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.
Diving in at the deep end is no excuse for shirking the style stakes
Consumers given power to choose a green deal
Mark Dampier: A safe harbour if the market recovery has overreached itself
'Scrap the trap': calls for change grow as banks are told to play fair with loyal savers
Bargain Hunter: Eurostar offers child fares for £1 each way to Paris, Brussels and Lille
Relaxed pensions rules: Guide to what they mean to you
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...
Day In a Page
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
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony
A charming four-bedroom Oxfordshire cottage with oak floors and chunky-beamed ceilings, £465,000
A beautiful one-bed flat in a sought-after portered block, with access to Norland Square communal gardens
A one-bedroom flat within a Sixties school conversion with high-spec design and open-plan kitchen, close to Lambeth North Tube, £435,000
A 17th century four-bedroom house, with open fireplaces, cellar and pool, £600,000
A three-bedroom, coach house with luxury open-plan living space and contemporary breakfast bar
A newly refurbished one-bedroom flat in the heart of Mayfair, close to Grosvenor Square