Member Info for Billyboy2fromiii

BigK

It is not what you say, it is how you say it.

The decision making and delivery of the “meaningless historic numbers” is the reason the sp has tanked. The Market and many investors no longer trust the management. That is what happens when you try to sneak out a RNS at 6.25pm on deadline day.

Vas,

I do not agree with you that nothing at all will happen tomorrow.

Tomorrow Chill will be stocked in more US stores than was stocked today. More CHLL shares will find their way into those much discussed sticky hands. CHLL’s quest to conquer the Universe will continue (remember why take over the world when you can conquer the Universe (or very cheesy words to that effect).

BB2

Schalf,

I understand that you only arrived here on 1st Sept. Just checking that you are aware that the Co used to be called Zoetic International. Probably wise to further your knowledge by researching Zoetic International as well as Chill Brands Group.

As always, happy to help a fellow shareholder.

BB2.

Afternoon Vas,

To be honest, me, you (and MarketT) have very similar thoughts. Our previous thoughts and calculations have been pretty much on the ball, so I am comfortable we are somewhere close with our figures.

You (gap 40-43p) and myself (sp range 40p to 80p) were ridiculed a few months ago. However, we have been pretty accurate so far. Always wise to be realistic with expectations, I feel. Under promise and over deliver is much better than broken promises and missed deadlines.

BB2.

HD,

There are comments at the bottom.

For example, comment 3 relates to the £1.2m fee payable to exit the finance agreement. Really cannot see how you can argue that they haven’t put ANY comments. There are lots of comments at the bottom.

No post period comment, I agree with that.

BB2.

Schlaf,

With respect old chap…

I am invested here and previously held HNR. I hold these shares with a medium to long term view of 3-5 years as I feel there is some potential here. However, I prefer to be realistic and factual rather than rampy in my thoughts. Your posting history suggests that you are unfamiliar with this share. No previous CHLL posts prior to 1st Sept and then 38 posts just regarding CHLL. As such, you may be unfamiliar with some of the rampy crew on here who spout drivel like £3.50 by Xmas and sticky fingers this and sticky fingers that etc.

If you take a look at my reply to Vas earlier today, I have assumed realistic assumptions in my calculations. If I had an “agenda” I could instead have focussed on the £4.5 stated costs and run with that.

You seen a reasonable chap so happy to engage with you.

BB2

HD,

Thank you for your reply. But why would you show share based payments as an admin expense? And why would you not put a note in the prelims to explain this?

I maintain, anyone looking at the accounts will assume true admin expenses are £4.5m.

BB2

Schlaf,

I would suggest that my views are realistic rather than negative.

Again, if £4.5m admin costs are not really £4.5m then I ask why? No-one yet seems to be able to explain why, other than someone has had a phone call with the CEO.

It would appear that management are currently very happy with the falling share price. It is them who write and issue the RNS. It is them who have missed the deadline. It is them who apparently prefer to speak to some shareholders on the phone rather than all shareholders via RNS. If they are not happ6 wit( the falling share price, then they just need to tell us the sales figures since 1st July along with the current store count number. If all is good on these two points, then this would be the catalyst to change the direction of the sp. So if management have this info, why not RNS it. Without it, the sp will probably continue towards 19p in the short term.

BB2

iPhone,

Yes, RKB was mikes out with his rampy revenue forecast and sp prediction. Not heard much of him since.

I still do not understand how share options affect admin expenses in the accounts. Until that is clear, I will assume that admin expenses are approx £4.5m. This will obviously means more gross revenue needed to show a net profit. With only $2m disclosed revenue (and lack of profit margin)for this current half year to date then It is probable another net loss for 6 month period to 30th September.

BB2.

Schlaf,

I am an existing investor.

I would have thought it reasonable to ask why £4.5m stated expenses are not really £4.5m despite no notes to state why that is.

An investor should rely upon info provided by the Co via official RNS release. This states £4.5 admin expenses. The fact that people on a bulletin board say that someone they know has had a phone call from the CEO to discuss, all sounds a bit odd. As I say, a new investor will see £4.5m as the admin expenses and run with that. We will have to agree to disagree on this.

Bluerill,

Thank you for reply.

Can you please explain why the admin expenses are so high. I do not understand your point re th3 share option awards and how this is included within admin expenses. Sorry if I have missed a previous post regarding this.

There does not appear to be any notes detailed on this (whereas there is a note regarding the additional £1.2m expenses incurred in exiting the finance agreement). On that basis, any new investor will look at the results and automatically assume that the admin costs are approx £4.5m which will obviously impact upon new the profit figure.

An easy to understand explanation would be very much appreciated.

Regards,BB2.

Hi,

As regards...

The information for the year ended 31 March 2021 does not constitute statutory accounts for the purposes of section 435 of the Companies Act 2006. A copy of the accounts for the year ended 31 March 2020 was delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006.

The relevant sections 498 (2) and (3) are detailed here...

