Eadwig
19 Nov 2015
Re: placing Courtier1, "small point of note though is that INL earnings are inflated this year "Yes. I also slightly misquoted last year's EPS which I should have adjusted for the new accounting standard. I meant to correct it but got distracted.The thrust of my post regarding INL was basically correct, however, though the market isn't particularly enthused, it seems. INL posted news today of another good land sale and other progress including a significant addition (for one plot) to their yearly rental income.TEF down heavily today. I'm unsure why, there was no news when I started this post and the sp was pretty solid early on, unlike Bovis who were down up to 12% at one point on what was basically a strong trading update when measured against most FTSE 350 companies. I don't think the TEF fall is anything to do with Bovis' update, presumably a lot more to do with the placing price of 360p. I have a limit order in place to add to my TEF holding should the price fall below the 360p mark.
Courtier1
18 Nov 2015
Re: placing I like both but own Inlandsmall point of note though is that INL earnings are inflated this year and will fall back to around 7/8p next year. However, equally their developments are still in the books at cost and are probably nearer 100p in fair valuegiven most house builders seem to be trading ahead of BV I like Inland as the restatement of these developments in 2016 will hopefully provide more clarity and move price up over the 100p markTEF I am not an owner of and thought the price was getting top at the 460p mark. Seems people were equally concerned when the placing was in progress hence the discounted placing. On the plus side though I like the management and feel SP has support here and may well buy some now.
theblue
05 Nov 2015
Comment elsewhere some posts on LSE that are worth a read, posted @ circa 4am 5.11.15[link]
KALAN
04 Nov 2015
Re: placing Thanks Eadwig - will take a look.
Eadwig
02 Nov 2015
Re: placing KALAN:"this is AIM and the companies are run for directors not share owners"I very much sympathise with that view. However, take a look at INL (Inland Homes) whose latest accounts to Jun 30 2015 leave them with a P/E of 5 as far as I can tell, after doubling revenue and a big rise in profits with EPS rising from 2.87pps to over 14pps. See my latest post on their ii board.Like TEF they specialise in brown field sites in the south of England, not just house building but consultancy on planning and converting plots without consent to plots with planning consent and selling them on to others.Rather small scale, but they have over 5000 plots in the land bank with over 1000 with consent. They have been lagging in growth behind other builders, but they look to be coming good now, as far as i can tell. They also have many awards for quality residences and an average selling price of £264,000.The big point is, four of their directors hold about 25% of shares, so in that case what is good for them is also good for the shareholders, in theory. This very much reminds me of PSN in the early days (a friend of mine married into the family). PSN, need I mention, are now a FTSE 100 company.Full disclosure: I am a holder of both TEF and INL (and PSN). Do Your Own Research - and then post it up on that board, whether or not you agree with my findings so far!
KALAN
02 Nov 2015
Re: placing Was given the heads up on this share by a contact in London who is involved in building in London. the share price was 360 p and I was in the process of doing my research when Jim Slater hyped it up in the Saturday Telegraph - the sp shot away to 420p and I decided to leave it alone as the hype was in the price as was future earnings improvement. regretted it when the sp went up to a fiver but have waited patiently. The placement gives me the opportunity to get in at the new ground floor. Those who are upset at not being allowed to take part in the placement needn't worry as the sp will most likely sink to or below the placement price - 365p to 370p should give a nice 50% return over a couple of years - feel sorry for those who invested higher with shorter time frames but this is AIM and the companies are run for directors not share owners - they will get their cut by whatever methods suit them.
chessman2
28 Oct 2015
Re: placing It is always extremely irritating to see other parties buy in at an extremely advantageous price but at least it had the benefit of a quick fix. Furthermore the benefits were such that the sp was always going to bounce back.The downward movement from 4.95 was more to do with sellers taking profits. The placing was only on the cards since the recent shrewd purchase. I remain optimistic and look forward to seeing 5.00 plus early in 2016.
Saigon Sally
28 Oct 2015
Re: placing In trying to understand the reasons for a Board deliberately setting out to alienate its shareholders presumably a placing is cheaper for the company than a rights issue? SS, for one shall be voting against the dilution of her (modest) holding...
Eadwig
28 Oct 2015
Re: placing Bigbunny,HEADLINE: SHOCK HORROR - P.I.s RIPPED OFF ON STOCK MARKET.Happens again and again, even in the FTSE 100. The rules say, at least in the FTSE 100, a placing can only be up to 10% of new shares and need not be put to existing holders for a vote, otherwise a rights issue MUST be done. Did you put this from the RNS to your broker, though? "The Placing is conditional on, inter alia, passing of certain Resolutions at a General Meeting to be held on 13 November 2015". I suppose the agreements to take shares can already have been made, only to be cancelled if voted down. Guess who is going to be voting though - that's right, people and institutions who benefit most from this closed deal.At least I'm not feeling so bad about my limit order triggering now @378p, just wish I had set it @365p of course. If TEF management stays the course ok, this could work out well for all holders long term. Still leaves a bad taste though.
bigbunny
28 Oct 2015
placing I had the placing brokers called first thing this morning to be told the £50m placing announced only yesterday afternoon had already closed ! So there was no chance for me, an existing holder, to acquire any shares at the discounted placing price. This is the London market at its worst : a large tranche of cheap stock parcelled out by the house brokers to their friends with other shareholders locked out and forcibly diluted. What a rip off !
