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sales up 34%. dividend payments to resume. stockopedia says this is only 13 times earnings. Im in.
Absolutely, certainly got a big thumbs up from Paul Scott in Stockopedia who also holds this in his long term coffee can.
Excellent update and the market is missing a trick I feel. Restored divi and sales outstripping pre-covid levels. Down on my recent investment but looking to add more.
I think this will get a lift from this months update. Should be some buying ahead of the statement. Rebought last week and looking to build a position here.
Quiet not just here. Markets been pretty boring (lacking volume for weeks).
Hi Scoob. Will be rejoining you tomorrow after having bought these years ago, watched them rise without selling before falling and I cut my losses. I see these are very undervalued now.
hello hello......anybody out there out there ....o..ut ...there
very quiet here
@tollbar - what time frame for your target price ?
Target Price here - it will not be 1200p
since there was a fund raising in 2020.
However 18 months, 1000p - on the prudent side - is very possible, given:
- Self help for ecommerce
- Self help for China market (barely tapped prior to 2020)
- Sorted out Korea market (had probs in the past with grey market)
- new designs / collaborations
- self help in costs rationalisation in 2020 - follow on benefits for 2021 and beyond.
Company is on full turnaround mode. Given the level of self help it has available - there is ample scope for it to improve margins and volumes of products sold.
Why the fall back to offer price 550s - when recent TU was very good?
Stronger $ - does this affect them?
ISA - bed and ISA?
Over last few days, has dropped offering bargain discount of > 10%
Given this is a good solid manufacturing + retail biz - this should be following in line with value stocks.
Investor presentation is here if anyone missed it: https://www.investormeetcompany.com/investor/meeting/preliminary-results-for-the-year-ended-31-december-2020
I think this share still has plenty to run, my next target is £7.50, which gets them back to around the market cap they had before the Korea and covid difficulties. Plus they now have more online sales (higher GM) and we should see more organic growth generally (need new crockery for that dinner party you can finally have?), so still plenty of upside.
About Right?
SP +40% since this post. You are welcome. :-)
Not so sleepy - great performance under difficult circumstances
They usually make most of their profits in H2:
PBT H1 | H2 | FY
2018 2.1m | 7.6m | 9.7m
2019 0.5m | 6.9m | 7.4m
2020 (2.7)m | ?? 7-8m?? | ??4-5m??
Typically trades at 12x PBT. 12x £5m = £60m, vs market cap now of c.£55m
Net assets also about £55m now
So base case makes this look safe bet which won't plummet on next results.
Upside? If they get back to run rate of around £9m PBT, then market might re-rate them to around 12x PBT = ~£110m, roughtly 2x current market cap.
Key takeaways from Interim results:
* We anticipate returning to profitability in the second half of 2020.
* Pleasingly, our two UK factories have almost returned to pre Covid-19 operating levels
* Expecting dividends to be resumed in FY21 assuming a sustained return to normalised trading.
* We have continued to see an improving trend in sales from June in H1 into the last three months but are cognisant that with our important trading period ahead there remains much uncertainty around the world due to Covid-19.
Still don't think that this RNS will be the catalyst to move the SP but its good news all the same and as things unfold I still see strong movement North soon.....strong buy for me at these levels
still no movement on the SP yet but when it does I expect fireworks and yes I can see the divi being reinstated that just maybe the spark also the rotation from tech stocks then they realise the multiples and P/E they are paying is ridiculous ...GLA
looks a good company. bought a few.
only 14 mill shares. 40p dividend. should be reinstated.
online sales account for 30% which doubled during covid, equivalent to 60% of sales. But i assume its Uk only..........
Been watching this Company from the side lines for the last 12 months and decided to dip my toe in today they have a very shrewd management ....not many companies could get an oversubscribed placing away at a 3% discount that was a fantastic bit of business...if the divi is reinstated soon I would expect to see circa £5.00 pretty soon.
Thanks for the explanation CJ. Margins must be much lower in the US than in SK, to tempt agents into "monetising" the difference. Presumably there was an effective legal remedy, given their apparent confidence that it won't happen again.
Like you say though, the real issue is overall sales decline. If management are right, and this is mainly due to distribution problems, the decline should be reversed very quickly, as false sales are immediately eliminated and supply to the higher margin region returns to normal levels?
....just to be clear - this is why they are confident of higher Korean sales this next year,
but clearly the previous 'false' US sales mean that they will decline for the year (excl. Nambe).
The important figure is however an overall decline in like for like sales of 5% which is of some concern.
I'm not sure your reading this correctly - they state the US decline was driven by stopping reshipping on to Korea.
i.e. They were making what they thought were extra sales to the US - but these were going to Korea, which they have now stopped.
This meant falsely higher US sales and a big decline in Korean sales - not a pretty result, but not untrustworthy - rather they were duped by untrustworthy agents!
Trading update shows a 12% decrease in the US. That makes more sense. Wonder why they pretended the only problem was in the less important South Korean market. Untrustworthy guidance, imo.