#Orbis financial share price plus#

At 8 times cashflow, that would require operating cashflow of £8.125m. Basically shareholders come into the money when the possibly buy price hits £65m and this is reducing by the month. I have ignored current liabilities of £5m (I offset the cash against long debt) but any increase in the offer price of a bid would soon knock this out. The management entitlement of 6.4% of (£22m + £15m +£38m) = £4.8m leaves £0.44m to share between ordinary shareholders. A £60m purchase today assuming the £38m debt (after cash and prefs) would leave £22m so shareholders only get 2/3rd of (£22m - £16.65m) = £3.57m + the original £1.65m (9.9% of the £16.65m threshold)makes a total of £5.22m. This occurs at £16.65m after which they only get 1/3rd.

Pref holders get 90.1% until they get their £15m back. At 8 times cashflow the ungeared company is worth £60m if we call it £7.5m. That is hard to guess but I think it is quite possible cashflow in the year ahead will hit between £7m and £8m. Development costs for new contracts will have depressed cashflow in H2 but will add in the coming year. I'll guess you can add back £200k for industrial action in France. It has been surprisingly stable in the past. Posted at 18:10 by aleman Operating cashflow was around £3.2m if you adjust for stock and creditor movements. The only reason I did not get out of this one years ago is that, following an earlier spectacular crash in share price, my holding is worth less than the cost of dealing. With these two huge vested interests it is no wonder that both non-execs., with their duty to ordinary shareholders, have found themselves in an impossible position and resigned.

If the company were sold for EV £59.3m management would receive £1.704m (£320k less in the event of a MBO).

The enterprise value of the company is this plus market value of shares - currently about £0.1m. The latest figure we have for net debt is £59.2m at 31/3/07. and you will have nothing.ġ) if there is an offer for the company the banks can convert their preference shares and existing shareholders will be left with 9.9% of the enlarged equity.Ģ) Management will be rewarded on a sale of the company. Ordinary shareholders were stiched up at the time - vote for the new arrangements or the company will go into admin. The banks would have pulled the plug in July 2003 but for the fact that the company had net tangible assets of minus £46m. You have to remember that the banks are in control of this followed by management. Our unique fee structure ensures we remain driven to deliver long-term returns and that our interests are aligned with those of our clients.Posted at 15:20 by sharw In theory the company's listing will be suspended on 17/3 but I suspect it will be sorted before then with little value, if any, for ordinary shareholders.

Our independence allows us to prioritise our clients, to make bold but considered decisions and to stand by them as long as we need to.

Since it can take time for these companies to realise their true value, our business is structured to avoid pressure for short-term performance with no external shareholders. Our team of 60 investment professionals, located around the world, does comprehensive research evaluating businesses from the bottom up to identify companies with long-term prospects that are priced at less than our estimate of what they are worth. Our long-term approach is at the core of everything we do, from the way we invest, our company structure and even the way we charge fees. We work to find opportunities others miss this means investing in unpopular areas of the market, which takes courage and patience. Orbis has been creating value for clients for more than 30 years.

#Orbis financial share price plus#