Member Info for bigpunt

"New acquisitions happening"

Not if it requires equity, and if it does, current shareholders will take a bath

Is anybody keeping a schedule of the denominator for diluted EPS?

Has there been any comment on how future acquisitions will be funded? Has there been mention of equity?

It's a 9% coupon. Who would lend to Kier at 1.8%

I don't know how that cost of debt can be seen positively. They need to generate a lot of revenue at their operating profit target just to pay off the debt cost

Maybe due to positive inflation news?

Looks like incredibly expensive debt refinancing. That shows there is still a high level of scepticism around Kier

IMHO the murky governance of SBTX is priced in. A business with enough transactions to keep one trained chimpanzee busy doesn't require a CFO on such decent wedge and everyone knows it. The Board are very indulgent with one another, cucumber sandwiches, trebles and pay rises all round

To be serious though, governance is a key criteria for fund managers when they write up their investment decision

Q. If revenue is flat and price/margin has increased, I imagine that Dermatonic are selling less units? Does this matter? I am guessing not?

A. Depends on sales mix

Not sure anyone has understood my point, or perhaps minds are boggling

Whether something is 'accretive' or not is usually used in reference to 'earnings' which is measured by Earnings per Share IAS 33, unless stated otherwise. FAOD earnings per share uses profit after tax etc.

For me it is red herring anyway, because the company is losing its ar5e

Clio, a bad debt write off is Dr P&L, Cr Debtors. i.e. the amount of the write off is the amount profit is reduced by. 'Adjusted profit' means this journal has been added back

The thrust of my question is lay terms is profit has gone from c.£nil ye 2023 to c.£400k ye 2024 yet there has been little explanation

I can't remember if it was mol but I do recall someone referencing ramping the pre-sale management accounts

I don't need the adjustments explained, I need the huge swing in trading explained, particularly when it is not being converted to cash. That is what a trading update is for, is it not?

Please excuse me if I am being thick. If 2023 adjusted EBITDA is £230k, and the adjustments totalled £273k, then the non-adjusted EBITDA is negative £43k. Does that not require a smidgen more explanation?

I am also seeing the prices trickle upwards this week, some increases being larger than others. Clearly they are being very methodical in their pricing which is pleasing to see. Staff still waiting to hear about their April pay rise

I hold my view that new CFO will be wiping the decks clean with these results, and CEO will want to increase the balance sheet to do more 'banking'.

I hate to see 'adjusted profit' because we are all guessing what the adjustments are, but with a mkt cap

MAT it is highly likely the acquired entity will have its year end extended to be coterminous with the Group.

They have said there is an earn out. You wont see the detailed targets but you will see the accrual as part of fair value of acquired net assets - as years go by you will see it getting released to P&L or paid out. Let's hope it is the latter

Clio, that rationale has merit but you asked for an alternative view, so here is one. If you are talking to two multinationals rather than one, the balance sheet doesn't matter

Clio, when has Porter ever written about 'stability'?

The only comment I wish to make in addition to my view yesterday, is that the strategic rationale is weak. He mentioned the wound closure market being highly fragmented, and this deal allows us to play in this highly fragmented (and therefore, unattractive) market

Congrats to the Exec, although they missed their timelines.

The financing actually looks quite cheap

They now have a brand to trade through

Very poor acquisition RNS, they should have included some more merits of the transaction (e.g. management team, more on trading history) and announcing an adjusted EBITDA for a tiny SME is ridiculous

Overall, I am happy

When a hospitality business can confidently say it will hit expectations, that means the money is pouring in. They will just accrue refurb costs to hit the profit number