Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Yep…although 50 day moving average just about crossing….small win!
Paint seems to be drying nicely.
I suspect £5-6m EBIT is readily achievable this year (or next)...decent growth; experienced aligned management
I'm sceptical about the Emma Hardie acquisition (pricing and the weird guarantee)...just hope the management team is more savvy next time
tp EV of £40-50m (sp of c60p++)
I still think this is a great buy at these levels , been here for a long time , have we any important dates coming up ?
No worries Da it was badly worded and i had to re-read it to fully understand it. As the extra payment seemed guaranteed at a SP of 125p i'm not sure why they didn't just do it in cash, as essentially that's what has happened. Probably money we could do with keeping inthe bank at the moment!.
We really need these 2 recent acquisitions to start adding value. The revenue since acquisition has been underwhelming.
Ok so when does the share price improve? Are there any key dates or news on the horizon ?
My bad. I thought the £1.3m was the difference between the consideration price of 84.78p and the 'guaranteed' price of £1.25, which we already knew about.
Having run the maths I can see that it is indeed the difference between 36p and £1.25. So I'm not sure why CRL did this when they used the shares in good faith at 84.78p. Seems the Emma Hardie sellers have had their cake and eaten it.
It was a badly worded RNS as the £1.3m was in the paragraph relating to the original agreement.
So apologies to all and thank you shadypants2 for shedding some light on this badly put-together RNS, which I am sure was absolutely not intended to mislead us. Either that or CRL have dropped a major b@llock with their calculation.
is this good news? Essentially CRL has just paid the difference between £1.25 and 36p in cash so due to the poor SP it has cost CRL an additional £1.3m.
Great news thanks for the update !
They have grabbed back the 1.6m shares they used to fund the acquisition at 36p (they used them at 84.78p), so that's a bit of good news - albeit they will be held in treasury rather than cancelled.
They have also now paid the £1.3m penalty for the SP not reaching the forecasted £1.25 so all done & dusted. Let's see what Bernie and the team can do with the brand now...
https://www.lse.co.uk/rns/CRL/update-on-emma-hardie-trading-in-own-shares-tvr-56he5t6e3qg5n9k.html
Starting to look increasingly likely that we have at last bottomed out..buying opportunity for the brave, although unlikely to need to rush in as no good reason to expect a significant bounce for a while?
is this being dragged down due to the sector underperforming?
REVB has accounting issues and is now suspended, BAR is a disaster, lose making and slowly burning though its big cash pile and although not 100% beauty THG share price has dropped about 80% in the last 6 months or so.
Hopefully CRL is slowly getting on with business
We need a bit of excitement around this share to drive it back up to where it should be !!
Thanks for reply , yes just as I thought , been here for a loooong time and bought more last week so hopefully a steady rise from here on in .
Lakesideman- sold off without good cause and currently priced far below reasonable value. MD said as much during last week’s presentation and can’t hurt that Investors Chronicle tipped buy. Expect market beginning to twig. Simply my view, of course.
Worth noting that board had lined up further acquisitions but shelved following sell-off.
Any reason for the rise today or is it just normalisation happening?
Creightons management Bernard Johnson, Group Managing Director, Eamon Murphy, Group Finance & Commercial Director, and Pippa Clark, Global Marketing Director/ Deputy MD present the full year results for the period ended 31 March 2022.
Watch the video here: https://www.piworld.co.uk/company-videos/creightons-crl-full-year-2022-results-presentation-july-22/
Listen to the podcast here: https://piworld.podbean.com/e/creightons-crl-full-year-2022-results-presentation-july-22/
Investors Chronicle rates CRL a buy:
‘…although investors have sold down the shares to below the 44p entry point in my 2020 Bargain Shares Portfolio, I can see recovery potential with the shares valued in line with book value and on a price/earnings (PE) ratio of 8.5. Recovery buy.’
Quiggers52- robust in my view, crucially considering the greater context of the global economy as it currently is.
Cash down, debt up- two acquisitions. Spend some to make some.
CRL have plan in place to mitigate best it can the effects of external pressures it cannot control, whilst continuing to drive sales. My view that at todays prices, can’t fail to make money in time with CRL.
Anyone who has Stockopedia may want to read Graham Neary’s take on CRL today. Not all good but maybe a biased possibly not too bad either.
Robust results?
Operating cash flow down 74%
Debt up 122%
Interest expense up 39%
£12.1m wiped off the board.
Still, despite all of that, RoA at 6.5% and RoE at 12% are positive. I like CRL. Hope LTH see a turnaround soon.
I suspect the pulling of the dividend albeit a tiny one at that has put some investors off.
Director sells have been small, so don't think you can read much into that IMHO. Forster sold 23k shares a few months ago - he still holds over 1m shares so he must be hurting today.
Results aren't terrible if you compare to 2020 , rather than 2021 which were positively covid impacted. Revenue growth is ok, however, extra costs is a concern - admin costs have grown c£5m in the last 2 years. So as a result PBT is flat between the 2 years.
The move to more branded goods makes sense as these are higher margin products, however, neither of the 2 recent acquisitions seem to be performing well. Hopefully this is just a bedding in issue and 2023 will be better.
Take the acquisitions away and the company is still cash generative. Overseas sales are improving too, which is encouraging.
MrBond- market moves SP, though as to what moves market debatable. In this case, like that lower revenue and headwinds such as inflation weighing.
I’ve no doubt reason employed by those selling, though certainly disagree with their conclusion. Falling tide…all ships. CRL growing sales and managing tough economic climate well, so expect will weather the storm. Seen it before here and will see it again! Makes for a good buy today.
What do you think the directors will be doing between now and next week’s presentation?