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I agree with you with regards to the daft way lease liabilities are accounted for. However, they do become debts when you’re deferring rent and when you close down branches.
I Also agree that there are other funding options available to them, but I’m also mindful that a share issue cannot be ruled out. It’s also far more cost effective to raid the shareholders coffers than take on more debt. But the positive is that they have been reluctant to do this over the past 12 months, so it may only be deemed a last resort.
Lease liabilities and rent arrears are sort of double counting. IFRS 16 makes you recognise operating leases as debt when in reality they aren’t it’s just the rent you owe. Any deferred rent is just included in the lease liability
Assuming rent has been paid then no issue but the accounting of recognising “lease liabilities” is also just accounting noise. Most bank covs just back the lease liabilities back out as in reality they aren’t debt
You’ll note in the results they refers to results excluding IFRS 16 and also EBITDA as basically the whole world agreed the recognition of operating leases on the balance sheet is just daft
In terms of other items we have £6m on the way so that should sort that out. Also hopefully we can get one of these £10m gov loans
Fingers are very crossed!
I don’t just want card to thrive for monetary reasons, I genuinely hate seeing the demise of the high street
In general. Evolution isn’t always progress in my opinion.
With schools opening and households slowly starting to mingle, the beginnings of birthday cards, cheap nasty presents, bunting, glitter and dubious mugs all point to a decent trade for Card. Fingers crossed but plenty of opportunity to flog some stuff...
MSM, yes they could be waiting for CEO, plus they’re still negotiating with banks and would likely want him involved in any such discussions.
Opening up stores is a start. But real cash flow won’t come in until June/July when full capacity weddings, birthday parties, christenings etc are allowed.
The back end of last year was bolstered by Xmas sales, we don’t have that luxury now and will have sadly missed Valentine’s Day, Easter and Mother’s Day. All very lucrative for card.
Wiscos, VAT payments have been deferred and potentially corp tax payments from last year. We don’t know, as they haven’t confirmed!
Vat is a given, i’d like to think corp tax has been paid.
This years losses can at least be offset against previous years profit to create a tax rebate.
Agree Carllapos. Capital raise is still needed. Like I said this morning...this will drift until news. Volume has gone...fast money moved elsewhere....probably oil!
I can only assume that they are waiting on new CEO before announcing fund raise.
Deferred tax? On a loss?
Im only worried that tgis money could be making + elsewhere right now. Gonna hold till forseable
Dan,
High debt & Low cash reserves
lease liabilities, rent arrears, deferred tax all omitted from recent debt disclosures and doesn’t offer a full picture of the real debt.
Card is still a bargain when looking at the sort of profit that it’s more than capable of generating. But company management has always been a bit poor and let the business down.
If they carried out a cap raise last summer when everyone else was at it, we’d most likely be sitting pretty on the right side of 90p now
Drag555 don't worry. If it makes you feel better my 1st purchase was +70p as I didn't have funds sooner. Just hold and wait. Like you would if it was in the bank unless you need to spend it Card factory isn't going anywhere. Once all stores are open they make good money on most of them
Never sell. £1 target . Dividends for ever. Population is growing. Inflation will take care of profits.
Paperhands 3 days ago.
Take no notice of these rampers and derampers - here to today, gone tomorrow !
Stabilising nicely in the 60's.
Keep dreaming
Carllapos on what basis is the balance sheet a mess?
Toli, still waiting for that 130000 to go through?
Knew I should have waited before buying back in and make money on gbp/usd and gold
130ooo going through at 65.40
Personally i still think a capital raise is coming in one form or another. The balance sheet is a mess and you can’t keep borrowing your way out.
As welcome as this massive rise was, it doesn’t feel like there’s much substance to it.
I think there’s a fantastic long term play here still. But for now I’ve sold the last of my holding whilst the going is good and shall now wait and see how the liquidity situation unfolds.
Cant paste anything on
Rr101 - I should add I am not looking at L2...just going on volume so far which is not bad but way off what we have been seeing over the last week or so. Maybe the big buyer(s) have finished or taking a breather. So I think it will continue to drift lower until news now.
Two very conflicting opinions here. Toli, can you screenshot or paste your evidence.
And makesomemoney, yours is more sentiment based but if there are heavy buy orders in place it’s hard for it to go adrift I’d imagine.
It seems pretty stable but that doesn’t really mean anything I suppose. :)
Volume has gone. IMO this will drift until further news. The longer the wait for news on refinancing the lower it will go.
Level 2 seems to be moving up again no one is selling for less than 67p at present
All the day traders and jumpy buyers bought in and are slowly dropping off. When it gets back to 50p in about 6 weeks be worth buying again..
I don't know anything. I bought nvax at the top.. cheer up lol