else - and a 'we need to sell something' inference I think from the reference to the football business.

Hardly surprising imho given their balance sheet if that is the case.

'The proceeds from the Placing and the cash saved due to the issue to the Sellers of the New Ordinary Shares will be used to reduce debt and increase the Group's working capital.........

......First Artist remains focused on cash management and debt reduction. The acquisition of SpotCo in October 2008 redefined the Group, putting the media business at its very heart. Consequently, we are currently exploring our strategic options with regard to our non-core businesses. In addition, the Company is in preliminary discussions with management regarding the possible sale of the Football business. Talks are at an early stage and may or may not result in a transaction.......'

Glenn the balance sheet reminds me of a mini Six Flags!

[soulsauce] 29/6/2009 08:41

Think the market reaction says it all. Going nowhere fast.

[glennborthwick] 29/6/2009 08:15

so what does this do to the balance sheet. Could be a catalyst for the share price. Dont hold.

[purplerain2] 29/6/2009 07:56

is the company worth backing . Is it making money? Why the directors getting such cheep shares?

[egoi] 24/6/2009 10:12

ATCG this morning just the latest in a long list of 'profitable, low p/e' companies to go under, wollowing in an ocean of debt (Was that, like a few others similarly, a Winny's mob pick at one time?).

I can see why people aren't braving it here!

[lionheart79] 23/6/2009 11:13

so much for the recent rise, back in the doldrums we go.

[argy2] 19/6/2009 18:36

Somewhat old article.Your paper boy been away?

[tsmith2] 19/6/2009 10:13

don't know how upto date this but...