The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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they can only give new details if announced in an
RNS before the presentation
Interesting to see if it's in the update today 4.30pm UK time. Very little detail really in the report re current trading.
Are the BOD trying to run this company into the ground? We already knew the results so the outlook statement was of particular interest, however, there was no positivity here at all and no mention of trading in the c4 months since YE. One can only conclude trading is still poor.
This company is now valued at £7m, yet has net assets of over £31m, excluding the non tangibles it still has net assets of over £12m. Last year cash used in operations was c£5m so essentially a loss of a similar amount is already factored into the current price.
What a shame
So can't help but notice the merger presentation said that Edward Beale would resign once the half year results are announced in late September... It's now early October, what's happening???
this is like a slow death. SP slowly drifting down and no news coming from the company. Guessing we will have to wait for YE numbers hopefully later this month
really disappointing - unfortunately i did fear this, as per my post last week.
Sales at H1 were £7.4m with a loss of 1.1m, so H2 has seen revenues decline even more and so i can see a YE loss being well over £2m, possibly £3m with the acquisition costs included.
The IDP element only generated £800k in June which is also a concern too as this is a peak period for Skinny Tan so i would have expected that alone to be over £1m and maybe £100k from the other brands.
Cash is just draining away too. Cash was £17.3m on 31/12 so it has declined £6m in the last 6 months. The IDP payment was less than £2m and probably £200k in acquisition costs, so the business has burned through over £3m in the last 6 months.
The only slight positive is that the SP has not declined further - although it has slipped so much over the last few months maybe some of this was already factored in.
Poor results, organic sales down 16%.
Cash in the bank is positive
Route forward as suggested puzzles me as it doesn't address any of the issues mentioned that explain -16%
based on the CRL rns yesterday and the increased cost pressures i'm a bit worried about YE for BAR.
H1 was pretty poor for BAR and if CRL had issues in H2 i can't see how BAR could not also.
Hopefully Skinny tan would have had a good peak season (Apr to Jun) as the weather was good, no lockdowns and holidays resumed, however, with the takeover only completed at the end of May assume only a limited amount of revenue will be included in H2 numbers.
Major consolidation of range needed and cost out initiaitves invested in. LT turn around. Some decent products but too many loss making. Not sure about existing board abilities to deliver this. Need to come out of probable recession a leaner and fitter business. Not one to trade or invest in but worth a watch for now IMHO.
judging by the SP there doesn't seem to be much market confidence in BAR's new story.
A merger between 2 failed entities doesn't mean that the newco will be any better off. Leveraging each other's distribution makes sense but only if the products of both companies perform well in the market place and they don't. They seem to me to be present in competitive categories and their low margins do not allow for lots of marketing investments
so the takeover has now been approved. The enlarged company is currently valued at least than £20m which on paper seems cheap, however, currently these are 2 loss making companies.
We need to see revenues increase - get BAR products in Boots/superdrug and improved OTC offering which is IDPs strength and get IDP in groceries which is BARs.
Cost savings were quoted at £1.5m p.a. so these need to be materialised too
I agree the fall in SP is due to the poor sales performance. In a wat this M&A is a big admission of failure of the company's strategy and so the merger to me seems like a marriage of 2 otherwise doomed companies.
I can understand that their DTC approach failed miserably and hence this merger makes sense from that POV; that's a positive.
Still sitting on the sidelines with BAR: I need to see how they will step change the GM% profile of their brands before I consider buying in. To me this is a company with small brands, margins akin to private label and no room therefore in the P&L to grow. Without a solution here, this will never fly. But, fixed it, and this could be a fantastic opportunity
The fall is due to the poor results of BAR I think, not the merger of IDP.
Dropping margins due to shipping makes sense but Revenue of -20% with a poor excuse is a red flag imo.
Fall is in my view overdone. Market cap post-merger will be c£23m FD, of which cash say £7m net of pension fund exposure - and cost synergies alone are f/c to add £1.5m-£1.75m pretax, not to mention sales synergies and cross-selling opportunities. I acknowledge that quality of management has come under fire latterly, but fully expect to see positive evidence of real turnround within the next 12 months and a share price of 150p or better within 2 years, perhaps sooner. Have bought today.
Three TR1's today for more than 29% of the Company and the share price drops 24%. Does anyone have a theory as to whats going on.
maybe market doesn't like merger with Innovederma, can understand that
> Revenues for the period of £7.4m, a decline of 19% on the prior year (£9.0m) as a result of delays to brand relaunches landing in store and planned product range rationalisation.
Why would delaying a launch of re-branding cause revenues to drop 19%?
Sounds like excuses. There were no lockdowns in this period. Terrible revenue drop.
historic baggage that could be dealt with provided the underlying (commercial) operations start to deliver. And again, here I see a massive challenge due to low gross margins, not leaving very much cash to advertise. Mind you they are in competitive categories.
It seems to me this is a business that one day had an strategy, and margins, like a private label business. They brought in some new staff to turn it into a proper branded business but despite their new 2025 strategy they don't seem have to the means to achieve their ambitious. They are in a catch22 and will need to have to crack
some hard nuts before this business will significantly start to perform better (and reduce their pension deficit).
I also worry when I see that the CEO seems to have no AIM experience....
what's your thoughts on the pension deficit ? the one element that stops me investing atm
How though? Their gross margins do not allow for any meaningful investments. Private label has better margins ....just saying
Share price is merely an entry price. Anyone getting in now is buying cheap shares in the bargain bucket range. MCAP same as cash balance. Project 50 on route this will turnaround.
sp is in a hopeless state
*half of what you would expect
you got to wonder though why their gross margins are so
low for a branded personal care business. They are almost have or what you would expect. In fact their margins look more like those or a private label business.
And that's a problem because it means there little room in the P&L to invest in marketing to drive topline sales. Feels like a poorly run consumer business to me
Wonder if we've found the bottom..