Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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They are clearly trying to trigger the auto sellers at the moment.
However it feel so fast and so much it smash through anyone with volume, so now just scraps.
Plenty of upside from here, company is solid with a firm fan bases. Looks like another golden opportunity going out of the market blood baths.
It seems it does not matter what share it is every result that comes out the ****** mms slaughter the share price total ********s
If people go out less to save money, they will in turn move to hone drinking, which is where Naked Wines lives.
This tree shake is wild, 42% down in a day is taking the micky, the shorts are gonna be looks to clear position.
Closing cash balance of £40 million (FY21: £85 million), and increased inventory assets of £142 million (FY21: £76 million). I suppose the perceived risk is demand behavior changes going forward? Trading/ growth looks good. I expect consumer demand to continue ie managed growth in uncertain wider macro. Can understand the breakeven outlook as a way to manage uncertainty impacting whole economy but looks like an opportunity for the management/ trading to outperform their outlook. imho
It's one of the most deceptive RNS's I've ever read so I wouldn't worry about getting suckered in... I still don't know how they are allowed to agree a $60m loan on 31st March and not release an RNS straight away? It's clearly very material information.
cash still less than mcap by a long way
inflation
cost of living crisis
ShearClass: "Why this wasn't disclosed in the outlook statement is completely beyond me. It's why it opened at £2.76 and not substantially lower. Absolutely shocking." Totally right. It's what suckered me in.
Thank you ShearClass, it was there. They say they're ok under their base case assumptions, but they will breach under their 'downside scenario'. Given what may be ahead, that's a big risk.
Teach me to be so impulsive.
Glad I didn't buy any at £6.29 as others were encouraging me to do after full-year results in November. To be fair though, it can't be as bad as the SP drop this morning. I still won't be buying though.
Bounce from the double bottom, so should rise from here... IMV.
Added another batch at 177p.
@unhooked;
P1 - the loan;
"On 31 March 2022, we raised a $60 million credit facility with a syndicate of banks. Under the facility we may borrow against our US inventory. Borrowings bear interest between Secured Overnight Financing Rate (SOFR) +325bps and +375bps. On completion of the facility, the Group drew, and continues to draw, $21 million consistent with the facility cash deposit covenant."
P2 - the covenant;
"The ABL is subject to three covenants: a current ratio test, minimum cash held at a bank within the syndicate, and a minimum quarterly Repeat Customer Contribution profit test. The Repeat Customer Contribution profit covenant is with reference to an absolute level, rather than a ratio. Consequently, it is most sensitive to macroeconomic factors and, under a downside scenario, there is a risk that the Company could breach this covenant, with headroom versus the covenant most limited in Q1, Q2 and Q4 of FY23."
P3 - risk of breach due to below forecast trading
"Management has assessed covenant compliance over the next 12 months based on a detailed forecast model that projects an income statement, balance sheet, and cash flow statement based on key drivers of the business including, inter alia, assumptions on New Customers, customer retention/attrition by tenure, order frequency, average order value, gross margin and fulfilment costs per order. Sensitivity analysis was also performed on this base case forecast. Under the base case, the forecast model projects that all covenants will be met over the next 12 months. A downside scenario resulting in a 7.5% to 20% sensitivity against the base case forecast for Repeat Customer sales could result in a breach of this covenant. When taking into account actual trading results to date which are below forecast, a downside scenario of 3.7% against forecast would result in a breach of this covenant at June 2022 and as a result of the sensitivity in the downside scenario, management have identified a material uncertainty on meeting this covenant."
Why this wasn't disclosed in the outlook statement is completely beyond me. It's why it opened at £2.76 and not substantially lower. Absolutely shocking.
Simply incredible that they could agree a $60m loan on March 31st (and apparently not notify the market at the time, unless I'm blind) and then be on the brink of breaching it's terms less than 3 months later... almost unheard of.
Totally fair enough Linkop.
I've just read the Sharecast summary and this banking covenant business is unmentioned there. Yet it was in the sky news business programme that happens between 10 and 11am, should anyone want to check (and I would).
If anyone finds it mentioned in the results, please let us know because I can't find it. Perhaps it's just someone's interpretation of the results.
40% drop is overdone by a mile! this will bounce back to 200 at least!
I still believe that, this will be bounce back little bit today...
Thank God I didn't have more ammo this morning, otherwise I'd have surely bought more. £1500 staked equates to a £200 loss. I'll take that of the wine budget, lol.
But what an ijdot! I need to cut out these impulsive buys..
Thanks for the heads up.
IGents, don't want to unduly cause worry, but I just saw on sky news that WINE is in danger of breaking its banking covenants.
I completely missed this - did anyone else pick up on it?
Anyway, I've bailed out. Took a 14% loss in a matter of 90 minutes. What an ugly morning for me, but I can't take this sort of risk.
Probably got this wrong but please do your own checking and good luck.
You'd think anyone that was going to sell, would have done it within the 35% drop. So, this is being forced down by shorts - imo. They'll buy back at some point.
I mistimed as well, but seems to be 180p is the bottom.
Anyway, bought again at 184p.
Mistimed my purchase - too early as usual - but this drop is savage and quite mad.
I don't know how this business is worth even £150m. Absolutely no visibility of making a profit, really high administrative expenses as a % of turnover, I used to be an Angel so can confidently say how poor some of the wines are.
I really don't think they should have listed - should have stayed small and continued growing organically, rather than continued aggressive marketing a 12 bottle case for £60 including postage
Bought some too. 203.78p paid. Everything feels like a punt atm, but surely this is overdone?
Bought some at 207p, will finish above 220p surely.
GLA