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Disappointing the CFO is leaving as he is unwilling to relocate to Cambridge, I am sure they will find another. Any other comments are purely speculative!
We may not see 200p again due to dilutions but no reason why we cannot see £1 plus in the near future it all depends on on how they perform in coming year and market sentiment regarding wider economic factors. If inflation comes under control, interest rates begin to fall and the economy starts growing again then market sentiment will improve as will SP. Until then a good set of interims may perk up SP in the short term, here is hoping.
Ephemeral the utility hedging provides cost certainty and it looks like they paid £11m for that certainty over three years versus the 2022 prices. For me it was a prudent move unless I am misunderstanding the statement re this, quite possible!
The main benefit of the the group is that it's diversified brands appeal to different segments of the casual dining market so your prediction may well be correct, we will find out soon enough, here is hoping we get a sustained re-rate of the SP thereafter!
Think TMR need to do more research and analysis before expressing opinion on future strategy. RTN debt level is circa £220m, excluding leases. The freehold value of the pub estate (circa 50% freehold) is worth £160m. That would imply the pubs, leisure and concessions business is only worth £60m which seems low. They are assuming the majority of profits come from Waga and the remaining businesses are all performing poorly, segmental analysis will tell in September if that is true or not. The proposal to buy out US franchises and expand Waga outlets in other countries may have merit and RTN is expanding where opportunities appear. What is unclear is how far can the expansion of Waga go? Interesting no mention of taking private unlike other activists.
We know that all parts of the business have a similar level of profitability, (F&B) after recent closures, this was stated as the reason for not doing segmental accounting previously. This will be confirmed or not, when they show segmental accounts in the September interims.
£200m would be a steal given the freehold valuation of B&P is £160m for about half the pub estate!
Activists stirring it again on flimsy grounds imv! They need to put forward a reasonable bid rather than trying to get their strategy adopted by changing the board members for those who favour their strategy. If the activists offered RTN the price they paid for Waga £560m or thereabouts to take Waga private they may get a reasonable response! Suspect they are looking to get RTN assets on the cheap! Not sure we will get financial numbers at update, more likely LFL sales which indicative it will not say profit or cash generated. We will see.
Article is biased in my view, repeating activists point of view only. No mention that RTN's largest shareholder is supportive of the board and there are others. No explanation that losses last year was a result of impairments, or that it was cash generative. The activists plan to sell all the assets and take waga private maybe a good idea but they have not explained how that benefits shareholders IMV. I keep getting the feeling that the only winners will be the activists and not the majority of shareholders! The interims are not far off and hopefully they will be relatively positive given current trading conditions. The promised segmental reporting may also help clarify if the activists have a point or not we will see.
The GPA project has never been reflected in the SP for many years so the reduction today is way overdone. The most interesting comment was the one re tax and acquisitions as the current enviroment will present opportunities so it will be interesting to watch what happens with that. An update on flow rates would be welcome as PMG are cash generative currently and any enhancement to revenues will be good for SP.
16m shares sold in 9 minutes this afternoon!
NU from RNS . "Further to commentary in the Company's 17 April 2023 notification, at present the working capital position of DeepVerge is such that the sum total of its trade receivables (net of impairments) and cash balances together exceed the sum total of its trade creditors and other payable balances (with the amounts owing to Microsaic set out above included in this). In addition, the Company has agreed payment plans, or payment phasings, with substantially all its creditors."
Cash is the issue, or lack of, they maybe down but not out yet, it is all down to getting audit done and reducing cost base. Revenues are there to be had but lack of working capital hampering progress.
NU nothing would surprise me! The investors who funded the last placing who are now well down may have something to say. DVRG is still generating revenues and possibly profits after restructuring it is all down to whether auditors and BoD agree or not it is still a going concern, cash is the issue!
Interims due Sept. Could get a trading update beforehand if anything of any value to report! Oasis upped their holding via financial instruments again. Are they looking at a hostile bid or just trying to increase pressure on BoD to adopt activists strategy time will tell!
Yankee 5th June RNS. LLP was subsequently appointed as the Company's auditor, however there is significant risk of there being insufficient time to ensure that the audit is completed by 30 June 2023." It is possible DVRG will be suspended pending results of audit!
Hope this comes soon!
Have Oasis lent 5% of their shares for someone to short the share, I am confused by the RNS can anyone explain?
Hope we get the above soon to lift the gloom! The Finncap update in March was predicting next years production at 477 boepd but this was before news on flow rates I think! That being the case then next years revenues could be higher than forecast currently, by how much is what I would like to know.
Https://www.morningadvertiser.co.uk/Article/2023/05/11/support-for-the-restaurant-group-from-largest-shareholder
Not all II's agree with Oasis.