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Best of the Best

BY: Andrew Hore |
POSTED: 04/11/2011 |
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Competitions organiser Best of the Best is making a tender offer of 63p a share for 16.7% of its share capital.

Best of the Best floated on 14 August 2006 and raised £2.5m gross at 63p a share. The share price has jumped 19p to 36.5p but it is still well below the tender price. However, a limited number of shares are being tendered for. Best of the Best is valued at £4m and that compares with a net asset value of £4.28m at the end of April 2011.

Net cash was £2.74m on 30 April 2011. The tender, f it is taken up in full, will cost £1.18m and the record date is 23 November. There will still be enough working capital available and earnings per share will be enhanced.

The directors of the company, which own 68.9% of the share capital, have undertaken to accept the tender offer.

Best of the Best organises competitions to win luxury cars. Best of the Best will lose money in this financial year because of the loss of its sites at Heathrow Airport but it appears to be on course to move into profit next year.

New sites have been opened in Westfield White City, Westfield Stratford and Lakeside Shopping Centres so the company could become less dependent on airport sites. These openings are still trials so it is not certain how successful they will be. Online revenues are growing.

Interim figures will be published on 27 January.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2011_25.pdf