Derek Pain: Rising star Rivington makes surprise moves upmarket

No Pain, No Gain

Rivington Street Holdings, a star of the no pain, no gain portfolio, plans to elevate its shares from the fringe Plus market to the Stock Exchange's junior platform, the Alternative Investment Market, usually referred to as AIM. The switch should occur early next year. Around the same time one of its Plus satellites, Worship Street Investments, is expected to undertake the same journey.

The moves upmarket come as a surprise. In the past Rivington has appeared supremely satisfied with Plus. But times change. And the conglomerate, with a £20m capitalisation, feels shareholders deserve a more active share market. Indeed the move appears to be shareholder inspired. Some have urged the switch and it seems the Rivington team, led by serial investor Jim Mellon, has come round to the AIM view.

Chief executive Tom Winnifrith says Rivington's current dealing spread is too wide and rating too low. "The increased interest we will get on AIM would address both issues. Ultimately the value of a business is driven not by what market its securities are traded on but by cash generated and assets built. But Plus is not proving a valid mechanism for allowing value to be reflected." On the Worship front he declares: "The spread is a joke and liquidity minimal."

In a criticism of the boards of some, perhaps more prominent, companies, he points out: "In any firm you cannot ignore your shareholders. The express wish of the majority of shareholders (by numbers if not by voting rights) who have contacted me (in both companies) is to move." Mr Winnifrith adds: "Shareholders own a company and shareholders want Rivington on AIM. Since Jim (Mellon) and I agree with that assessment then we are happy to do as instructed." He says the group, with interests ranging over corporate finance, software and stock broking, is now in a position to accommodate the extra costs of an AIM presence.

The portfolio arrived at Rivington in November at 27.5p a share. The price is now close to 50p. Worship shares, however, have fallen from 2.5p to around 1.45p, pricing the company at £1.2m. Rivington's forthcoming departure will mean that NCI Vehicle Rescue, a rarely traded share, is the portfolio's only representation on the fringe market. Its yearly figures are due.

Two existing AIM members have also hit the City news wires. Hargreaves Services, with fuel to transport interests, reported that year's profits, due in September, would be in line with expectations (around £40m is the stock market hope) and debt had fallen more than expected to £66m. Its long- running endeavour to increase its coal output through a development in Wales could reach a conclusion on Monday when the local authority involved considers Hargreaves proposals. The shares, recruited at 417p four years ago, are around 1,040p. Stockbroker Brewin Dolphin has a 1,174p target.

Clarity Commerce Solutions, providing software for the leisure and retail sectors, is not such a happy constituent. It has won two theme park contracts, one a £640,000 follow-up deal in the US, and is commanding a growing presence in the theme park world but the important retail division continues to suffer as deals take longer to clinch. Still, it has not signalled any deluge of cancellations. The group's year's results are due soon. The shares bump along at 19p against the portfolio's 29.5p buying price and around 50p in 2009.

Finally, a Footsie stock, Whitbread. The Premier budget hotels to Costa Coffee group wrong footed the City when it unveiled an upbeat trading statement last week. Just before the announcement, the shares were looking decidedly forlorn as doubts about the group's growth swirled around with increasing intensity. As I write, the shares are not far below 1,600p, having moved ahead in difficult stock market conditions.

With the price deteriorating and some top City brains alleging the group was feeling acute pressure from the recessionary pinch, I must confess that I wondered whether it would be wise to take what was left of the portfolio's profit. But once again patience paid off and assuming the stock market is not overwhelmed by the Greek- inspired euro tragedy, I believe the shares should move higher. Earlier, before the bearish whispers gathered any strength, they nudged 1,900p. The portfolio paid 1,105p in July, 2008.

Sport
world cup 2014A history of the third-place play-offs
News
Tommy Ramone performing at The Old Waldorf Nightclub in 1978 in San Francisco, California.
peopleDrummer Tommy was last surviving member of seminal band
Life and Style
Swimsuit, £245, by Agent Provocateur
fashion

Diving in at the deep end is no excuse for shirking the style stakes

Sport
The Mexico chief finally lets rip as his emotions get the better of him
world cup 2014
PROMOTED VIDEO
Voices
Spectators photograph the Tour de France riders as they make their way through the Yorkshire countryside
voicesHoward Jacobson: Line the streets for a cycling race? You might just as well watch a swarm of wasps
Life and Style
lifeHere's one answer to an inquisitive Reddit user's question
Life and Style
Several male celebrities have confessed to being on a diet, including, from left to right, Hugh Grant, Benedict Cumberbatch and Ryan Reynolds
...and the weight loss industry is rubbing its hands in glee
News
peopleDave Legeno, the actor who played werewolf Fenrir Greyback in the Harry Potter films, has died
Sport
Mario Balotelli, Divock Origi, Loic Remy, Wilfried Bony and Karim Benzema
transfersBony, Benzema and the other transfer targets
Sport
Yaya Touré has defended his posturing over his future at Manchester City
News
Detail of the dress made entirely of loom bands
news
Life and Style
beauty
Sport
There were mass celebrations across Argentina as the country's national team reached their first World Cup final for 24 years
transfersOne of the men to suffer cardiac arrest was 16 years old
Arts and Entertainment
Armando Iannucci, the creator of 'The Thick of It' says he has
tvArmando Iannucci to concentrate on US show Veep
News
A mugshot of Ian Watkins released by South Wales Police following his guilty pleas
peopleBandmates open up about abuse
Sport
Basketball superstar LeBron James gets into his stride for the Cleveland Cavaliers
sportNBA superstar announces decision to return to Cleveland Cavaliers
Finacial products from our partners
Property search
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Information Security Manager (ISO 27001, Accreditation, ITIL)

    £70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...

    Biztalk - outstanding opportunity

    £75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...

    Trade Desk Specialist (FIX, Linux, Windows, Network Security)

    £60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...

    Service Desk Analyst (Windows, Active Directory, ITIL, Reuter)

    £35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...

    Day In a Page

    A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

    A History of the First World War in 100 Moments

    Peace without magnanimity - the summit in a railway siding that ended the fighting
    Scottish independence: How the Commonwealth Games could swing the vote

    Scottish independence: How the Commonwealth Games could swing the vote

    In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
    Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

    A writer spends a night on the streets

    Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
    Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

    UK's railways are entering a new golden age

    New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
    Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

    Conchita becomes a 'bride' on Paris catwalk

    Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
    Pétanque World Championship in Marseilles hit by

    Pétanque 'world cup' hit by death threats

    This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
    Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

    Why did we stop eating whelks?

    Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
    10 best women's sunglasses

    In the shade: 10 best women's sunglasses

    From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
    Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

    World Cup final: Messi? Mascherano is key for Argentina...

    No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
    Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

    Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

    18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
    The true Gaza back-story that the Israelis aren’t telling this week

    The true Gaza back-story that the Israelis aren’t telling this week

    A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
    A History of the First World War in 100 Moments: The German people demand an end to the fighting

    A History of the First World War in 100 Moments

    The German people demand an end to the fighting
    New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

    New play reveals what Oscar Wilde said at trials

    For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
    Can scientists save the world's sea life from

    Can scientists save our sea life?

    By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
    Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

    Richard III review

    Martin Freeman’s psychotic monarch is big on mockery but wanting in malice