Yes I know Im on holiday so Ill make it quick. Just had a phone call and an e- mail from a City pal of mine and hes drooling over this company. Hes a trust worthy chap and has given me some fantastic tips over the last 10 years.
Hes going on about it being a ten bagger, but I dont like that kind of talk, best to just see how the market rates it. He says theres going to be a lot of news flow so that should provide for a momentum driven price. Have to say I have never known him quite so excited about a stock. Ive just gone in and bought a nice holding.

Heres the e-mail he sent me. It might be worth your while having a dabble. Citywire seem to think its going to be a hit.

Health minnow makes strong return to market
Published: 11:51 Wed 22 Oct 2003
By Joanne Wallen, Associate Editor
Email to a friend


The chief of Healthcare Enterprise Group sold his last business to private healthcare firm Bupa and he's now raring to go again; the business may be worth a second look.

Shares in the 24 million AIM-listed business were suspended in August pending a couple of key acquisitions, and returned to the market on Monday after the deals were announced.


Healthcare Enterprise Group (HCEG) (HCEG) paid a total of 11.5 million for the Safa Group and Industrial Pharmaceutical Service (IPS) as well as a 60.7% stake in SafaTec. The company raised a total of 10 million via a placing of shares at 1p to fund the acquisitions and also took on 3.5 million of bank debt.


Chairman Stuart Bruck, who previously founded private medical services business Barbican, which he sold to Bupa in January 1999, is hoping to build a significant business providing medical services to corporate customers. He is hoping to be a consolidator in what he told Citywire is a very fragmented market.


Both Safa and IPS provide first aid kits, training, first aid suites and a host of other medical and occupational health services to large corporate customers such as British Airways, Marks & Spencer, BT, Sainsbury and government procurement agency OGC. Both companies also have advanced 'replenishment systems,' which enable companies to maintain adequate supplies to satisfy UK health and safety legislation.


Bruck said these acquisitions would provide a 'platform' for further acquisitions.


The company had previously accrued minority stakes in a total of 14 small healthcare services companies in the UK and the US. In March it listed on AIM by reversing into a cash shell.


Bruck said the minority stakes offered it an entry into the market, but the company has now decided to focus on wholly operating and owning businesses. It has therefore identified four of its US businesses that it would like to buy the remaining stakes in. These are all within a two hour drive of the company's Los Angeles office, and would be run from there.


The company has also 'packaged up' the remaining eight businesses with a view to selling each of its minority stakes. Bruck said the pricing being talked about is already ahead of the indicative pricing given in March.


Safa and IPS apparently already have a 30% share of the corporate medical services market in the UK. They are both cash generative from operating activities. Both companies are based in the North of England and do not have a huge penetration in London, where Bruck believes the company has 'a huge opportunity.'


He reckons they have so far penetrated around 50% of the FTSE 100, and therefore have a 'great client base' to which they should be able to sell additional services.

SafaTec has interests in a number of early stage companies that have developed some innovative healthcare products and technologies, which the company is hoping to commercialise. For example, Safa has secured a sole international distribution agreement with Ebiox, a manufacturer of a unique decontaminant and cleansing product range based on a patented formula. SafaTec UK has a 35% interest in Ebiox and HCEG is negotiating to acquire a controlling interest for the enlarged Group.


Bruck does not expect to make any more major acquisitions in the next year or so, but thinks there are a lot of small players that the company might be able to mop up.


'This is very exciting, I am looking forward to digging in,' he said.


Shares are currently at 1.7p.


Citywire Verdict:


The corporate healthcare market is becoming increasingly regulated, which favours HCEG. Bruck's track record should also be worth buying into.


The corporate structure looks pretty complicated at present with all of the minority shareholdings, but Bruck now seems keen to get the point quickly where HCEG controls the majority of the businesses it operates.


This is obviously early days, but for anyone that fancies a speculative punt on a penny share, HCEG is worth a second look.ENDS.

Well it looks very good to me although its a speculative punt, what isnt in the markets today. Good chance to get on board aswell on a bad day.

Please DYOR. You are responsible for your own buying and selling actions.

GF.

