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This is a good read & HOTC is a perfect fit for the scenario that they describe;
https://www.phoenixassetmanagement.com/our-philosophy/how-we-invest/
"We consider a purchase of stock as handing over our money to a management team. We choose people that we believe possess integrity and will act in the interests of shareholders and look for management teams that are competent and honest.
Having found great companies and good managements, we wait for the opportunity to invest at attractive prices. This can take years and may never happen.
Great companies rarely trade very cheaply and if they do it is usually because there is some recent bad news for the company, its sector or the economy. We specialise in looking at these situations and determining whether the factors causing the price to fall are temporary or more permanent.
Occasionally, the market overreacts to short term negative developments and we get a great opportunity to invest with a long term horizon."
Added only around 1000. Had to do multiple buys as shares were not really available even for that amount.
You would have to assume that the seller has limited shares remaining if one buyer has taken 5 percent. Could be all done . Pretty sure this will fly once they are done.
That’s a decent position to be taking in the company, they must see plenty of upside from here then
See RNS. Knew someone was loading up… will we get some more declarations?
It’s certainly forming a base around here. I’m gonna add some more tomorrow.
Some choc discounts would be nice. BrewDog give me 20% off of online orders, plus 10% off in the pub. Though I think those kind of perks are usually given pre IPO.
got that off my chest..... ;-)
Angus...... look after us long term shareholders- re-instate the dividend/send us chocolates/a discount at Rabot st Lucia....anything will do.... just stop waanking away cash on coffee-vodka- cosmetics and markets 8000 miles away! £5 to £1.40 we want answers...
Every buy is also a sell....
Not sure they were buys myself, but hope you’re right though.
From yesterday. Someone is loading up...
This has been hammered in the last month...clearly peoples sweet tooth has finally fallen out ..too much hotc!!
Point taken... The sooner they are out of Japan one way or the other, the better.. Like I say, someone else owns the other 80% of the business and they are likely to want to make a success of it...
Nowhere does it say that we're liable for only 20% of the £5.8m. It says, the way I read it, that HC KK has loaned money from some Japanese leasing companies. What the total amount is we don't know (but £5.8m could actually be 20% of that). What the RNS says is that from all that money HOTC has guaranteed £5.8m. And if we are acting as a guarantor for that money, to me that means that if HC KK is no longer a going concern, then HOTC will need to pay those money to the Japanese leasing companies.
I'm no lawyer by any means, just the way I read this. As a layman I compare it to a rent guarantor, i.e. if a uni student can't pay their rent, their rent guarantor (the bank of mum and dad) will pay it for them.
Hotel Chocolat Group plc, a premium chocolate brand, today announces that Hotel Chocolat KK, a Japanese joint venture in which the Group holds a 20% shareholding, has obtained Court approval for Civil Rehabilitation restructuring proceedings (Minji Saisei):
Do some people not read? They own 20% of that business, so max they are on the hook for 1m...
That said if the entity essentially gets wound down, administration etc... One can imagine that it is null and void..
What is interesting is that 80% of the venture is not owned by them.. Will cash be incoming from another source?
What about the £5.8m loan guarantee?
"guarantee arrangements of up to £5.8m for loans made to HC KK by Japanese leasing companies"
To me it sounds like we're on the hook for another 6m quid.
No so it’s a non cash impairment ( cash already gone ) but clearly likely to not come back. That will generate decent tax losses for the future . But that money has already left the business and as per the trading update means that for the FY despite operational profitability they will take the hit on the overseas and ( as I call it in layman’s terms ) generate a paper loss as they accept the reality that foreign expansion has failed.
While the Board anticipates underlying FY22 profit before tax will be in line with market consensus[2], statutory reported profit for FY22 is expected to be a loss, being affected by the outcomes of an internal business review, predominantly as a result of non-cash impairment provisions[3] and costs arising from discontinued activities including the closure of retail stores in the USA[4].
That’s what the above means on the trading update. Clearly these losses can be offset against tax going forward.
Where does it say they are likely to recover the money??
Surely this was well understood. They basically said at the update the expansion plans had failed and they were basically writing the adventure off.
Where's that Japanese company law expert when you need them?
Morning all. Agree. Plan being executed.
Very strong base forming. This will move very soon imo.