Bakkavor Share Price (BAKK)

Thats a great update KM - thanks. I am under with this share but remain confident in the long term. - good structure and looking forward to results!

...from last year...Bakkavor is a leading provider of Fresh Prepared Food in UK and with exposure also on the US and Chinese markets. The company operates across 45 locations through more than 19,000 employees. They are supplying all of the major UK grocery retailers and numerous well-known international food brands. Continuous innovation in recipes and long-standing customer relations are at the heart of their strategy. Over the past 6 years they have made some acquisitions, which leads to a more blended approach towards growth. Goodwill should be observed closely as it represents a substantial part of total assets at nearly 45%.Since we showed a red flag in the face of goodwill we could also state the other issue – current strain on supply chains. This is another company which is suffering in the crisis brought by Brexit and the pandemic. This is sort of a temporary factor that we would keep in mind, as it should smooth out in the coming periods. With the negative notes done, BAKK looks like a good investment. There is growth in revenues, with expectations for 2021 figure to reach 1.85bn, or 3.5% above last year’s performance. Net profit is expected to arrive at the figure of £60m, which would generate more than 90% growth compared to 2020. The returns for investors are also healthy, with ROCE for 2020 standing at 5.82, growing at 9.28% CAGR.The interim report that fuelled our report today is proving that the company is on the right path. Group revenue is at £915.7m (4% ahead of H1 2020) and is nearly in line with Covid-free 2019 performance. What really surprised us is the significantly increased profitability, as the operating profit is actually 60% ahead of 2019 and a whopping 243% above 2020 H1 results, at £47m. This is channelled to EPS levels where we see a 4.2p compared to 0.9p previously in H1 2020. Strong cash generation is another positive point in the report. Management acknowledges the “unprecedented challenges” and states that even in their presence, BAKK should be able to deliver an operating margin for the full year in line with H1 – meaning 5.1%. Unfortunately, we do not see any guidance on actual figures. What we would love to see is a more stable balance sheet, especially an increase in the cash levels, as Current ratio is too low for our taste.Short analysis:Cash decreased by 9%, due toNet debt is still present and statutory figure is at £407mCA/CL =  0.546Cash ratio = 0.05Interest coverage = 5.28P/S TTM = 0.39, very good for the sectorBV ps (2020) = 103, growing at 11.1% CAGROperating profit £47m, 243% ahead of 2020 and 60% ahead of 2019Gross profit Margin = 29.5%, compared to 28.6 for H1 2020...

...from WealthOracleAM

https://wealthoracle.co.uk/detailed-result-full/BAKK/123

Thursday 13th January is the trading update. GLA.

I see there was a Q1 & Q2 this year. Are we now on quarterly updates? I think the 13 weeks period is to mid September, so should already have been published? Any opinions on how the company is progressing? Long wait to end of year results.

Up, up and away!