Member Info for devonplay

I pointed out earlier, no doubt presentations are being held and institutional investors will then take their positions?
- very unlikely, as we've covered off before there's not enough liquidity. This is a sub £50m business, most "institutional investors" won't be able to deploy enough capital to make it worthwhile.
If they are going to invest in a businss with a very small t/o wouldn't you think they'd be looking for a high growth business where they can get decent position. If is the companies presenting to "institutional investors" there's usually an RNS telling you there's an analyst briefing takng place, but give the lack of research material being published on the business, would love to see why you think these presenations are taking place without the market being notified? - oh yeah, it's that takover.

ah so selective, good news is: less sales/furlough = less DEBT is what I meant.

We've even covered this bit of good news:
"Administrative expenses increased to GBP2.9 million from GBP1.4 million year-on-year, dented by a GBP930,000 impairment provision against the carrying value of New York property leasehold assets which have now been written down to nil."
- but they did manage to increase on-line sales, when everyone was locked in their home - wow! What a surprise, but not any where enough to offset decreases.

"Two can play at posting selective news, Devon."
- of course, increased losses, over total increase in liabilities, a reduction Net Assets and Equity Sharholder Funds AND a breach of covenants is very selective LOL
I've often thought being concerened about the liquidity and profibility of a business is quite selective, especially when it's a high growth business like Stanley Gibbons. Hahaha
"The Group would have been in default of the financial covenants at 31 March 2020, which would result in the loan becoming payable on demand." How selective can an issue like that be, it's all dependant on the goodwill of it's major creditor and shareholder.
- ah so selective, good news is: less sales/furlough = less loss/ going concern= goodwill....selective enough for you LOL

" shows the Group will fail to meet its financial covenants in March 2021."
Uninvestable before then....they've not restructed the debt, no refinance or alternative terms, so it just hangs there and is reliant on goodwill.
Just a few days ago you were telling us the company would be in the black and there would be the chance of dividends!
The reality:
"Sales are down 26% to £4.98m for the period (£6.74m 2019) which has resulted in an increased loss from continuing operations for the period of £2.22m (£0.66m loss 2019)."
but, it's still a good result? What happend to the profit and divi? It does make you wonder WHEN you would acknowlege POOR PERFORMANE.
The good news, the debt didn't increase and it wasn't called for payment, which they couldn't pay anyway, as they tell us " uncertainty of the assumptions that the Directors use to forecast future liquidity" uncertaintity on future liquidity....
Yet, it's a take-over taget. Really?
It makes you wonder how helpful the whole debt forgiveness and furlough was to them, without those, I'm guessing we would have seen debt increase.
"a loan of £14.3m repayable in March 2023, provided there is no event of default in the meantime.".......'PROVIDED THERE IS NO EVENT OF DEFAULT IN THE MEANTIME" how may red flags do they need to provide you with?
"Due to the impact of the COVID-19 pandemic on the Group's cashflow, Phoenix S.G. Limited waived the interest cost on the loan for the 4 months from April to July 2020." Sorry state indeed.

The loan facilities are provided by the Group's controlling party Phoenix S. G. Limited and are due for repayment in March 2023. The Group would have been in default of the financial covenants at 31 March 2020, which would result in the loan becoming payable on demand. On 27 March 2020 the Group sought and was granted a waiver from Phoenix S.G. Limited for the default. The forecast, taking into account of the implications on the Group's demand of the COVID-19 pandemic, shows the Group will fail to meet its financial covenants in March 2021.
- where's the good news?
"The COVID-19 pandemic has increased the uncertainty of the assumptions that the Directors use to forecast future liquidity."
Are we looking at the same figures?

Just for clarity Pearls, could you explain what the good news on the debt was?
As far I can see borrowing increased, net liabilities increased and they breached covenants. Where's the good news?
- with a decline in net assests.
???? where's the positive change?

"A move into the black is anticipated plus potential dividend payments next year if things go well"
How wrong can you be?

"debt indicate you don’t understand it."
Really, expalin it then Pearls, they said they were in breach of the cov's this years and will be again next year!
"That’s why it is still a going concern. " with the goodwill of their creditor.
"This share is as much based upon such things as IAG, Carnival, and Rolls Royce." What? ...and I don't understand debt LOL
"as it was hardly like you portray." errr I copied and pasted from their results?!

Did we expect anything different?
I was expecting the sales decline to be greater, so that at least is an improvement.
They remain beholding to their creditor and main investor, does make you wonder why they continue with the listing. It's hardly like they can raise capital via the markets and little chance of much other benefit. It's hardly going to offer an exit in the new few years.

"The loan facilities are provided by the Group's controlling party Phoenix S. G. Limited and are due for repayment in March 2023. The Group would have been in default of the financial covenants at 31 March 2020, which would result in the loan becoming payable on demand. On 27 March 2020 the Group sought and was granted a waiver from Phoenix S.G. Limited for the default. The forecast, taking into account of the implications on the Group's demand of the COVID-19 pandemic, shows the Group will fail to meet its financial covenants in March 2021."
- future in the hands of the creditors
That evasive dividend? "The Directors do not recommend an interim dividend for the six months ended 30 September 2020 (2019: £nil). "
"I have also talked before about the challenge of providing any definitive outlook for this type of business"....they should just ask Pearls! LOL ;)

Until the half year update.

- AND IF THEY DISAPPOINT expect a swift sell of and to be stung with a massive spread!

- i've missed where the company has indicated the possibilty of a dividend, any chance you could share that RNS or where they've indicated they put a dividend ahead of reducing debt?

Schroders fund manager on IC talking about the low impact quality of palm oil. Once planted long living and very high calorific value...much more effient than many other crops. His Indonesian and South East Asia colleagues very keen on it.

20-Nov-20 13:55:24 3.60 384,776 Sell* 3.60 4.00 13.85k O
20-Nov-20 15:40:08 3.80 50,000 Sell* 3.60 4.00 1,900 O
- or is the tide turning.....or should I say nose diving! LOL Usual healthy spread, buy and you're down over 10% of your capital in an glance.
-- correction, your down 20% in a glance.

20-Nov-20 13:55:24 3.60 384,776 Sell* 3.60 4.00 13.85k O
20-Nov-20 15:40:08 3.80 50,000 Sell* 3.60 4.00 1,900 O

- or is the tide turning.....or should I say nose diving! LOL Usual healthy spread, buy and you're down over 10% of your capital in an glance.

No, they've probably had enough of over speculation on fallen angels. They don't often recover, but they can be great for traders. LOL

Clasic buy on the rumour, sell on the news....but will you be able to get out before the traders and pro's do with your money?

Maybe only a matter of time John. If the prefes and the secure bonds have rallied, it must only be a matter of time.
Shares price, short term they represent sentiment, long term they weigh quality. It may still work out OK for you "ordinary" folk.

almost apoplectic with excitment! Those leaks hahaha

" It all just looks fairly sleepy"....there was me thinking that was one of it's great attractions.