This is one to keep an eye on. If it does become even remotely as successful as Homeserve (HSV) then the shares will be motoring..............

Update: Mavinwood takes on Homeserve

LONDON (ShareCast) - Mavinwood, the cash shell turned support services firm, said current trading has been in line with expectations as it looks to take on Homeserve in the emergency services market.

Run by former British Gas executive Kevin Mahoney, who attempted to buy drain-cleaning firm Dyno-Rod last year before a large shareholder pulled out of the deal, the company recently acquired a similar business though the 25m acquisition of ANSA in June.

ANSA provides drain cleaning services and well as handling insurance claims. Mavinwood is hoping to use the business as a platform to create an Emergency Services division.

Kevin Mahoney is looking to expand the current services ANSA offers, moving into other avenues around the home, in a bid to provide customers with an alternative to home repair and services provider Homeserve. The group is looking to add on acquisitions to complement the business and hopes to announce a deal by the end of the year.

The other area of the business was started through the 6m acquisition of Restore in May, which provides data storage and document management services. Mahoney suggests this area too is ripe for consolidation and Mavinwood is already on the look out for deals.

Mavinwood reported a pre-tax loss of 122,000 for the six months to June against a loss of 81,000 last time, though this does not include trading from teh acquired businesses.

Forecasts expect the group to turn in a profit of some 1.5m for the year.

Kays

It is almost certainly Cazenove or Canada Life buying some more - ignore the fact that the trades appear to be sells as this is cobblers !!!!

The RNS will probably appear on Monday or Tuesday as their past purchases have always been confirmed one or two working days after the event.

Ian

No RNS today, lets see what tomorrow brings.
Looked this up over the weekend after seeing it tipped twice in recent weeks and two separate brokers have provided strong buy recommendations.
65% of shares held by significant shareholders, if more were mopped up on Friday then this will increase further and then IF the progress in rapid earnings growth and integration of businesses goes smoothly, this could rocket.
Two questions in my mind, debt is high and can they successfully integrate all of the acquisitions? been down that road with another company this year and lost 25% as anticipated cost savings and increased sales were delayed and sp plumetted to my stop loss and then beyond. Will be watching this closely.

No RNS and no replies, un-noticed share or not interested?

Have been watching this one for the past two/three weeks on the back of the tips etc that you have mentioned. I'm not totally sure about this one so have not done anything yet....

The only explanation I can think of is that those two large trades were new institutions getting in and therefore their holding is still below the declarable level.

Ian

Decided to go in afterall. bought in small time this morning... potential is too good to ignore !

Skyhigh ! Totally agree good value plenty of potential did the same a few weeks ago and have topped up since. Happy to sit on this one long term.

Thats better, not on my own then having got in this morning, potential to double from here within a year if all goes to plan.

Hello folks,

Been a while since I posted. Nice to see the recent strength of the share price and the huge institutional buy by Caz and CanLife.

The trading update from Homeserve was pretty good this morning. The onset of the winter months will also help MVW's emergency services division with an increase of work as well as the signing up of new customers.

Looks primed for another move upwards IMO.

Mono

http://moneyam.uk-wire.com/cgi-bin/articles/200610170800055572K.html

Interesting incentives for the management based on eps and share price performance over the next few years.

Definately one to stash away and watch grow !!!

Ian

Mavinwood plc

Grant of Share Incentives to Directors

17 October 2006

The Board of Mavinwood plc announces that the following grants of share
incentives over the Company's ordinary shares of 0.1 pence each were made on 16
October 2006 to the undermentioned Directors.

The share incentives were awarded under the Mavinwood plc Long Term Incentive
Plan - ('LTIP').

Director Scheme No. of Exercise Total number of share
Shares Price incentives held
following notification


Philip Reid LTIP 253,125 0.1p 3,000,000

Kevin Mahoney LTIP 5,597,185 0.1p 17,685,000

Mike Vincent LTIP 4,767,972 0.1p 15,065,000

John Minton LTIP 500,000 0.1p 1,500,000

Steve Watkins LTIP 500,000 0.1p 1,000,000


In each case there was no consideration for the LTIP award.

The exercise period in respect of grants under the LTIP scheme is from 16
October 2009 to 15 October 2016, subject to satisfaction of either of the
applicable performance criteria which relate to earnings per share growth and
Total Shareholder Return (TSR).

The first test is that the average annual compounded growth in EPS exceeds 16%
in the three 3 year periods ending 31 December 2008, 2009 and 2010.

This hurdle rate has been increased to 16% from 12% in the earlier grants under
the LTIP.

The second test is based on TSR (that is share price growth plus re-invested
dividends) measured over the periods commencing 16 October 2006 as shown in the
table below

Years following award TSR
3 70%
4 85%
5 100%


TSR shall be measured using the average share price over 20 consecutive days
prior to the anniversary following award and comparing this with 16p. The
closing mid-market price on 16 October was 14.25p.

strange goings on here to day

This one has been slowly but surely creeping up over the last few months.
However I think we could have a worthwhile spurt in the lead up to the results next month.
The acquisitions have bedded in very well and the business is firing on all cylinders.

Ian

yep, it looking good..

Hello folks,

Nice to see some purchases today.

First stop 20p hopefully (about time too !!!)

Mono

Looking at the buys yesterday and this morning I think we are primed for the next move upwards.

Ian

Ian

Spot on !!!!!

We are off..........

Mono

Mono

Yes. A very encouraging rise today.

As your title to this thread suggests the best comparison to make is against Homeserve.

So....................

at the current share price of 1825p Homeserve is on a prospective PE of

25 for the y/e March 2007
21 for the y/e March 2008
18 for the y/e March 2009

at the current share price of 17.75p Mavinwood is on a prospective PE of

20 for the y/e December 2006 (we'll know next month)
15 for the y/e December 2007
12 for the y/e December 2008

Obviously Homeserve has the big institutional support that merits such a big Company.

However Mavinwood will be he faster growing Company for the next few years, which in turn will gain it more institutional support and lead to a Homeserve style share price performance.

Cazenove and CanadaLife are already in quite heavily at around 13/14p.

Anyone getting in at current levels can look forward to outstanding share price performance over the next few years.

Ian

Ian

Thanks for that very illuminating comparison.

Surely 25p cannot be beyond reach by the time of the results ?

Mono

motoring along now.

Ian