I have started a new thread with a more formal thread title for ease so that everyone gets a chance to get in on this one.

I have copied the last few day's postings from the 'no hobby mags' thread.

If Kelvin MacKenzie is going to make a killing so am I! It's about time I did.


FONTY - 28 Aug 2005 22:33 - 22 of 35
We don't want McKenzie going in through the back door - we want him to make a take over please!
lizard - 29 Aug 2005 09:13 - 23 of 35
only a matter of time imo!- i am sure he has the necessary people around him to make this happen.
FONTY - 30 Aug 2005 08:27 - 24 of 35
I think this is going to be my 2005 Iomart and I am going to enjoy Christmas - fingers crossed anyway. I am surprised this thread is so quiet. But then Kelvin McK has been clever acquiring stock at the most quiet time of year - the week before August Bank Holiday when every man and their dog Spot and kids are in the South of France. Clever stuff.

I spent the weekend with a publisher friend and we went through the mags that HHO have - they have a few which can be really built up and sold for a fortune and the rest are dogs which need to be binned.

We can see what Kelvin is going to do and it is not difficult. HHO's websites are terrible and their subscriptions website is a disgrace - you have to work really hard to part with your money.

Look forward to this and wonder when others will join us Lizard and John50.
belisce6 - 30 Aug 2005 17:00 - 25 of 35
Fonty......i have been trying to work out their market cap, but can't find much on their website.......any idea what it is ?? (post restructure).

I assume that the final part of the current restructuring is the Board changes which are supposed to take effect at end of next month....
WOODIE - 30 Aug 2005 18:05 - 26 of 35
fonty what will you think he will do ,a full take over or a place on the board?
NielsJensen - 30 Aug 2005 18:11 - 27 of 35
Belisce6: I calculate they have around 317,330,979 shares so you can work it out from that.
FONTY - 31 Aug 2005 00:53 - 28 of 35
Woodie - I think he will really develop the lad mag Front and develop some of the prosperous titles - anything to do with boats etc and dump non lucrative titles like Old Steam Engines!

If I was him and I had the opportunity I would take the whole sad affair over completely and make a killing. Get a brilliant team together, marketing team, attractive leggy blonds with brains on board to develop the 'sexy and powerful' mags and hand it over to my friend. He would turn it around in a couple of years and make a few million.

Alternatively, he could try and get a place on the board but let's face it - a man like Kelvin McKenzie - would he really settle for that? If I was him I would want to get rid of the existing board and be the Chairman and create my own Board. I can't see him playing 2nd fiddle - he's not the sort.


FONTY - 31 Aug 2005 09:11 - 29 of 35
B6 - Market Cap is 9 mil - all the best
WOODIE - 31 Aug 2005 10:48 - 30 of 35
fonty what do you think the take out price would be as the last rns has not moved the s/price much.
FONTY - 31 Aug 2005 13:11 - 31 of 35
I wouldn't like to say but I bought in yesterday and I would like to see myself doubling my money at least but wouldn't we all.
FONTY - 31 Aug 2005 16:23 - 32 of 35
17% up from this morning - just made 1K so hope this is just the beginning.
Snip - 31 Aug 2005 16:28 - 33 of 35
I bought this morning on the basis of this chart. The p+f target is so high that it is off my screen


lizard - 31 Aug 2005 19:10 - 34 of 35
didn't they recently reject a 10pps offer?- the company is now better positioned with game win.
ateeq180 - 31 Aug 2005 20:48 - 35 of 35
If thats the case we might hit 5p tomorrow,or not.
Thread List Earlier Posts All Posts

