Member Info for ChocolateChip

Out today. Nice growth in the top line.

Jimbob - I think the concern is that even if you are having to air freight products you would have visibility of this so the issue is not that you have had to incur them (sh*t happens after all) but that they failled to disclose this 17 days ago when the last RNS went out. It just strikes me that there is a lack of control and they are not on top of the business. This happens alot when companies over reach through acquisition. Whilst growing the top line is essential for any business, doing it in such a random way seems reckless to me. I think the share price got hammered because the market has lost patience with the management, this is hardly the first time that a profit warning with lame excuses has been made. The scale of the devaluation really hurts and it is us share holders that feel the pain. But when a company puts out a statement that basically says "we are incompetant" this is what happens. Personally, I don't think the share price will recover until the management is changed and APC can demonstrate that it can deliver against forecast. I just hope that the NEDs take action now and we don't have a protracted period of this being under a cloud. Of course, management could do the honourable thing and resign but I guess they will expect to be paid off.

Yes it will be interesting to see the segmental analysis in the report and accounts this will show where the growth is coming from. My bet is that it will be mainly from acquistion and the like for like, year on year, will be flat but that is no more than a guess. I've resisted the temptation to post before because up until now things have been tollerable with one year of good news that meant I am not owed anything by this stock. I'm just annoyed with myself really for holding on, against my better judgement and felt the need to vent my frustration. I do honestly feel that small companies following a multiple acquisition strategy is a big mistake and it is followed out of management vanity and ego rather than value for shareholders (especially us small shareholders). I do feel the NEDs have really let us down badly they are supposed to ensure there is good corporate governance and controls in place. I mean how difficult is it to know that there are carriage costs when shipping products from China to England? That seems basic stuff to me, how much do we pay the CFO to get that simple calculation wrong? On the plus side China devaluing the Yuan should be a big plus for APC :-)

Sahid - there may be reveue growth but mainly off the back of acquisitions and one has to question the price of those acquisitions (massive dillution for us shareholders) and how much has dropped to the bottom line? Further more at this share price if, as some are suggesting, cash flow is an issue further placings (if they can be made) will be massively dilutive. I fear that this one is not fixable by a few tweaks here and there and only a change of direction will do. I hope I'm wrong on all this...

Jimbob, It is all a case of how you grow the top line. In APC's case there have been a string of random acquisitions that have increased the cost base but not delivered enough on the top line to justify the eye wateringly high valuations placed by the management on those business. Quite frankly I've lost track of all the acqusitions made there have been so many. The number of acquisitions in recent years and yesterday's announcement also suggests that these business have not been integrated properly and the controls that would normally be in place have failed. I bought in five years ago when the stock was last at 10p and I'm fortunate that I've sold enough of my holding when the shares were in the 40s and 50s that this one does not owe me anything, however, with over 100k of shares left this latest shambles still hurts. I hope that the Chairman's review as is throuogh as he says it will be and at the very least no more acquisitions are made until the current mess is sorted out. I sincerely hope that the BOD are all considering their positions in light of the shareholder value that they have just destroyed, in the last year. Corporate governance is obviously not working and the executives are acting recklessly with no effective oversite being applied by the the NEDs.