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Yes £28 million in the bank becomes minus £10 million overnight and perhaps that’s just for starters - who knows what other horrors are hidden in the accounts. It’s incredulous that the BOD didn’t see this until HM Revenue called time It’s also suspicious that only one person orchestrated the fraud At least the Sunday papers will have a decent story to write about when it unravels Another Conviviality- I wasn’t in this either but it makes you wonder whose next - it’s a sad day when investors are hit with these frauds and I hope those responsible are punished to the full extent of the law But I somehow doubt it
Agree the cash has gone somewhere.
Personally I think their cakes look as artificial as their numbers. And who on earth was the auditor? Someone somewhere is very liable as a public listed company. Gl all anyway. I expect those in the know managed to run for the hills ahead of suspension as always!
Deepest - depends - 78% gross margin is more than achievable in the food industry and I would say 7.8% net margin is way too low. But that isn't the issue - there's a load of cash disappeared by the looks of things which has completely undermined the financial stability of the company. Yet again another AIM story - huge placing at 50p to shore up the BoD mess ups and PIs lose out. I'm not in Cake so I haven't done research around who holds shares etc, but its a shameful set of circumstances. I hope those PIs heavily invested get a decent chunk back. GLA
The loans are interest free and fee free as well, the bridging loan is to clear all known debts and to be repaid upon receiving placement monies, which has raised 15.7 million. I do think they could have gone for about £1 a share, but agree with others the investor's do want to have there cake and eat it.
There would be... To keep it going.. Relisted.
And then sell out over the coming year.
Once trust has gone its gone.
I dont believe they are trading at 78% profit margin. If so - then someone has been eating the profits or it would not be in the situation. Probably 7.8% profit margin ! Who missed the decimal.?.. Damn the exel spreadsheet!
He is loaning a 3 year 10 M and 10 M bridging loan (both repayable with interest) and will raid shareholders for £15M.
I for one wont be supporting it lost confidence in their business and reporting.
Hope on
If shares relist
.
IMO 50p or less as opening SP.
I expect this to trade way below the placing price. The big holders would want to wipe out retail holders so expect this to trade below 20p quickly after placing..........CLLN, CVR, CPI, CWD and now CAKE.
Could be a very good investment at that level but unless you see accurate numbers a hell of a risk. A number of people must have known about this, not just the FD. If it's just money that's gone walkabout that's not too bad; but do we know if the business is profitable. Who knows what accounting errors will be found. And what about the auditors. Lots of questions to answer.
I have been bitten a few times by aim. If I invest in smaller companies i go with a fund manager, such as the Marlborough one. It's done very well over the years. I know high fees etc, but much better than losing your shirt. The only winners are the directors, and the crooked one, I am sure will be ok too.
Don't throw good money after bad. Is there a business left? Pure speculation that earnings will be at that level.
Subject to current banking arrangements agreeing. What if not?
This is a very difficult situation for Luke Johnson and his reputation . If he steals the company back from the brink that will help a bit , but only until people say start saying why didn’t he know etc and you employed the FD etc. Sunday Tines I think will drop him as this scandal will probably run for the next 2 years until all this false accounting and the culprits are bought to justice .
I'm sure it is! On Monday, I thought 429p was a decent value. Now we'll be lucky to see 50p.
To quote the late Amy Winehouse:
Did you have to go to jail,
Put your house up for sale, did you get a good lawyer?
I hope you didn't catch a tan,
I hope you'll find the right man who'll fix it for ya
...
And did you have to pay that fine
You were dodging all the time, are you still dizzy?
Valerie
Think your eps is too high as depreciation won’t have halved
So:
net debt of almost £10m instead of net cash of almost £29m;
2019 EBITDA likely to be about half consensus estimates - say EPS of 10p instead of 20.5p;
therefore 429p share price represented a forward p/e of 20.9 2019 consensus EPS - even at the same p/e the share price would halve, not accounting for: shareholders will be diluted by new placing shares priced at 50p and it won't have the same p/e.
This isn't pretty. And this is the optimistic scenario.
I feared it would be low, but this low??? Tells you how desperate things are. I am tempted though. This is a business that can flourish, and LJ has proven this (despite this debacle). He is lending his own fortune, interest free, testimony to his commitment to the business and shareholders alike. If anyone can pull it off, it’s him. Will be massive pain for the foreseeable future for current holders. still more hope than 24hours ago.
not today - might be left with crumbs later
The Loan is for a three-year term and made on an interest-free/fee-free basis and will be secured in due course.
The loan has more rights to the assets than shareholders...
cost about the same as one of these new shares! I know what I'd rather have! And Clubcard points too!
possibly lots of interest though. fully diluted mcap around £65 mill @50p Sp.
bookbuild now shut. 4pm Fri 12th.
Lets see if they have enough cash.
i cannot believe that anyone in their right mind would put further money into this .read the runs.they have no real idea what the true position is except that it is very very bad.no advice intended and my opinion only
not surrprised personally, desperate straits
for directors incompetence - auditors asleep as the wheel