Wednesday, 29 October 2008

AIM LISTINGS - WILL CGP HANG ON?

I could never understand why CGP made such a big thing of describing itself as 'AIM Listed' in its blurb . It seems that like dragging the BBC to China last November with TDC Councillors and Officers it is part of 'image' building and helps with 'street cred'. (By the way the BBC team returned with no film in the can). I suppose that with fixed assests worth only £9,000 and only 5 employees (incl non-executive directors) and no development as a developer what so ever, you probably need as much 'street cred' as you can rustle up!

Why am I interested in AIM listings? An article in 'Telegraph' on Monday caught my eye. AIM is London's 'junior market' at The London Stock Exchange and for the first time in its history has had more companies delisting than floating; in the last 12 months there were 232 departures. 32 of these were required to leave as they lost and could not replace their NOMAD (nominated advisor). The view is that more Aim listed companies will go the same way. One commentator said:
" There are companies that listed on beliefs and their plans are no longer coming to fruition. The market is no longer willing to entertain these business models. It is a natural progression - we are going to get some shedding at the bottom end. AIM needs a culling."( Those at the bottom end are companies with a market cap (capitalisation) of £10million or less. CGP's market cap is listed at £8.82 million.)

The commentator continued:
"Typically management (of bottom end companies) will hold big stakes in businesses." (Mr Prosser and Mr Wills hold almost 66% of CGP's shares).

Another commentator made the point that he expects a number of businesses to run out of money over the course of the next 3 to 6 months. They will have to delist "if they cannot raise money and have no working capital, then their NOMAD will resign".

Whilst I am no expert in these areas it does seem to me that unless CGP can get on with Phase 1 in a hurry and get some 'readies' in from Chinamex et al and pretty damn quickly, the whole CGP plan to make a quick £40 million on this whizzo Gateway Scheme (financed by the Israel Discount Bank's loan of £28.5 million that has been heavily drawn down and needs re-paying in Nov 2009) looks like going 'tits up' .

One can live in hope, I suppose. If I was at Frank's 'gaff' in Pegwell Bay tomorrow morning for 'brekkers' I would want to ask 'Our Leader' and 'Woger' if they really believe that CGP/TDC can deliver the goods, particularly as Phases 2 and 3 will come in for a rough ride if they ever materialise.

4 comments:

Rick said...

So if CGP's NOMAD goes NOMAD IC we get NOMAD NESS ?

I have to write a submission to Ombudsman today re his possible role as Alternative Dispute Resolution (High Court pre action protocols) to expedite Kent Police Authority Standards procedures re Cllr Hayton and Chief constable Fuller.

I have had a reply from Environment Agency saying that various teams are being consulted re my concerns that pipe and vessel welds at Pfizer may have failed to meet the initial contractual standards. If there is any development on this I will copy same to Michael Child.

I have still had no acknowledgement from Richard Samuel (now handling my FOI requests at TDC) re Thor Chemicals. My information is that TDC may have yielded lead agency to govt depts over four or more ground contamination incidents there. The information is anecdotal and so no conclusions can be drawn yet.

I have a feeling your post under response may be a definitive one. Time is the enemy of the gambler.

Bertie Biggles said...

Rick, Thor incidents since 2000 are recorded with an incident number on EA site. Tim Garbutt has also asked about Mercury at Thor; any news about that?
Your absolutely right about time.

mollie said...

Don't see how it can be delivered Bertie. TDC Planning reckon the 106 agreement cannot be in place before early 2009. They'll have a bigger fight on their hands for phases 2 and 3 and the Sec of State has already turned them down twice for more development land. We might see an end to our troubles sooner rather than later.
Mollie

Bertie Biggles said...

Mollie, I think that you may be right. I suspect that our Councillors on the 9th were possibly more wise than I have given them credit for in passing Cllr Green's motion. A great deal of work is needed to even get Phase 1 launched, yet alone Phases 2 and 3.