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Starmog- glad to hear you sold, never does well to hold stock you don’t back. Best of luck to you elsewhere
Sorry holders
I was saying this in July, clearly the business is not performing well since then, there is no imagination in the business
More worryingly how many shares does Bernard have that he needs to dispose of?
Clearly there are massive problems in the business - their turnover in staff is huge due to miss management from the top and mid levels,
In the last 6 months you could of made profits elsewhere… instead of holding this dog.
No time to sell, in my opinion. Whatever the reason for sacking, MD is elderly and due retirement in any case.
Difficult 18 mos. owing to global economy as it is, but CRL have made bold changes to successfully reduce costs and position itself well for economic recovery.
Well run business, good long-term track record and potential for good recovery in coming years.
All very worrying
MD got fired clearly.
No thank you in the leaving RNS, no presentation and of course no explanation as to why.
First small dip into these at 27p. Looks like a long term bargain. Would add more but need to keep adding to destiny on any dips. GLA.
Thankyou
Lakesideman- low float means relatively small trades can move SP. works both ways, once SP begins to recover it will move quickly.
Any ideas why the fluctuations? Thanks
Should anybody wonder why the SP movement this AM, IC has tipped CRL as a buying opportunity.
The results are significantly better than h1.
The catalyst for growth is when inflation stops going up obviously.
Their E/V is £24m.
They will probably hit > £4m oper. cash flow next FY.
That's an Oper. cash flow to EV of 6.
Considering this was a growing company before the macro stuff happened I think this is a long term buy and hold for good returns.
I don’t really understand what you are saying here
For the full year - after wasting loads of money on buying brands
Revenue for the year was £58.6m (2022: £61.2m), a reduction of 4.2%.
· EBITDA for the year was £3.0m (2022: £5.9m).
· Operating profit decreased by 67.5% to £1.4m (2022: £4.4m).
· Operating profit margin of 2.4% (2022: 7.1%).
Obviously the management will spin this.. you are buying it?
I see no catalyst here for growth.. you can invest money in a stagnant declining business or put it somewhere it will grow?
Plus they admit every time interest rates go up they are exposed. The results were from end of April without a full year off current rates and not including the recent larger increases, they are bleeding
I also note there is no results webcast this time, they are hiding?
Results tell me that as a business CRL heading in the right direction, albeit the SP is not of late.
A return to profitability, more efficient running of the business and sales steady.
Latest acquisitions doing their job in diversifying CRL’s offering, offsetting fall in own brand sales.
Market appears to have unrealistic expectations, during what is perhaps the most difficult business environment in decades. A short term view the cause of low SP and in my view, will recover with improved economic outlook.
That CRL has returned to profitability a healthy sign and I will continue to add on SP weakness with a medium to long-term view of 5-10 years.
Oh forgot to mention, don’t worry about the directors! They all sold at £1!
I flagged this a while back, they have a talent drain in the business and are out of ideas.. no new product launches, just buying/ wrong brands at the wrong time!
Remember these accounts run up to April.. how many times have interest rates gone up since then? The worst is still to come!
I also note a number of contract customers (and probably retailers) are struggling? There is only one way this is going… down..
I fail to understand why they made such a decision though with what was on the horizon with the economy. Also, I thought the idea of buying assets in distress was so that they could be acquired on the cheap. Neither of CRL’s were particularly cheap. Then they gambled on the share price (in regards to the payments structure) which was costly. A real shambles, especially considering that Emma Hardy is a luxury brand, and we were potentially on the brink of a recession. The management team are usually exceptional, imo, but I’ll never understand their logic with the acquisitions. It seems like they were desperate to add some revenue growth and reach their targets, but by ignoring the obvious, they’ve hindered progress. It looks like CRL are over the worst in terms of inflation, I’ll agree with that, but the interest rate increases are going to hinder progress moving forward. Another year of stagnation ahead I think. Long-term potential remains, assuming that the CEO doesn’t retire and doesn’t waste a small fortune again
They bought companies at peak bull/bubble market.
The acquisitions were most likely value destructive. Inflation hurts them because they can't pass on the costs to retailers fast enough so they eat that loss.
These results were decent though imo
It looks like another there’s another painful year ahead with interest rates likely to continue rising and cost inflation remaining high. As demonstrated by the decrease in revenue, CRL have failed to pass on these additional costs to some of their customers.
The timing and payment structure in relation to acquisitions looks worse as time elapses. This stands out to me from the preliminary results: ‘A 1% increase in bank base rates would reduce Group pre-tax profits by £114,000 (2022: £75,000)’. I think it’s highly likely that we’ll continue to see the BoE increase interest rate rates for the foreseeable future, thus I can’t see a return to net profit on FY24. Once again we’re told that the full benefit of the acquisitions is to be felt soon, but I am starting to have doubts about them
Don’t worry, been doing plenty of research
https://www.glassdoor.co.uk/Reviews/Potter-and-Moore-Reviews-E6292694.htm
Or perhaps here…
https://uk.indeed.com/cmp/Potter-and-Moore/reviews
Or is it that their main sleep brand is now copied by everyone (for much cheaper) including big names like PZ?
@Starmog So why did you sell the bottom on 30/03? Oh that's right, because there was "No Devlopment in the price over the past number of months"
Good luck with that new book. I'll stick to reading annual reports and understanding business fundamentals.
Pump and dump
Look at the chart it’s within range and pattern
Like you say @SimmyD, I think the market realises this is only going one way now. This is why I don’t sit on the sidelines. When a stock is cheap, it’s cheap.
Decent bit of buying happening today. Almost £50k of stock bought by lunchtime. I've not seen any news out to warrant the interest although once a stock appears on the risers list you tend to get people jumping on board blindly !
I'll happily take it though :-))
I might well have bought your stock, Starmog! Best of luck
Am out of this share
No Devlopment in the price over the past number of months
More worryingly I have been doing a deep dive on the company, noticed some interesting reviews of the business on various job sites etc..