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Difficult to see a positive outcome. If it delists we will be left with shares with no market, potentially for many years, if vote is against delisting then high risk of administration and complete wipe out for shareholders. With current price so low just hanging on in case something I can not foresee happens but mentally have written off the value.
Delisting is not good news. I have some in my pension plan that were delisted almost 10 years ago. Since then there is no vehicle to sell and they have paid no dividends. They pretty well have zero value and will remain that way unless the business is sold and a price is put on them.
Some of the comments on the Board remind me of the Monty Python, Dead Parrot sketch. The business that was listed is no more. The administrators are now following a prescribed process under which they will identify and quantify all creditors of the business and their priority of claim against the proceeds of the sale of the businesses assets. Only when they are all paid in full will shareholders get anything. Since it is normal for there to be a significant shortfall for even ordinary creditors, existing holders can assume that the PLC is pushing up daisies.
Share hopes, the shops will probably continue, The Isaa brothers may well buy it from the Administrator but until all creditors are paid in full the shareholders get nothing and as ordinary creditors are unlikely to recover their debts in full the chance of shareholders getting anything is pretty well zero. Anybody who thinks otherwise is very likely to be extremely disappointed.
Shareholders hoping for any kind of return are clutching at the same straws that the shareholders of NMC, Thomas Cook and Debenhams were, to name just 3. People posted expectations that as the brands continued having been brought from the administrators then the shareholders might get something. They didnāt.
People power,
I agree it is going to take time and I fear at some stage a dilutive rights issue. The cash burn rate, regardless of reason and margin squeeze are alarming. If you burn cash you eventually run out and you need to do something well in advance of being a āforced raiserā.
Sain, yes remember this Board on Intu and also Debenhams full of individuals expecting a recovery and huge profits because the shares were so cheap. They were cheap for a very good reason, as is McColl.
Dimi, I share your concerns and am a long term holder with an average price well over double the current level. I have two daughters in their early 20s who, along with their friends, have items delivered free of charge every week from both ASOS and BooHoo. The problem as I see it, is that at least 80% of it is returned, also free and often all of it. They use the facility in the same way as a changing room in a store. With delivery costs going up, I worry about the sustainability of the business model. If they start to charge delivery they will just not order. Hanging on in the hope of an acquisition but certainly not going to average down, this is falling knife territory.
Hosai, if anyone has any doubt over Allen being heavyweight enough to deal with Moulding, they should read up on the acrimonious acquisition of Forte by Granada. Gerry Robinson was Super Heavyweight compared to Moulding being Middleweight. Allen was at the the heart of that huge deal.
Stockbroker, can understand your point but this Board has demonstrated they are not capable of delivering an update to the City and answering questions that arrive. The one at the end of last year resulting in a huge price fall, was the worst I have ever heard and the one in February was little better. I fear that unless they have someone in place who can do this important job competently then the April result will not lead to the share price increase everybody wants and some seem to think is certain.
Shearclass, I am afraid it is not just the numbers, it is how they are presented and questions dealt with. People were posting this identical message before the last two sets of numbers. The current Board does not have a clue how to present to the City and unless they have an experienced Chair on Board before the April announcement, I fear history will repeat itself.
I would continue to try and grow organically but stop any acquisitions. I fear it will transpire that they have grossly overpaid, something that is easy to do. As a CFO for almost 20 years I completed upwards of 15 acquisitions and the worst by far was when we bought on revenue rather than more traditional valuation techniques.
Some of them, most particularly the price paid for acquisitions, are irreversible. They need to urgently work out how to use the sales to create a business that generates cash after ALL cash costs. It is easy to buy revenue, more difficult to use that revenue to create a cash generative business.
Smartpee. What we are missing is that they appear to have significantly overpaid for acquisitions to gain revenue and have yet to work out how to turn the revenue into a business that generates rather than consumes cash. Plus the fact that the current Board have no clue on how to present numbers to the City.