Bglobal activist seeks ‘true’ shareholder value
THE activist shareholder behind a boardroom coup at Bglobal said a strategic review of the business “may or may not result in some or all of its business being sold”.
London-based Hawkwood Capital, acting initially as Forest Nominees, has forced a general meeting next month where it is calling for the resignation of chairman Peter Kennedy.
Hawkwood, which holds 9.7% of the shares, believes the company has underperformed and lacks direction. It wants to install John Grant as chairman to carry out the review with a remit to seek “true” shareholder value.
The Darwen-based firm has recently switched from installing smart meters to selling software and other services to the industry.
In a statement issued to the market today Hawkwood said: “He [John Grant] has no preconceived ideas entering into the process, but has the clear objective of seeking to maximise the value of the company for all shareholders. Contrary to the supposition in Peter Kennedy’s statement of July 22, we do not seek short term value for our shares, we seek true value.
“Friday’s closing share price of 3.88p, is a long way from that. If the result of the strategic review is that there is a clear path to improved profitability and performance, that will be the path we support.”
Shares in BGlobal, which is listed on the Alternative Investment Market, have continued to fall from 63p five years ago. The company has a market value of £4m. In the year to the end of March revenues fell from £16m to £11.5m. It made a pre-tax loss of £2.1m compared to a profit of £670,862 last time.
In a statement issued last week, Mr Kennedy said he would fight the move. Hawkwood said it was surprised that he had not resigned already as he, “clearly does not have the confidence of the majority of his board”. Chief executive Tim Jackson-Smith and two non-executives, James Newman and Steven Fawkes, have backed the call for Mr Kennedy’s resignation.
