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Record loss of £10m
It was late but the report wasn’t proofread. Typo on page 20
It was decided to give the CEO a 10% pay rise
They are borrowing record amounts at a time when interest rates are rising. The interest payable on the millions already borrowed and needed over the next year will have a significant impact on the bottom line. Or increased losses in this case
Accounts published and trading suspension lifted. Why this couldn’t have been sorted on Friday is a puzzle, to put it mildly
So now a failure to meet accounting guidelines for results publication. Interestingly, John Clarke, having served over the 9 year recommendation of good corporate governance as chair already is, I'd assume, up for re-election at the AGM (assuming they manage the 21 days notice period). You'd have to say he really can't be credible. As a further indication of "cheap talk" have a look at SIS plc Glassdoor reviews and see if it supports John Clarke's assertion of a "world class management team." As is well known organisational strength is a lead indicator of future performance and Glassdooor is often a KPI in this domain. Looking bleak under the current leadership would be my assessment. Time for change?
Seems like the market knew the accounts were not completed.
Doesn’t reflect well on management.
Well results are fact and talk is cheap and boy can Clarke and Moon give it some chat. The new world class bar line - check out the recent reviews on Amazon if you want the facts as to how consumers are responding to the in-house product. In case you are wondering it's not very well.
You would have to agree that a 20 per cent drop suggests the market doesn’t like the news at all.
Theres no liquidity in the shares- £38k traded - this will be all about the institutions with some wild retail inspired moves in-between
Liberum relaunch coverage today with a TP of 30p
We relaunch our forecasts, recommendation, and TP for SiS, after being restricted from writing since September
2022. The group has a new strategy that targets profit delivery and a return to historical growth rates. This involves
shifting from D2C to B2B in some markets and towards distribution agreements with partners in key international
regions. There is execution risk, as with any major strategic change, yet there are also some easily identifiable tailwinds
from the in-housing of supply chain functions. The current valuation does not reflect the strength or opportunities
ahead for the SiS and PhD brands and there is material upside risk if the strategy is successfully executed
A change in strategy towards greater
B2B and new distribution agreements
should deliver sustainable growth at
higher contribution margins. This is
being accompanied by cost savings,
lower inventory and investment in an
in-house supply chain facility.
There is a clearer path towards profit
delivery. However, the focus will be
on conversion to FCF and balance
sheet strength. It will take time to
deleverage, so until then the shares
should start to react positively when
the margin expansion is achieved.
The market has identified the risks
and FY22’s challenges but is yet to
recognise the upside from the new
strategy. A right-sized cost base,
falling input costs and the Blackburn
super-site should deliver the profit
margins that SiS is capable of.
The intrinsic value of the group’s two
market-leading brands is not
reflected in the share price. Peer
valuations tend to average 3x
EV/sales vs 0.6x for SiS currently.
Becoming self-funding and reducing
debt are key medium-term catalysts.
Horse, you say: "The market doesn’t seem to like it for some reason". So far there are about 10 people who have sold. Not convinced that is the market as a whole. But anyway even if 10 trades is the market the best way to make money in this market is to bet against it. If the market has it wrong eventually it can catch up.
The bad news now is in the past. It looks like the new Blackburn market will make this a cash cow. Looks like all things are now turning positive in many areas. I am happy with that. Comfortable holding these. They have a great product. USA sales yet to show through. Give it some time and the market will come around. Things are certainly looking up from here...
The market doesn’t seem to like it for some reason .
Definitely a lot of positives in terms of outlook (esp the acceleration of growth in the second half if it plays out) They now need to show us sustainable profitable growth (even at a modest level to start)
Horsetrader. This is now looking like and excellent recovery play. Should go back to 20 pence in no time and a nice recovery to 40 pence is very possible. ALL UPSIDE NOW. Good time for new holders.
Happy with these results and out new Blackburn factory has allowed company to be cash generating. A great recovery play. Happy with these results and the future prospects. Problems sorted and its up from here.
This is the important bit for me .
Momentum is building, as evidenced by revenues for each of April to June being records for the respective months. We expect revenue growth for H1 to be approximately 7%, with Q2 growth of approximately 12%. Due to our extensive change programme, the trading contribution3 will be approximately 19% compared with 11% for the same period in 2022. Given the superior trading contribution and tight overhead control, we expect to be EBITDA positive in 2023.
Expected revenue growth in 1st half of 7%. Growth of 12% in 2nd half. With new factory in Blackburn capable of producing revenue generation of £200 Million.
Looking very good going forward. Strong buy
Full year results 29th June
https://www.voxmarkets.co.uk/rns/announcement/e49f782c-0661-4f19-bced-6dc0422d2cb0
Some commentary from THG this morning re commodity prices "Commodity prices continue to ease, with further margin benefits expected in H2 2023." Hoping to hear something similar here next time they update
Some very big late trade is reporting today. So what is happening now.
When 16 is broken it is a quick gap up to 24 pence.
Looking good for a positive Q1 / Q2 update and the push for growth + profitability.
Not sure when it’ll drop, early next week with AGM date?
Continual rise up looks certain now. Costs are down so profits must go up...
Looks like the momentum is building up
Lots of big buys early this morning. Why powder is now half price. That has got to be good for the company. If your costs are halved in your main core produce it has got to be good for profits
Yep, looking good for SiS.
Crazy that a business, after years of investment, with the ops side / new site sorted and on the potential of moving into profit with sales of £60m+ (all from its own brands) is valued at £23m (still below the PhD valuation when SiS bought it).
Any sign of growth + profitability when they release EOY + Q1 update in June and I’d expect a rerate.
On the flip side, sure that ‘profit’ has been said a few times, so until the RNS is released stating it’s actually moving into profit and they don’t need cash for growth, then I’ll remain sceptical.
Looks like something +ve is brewing up with so many trades and some big trade is going through.
there is now someone rather keen on bid
Easy double bagger....