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CityWatcher, quoting the company's own PR BS doesn't impress. The way it stated the results was misleading and there is not use in pretending that the cost of acquisition has nothing to do with management. Margins here were paper thin before the recession kicks in, can you imagine how it will do in the coming year?
Reading their recently posted results it seems the share price drop today is owing to the cost of the acquisition. ...............
''The Group delivered a basic loss per share of 79.35p (FY22: loss per share of 10.61p) due to exceptional costs in relation to
acquisitions and restructuring and also the increase in amortisation of amortisation of acquired intangibles. However, adjusted
earnings per share (before non-underlying and exceptional items) on a fully-diluted basis was 39.06p ''
So there should be a slight recovery pre end of day, be it still a 50p drop on the day.
I did try and warn people not to believe the hype. We're going into a major recession and flooring is a luxury item for most. Jiggery pokery on the accounting front should be a major red flag.
Https://www.ft.com/content/52ba07ba-fca4-40aa-aea7-756114e6da5a
I was a little worried about this share, bought recently around 650 believing the hype, before it flopped.
Blackboulder - that’s a positive analysis of the results but the positive effect on the SP hasn’t lasted at all. I’ve had viagra pills last longer.
If I was the Chairman I would be prepared for a proper grilling.
The cash went down by £170m because the company spent £210m on acquisitions.
The Underlying EBITDA of £196m and the Underlying Net Profit Before Tax of £76.9m are simply the earnings made by the company after excluding restructuring and other one-off costs.
Underlying Earnings are always carefully reviewed by the auditors, so they are ‘real’.
Balta’s restructuring costs of £90m, which obviously won’t be repeated, for example, are technically an expense under IFRS, but are in fact an investment in future increased profitability, and as such should be viewed as a capital investment, just like an acquisition.
Sophisticated investors and analysts like Peel Hunt clearly understand this obvious point, which is why the shares went up, and not down, when the final results were announced, and why Peel Hunt has set a target price of £8.
Looking at its own accounts it made a pre-tax loss of £110.6m. Debt is up and it burnt through £170m (admittedly, due to some aquisitions). What's to like with a recession coming and discretionary spending under pressure? With Peel Hunt putting an £8 price target on this I think it may go higher but the writing is on the wall if you examine the figures and bear in mind a recession is coming. Just my opinion and of course DYOR.
Strong positive response from the market this morning.
The market clearly likes the clear earnings and cashflow growth outlook for the company, driving down debt.
From today’s announcement:
Record underlying revenue and EBITDA
Confident FY2024 outlook with a sharp increase in earnings and free cash flow expected due to completion of major integration projects.
All progressing rather well imo.
Can this thing just break through 650 already!
Great to see the audited financials are exactly as indicated last month.
Also good to see EBIT numbers by division added alongside EBITDA. Gives a good idea of the earnings potential now that the integration has been completed.
I particularly like that the average organic growth will add £25 million a year to net profit.
Any idea why there’s so much activity today? Could there be an announcement pending I wonder? Can anyone shed any light on this?
Indeed.
If the auditors are seeing something they are not happy about, it's time they told the market.
If everything is as happy clappy as the company insists, that's fine and dandy.
Let's be knowing
Year end 1 April - audited accounts scheduled for 15 August (a long wait in my opinion). 12 September still no audited accounts - why? Auditors doing the job they are paid to do by and for shareholders? Geoff not happy? Silence reigns.
AceOfClubs
Immediate stand out is a humungous increase in debt.
Fully audited figures have far more credibility, delays never look good do they.
Far be it for me to cast doubt on published figures, far more knowledgeable folks than me have done that.
The advantage of smelling BS ???
If you look at the published H1 numbers for FY23, Turkey has been doing pretty well for VCP.
Again, the advantage of proper analysis.
Best of luck with Turkey as a base for anything. Inflation running rampant, energy costs high. They can't compete with India on costs
Victoria bought a modern ceramics factory in Turkey (not India) last year and is integrating it to lower production costs.
I’ll stick with proper analysis and legally regulated announcements rather than “the word on the street”.
They did, but using cheaper production abroad is one way to maintain margins. It's certainly happening in general, India are on their way to market dominance on price, and many so called European brands are involved with them. They didn't say how much of their production in Spain has been sitting idle this year, but word on the street in Castellon says that's what is happening.
No Alfista, that is total nonsense.
Several large, sophisticated investors have conducted extensive due diligence on the company this year, and have subsequently decided to invest.
Only yesterday Victoria confirmed earnings were on track to meet market expectations of £214 million Ebitda for FY24.
Is it true that they have most of their production closed, and are sourcing from India/
A tricky game if the rumours are true
This morning, Victoria confirmed its FY23 results, to be announced 15 August, are in line with market expectations, and trading for the June quarter was also solid, with stable demand, improving margins, and integration projects on track.
James Halstead also announced this morning that their expectations for the full year ending remain unchanged and they are seeing similar market conditions to Victoria.
It’s good to know that sophisticated investors who have undertaken very detailed analysis, like Koch, Orbis, Spruce House, Vulcan and, most recently, Morgan Stanley, have clearly concluded that the shares are increasingly valuable.
And now I see that Morgan Stanley have confirmed they have bought 5% of VCP.
It’s very positive to have such high quality investors interested in VCP.