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Hereshopin - I’ve looked through there most recent financial and ill admit filled gaps with some guesswork extrapolated from the company I currently work for which is in a similar industry. And I do think it’s possible to swing into a small profit like I say it’s that pricing by the mile that is key here!
Also agree about the other post about it taking a generation to get back to normal .... cobblers the human race develops amnesia very very quickly!
Bloodninja - I believe that dbay haven’t set a timeframe but it all depends on the plan going forward if we are to convert to investing company then there is a 6 month timeframe in regard to aim rules in which I would have thought that would need addressing at that point. My view which I’ve been shouted down over and accused of deramping despite the fact that I am hugely optimistic/bullish here is there will be a rights issue at some point but not while the sp is sitting at this level. If the sp did remain flat then other options would need to be looked at ie sale of TPN network but that would be a very reluctant sale imo but there would be a few takers as it is absolutely thriving!
Digging through the RNS's I think it's important to clarify one point, quote:
Significant revenue growth over the last three years has placed substantial demands on the Group's working capital, primarily as a result of set-up activities following new business wins.
The debt has originated from huge growth, which is still in place (contracts with Tesco, Amazon etc), and the profitability is slowly due to be realised. This company can generate a profit, it's not that this bumper will swing them into profit, it will boost already profitable trading activity. The longer it goes on for the more of a dent the directors can put into the debt, and subsequently reduce interest/repayment obligations. Thinking about, with PIK being due at some point in the future (does anyone know if a long stop date was put on this?) I wouldn't be surprised if they clear some bank debt first that has regular interest and capital repayments due, as that will bolster day to day cash flow more than the PIK debt, which is one to deal with later seeing as interest due at the end.
Low? Should have said long! goddam autocorrect
With more cash with the covid this won’t be major loss I feel the opposite
Hereshopin - it all hinges on how low the “exceptional demand” will go on for and that’s why they gave a deliberately vague message in that RNS . Would one month of exceptional demand see them swing into profit? No it wouldn’t but 3 or 4 months of exceptional demand together with lower fuel costs less congestion in roads leading to less of that already cheaper fuel being used? ..... probably would see them swing into a small profit. You have to bear in mind that Eddie stobart operate price per mile pricing that’s got a lot cheaper for the company and the Lack of congestion means they can cover a lot more and that’s not even taking into account the extended driving hours.
News due soon and with further lockdown even more money to the business.
Patience here for long term holders this will reach high levels again in the future months year easily it’s a massive business it’s not a speculative oil or gas company
Would be great to understand whether the “exceptional volumes” referred to in the RNS of March 24th will have a positive impact on free cash flow generation and ultimately the balance sheet. When do people expect to receive a financial update from the group?