Monday 4th February 2008
St Helen’s progresses health of PLUS
The rejuvenation of broking house St Helen’s Capital this past 12 months is likely to deliver a much needed boost to quality smaller companies currently listed on PLUS – and ambitious ventures hoping to join this fledgling market during the course of the year.
Run by ex-Brown Shipley and Daniel Stewart stalwart Ruari McGirr, St Helen’s is “currently looking at six companies that it hopes to bring to PLUS”, and is most excited by a smaller pharma/biotech play “that wants to raise around £3 million” says McGirr.
Barring a complete market meltdown, this tidy sum should be a relatively straightforward task for McGirr and his cohort. In the six months to September, St Helen’s raised no less than £140 million for its array of fast-growth clients – the lion’s share of which (£130 million) was for AIM-listed Tanfield, a manufacturer of zero-emission vehicles and powered access vehicles. It also assisted Kurawood, an AIM wood group, as it raised £5 million and even bagged £1.5 million for its own corporate development in March 2007.
“Since I joined St Helen’s last year, I have tried to rejuvenate the firm, bringing in experienced people on the corporate finance and broking side and enticing new investors, such as Aberdeen and Hargreave Hale onto our own shareholder register (St Helen’s is itself listed on PLUS).
“Our stock in trade will be institutional fundraisings for clients in the £3 million to £15 million range, although if we can do more the size of Tanfield, or Pvaxx (a prospective AIM company which recently raised £50 million) we’ll be happy,” says McGirr.
As things stand, St Helen’s, which advises nine AIM companies, is retained by 35 PLUS companies. Alongside the well-regarded JM Finn, this makes it one of the most active players on the tertiary exchange. But despite this obvious support – and despite St Helen’s being one of PLUS Markets’ most profitable companies – McGirr is not afraid to voice his criticisms.
“PLUS hasn’t had the degree of support from institutions that it would like. It’s still not seen as a place to raise [serious] money, and many backers of smaller companies still prefer their charges to go to AIM. In addition, it is focusing a lot of attention on its trading platform. We would like more do be done for the PLUS Traded division.
“That said, I am a supporter, and it is slowly changing. AIM is increasingly focusing on larger companies, which will provide PLUS with an opportunity. And many VCTs are often not bothered whether the smaller companies they support go to AIM or PLUS. So we shall see what the future holds”.
Shellmeister extends offer
Michael Edelson, the Manchester United non-executive director who spawned an array of shell companies at the turn of the millennium – most of which were named after Cheshire Villages – recently extended the offer for subscription for Lamolle Partners, his latest cash shell.
Lamolle hopes to raise around £2.5 million and is, in the main, looking for businesses in the financial sector, those ready to take a product to the next stage and/or businesses “with achievable business plans but which may involve some considerable risk in reaching forecast turnover”.
Corporate adviser to the company is John East & Partners, and the shares are expected to start trading on PLUS no later than 2 February.
Edelson is also behind BIRCH PARTNERS, a cash shell that raised £1.52 million on PLUS back in July 2006 and will no doubt be hoping he can execute the kind of deal for both his charges that was recently completed by serial entrepreneur Bob Morton.
Morton’s cash shell, Harrier Group, recently reversed into Conchango in a £31 million deal. It has since departed for AIM (see page 9).
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