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Tom, How come you became a holder for the long term to cashing in hours later. This is the issue with this board. All ramping but everyone knows that this company is in trouble & don't want to admit it!
yes the price of the stock will "come back massively" so you can buy back in way cheaper....or we can just forget about the price and look at it in a few months
Closed just over 44p so who ever sold at 50p called it right.
I would hope most of those retail investors you are alluding too are locking in profits which is never a bad thing. I banked my profit yesterday as the risk/reward didn't stack up for me at 50p in the short term. Given the vagueness of the RNS today I'm happy to continue to watch from the sidelines and if an opportunity presents itself to get back in I may buy back because this is a good company with real potential . but for now I am out.
Thanks lat . This is only my second year in and bought in this stock at 30p. I can see stop loss out at 47p. Was hoping to get this up to a pound with with a massive bounce of not going bust so to me it sounded great otherwise surely they would have just wound up now. But the trend is currently selling . I would like to buy back in again . As was prepared to lose my small holding anyway. Thanks for your insight though
I sold mine around midday for 48.6ish because there was no RNS on covenant waiver.
The "refinancing" sounds very vague. I don't think I'll buy back in at this level tbh.
retail investors dumping lol. A refinance is not a rights issue
I’ll be honest. I’ve just sold 20,000 and 1,000 shares (21,000 shares) and taken profit of £2,000
If this dips 45p or below next week I’ll look to buy back in. For now I’ll scoop some profit.
Because Rights Issues or placings are always at a discount, some significantly so and the SP generally floats back to that level RI or placing level. That's not to mention the dilution. Maybe I have been around markets longer than you.
I'll watch for a far and very happy with a circa 31p buy in. Profit that I wish to keep.
Good luck to all.
Dilution and consideration..I'm sorry I'm lost . Did you read the rns .
Why would you be out now on such promising news ? Nothing wrong with hit just want to understand your logic
Indeed excellent confirmatory news!
The leak proved to be true.
I had thought that the outcome may have been somewhat different and a few more months down the line but alas the BoD (minus the CEO) have been too slow to grasp the scale of things and to transform towards online and web sales. They really haven't got to grips with the likes of twitter, social media, influencers, online etc. There should be about £100M to £150M of the RCF to pay back to the banks.
I had suspected as much after no RNS this morning that it might be the last hour before the market closed for the weekend to announce any update is not good news.
Once the uncertainty, dilution and consolidation have settled itself down then I may reinvest.
Thats me out for now.
Will wait for the dust to resettle after any RI
Thats me out for now.
Will wait for the dust to resettle after any RI
Card Factory, the UK's leading specialist retailer of greeting cards, dressings and gifts, today issues an update regarding its liquidity.
The Company welcomes the roadmaps to reopening non-essential retail by the UK and devolved governments and looks forward to welcoming our colleagues and customers back into our stores as soon as possible, once restrictions are lifted.
Further to our announcements on 14 and 29 January 2021, we are pleased to confirm that we continue to engage in constructive discussions with our banking syndicate, who remain supportive of the Company. The banks have provided further waivers in respect of anticipated covenant breaches through until 31 March 2021, taking account of the Company's cash flow projections, subject to certain conditions. We are engaged on a plan to refinance the Company, and will provide a further update in due course. Coupled with the expected reopening of the vast majority of the store estate during April, the Board is confident the business is well placed to deliver for the benefit of all stakeholders.
Enquiries
Card Factory plc via Tulchan Communications (below)
Paul Moody, Executive Chairman
Kris Lee, Chief Financial Officer
Tulchan Communications +44 (0) 207 353 4200
James Macey White / Elizabeth Snow cardfactory@tulchangroup.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
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UPDSEAFIMEFSEFE ]]>
The most recent rns sounds promising regarding financing and new deadline end of march ?
MSM, that’s how I feel, but we shall see.
It wouldn’t be the first time I’ve seen a share rally into an RI announcement.
The fact that the SP has held up so well today with the market heavily down and with no news on the liquidity adds weight to the argument that some sort of fund raise is on the cards...seems someone is supporting the SP at these levels for a reason.
No such thing as “no news is good news” where the stock market is concerned. The market hates uncertainty!
Price seems strong today in a largely red market, which is good. But I can’t see any positive in having no news in the liquidity situation. I can’t see there being any breach as it’s not in the banks interest, but with the recent hike in the SP, an RI may look like an appealing solution to the board.
@schwee - yeah agree. But formally we don't have to speak to the bank for a waiver until the next test date. I think you've misread my post
Also there can be nuances to your working capital (daily and monthly) for example if we pay wages and rent on 15th of each month we'd like bust the covenant that day (almost every month) but be fine at month end when some more cash has come in. That is why you test on agreed points
Also items like VAT which accrue in three month horizons also make nuances which need to be considered
@Pmor - yeah all positive really as you say the next "test" should be so close to opening you'd be mad to pull this over. Particularly with how much debt we paid back last year and the fact that after the oct lockdown LFL sales were up 15% YOY. Also as said if we are on quarterly tests you're looking at even longer (this info likely to be in an RNS)
app continues to do well on teh app stores - don't think tik tok is as relevant here
Ramsdens is one to look at if you like card
Any half decent company knows by the minute their covenant position. They are not waiting to the middle of the next month to know. The only reason for a delay is if the lenders need a formal audit of the numbers. And of course there is always the possibility that there is no breach.
Thanks Danl - The time line of events last month was an indication on 14th jan that covenants would be breached by end of Jan followed by a liquidity update on 29th saying waivers had been agreed until 28th Feb. So I was expecting an update yesterday/today to either confirm waiver until end March/end April or what other agreement had been reached.
I hadn’t thought about the liquidity update on 14th Jan being part of the scheduled trading update so what you are saying makes sense. Let’s hope that, if mid/late March is in fact when the full data to end of February is available, how close that is to planned reopening and encouraging noises regards online/app will have some bearing on how well the discussions go.
Like I said last week I am not against card raising cash by way of placing/rights issue but I would rather it be part of a coherent growth plan to develop online etc than as a result of banks not playing ball.
The cov tests are monthly until June, then revert back to being quarterly.
Covenants are tested on month ends but the management info won't be available for a few weeks so realistically the cov test won't be given to the banks for a couple of weeks. Even then what this is saying is that we have no 28th feb cov test so in effect the next cov test is march month end 9assuming we are on monthly tests not quarterly as is normal due to VAT etc) but even then the submission for the test will happen early/ mid april (couple more months if we are quarterly tests)
Likely we will look to get another months worth of online trading and show up to the bank with a briefcase of case and ask them for another chat
My view remains, get this distraction out of the way. Do a placing and focus on growth post lockdown