Derek Pain: Rising star Rivington makes surprise moves upmarket
No Pain, No Gain
Saturday 02 July 2011
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.
Independent Partners; request a free guide on NISAs from Hargreaves Lansdown
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
Day In a Page
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens