Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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“UK set for slower inflation than Eurozone and US
Drop in household energy bills set to push price growth close to Bank of England target”
https://www.ft.com/content/a9ec45a8-6f60-4955-80c8-c1d5fb6105fb
CPI data predicted to be decent tomorrow. Bank of England will likely cut interest rates in June (or summer). People will be looking at leisure and hospitality again. I think now is the time to get into the best leisure growth company on aim if you want to get the early rise.
I have no doubts this could bag quickly. All my opinion of course.
The original share price was around 135p. There was a SIPS or similar scheme for awarding performance with a 1:1 share allocation. Old filing shows this. Can't remember name but ut was based on SP being increased. That seems to have changed into SIPS scheme at a price range of much lower currently. I'd rather buy shares at 13p than 40p or even 140p as the upside is far greater and any rise in SP will be a significant gain. The point is that there is no incentive for the SP to rise until all the SIPS shares needed have been bought. Then it's up, but the question is when.
Derek99 - what is the difference is them particpating in the SIP when the shates are 40p or 15p?
Either way they are parting with the same amount of money and are getting free shares valued at the same amount
The only difference is is the shares go up in price
Whay are you suggesting they are cheap?
On another point I see most BBBs promote live sport now. Boxing events like last night with Fury vs usyk and between June 14th - July 14th we have the euros. Must be good for revenue. They where just showing a busy lakeside boom bar for the fury fight on their Instagram as well as an absolutely packed out Cardiff boom bar.
I've said many times, but always been poo-pood. Management loading up on cheap shares with buy one get one free so why even try to raise the share price. Only explanation.
They’re much more mature business’ with huge mcaps. If your goal is multiple returns then these aren’t the way forward imo. I’m looking for growing business’ at a small mcap that are of good value. These type of business’ have the potential to multiple mag. BBBs are in their infancy and have the potential to do very well over the next couple of years. Xpf is the only leisure business I’ve seen that’s achieved double digit lfl sales during a poor market and cost of living - correct me if I’m wrong? Continue this trend and it’ll be a very profitable business.
But if you disagree why are you posting on this board? Why not buy some JDW and post there?
You’re not including the bigger groups; M&B, Whitbread, JDW, youngs, fullers
Best play probably one of these because of already achieving profit
On a macro level the market is improving. Inflation improving, interest rates likely to cut in June, gdp improving in uk. The leisure industry is becoming fertile ground imo. Xpf has cash, growing double digit lfl, giving cstomers a great experience (check their reviews). I’ve looked at nightcap, revolution bars, tortilla (#mex), loungers, Brighton pier group etc. surely this is the best in the market? Especially when comparing. I know slightly different models but still this has to be the best bet when cost of living drops off and people start going out more and discretionary spend increases.
It certainly benefits the leadership team having a depressed share price, they can keep loading up their SIP on the cheap..
Makes you wonder what is their incentive to increase the share price, until they want to start selling some of course
The bottom line growth will come for sure: just need a bit of patience.
The biggest challenge for small businesses has been raising cash - XPF had not needed to do that and do not need to do that until the market improves and money flows back into the small caps
Today's price is a gift
If they start talking about bottom line results in a positive way then the share price will start to move.... but currently they only really talk top line which makes some investors sceptical. Eventually continued growth should lead to bottom line profits and when that happens the market will start to take notice. I just don't like the way the management team don't really discuss below EBITDA. I am wondering whether they will look for an acquisition.... spread those central costs. Have they said anything on that front?
Yes, I see XPF heading more towards B2B . With widespread WFH , organistions see experiential events as good for team and customer relationship building.
I personally beleive the Board are following the right strategy of re-investing its EBITA / Cash into new venues. This is a growth stock and has bags of potential.
As I shared in my last post - in a more conjusive market this company would be trading at a share price between 30-40p.
I have a lot of trust in what I regard a strong leadership team. Everyday I see the great work they are doing to grow the business - in particular they are doing so much to build their Corporate pipeline.
Quite. If it stopped rolling out and used that £6m to buy back shares, they could retire 50% of the equity in two years, shrink central costs, and then pay remaining shareholders about 10p dividend a year, whilst maintaining a pristine and well invested set of sites. And people question whether there is value here?
In fact, I think it is a serious question as to whether the CEO is allocating capital to the best returning uses for shareholders with the share price at this level.
Interesting concept that they are not making any money but had cash to spend over 6 million on capex!! to expand , Paul Scott is a intelligent guy but i dont know what game he is playing here ,those of us who run businesses understand what profit before tax is !!! after capital allowances!! showing your tax liability to HMRC, they would have unused allowances to bring forward from previous years also to set against tax, i think i read on their financial statements 2million,agriculture is a prime example of how capex can reduce tax liability ,in good years farmers will buy new machinery to claim capital allowances to reduce their tax bill, dont expect them to make a big pbt for some time until they slow expansion and their capex reduces ,remember the fit out expenses are one offs and then any further expenditure on those sites will be repairs and maintenance, if it keeps growing and hits its targets you would hope at some time shareholders would see some upside but i imagine a lot of patience will be required ,if you believe the story be comforted that its getting better value all the time ,but if you want to get rich quick your money is probably better invested somewhere else ,this is definitely a growth play ,interested to hear from any other opinions
I think this is a case of believe it when we see it (profit that is).
And mentioned again by Paul Scott on his Small Caps podcast. Remains unconvinced because hospitality a difficult sector, they aren’t making money & they lowered their forecasts significantly since 18 months ago.
Bear in mind that XPF literally pays Vox markets to feature them
BillyBamboozle - I am not sure I would use the word fake. I'm not convinced it's an AIM problem either. The problem is that small listed companies are susceptable to both upward and downward pressure on their share prices.
The good news for XPF is that they don't need to raise and the current SP is irritating, but not damagingto the company of shareholders. The only damage i can see is it makes a hostile take-over more likely
AIM = fake market = alternative investment market
Can't help thinking that someone(s) are making mugs of XPF shareholders
I've lost count the number of block buys that I've seen over the last few months - whilst good, honest loyal shareholders have lost patience, hit stop losses or been spooked by the lack of SP growth.
Vox Markets did a nice piece on XPF last week; the key messages that came out was that XPF are brilliant run, benefiting from a Strong Management team. They are growing well. And that they look very cheap at 2025 performance levels. IN any ordinary market this SP would be at least double - 2025/6 numbers are key - you don't buy a share for how they performed last year.
Sadly, I think we may not get to see this company thrive on the UK stock exchange; i still expect to see a foreign buyer snap this company up at a premium and take it private.
AIMO
Snorters, whoops, i mean shorters still here I see
No doubt in my mind that XPF will be many multiples of its share price today - profit to the patient
Inline is as good as a warning in this market.
Still a real lack of insider buys and company not profitable.
Will they make any money before the whole bubble bursts and let's face it thats what this is
Another trading in line RNS… ie sales not profit
Bet you that recommend on Bigslicks blog is from m HH himself. Considering he was never off this board he is now never around. Hmmmm.