OK I admit it, (today) I've turned!
The sp graph shows the bottom was reached about two days ago and the sp has risen nearly 4p...I just got in at 3p over the institutional buyers, so I'm reasonably satisfied I'm not buying their cast-offs.
Is this business any better than 2 days ago?
- No it's exactly the same (no RNS's), .....but what has changed is folks willing to buy several chunks of shares for cash. That means sentiment is returning -and IMHO that counts for a lot. I'm sure the products are OK, no worse than others in the market....but they will need experienced salesforce to shift 'em. I still have doubts over Management that got us here.

Expect some return before it starts to climb, back - little by little. I may have paid a tad too much; but once an Opportunity presents itself , it need nerves of steel to hold-off, in the hope of retrenchment - and that might be short-lived. To me, this looks like the bottom is "over".

Rumour of the day
Healthcare Enterprise, the AIM-listed medical products developer that has tumbled after Novembers shock profits warning, added 2p to 18p on murmurs it is in talks with Johnson & Johnson, of the US, on the licensing of its Ebiox wipes, which are used to fight hospital-acquired infections. There was also talk that the company is mulling the sale of its Warrington site.

http://www.timesonline.co.uk/article/0,,748-2045784,00.html

This could be on the road to recovery at last, there seems to be some confident buying the last few days and the sp is slowly nudging up again.

yes ,i agree with you there keepitsimple,i think there will be some better news releases in the near future,i think we will hit 20pence within two weeks,and then a steady recovery back upto 50p within 3months.this company has still got huge potential when they have sorted out some of the teething problems,good luck all.

7p is really bad news - and little prospect of any return to what Management laughingly call shareholder value - grief these were 1.30 not that long ago (13 months?)...and no "dot-com" bubble to blame - sheer incompetance and lack of sales...I suppose any company with a grandiose name like "enterprises" should be under suspicion. I sold mine at 80p at a small loss, after a consolidation that tried to hide an earlier fall.
Monkeying with share density is a no-no for me, as it usually spells trouble, IMHO.
Grr.

AGM at 9.30 really says "stay away we don't want whinging shareholders here"....that being the case I won't buy any [HCEG] and the sp can stay where it is (6p) for all I care. When this (new) Management is kicked out, then perhaps (what's left of) the business can be run by professionals...until then I give up.

Oh and please don't let's have any Exec. Rewards when they go,- just slip away one night, switching off the lights.

I have added an ever-so small purchase to my miniscule remainder-holding.
This is not because the sp is on the move, but rather I think this is the place where it will start. There is a small risk it could fall further, but the Annual Report shows that the New Management has at least understood the problem (with Warrington distribution).
If that's the case then a small punt at these prices looks like a no-brainer. They have established products but lost customers when they couldn't deliver (...I don't understand why....) but this is said to be resolved. Looking for 10m or more next year and there is a reasonable chance Ebiox will receive approval. If it does look at maybe 20p as the market gets excited, falling back a little until product starts to deliver - if they can organise that!
Once that is resolved say 12 month's time look for sub-50p if projected sales are well above 20million.
I think it will be a long road to the earlier 1+ as this Market has been spooked....
. exec rewards could still act as a ceiling.

hangon, I agree with you and bought a few recently. This could be a good recovery stock. I just hope they have not got too much long term damage as a result of the problems they had at Warrington. Ebiox should make the share price move once they have US federal approval later in the year.

Agree, stories do change and it looks like the regular healthcare business they bought was a good move. That gives them about 14million turnover with little effort (in a good year) and Ebiox is extra....both US (and NHS-sales are still possible)....but we might hope they are marketing to the Friends of Hospital (shops) where a small bottle costs nearly 5...along with anything else in the catalogue! I've seen it, it's the size of a woman's mag - thick.
.......I just hope their marketing is up to it.....
Glad you waited for 6p?.....this has been so much higher (1) -it's frightening.Thanks.

6 Sept 2006
Saw a reversal in the sp fall (to c.4p)......but now we have the spectre of a large loan facility - which gets HCEG off the hook of banrupcy but for how long ?