(2)If the auditor is of the opinion—
(a)that adequate accounting records have not been kept, or that returns adequate for their audit have not been received from branches not visited by him, or
(b)that the company's individual accounts are not in agreement with the accounting records and returns, or
(c)in the case of a quoted company [F2or unquoted traded company], that the auditable part of its directors' remuneration report is not in agreement with the accounting records and returns,the auditor shall state that fact in his report.

(3)If the auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report.

BB2.

So, prelims announced 6.25pm on 31st Aug.

Audited accounts now due Sept.

So what exactly id the delay?

Option 1. The Company do not have the info required to produce the audited accounts.

Option2. The Company do have the info required but have decided not to release them. If so, why release the Prelims and not just wait and release both together as per last year?

Option 3. There is a possible issue with the audit of the accounts ?
What exactly does this mean.....
The information for the year ended 31 March 2021 does not constitute statutory accounts for the purposes of section 435 of the Companies Act 2006. A copy of the accounts for the year ended 31 March 2020 was delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. The audit of the statutory accounts for the year ended 31 March 2020 is not yet complete ??

Anyone willing to comment?

BB2.

Morning all,

In response to Vas's question re revenue, here are my initial thoughts.

share price 30p, mcap £63.6m
using conservative PE x10. net profit £6.36m
Allowing admin costs of circa £2.64m
Gross profit £9m
Using profit margin of 30%, gross revenue required £30m

However, I am probably being too conservative. At those revenue figures, the profit margin should be higher so I will allow 40%. In addition, to achieve anywhere near this revenue, we would need to see several Q to Q revenue improvements which should certainly then qualify for a higher PE x I would then agree to the "fast growing" status that is currently being thrown around....

share price 30p, mcap £63.6m
using conservative PE x20. net profit £3.18m
Allowing admin costs of circa £2.64m
Gross profit £5.82m
Using profit margin of 40%, gross revenue required £14.55m.

So, I am going for gross revenue required of approx £15m.

BB2.

Evening Vas,

I was just going to post my thoughts as regards your question. However, a night out with Kipper!! I suppose it could be worse. A night out with Kipper, Seb and Fred !!!

BB2

Kev,

“Smart money”

“Sticky hands”

Heard it all before.

Management to start to deliver upon promises made and in a timely manner, is what is needed here.

Where is that “proper” Quarterly Update?
Why the wait for full year audited accounts?

BB2

Morning,

Been away for a few days so only just had chance to fully read the Prelims.

The first thing that stands out is the lack of any profit margin. Before the Telegram mob shout out that these results are historic and not at all important, I feel that it is debate.

The previous full year final accounts for 12 months to 31st March 2020 showed gross revenue of £92k with cost of sales of £56k so a gross trading profit of £36k (39% profit margin).

The interim accounts for the six months to 30th Sept 2020 showed gross revenue of £54k with cost of sales of £37k so a gross trading profit of £17k (31% profit margin).

The recent full year prelims for 12 months to 31st March 2021 showed gross revenue of £320k with cost of sales of £361k so a trading loss of £41k (0% profit margin).

So to increase gross revenue in the six months from 30th Sept to 31st March by £266k it cost £324k.

Obviously economies of scale will kick in at some point, turning a trading loss into a trading profit.

Indeed, in 17th May RNS it was stated "Following receipt of the orders outlined above (stated as $1.34m or £960k) , the Group is trading profitably". So what does this mean? Basically that cost of sales have been covered by revenue. It does not mean the originally stated 50% profit margin (subsequently reduced to 30%).

In addition, "trading profitably" does not take account of Admin Expenses (which were stated as £4.6m).

As Management seen to have lost the respect of shareholders (with the exception of the Telegram mob) with their recent history of failed promises and missed deadlines, it is probably worth questioning their disclosure of "trading profitably".

It would appear we will have to wait for the interims in January 2022 to get the answer. That is a long wait. Will it be worth it? As a shareholder, I hope so but.........

BB2.

Perhaps a little more time writing the RNS and a bit less time feeding nuts to the monkeys ???

BB2

Vas,

Yes, October then for the next apparent Quarterly Update. However, if the last one sets the precedent then I am not expecting much by way of content (store v online sales, store count, etc).

The Telegram mob insist that all is well this quarter and there are sales this quarter that have not been disclosed yet. However, personally, I am not so sure. It is possible that due to the delayed roll-out (no one actually knows what is currently happening on this) that the distributors have enough existing stock from previously disclosed orders to meet present demand. If so, there is a chance that we could get through the July to Sept quarter with NO orders and No revenue other that a bit of loose change from online. Even with an order or two, there is the probability that this quarter will see a Q to Q decline in revenue with a drop from the previous $2m.

Your strategy of waiting for actual sales figures to be reported before adding to your holding is certainly being proved the correct one here!

BB2.

Vas,

You (and others) keep mentioning the quarterly sales update. But we have had it, haven’t we? Admittedly, it wasn’t really a proper update but I think that is all we will get. Are you actually expecting something further for April to June quarter?

Next quarter (July to September) due in October. Unfortunately, it appears there are currently no sales to report for this period.

BB2.