Net b2b2 board to propose capital reorganisation
AFX


LONDON (AFX) - Net b2b2 is to propose a capital reorganisation and share buyback programme at its AGM on Feb 28.

The board has proposed that each of the 479,547,265 shares in issue and 120,452,735 unissued existing shares be consolidated at a ratio of 1 ordinary share for every 100 existing ordinary shares.

The group is also proposing to increase the authorised share capital from 6 mln shares to 12 mln and under the proposed share buyback, the board would be restricted to buying in 400,000 shares.

The board has also proposed to cancel the share premium account of 11 mln stg.

The company said in a statement is believes 'that now is an appropriate time to cancel the deficit on profit and loss account in order to restructure the Company's balance sheet to more accurately reflect the reality of its financial and trading position.

'It will also facilitate the payment of dividends to shareholders in the future if this is decided upon by the board,' it added.



What does this mean for a shareholder??

SueHelen used to post on this company - suggest you see if
she knows anything, if she is still holding them - look out
the old threads for it to source other holdings, they may
also know.

Stockbunny

If you read the CYH thread Chrissie has shed a little light on this company.

G12

shao -

NEB currently has 600 miilion authorised shares (the sum of 479,547,265 and 120,452,735). Of these, only 479,546,265 are in issue (i.e. to institutions and other shareholders like yourself). The remaining 120,452,735 are held in reserve for emergencies - for example, when they need to raise a bit of cash they may issue some of these shares.

The board has now decided to reduce the total number of shares that constitute the company by a reduction factor of 100. In other words, there will now only be 6 million authorised shares in total (4,795,462 in issue and 1,204,528 in reserve). So the number of shares that you hold will also be reduced by a factor of 100.

Why would they want to do this? There are many reasons. Two of the most common are:

1) To reduce the sell/buy spread.
2) To return capital to investors.

It sounds like NEB are doing the second of these options.

"The board has also proposed to cancel the share premium account of 11 mln stg."

The share premium account is the money that is held by the company in reserve to support its shares. It should be equivalent to the total number of authorised shares multiplied by their nominal value. Note that their nominal value is nothing to do with their share price. I don't follow this company so I cannot be sure, but from the figures you give I would sugggest that the nominal share value is 50p (600 million shares * 50p = 12m).

Now by restructuring their issued share capital so that there are only 6 miilion shares in existence, if each of these shares were to retain their nominal value of 50p then the company would only need to keep 3m in reserves to support these shares. Hence they are now able to use 9m of the original reserve account for other things. Such as paying a dividend to shareholders.

I know that my numbers don't quite add up in the above, but the basics of what I'm saying here are correct. (Obviously the nominal share value isn't 50p, but hopefully you understand th concept).

What does it mean to you. Firstly, you will have far fewer shares. But don't panic. With all things being equal (if only they were, sigh!) the share price of NEB should increase 100-fold to reflect the share restructuring. So the value of your holding will not change. Secondly, it sounds as if NEB are about to start paying dividends. So for as long as you hold these shares you will receive (possibly) two payments per year based on the number of shares you hold. If they did not do this restructuring, the company would not have the money to pay dividends.

Hope this makes things a bit clearer. I know it is always daunting when companies start doing stuff that we don't all understand. It sounds OK to me.

thanks alot starfrog but i panicked and sold my holding. saw the price dropping and thought f that. maybe if it drops low enough i'll buy back

Good news then....

I would stay away for a while and watch, as any shares I held which consolidated always dropped afterwards!

i saw some talk on other threads saying this may be one to watch. any opinions?

Chrissie seems to think that they are about to set sale , but you know DYOR...
I have just bought in so i cant jump ship just yet.Fingers xxxxxx
G12

shao

I think StarFrog's reading is on the ball. Another argument in favour of this type of consolidation is that it is attractive to the city, particlarly fund manager. You see very little interest in dividends on these threads but they are important to a lot of people, particularly unit trust buyers. Good buying today so response is encouraging after a shake-out. HCEG did a similar exercise and the sp advanced as a result whereas CYH sp fell back, so probably there is no golden rule. Pretty close to its support level on the charts.
[shao: you don't have a messaging provision on the board - I'll have a look at the fundamentals over the weekend]

Eric

thanks eric. i've set one up now...i think

Not a lot of info but good news ..

LONDON (AFX) - Net b2b2 PLC, an AIM quoted business aggregator focussing on the digital communications sector, said its unit cScape has won a contract to supply web services to the Carbon Trust.

G12

This statement from our own Chrissie.