Under "normal" business deals cash is needed for stock and for the few days' grace to settle accounts...but if the business is not selling, any orders they get "may" be on discount.....so there is less profit.
With lower profits and a loan to service it gets worse and worse. I thought the loan facility was to fund expansion of distribution of the wonder-Ebiox - but I'm rather suspicious that we've been sold a dud and that Ebiox will not (ever) match the marketing campaigns of the Big Boys (a topic I've banged-on about when HCEG was presumed to "take-over" the World in healthcare.)... it isn't going to happen because the like of Unilever will buy a robust brand and Ebiox will stay on the shelves in Warrington.(of course Ha-Ha, they might buy Ebiox!)
We have heard very little about Approvals by NHS, or FDA - does anyone know if these are really on-going, or expected soon/later?
I'm not yet in profit, but did sell at 80p (remember those days?)- to buy again sub 20p and sub7p

Would HCEG be bankrupt soon?...thanks to the expert management!

Seems the Dirs need some of their own anti-bug medicine...... these Bu**ers must have faith in their brew? - ... it would transform them from an evil-smelling cash-wound into a neat silk purse without strings.

It is difficult to understand just how bad a business can be before there is some action....and I don't mean rewarding themselves with options.

Still, in a sad jokey way, the Market is wise to them and keeps pricing the stock just out of reach of their options. Ho! B***dy! Ho!.


Looks like I made a few bad calls on this one recently, funny that - you instinctivly know something is wrong, yet I still ask for more.
Thank goodness the investment was petty cash levels; but it still goes against the grain.

The real worry is that the business is ready for the knackers' yard and won't fetch much....maybe there will be a rendering charge. Oh dear.

My earlier Selling at 80p is a long time ago....can anyone remember when it was over 1...........grief......... and I have other work to do.............bye

Latest RNS appears to tell the Market they are buying another company with "our" shares (+dilution).

When will Dirs realise that only once in ten times does buying a company represent good value? 90% of instances it destroys shareholder value because it allows Directors to appear to be productive when really all they do is waste their time spending (large amounts of) our money.

If they want to spend money, use their own. But get out of our company first, so someone else can make good with the assets.

The directors know this. They live to make money. And the members of the authorities who govern their actions also live to make money. And they all know each other. It doesn't take much to realise that there is a little corruption out there.

Does anyone know whats happening? SP is up every day.

Interesting isn't it - languishing for ages and then this. Have to admit to a holding in these - which is at about breakeven at the moment. Possibly to do with recent announcement but I think they're even confused over on the dark side - if you want to wade through about 20,000 posts. Wouldn't recommend it - just wait until there is a RNS from the company - I suspect that the news has been leaking - or thereagain it might just be the herd getting all carried away.

Michael Walters is a holder and he did an update piece on them recently (15/01 - I think) - so I suppose he might have sparked the revival.

If you don't know their history and don't have a position - do some research on them before leaping in. Could be a good 'un BUT they have flattered to deceive before - way way down from their highs after cocking up and losing face in the market. Potential there but they can't afford to cock up again.

Regards
mg

This RNS seems to have been the start of the revival"

RNS Number:4990P
Healthcare Enterprise Group PLC
15 January 2007

15 January 2007

Healthcare Enterprise Group PLC

$4.5 million Ebiox Distribution Agreement



Healthcare Enterprise Group PLC ("HCEG", AIM: HCEG) announces that its wholly
owned subsidiary, Ebiox Limited, has secured an agreement with Sultan
Healthcare, Inc ("Sultan") for the exclusive marketing of the Ebiox range of
disinfection products to the dental sector in UK, continental Europe, Latin
America, South America, Asia and Africa.



The agreement which is for an initial term of five years, requires Sultan to
purchase a minimum US$4.5 million (#2.33 million) of Ebiox products over that
time, including US$625,000 (#325,000) in 2007, US$875,000 (#455,000) in 2008,
and US$1 million (#520,000) in each of the following three years. Sultan has
agreed to meet these minimum purchase levels as a contractual obligation,
subject only to Ebiox's capacity to supply.