Eadwig
27 Oct 2015
Re: Placement Bit peeved myself holding at 420p in my SIPP and had a long term limit order set for 380p to average down, realising that I had bought too high. That order executed for about 377p today, well above the 'placement' price of 360pA placement, unlike a rights issue, doesn't guarantee existing shareholders a slice of that 360p pie, by the way. In fact private investors may not get a look-in at all. If they do, I will be more or less forced to buy again, plus I also hold TEF in another account @411p which now will have to be averaged down also.Why 'forced'? Because my investing goals don't really fit with the 2019 profits and onward timeline being talked about by the board for these opportunities. Especially not for the amount of cash i am now having to sink into the company.GDP may be declining, dazedandconfused, but TEF is a specialist in exploiting the need for affordable homes in London, and that demand isn't going to decline anytime soon, perhaps not for generations. So, having had a bit of a gripe, there aren't too many other better places for my cash in the foreseeable, and I was up to about 30% cash on hand, having abandoned most of my biotech holdings until after the next US elections NEXT November as well as taken losses in RIO to reduce my commodity market exposure.
dazedandconfused
27 Oct 2015
Re: This is the price it was at a year ago, so there may be some disgruntled 2015 holders who bought in on the Winter/Spring rise to near £5. A long-time holder myself, i can see the rationale but some may wonder why when construction is declining GDP as of today (but not in East London, as i know!), possibly suggesting a slow-down in the market. However, prices rising along Crossrail route east of Central, and these guys are already there, so United House development locations will be interesting to read about in Placing docs.
Eadwig
27 Oct 2015
Telford Homes is raising £50m, gross, through a placing of 13,888,889 new ordinary shares at 360 pence per share.The group says London has a growing economy with an excellent transport network and yet suffers from a fundamental lack of supply of new homes at an affordable price, and demand remains high from the group's typical customers.It says that following the recent acquisition of the regeneration business of United House Developments for £23 million the group has a substantial platform from which it can undertake further investment. And it says it has a number of opportunities to acquire new developments that require additional funds beyond those deployed for the acquisition.The net proceeds will be invested in some of these development opportunities and are expected to be committed within one year and fully utilised within two years.The board believes that the placing will enable the group to target annual profit before tax exceeding £45m from 2019 onwards and increasing towards £60m thereafter.The placing is conditional on shareholder approval at a general meeting on 13 November.Chief executive Jon Di-Stefano said: "Telford Homes is experiencing strong demand for its homes in non-prime inner London and has a sector leading forward sold position of almost four times last year's reported revenue. This is due in part to a fundamental lack of supply of new homes in London at an affordable price."The imbalance between supply and demand is not going away and the Group already has a substantial development pipeline to take advantage of this in the coming years. Despite that, there are more opportunities available in the Group's typical locations. The proposed Placing will enable Telford Homes to take advantage of those opportunities and achieve enhanced longer term growth in its output of new homes and therefore in reported profits and dividends paid to shareholders."TEF share price currently 8% down @377p
Eadwig
14 Oct 2015
Trading update highlights Trading update ahead of its interim results for the six months ended 30 September 2015, which will be released on Wednesday, 2 December 2015.
rofit before tax for the six months to 30 September 2015 expected to more than double compared to the equivalent period last year (H1 2014: £9.4 million)Strong forward sold position of over £685 million to be recognised across five financial years (31 March 2015: over £550 million)The Group has acquired the regeneration business of United House Developments which has the potential to add some £500 million of revenue to the existing £1 billion development pipelinePlanning permissions secured at key sites including Caledonian Road (156 homes), Chobham Farm (471 homes) and Redclyffe Road (192 homes)Group well on track to deliver growth and profit expectations for the year to 31 March 2016 and beyond
Eadwig
21 Sep 2015
Today's RNS summary Big move for Telford's pipeline, and a significant move up in sp. Weak buy at these levels (@412p), strong buy on 5% pullback from here."Acquisition of the regeneration business of United House Developments for £23 millionTelford Homes Plc (AIM:TEF), the London focused residential property developer is delighted to announce that it has acquired the regeneration business of United House Developments ("UHD"
on a debt free basis from United House Group Holdings Limited ("UHGH". The consideration for the acquisition was £22.97 million and this has been entirely funded from the Group's existing cash resources.The regeneration business of UHD consists of a group of companies that have various interests in four significant development opportunities in North and East London. These development opportunities are City North adjacent to Finsbury Park station, the refurbishment of the Balfron Tower in Poplar, two phases of development at Gallions Quarter near Royal Albert Dock and the regeneration of Chrisp Street Market in Poplar. One employee is transferring from UHGH to Telford Homes with no other central costs, assets or liabilities being acquired. The developments are all at various stages in the planning process but they have the combined potential to add some £500 million to the Group's existing £1 billion development pipeline. "
