"The interim results are largely irrelevant following the disposal of the remaining German properties in the first half of 2016. In early July 2016, PSPI used c.£11.5m of its available cash balances to effect a redemption through a mandatory purchase for cancellation of c.22.5m of the shares in issue at 51.0p per share. There are now 227,655 shares in issue. The remaining net assets of c.£1.2m are likely to be returned as and when some warranties on contingent and actual liabilities relating to the disposals expire during 2016 and following the anticipated various professional advisory fees. We now conservatively estimate that there is potential for another 475p per share distribution from the implied maximum of c.531.5p per share."
Hi FD, good to have sale confirmed today and weak GBP increases our NAV slightly.
The share price seems stronger to me that I would have predicted, albeit capital repayment of 54p likely ( what is your prediction), so I am wondering if there might be some ongoing purpose for the plc and utilisation of those £60m of tax losses. Any thoughts?
Great result for you on TRE. Well done.
LXB looking very solid at 96p now. ... I'm assuming the delayed news and increasing price is good news.
BPM not showing strength but I think move will come when it releases finals.
All IMHO, DYOR and BoL
LXB, BPM and PSPI are in my portfolio
Great RNS and risk now removed.
Nothing further to add to your analysis FD. I agree 50p-52p.
I bought more recently at 46p and this morning at 48p,
it seems another example of 10% gain (assuming get 50p by Dec 16) reasonably certain from information available, yet still able to regularly buy shares.....
this was also the case with GKO, LMS, PUR, WIND
and I believe is the case with BPM and LXB
the market is nervous and thus leaving these asset = CASH backed 10% -20% p.a. returns available even though they are 'obvious' and 'near certain'.
any assets back 'certainties' you see yourself?
All IMHO, DYOR BoL
PSPI is in my portfolio, LXB + BPM are in my top5 hldgs
Still in same range 32-26p a share with 2/3 of shares to be bought back at 23p or so will leave remnants at a NAV of 41p a share. So if you buy in now will get 2/3 of shares cashed out and left with the last 1/3 at 50% of NAV approx - have topped up today
After current sales the value is closing down to 32 to 35 p a share - right at the bottom of my previous range. I wonder who the directors are going to work for ? Sure they will look after themselves.
Anyway got in at the bottom so OK return but thought they might have worked to get a bit more
Results generally as expected - debt amortised by 1.5 m over first 6mos. Of rent/lease inc of 8m pa "admin" still 2m pa - some cuts available here . Otherwise slowly company turniong corner especially if the op co at the homes is being better run
Skepto: When will you [ and I ] learn that this busines is run for the benefit of the directors and consultants. What a surprise when we get another downgrade in valuations, after all the fee structure is based on:
a] The higher the valuation, the higher your fee.
b] The higher the valuation, the better the directors feel about their incompetence.
To answer your final question: No, these people don't earn their fees. If we recruited our local garbage collectors as directors, they couldn't do a worse job.
.....another disappointing trading update with a decline in capitalisation rates at a time when the value of most property is heading upwards. part of the decline is attributed to a lack of management attention. But don't these people earn their fee by dedicating the staff to the job that the job requires?
When I posted before I said 33-67p still think it is in that range but given the pressure on peoples budgets at present wouldnt care to narrow it down really - seeing a slight growth in asset values but will be a while before it feels like we are out of the woods
FD: I don't remember our 'esteemed' directors talking about non-core investments when they bought these. As for the demonstrable incompetence of whoever has been doing the valuations....... but I am sure their remuneration and fees were based on the valuation being high not whether the valuation was realistic.
As for reducing costs: Easily done, fire all the directors and appoint fewer [but passably competent] at lower fees. I am available as a director - I will guarantee that I am more competent than the present lot.
Small diff to the valuation of the company but a lot of overheads and leverage reduced. On the back of this management should take note that costs should be severely reduced
Generally a good thing for company to reduce the trouble over assets that are not really adding anything to the company
Given the length of time the strategic review has been ongoing it seemed a fairly small part of the groups activities and one assumes it was the easiest deal for them to do, so a discount to previous valuation of 13% doesnt bode well for the rest of the portfolio given the level of debt magnifies the effect of a valuation shortfall as far as NAV is concerned.
The US looks like a huge problem as the USPS is losing a LOT of money so buyers for that part will be very scarce or at hugely discounted valuations to reflect that.
It seems our directors have finally woken up to the fact that the company has a cash flow problem and we are now into fire-sale mode to correct this.
Properties now sold at way below previous valuations - but I don't see any mention of managers or advisors or valuers being fired for incompetence.
Also note that the current RNS does not include a current NAV; just an indication that the directors haven't a clue...................
Public Service Props
Notice of AGM
RNS Number : 8111O
Public Service Properties Inv Ltd
16 October 2012
Notice of Annual General Meeting
Public Service Properties Investments Limited (AIM: PSPI) announces that the Annual General Meeting of the Company will be held at 11:00a.m. on Wednesday, 7th November 2012 at 7 Bond Street, St Helier, Jersey JE2 3NP.
The notice of AGM has been posted to shareholders. Electronic copies of the documents can be obtained from the Company's website: www.pspiltd.com
It looks to me as if the market is treating the company like all other heavily indebted property funds i.e. a heavy discount. In this case the cash issues (e.g. Switzerland) probably add to the general gloom.
Like you [I assume] I am showing a huge loss on this but also cannot afford to 'average down'. Unfortunately I also have no confidence in the directors ever since I received an e-mail from them a year or two back saying "We are not like Southern Cross". And they still keep their jobs?
I hope that there's not more bad news to come, but with the NAV per share at 73.4p at 30 June 2012 (31 December 2011 - 108.3p) it is looking like there is at least some upside, I just can't stomach to invest any more though.
Thanks Skepto: If Beney is CFO, then he has had four years since the financial crunch started to sort out long term financing for PSPI. Oh, dear. He 'forgot' to match his in and out cash flows. What does that tell you about the quality of the directors? A year ago Beney was saying 'we are not the same as Southern Cross'; well maybe not exactly but the end result seems to be the same
Noticed one or two more sizeable trades today. Initially surprised there was no follow through from last week but it is not easy to digest the details of the deal. Perhaps one or two folks have sat down and studied the detail now. The fall to 11p was too much as always in these types of uncertainty. My feeling is that this will move up steadily over the next few weeks to the early 30's.
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