Sultan is a leading US based international manufacturer of dental and medical
products which has three distribution centres; Englewood, New Jersey, USA;
Ontario, Canada and Amsterdam, Holland, supporting sales through distribution
partners into 70 countries. Distribution partners are supported by territory
managers in each market worldwide, giving Sultan wide coverage in all dental
markets.



Sultan has also been granted a non exclusive right to sell Ebiox into the
medical supply market.



In addition, as various Ebiox products receive regulatory approval, Sultan will
market the products in North America. This will be the subject of a separate
agreement with Sultan with additional purchase requirements for the North
American market.



Lyndon Gaborit, HCEG Executive Deputy Chairman commented:



"This is a significant step forward in the profitable expansion of the Ebiox
business. Sultan's choice of Ebiox as the best product to satisfy growing demand
in the dental sector for a non alcohol based suite of products, not only in the
USA but also the rest of the world, is testimony to the product's effectiveness
in decontamination and disinfection. We are delighted with this endorsement of
the Board's strategy for developing the range."



Paul Seid, President of Sultan commented:



"We are pleased to have secured exclusivity to market Ebiox disinfection
products to our dental and medical customers in these territories. Having
analysed the product we are confident about the growth opportunity this
represents for Sultan from this exciting development of our portfolio. We
believe that the Ebiox technology of non-alcohol disinfection that will remove
biofilm and clean to the molecular level is the greatest improvement on
disinfection efficiency and efficacy in 25 years. Additionally, the products
have superb compatibility with commonly used dental and medical surfaces and
materials. The Ebiox technology will certainly add to our leadership position
in infection control worldwide."

Thanks opto, had missed that RNS. It will be a long time before some of us
hit breakeven though!

Hi jj, maybe it won't be too long. This agreement opens up a huge market.

Surprised nobody has posted up the EPA announcement - looks as if the woes of HCEG are now behind them. I've got a few of these in my pension SIPP at average 7p so looking for a return to their former glory for a 10 bagger. But I'd be more than happy for a 5 bagger as a reward for patience:)

Healthcare Enterprise Group PLC
14 February 2007

14 February 2007

Healthcare Enterprise Group PLC

EPA approval for Ebiox surface hygiene products



Healthcare Enterprise Group PLC ('HCEG' or 'the Group', AIM: HCEG) is pleased to
announce that its wholly-owned subsidiary, Ebiox Limited, has secured U.S.
Environment Protection Agency ('EPA') approval for its patented concentrate and
spray disinfectants.



TruKleen, the registered trade name of the Ebiox surface hygiene products in the
U.S., offers significant advantages over other surface cleaners in the U.S.
market. By removing biofilm and cleaning to the molecular level, TruKleen is
effective against pathogens including viruses, fungi and bacteria such as MRSA.
TruKleen is free of damaging chemicals and skin irritants such as alcohols,
phenols, chlorine and aldehydes. It is therefore well suited for repeated use on
washable surfaces over protracted periods of time.



Applications for individual U.S. state approvals are being submitted immediately
and may take up to six months. These approvals will allow HCEG to distribute
TruKleen products in a wide range of markets.



Once individual state approvals are secured, HCEG will look to sign further
field of use agreements in the healthcare market and exploit additional
opportunities within broader markets such as agriculture, food processing and
facilities management.



HCEG recently announced a $4.5 million agreement over 5 years with Sultan
Healthcare Inc. ('Sultan') for the distribution of Ebiox products in the dental
market outside North America. As part of that agreement, the Group will now
commence discussions with Sultan to extend its exclusive distribution rights to
the dental market within North America with an associated additional financial
commitment.



Lyndon Gaborit, HCEG Executive Deputy Chairman commented:



'Regulatory approval in this world market is a major achievement for the Group.
The U.S. approval process for these products has taken longer than expected
owing to the unique make up of our products. This approval is a further
validation of our technology and products.'



'TruKleen has huge potential in the U.S. as these non-alcohol surface hygiene
products have significant practical advantages whilst being more effective in
cleaning and decontaminating.



'With a commitment from Sultan already endorsing Ebiox products in other
territories, we are confident that U.S. distribution contracts can be secured.'