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It's never good when results get delayed...You would have thought that there can't be too much to count and audit if shops have been shut...
Preliminary results due on 30th June according to Card Factory's financial calendar
It won't be to do with going concern wranglings with the auditor in my opinion. Preliminary results aren't even required to be published under the listing rules, let alone be of audited information or accompanied by an auditor's report, even though that is probably the more common way.
The AGM, and the publication of the full results, will be on the 28th July. So they have backed that up as far as can, with a Jan year end, a 4 month reporting period and an additional 2 month extension for covid. That is what driving the timelines. That are still doing a preliminary, when could have dropped it completely.
But the market may not like it. Just adds to the continued radio silence on the refinancing beyond the monthly waiver and conversations on going. How many other main market companies have delayed full year results? Don't know the answer, but probably not that many, but then I guess reporting season is really just kicking off.
I think it may or it may not. Why do you care about the markets opinion in the short term? You either believe in the medium or long term earning power of the company or you dont. I am not sure what the merit is in speculating as to why the results are delayed. Its probably a mixture. Delays because of live bank discussions and 'lets wait for the cash to roll in from heavy high street footfall''
which period do you think i mean? how about the period when the business could operate versus the period when it was forced to close.
*neither
So hopefully the market does see this as genuine audit delays
Also the BIGGEST assumption is your “relative to cashflow” on what period would you pick that cash flow? You’ve 0 idea apart from huge assumption as to what the cash flow will be from stores
“Logistical challenges” is noted in 2 RNS I can see. Either seemed to cause big falls to share price
Atm they are in breach of covenants. Headroom is not relevant. The covenants are priority. Headroom is the maximum someone will lend you. Covenants are how much you can actually have
Going concern in this instance would be the bank not saying to the auditors they def won’t call in the debt. Otherwise a bank will issue a letter of support saying they support and you’d be fine
So whilst covs are in place and the auditor isn’t sure you’ll pass them (for the next 12 months) they won’t sign
Please provide examples of a company which is doing monthly covs and got its audit report signed
There’s no assumptions on what I said they are the facts (gf and brother are auditors of listed businesses. I’ve just asked them and they said you’d need a bank letter to sign off)
So likely bank is wanting to wait
You are making big assumptions there. I can list you hundreds of companies with more leverage relative to cash flow than card. So you saying those companies can’t release accounts due to auditors being unable to sign off going concern because it’s conditional upon refinancing in the year ahead? I don’t think so.
@tom - that's not true. One of the things an auditor will get as part of the audit is an assurance letter from the bank asking for their view on funding and calling in the loan. The waiver you refer to is for 1 month. Going concern is for 12 months from the date of signing. From this RNS you can tell the audit isn't signed so the 12 month clock isn't started - the waiver you refer to doesn't cover
also yes a refi was mentioned in the rns before the last one. the march one just said those conversations (ie refi) were "continuing"
I agree with the last sentence but that's exactly the point here. Atm there is not enough to get anyone comfortable to eith 1) refi or 2) sign a going concern opinion
Firstly the company is a going concern by virtue of the fact the bank has waived covenants. Secondly, they have never promised a refinancing. They took that out of the last rns and said banks are waiving the covenants. We don’t know but my gut...there is only upside to delaying. They can confirm a solid 8 weeks of trading and demonstrate cash flow
@walter the only point you'd be yet to conclude on would be going concern (ie can the business still trade/ survive). I assume that atm there isn't enough trading data for the auditors to get comfortable with that. It also suggest the refi isn't close/ sorted
on what basis? zero, i assume. It could be good news in that the next time they report, they can show a pay down of debt and some great comps.
I think delaying results is bad news
I wouldn’t expect another RNS until the last week of April and that would be regarding rolling over banking covenants based on trading for 2-3 weeks. I don’t expect any unexpected bad news.
Judging by the one just come through it would seem not, results delayed.
Is it?