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originally the H1 trading statement, now nothing because obviously they came out early with that.
I agree but there's still a few weeks to go until early June when it goes ex....I also think most investors are still avoiding UK retail. Key for me is have LFL's stayed positive through Easter and early May for DFS, because brokers have H2 LFL's going negative and also for next year.
I agree Compass, just taking some time for this stock to really get going, i think sentiment towards UK retail sector remains very poor, and there's still some churn post the very large placings from Advent. When they announced record results before Brexit, the stock was over 350, now they announced record H1 results and a big dividend, and the stock is 270...
it looks like anchorage have been buying after results now at over 18%...could they take this out a second time ? IF they are really on track to get to 3000+ units sold a year by 2019 then this is excellent value given that growth outlook and a strong balance sheet, surely ?
I agree, the bears are looking backwards, brexit housing market was softer at the higher end and they had to offer some more discount, so slowed openings on purpose. Things are now back to normal and they are building at a fast pace. The next year should see a big jump in sales, and much better margins as they are newer builds with more in south east.
i thought results were quite good ...H1 profit is just a function of lower sales releases, underlying profit was in line. The outlook though was very good, sounds like they are on track for a big ramp up of higher quality releases in H2 and also a large increase in sales releases in FY18 , so on track for 3000+ sales releases by FY19
all gone pretty quiet here, stock holding its 200day average on light volume, not long until results at end March and hopefully a nice special dividend announcement.
Stock has run from 160 to 190s, results were identical to comments at end Jan AGM, probably a few profit takers. Unlikely we'll get anything + from the budget today but you never know.
i think one misunderstood area re dfs and ecommerce is how all their sales are made to order. This keeps stock to a minimum of what's in the showroom, and allows them to offer a large range without tying up capital. And having stores is also important for customers as Compass says. Ikea doesn't make to order, so only is able to offer a small cheap range. Amazon doesn't have the extensive supply network required.
whole stake hoovered up at 228 by the big holders
oh well, that was fun whilst it lasted...flat on the day now....i'm in for the 7.5% dividend this year, i don't really understand why its been so poor a stock, maybe advent overhang is still a problem
7pct revenue growth, good cash generation, forecasts unchanged, fx impact under control, special dividend to be declared with next results. Can't ask for more than that from a stock on 9x p/e.
It looks like this stock remains stuck in its 160-175 range, homebuilders are up strong today but this pulls back once again. Patience required here until they can demonstrate growth is back on track perhaps.
Someone on Twitter apparently suggested today that 2.7% LFL implied -1% for the 10 weeks, which assumes a completely linear revenue generation over the 26 week period. Completely wrong given the seasonality of sofa sales where the busiest period is from boxing day to end jan. If you assume a 90/10 revenue split, then the 10 week period was a 2.5% LFL on a 1.2% tougher comp vs the 16 weeks. Not too bad at all.
thanks for the post, interesting that they're increasing their exposure to the stock at the same time as Anchorage is buying.
hi yes cfd's are easy, in fact many funds use them without any real leverage. i haven't looked back to see if Anchorage used them in their original stake a year or so ago but increasing to 14% suggests quite a vote of confidence. i'm surprised that the stock didn't break out above 174 after that "normal trading" update. If i compare to the performance relative to other uk homebuilders this stock should be 230 not 160, not really sure why its not recovered more
Anyone else notice that Anchorage capital who are one of the original PE investors in MCS and sold down a year ago in a placing at 235, has doubled its stake to 14% recently via CFD's? GS also seems to be buying but its via their stock loan physical position, i'm not sure what this means if anything. Wonder what's going on here if anything