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PLUS Markets caused a degree of excitement in the market recently by signing heads of agreement with an unnamed third party regarding a possible acquisition. This prompted speculation about a possible link with Project Turquoise, the ambitious trading facility launched by several banks. But, as has been widely trailed, the exploratory talks came to nothing and have since been “terminated”.

Heade­­­­d by ex-AIM boss Simon Brickles, PLUS said it decided the transaction, as envisaged, “would not deliver sufficient benefits to the company’s existing shareholders”.

Those existing shareholders still have high hopes for PLUS following the group’s recent achievement of Recognised Investment Exchange status. This enabled the group to launch its third operational arm, PLUS Listed, which is a stock market with exactly the same rights and privileges as all other European exchanges and a direct rival to the Official List.

The other two divisions are: PLUS Quoted, the exchange-regulated traditional market for ambitious young businesses seeking funds for expansion and direct rival to AIM; and PLUS Traded, its alternative trading platform for many London Stock Exchange-traded securities.

Prestigious fundraising

The next venture to become PLUS Quoted could be Warrington-based Prestigious Retirement Villages (PRV), which hopes to raise £5.9 million for upmarket retirement developments.

Founded in the 1990s by executive deputy chairman John Ward, PRV has begun building Middleton Towers on the site of a former Pontins holiday village near Lancaster. The northwest-based company says its goal is to turn it into, “the largest retirement village in the UK”.

Chaired by former Tesco director Rowley Agar, PRV has finished 16 units at Middleton Towers and 13 are now occupied. Another 18 flats are due for completion this month, of which ten have already been pre-sold, and the company is working on other projects at Lytham St Annes and Northwich.

PRV argues that these projects now have a market value of £49 million, against combined debt and land costs of £34 million. In the year to July, losses leapt from £465,000 to £2 million and the deficit on shareholders’ funds rose from £466,000 to £2.3 million.

IAF Securities is handling the PLUS float, which could put a value of £15 million on PRV. The company’s hope is that, once the projects are finished and let or sold, the cash should start rolling in.

Equity speculation

A rather more speculative PLUS-Quoted hopeful is Early Equity, a venture chaired by Sir Bernard Zissman, the ex-Conservative Lord Mayor of Birmingham, Freeman of the City of London and renowned Midlands entrepreneur.

Ably assisted by his chief executive Rob Painting – the ex-finance director of Keller Group – Zissman has raised £500,000 for Early Equity which, rather unsurprisingly, is seeking to invest in and create early-stage companies with a view to promoting them on to either AIM and PLUS.

Advised by Lion Capital Corporation, Early Equity also has ambitions of investing in special purpose acquisition vehicles – otherwise known as cash shells – and participating in new issues.

The group will not have any active operations on its admission to PLUS. It is hoping for a market value of £2 million.

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