NEB (Netb2b2) AGM today and results out 7thMarch. This share will fly, take a look at their website you will be impressed! They have a very good thread on advfn. Well undervalued and you could be the owner of 1 million shares for about 7k (netb2b2.com)

Thank Chrissie

G12

HELLO anyone out their have NEB and whats going on with the share price it cant be right !!!!!!!!!!!

mojo,

they had a share consolidation of 100 - 1 which is why the price may look a little strange - we are aware of this and will update the price overnight.

Regards

Ian

I have a few !! fingers xxxxxx

Looking at the price increase today i am asuming that many of the sells were actually buys.....


G12

Come on folks its a time to buy not sell!

G12

All in all the future is till looking rosie or am i missing the point......


G12

LONDON (AFX) - Net b2b2 PLC said its losses widened in the first half to Dec 31 2004 to 5,000 stg from a restated 4,000 stg in 2004.

Turnover for the first half was 2.96 mln stg compared with 2.69 mln and the operating profit fell to 4,000 stg from 13,000 stg.

Chairman Keith Young said the group continues its positive outlook and development.

Since the period end cScape has won further contracts with blue chip clients, such as the Carbon Trust and, with the contracts already in place, the group expects profitability to follow the increase in turnover for the full year, he said. In addition, Blue Sky, NetPen UK and ITM Graphics will begin to exploit the opportunities open to them.

Young said the group is aggressively pursuing value enhancing acquisitions.

He also said the continuing improvement in performance of the operating companies provides cash both for investment in their own future growth but also to help fund such acquisitions.

The directors have not declared an interim dividend but said the payment of dividends will continue to be kept under review.

newsdesk@afxnews.com

golf. you're living in dreamland. this is completely bolloxed! sub 10p within the month.

Folks

Following the drop in share price after a set of dissapointing results i decided to contact the company asking what the future holds ,The respose looks very promising.

G12

Many thanks for your email. I appreciate and completely agree with your
analysis of the company.

Given the seriously under-valued SP I, and my fellow directors are
confident that the price will revive particularly in the light of our
own recent extra investment in the form of share buying and cash
injection to underline our commitment and to underpin the SP.

Whilst our recent interims were a little disappointing they were the
ONLY piece of vaguely poor news that I can recall us delivering over
the
last fully 2 years, during which time we have moved from a seriously
loss making if not dying business to a cash generating company with a
clear aggregation strategy. This makes our share price performance all
the more galling.

I therefore am looking forward to a rising SP over the coming months.

Kind regards,


Group MD, Netb2b2 plc

freefall baby

Where is the bottom for this share, it must be grossly undervalued at 40p ?

Below is an email i received from the company.

Despite the disappointing current position
primarily driven by day trade rumour mongering the company remains in
good health and with good prospects, as evidenced by the recent brokers
note that valued the company conservatively at now nearly 4 times the
current share price on a purely break-up basis, irrespective of future
prospects.

We continue to be confident therefore that the market will not be able
to ignore the fundamentals of the business and more importantly the
future prospects of the company.

G12

Thanks Golfclub.

The SP chart may be telling us that this one is nearing the bottom, especially as chairman K.Young, bought 1/2 M shares for 250k in mid-March. Nice to think that we can now buy at a lower price than he did. Any thoughts?
Sd.

Squidd

Looks like you could have been right regarding the bottom of SP as it has just taken a sly creep upwards , so fingers xxx

G12

Noticed that NEB has today come up on Haystack's robot pick stocks.
sd.

fingers xxxx looking good

Up another 18% today, wow .
Having to rely entirely on the chart for this one because apart from the hefty share purchase by the chairman, I can find no news whatever.
The sp was over 80 in the dot-com boom days, so if it reaches 80p it will rejoin the 99% club after an absence of some years. For much of the time it has been bouncing along just above 60p, so if it climbs through decisively, I think the chairman and any followers could find themselves in blue sky.
sd

News at last, and another boost to the sp.
sd.

we should see the sign in a couple of months if news keeps coming in.

I think people who were in for a quick buck yesterday are now jumping ship, so price should stablise and slowly rise again over the next couple of months.

G12

I take that this is good news as we are on the rise again after a sharp fall yesterday!

Have a good weekend all
G12

I think NEB still has some way to go upwards, but I worry that it may revert to its low volumes and lack of news flow. So, after the recovery spurt, I've jumped ship in order to focus on my favourite recovery stock ELA, which enjoys a higher profile especially after all its recent troubles.
sd.

Not quite sure what other shares are upto but may be once the Budget is over and done with they will start to move on! You have only got to take a look at the FTSE and how that has dropped over the last month , may be the same reason.

G12

Guys.....I hope we will be hearing some good news soon......to boost the SP.