HHO management have had their day and a good thing ill be when they get kicked out. (although some of the new management has not had much of a chance to create any recovery). Without KM and the "bid" situation this tiddler would be belly-up (or pretty close).
However, if they took an on-line view of publishing, their low-circulation mags would benefit greatly IMHO. WHSmith is trying to cut costs and has culled many mag titles - a new CEO at Highbury is unlikely to reverse the economics of this, although he might be tempted to put all effort into a few titles and dump the rest (as suggested here) but I think that is dangerous. HHO has many fewer titles than of late (thanks to Future) but there were titles remaining that are too close to Future's - so they were left out of the deal. HHO does have some good titles I believe, but trying to get any sense out of the current management is difficult. KM may yet create a wirlwind , to the benefit of shareholders.
They have an annual exhibition of world-renoun organised by their Model Engineer title - a respected fortnightly mag devoted to precision engineers who devote too much time to recreating (typically) steam engines of yesteryear. The workmanship is usually breathtaking and sometimes includes miniature models of industrial lathes.
The point is that they CAN do things well, but then wreck the show by having little of interest for the wives and therefore missing a subscription trick. If hubby has just spent 500 on a set of rusty castings, he's unlikely to object in his other half having a Weekly at 35pa and maybe a multi-part workcosting a further 50. Multiply this by the few thousand visitors and the titles fortune would be assured.
It would be easy enough to have a separate Hall where manufacturers of specialist sewing machines, food processors and other things I can't describe would vie for the female Pound.
If I was in charge I'd be looking for synergy, so it would be possible to have maybe four exhibitions each year with cross-selling between them covering a wide geographical area of the UK.
I suspect we may see this as a ground-floor opportunity if KM is willing to give this business a chance at addressing new technology. The sp might visit earlier highs in a couple of years - once income is seen to be positive and rising. All IMHO of course; but recently we've seen Hope alone making a big improvement (from the abys).

Finances need addressing.
Debt- yes I understand it is still quite substantial, even after the cash from the sale is accounted - but DYOR.
- Unfortunately Banks only look at cash and they wanted "theirs" back.
What next? ......If I was KM I'd have an EGM, let folk see new ideas and appointments, along with severe targets for bonuses, based on debt reduction and sp (relative to the non-oil FTSE100, so about 95)........ I would see how investors reacted and tap them for cash.......at maybe half the bouyed-up sp......maybe 1 for every 2......this would get rid of the Bank Distraction and provide enough cash to keep the business going in the short term. From then on, new marketing would be crucial and everyone present at the EGM would become a salesman (woman) with the promise that they get an on-line sub for every five subs they achieve.
Being an electronic publishing (maybe for a few titles at the start), it is easy to create special editions (rather like Director's cut DVD's - the material is just lying about!) - and cross-reference CD ROMS as a bonus if you take more than one publication. Who knows they might do a finance (can I say that?) primer, so folk can get up-to-date insights into World events and technologies.
.........It could be so different to what we see now...........
This was my vision when I bought in 2000, but those hopes were dashed by management "buying turnover" with costly purchases. Rarely does this technique result in shareholder value. Time will tell if KM really is the savior - it would be a significant challenge for him and would earn him a significant position in the Cityhall of fame (etc)...................................obvious I am taking for granted that KM is positioning himself to be the next CEO, (if he is tempted to asset-strip then he'll leave nothing of value and I suspect will find very little that others would want.).
- However, a small voice tells me HHO has a Radio-station interest and KM wants to be back in Radio - let's hope he can enjoy his hobby and allow current subscribers to continue and grow with theirs.

I dont think the vision is get a few thousand to subscribe to housewife mags - we are looking at the multimillion advertising market in specialist magazines - potential huge revenue - not a few classified in Sewing Machine Monthly.
Whoever, if they do, takes this over it will be a major overhaul and a big change.

And the big growth area will be electronic publishing when Kelvin & Chums take over.....

....if that 8.5million buy was KM, a few days ago, it is possible that it was done thru someone else isn't it ?? in which case no RNS would come up as that one buy alone makes up less than 3%........i doubt that KM would be lifting his stake by completing his own private trades.....he'd have someone sorting it out for him......

perhaps he is building a consortium?.

Belisce6 and Lizard - Like the concept of a Consortium - that's more like it than Sewing Machine Monthly!

Highbury House Communications PLC
07 September 2005

Highbury House Communications PLC

('Highbury' or the 'Company')

Board Changes

The Board is pleased to announce that Kelvin MacKenzie has accepted its offer to
join the Board in the role of Executive Chairman. The appointment will commence
immediately.

Simon Neathercoat, the non-executive Chairman of the Company will step down from
the Board with immediate effect and the Board would like to thank him for his
efforts. Simon has been Chairman since August 2004 during which time the
Company has been significantly restructured and its debt burden reduced.

Mark Simpson, currently Chief Executive Officer, will also step down from the
Board in due course but will, in the meantime, assist Kelvin as appropriate in a
handover capacity.

The Board changes announced on 11 August 2005 will not be affected by the
changes announced today, save in respect of Mark Simpson.

Simon Neathercoat commented: 'Whilst I am, on the one hand, disappointed to be
departing before the job is completed, I am nonetheless delighted that Kelvin
has joined the Board to see this through. Kelvin has a terrific track record in
the media industry with broad experience and contacts. I am confident that under
his leadership, Highbury will re-establish a sensible capital structure and
thrive thereafter.'

Kelvin MacKenzie commented: 'The company remains in a fragile state but at its
heart are good titles and core profitability. I am hopeful we can build on this
foundation.'


7 September 2005

Enquiries:

College Hill:

Tom Baldock/Adrian Duffield 020 7457 2020

no consortium....but to get on as Executive Chairman means that he's in there to fix it and make a shit-load of cash !!!!!!!

so its out in the open, no bid for the co lets hope not many got sucked in from the ramping on other boards 10p a share my own opion i can not see this going over 5p for a while.

Your right WOODIE but its now turned into a very good money making share over the next 6 months to a year

john agree over the long term buying now will see good returns

Just back from the magazine rack of W H Smith at Victoria Train Station with my publisher friend looking at Front Magazine and comparing it to Maxim, and all the good male glossies - we can see where it's going to go - loads of advertising revenue to grab and improve quality. Front is crap at the moment but there is a fab market out there to grab.

KM will dumb the rubbish management and he has the people to bring in - Just watch this chap get this up and running - he has the time, enthusiasm and cash to do it.

My target is to really multi bag my money - now a long term 12 month investment for me and sit back and enjoy. Now I know he is Chairman I can relax.

All the best

Quiet on here today. It strikes me that the only reason that the SP rose was due to the possibility that KM would mount a takeover for the company. Now that would not appear to be the case, is there any reason why the SP will maintain its current level. My guess is no, particularly when bearing in mind that the Co is in crap order, they have substantial debts and even if KM can walk on water it will take some time for him to turn things around. I will be very surprised if investors see any return over the next year, never mind six months, particularly those who have bought recently at the higher levels. I don't generally short, but this would appear to be begging for it, unless of course anyone can persuade me otherwise.

In the meantime, good luck to the longer term guys (john, woodie, fonty et al) I think you are gonna need it.

pth

i think the mkt could act positively to a statement confirming km intentions and future direction.

Thanks ptholden thing ill hold and see what develops.

Lizard

You may well be right. However, one thing that has stuck in my mind is exactly how HHO intend to repay their debt. I don't believe that the company is generating sufficient profit to keep the banks happy and apart from selling off more titles the only other option would be to call a rights issue. While this may suit the prospects of the company in the longer term it will destroy shareholder value in the short term, both by the negativity such a course of action creates and the obvious dilution. From a read of the Final Results I am not sure that their bank would be willing to extend additional loan facilities, especially as they have just recovered a chunk of debt following the Future deal.

As I say I am willing to listen to the other side of the arguement and of course KM has a real vested interest in turning the company around. Question is, can he do it and how long will it take?

pth

hi ptholden SPOT ON /Iwould say/

ALL PURCHASERS OF THESE SHARES ARE PAYING AT LEAST 2 FOR A 1 NOTE

MY GUESS IS THAT OPTIONS WILL BE GRANTED WHICH WILL , IN DUE COURSE . SUBSTANTIALLY REDUCE THE VALUE OF SHARE HOLDINGS

Let's mark our diaries guys for this time next year - all the day traders have been selling so sp plummets and will stablise and then over time KM will bring it around. Then let's see if he does it and who will be spitting nails out of us - hope it's not me. What more can we say until then. Happy Investing - I am looking forward to this one - my publisher friend sees no downside on it so topping up when it has steady growth.