Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
SUPPORTIVE DATA FOR PREVIOUS POST - MUAT BE WORTH MORE THAN 8p / SHARE.
(Alliance News) - DP Poland PLC on Tuesday emphasised its focus on improving business profitability and reaching positive cash flow, as it posted a narrowed pretax loss for the first half.
DP Poland is the London-based operator of Domino's pizza stores and restaurants in Poland and Croatia.
For the six months to June 30, DP Poland reported a pretax loss of GBP1.6 million, narrowed from a loss of GBP2.2 million a year prior.
Revenue, meanwhile, increased to GBP21.0 million from GBP16.6 million. System sales were up 25% to GBP21.4 million from GBP16.6 million, which DP Poland attributed to a third store opening in Croatia, as well as store network optimisation in Poland.
In Croatia, the transition of the Croatian currency from the kuna to the euro at the beginning of the year contributed to weaker sales in January. However, DP Poland noted that the market returned to double-digit like-for-like sales growth from February, delivering an average weekly order count per store above 1,100. This sets an "aspirational benchmark" for the Polish market, it said.
Direct costs were GBP16.3 million versus GBP13.5 million year-on-year, while selling, general, and administrative costs came to GBP3.6 million from GBP2.7 million.
Looking ahead, DP Poland expects to see a "continued improvement" in profitability as it grows sales. The firm said it was confident that "the drive for order growth and network expansion is the key to success", and maintained that "the improvement of business profitability and positive cash flow is the prime goal for the entire team".
"The results we have achieved position the company firmly for ongoing market share expansion. This growth will be fuelled by continued operational excellence, enhancing our digital solutions for customer orders and internal processes, and maintaining an unwavering commitment to our customer value proposition. We anticipate that these efforts will lead to the creation of new sales records for the company, and continued improvement in [earnings before interest, tax, depreciation and amortisation]," said Chief Executive Officer Nils Gornall.
BIGGER & BETTER NOW THAN WHEN WE HAD OUR CAPITAL RAISING AT 8p / SHARE 2 YEARS AGO.
3 November 2021
DP Poland plc
("DP Poland" or "the Company")
Result of Fundraising
Further to the announcement yesterday ("Launch Announcement") and the close of bookbuild announcement this morning, DP Poland is pleased to announce the completion of a Placing of 34,320,956 New Shares and a Subscription of 3,179,044 New Shares with investors, at a price of 8 pence (the "Issue Price") raising a total of £3 million before expenses.
Very vulnerable at this market cap to M&A now. CAT sold just boots (aside their trucks and diggers) now selling boots, shoes, workwear and nice well made clothes etc. A big US company could take DM by the scruff of the neck and really extract huge value (Maybe CAT or Timberland are already watching and preparing 😎)
Not to mention we are not primarily construction and student lets are short of supply. So by focussing growth in this are as we are we will grow cash further moving forward regardless of the general economy. So much safer investment than banks or Builders right now and near future.
Basically not managed in a balanced and truthful way, the CEO had to fall on his sword taking a 200p plus SP into the low 30 pence’s. New CEO and BOD moved around is getting all the bad news write downs etc all out there so he can then preside over a great 2 or 3 years of sustained growth. (A normal move for a new CEO). Clearly after this break even update ready to grow and deliver, the BOD know this better than us PI’s (Note the recent Director buys in the market). There are 3 prime land banks that WJG will not sell cheap so temporary delays, they are cutting costs and managing cash very well and cash is king for the return to growth. Investors are nervous, a few sellers and not popular to be into Banks (default risks from interest rates beginning to bite) or housing and land right now. However we have been dragged so low it’s clearly in a sales overshoot and a great time and price to follow the Director buys. Next results or trading update should read positive as I think the new guard have now finished sticking the negative mud on the outgoing CEO (Kitchen sinking complete).
Key takeaways WT are loss making this year and break even next year. Already shared by THG in their last results plus Q&A. Nothing new or contradictory, the key with THG’s true SP value lies in the sum of the parts and once 2 out of 3 show cost absorption and profitability then we are looking at c.150p trading SP with a take over of c.200p (Nutrition hitting the target, either Ingenuity or Beauty needs to step up and delivery). I see this as a buy with current fair value c. 100p right now. Time will out at it always does GLA.
They been sending these types of RNS’s out for nearly 10 years. Practically no revenue or profits. They are often used as a pre requisite to issue more shares and continue the dilution. The current shares in issue x SP = Market Cap. This way too high for a non significant oil producer.
Another vanity project. Should keep away and leave this stuff to Jamie Oliver. It’s distracting driving growth where it matters like Beauty. City don’t like it also so it’s not SP accretive at all. It really is time for Matt to stand aside now and let a seasoned CEO the city likes get this past 150p again. (Wouldn’t be that challenging in reality, news MM well away from running the show. Ambassador role was a good sugggestion.
BANK OF AMERICA:
THG PLC (LSE:THG) shares are motoring today and there could be more to come, according to analysts at Bank of America.
The bank has set a 125p price target and reiterated a 'buy' rating, helping drive shares 5.2% higher to 69.08p.
BofA noted while the revenue decline in the recent first half was greater than expected—especially in the Beauty division—the worst now appears to be over.
In the UK, the two largest headwinds—falling online penetration and low consumer purchasing power—began to show signs of improvement for the first time since 2021 this summer, it said.
“Management called out positive growth in Beauty starting in August, and we expect group-level growth to turn positive again in 4Q23 as Beauty improves with manufacturing revenue picking up again,” the broker said.
BofA sees reasons for optimism in all three core divisions.
In addition to a return to positive growth in August, the Beauty division should see improved margins in the second half of the financial year as the margin-accretive manufacturing business ramps back up following destocking throughout much of 2022 and 2023.
BofA thinks current prices, input costs should remain a tailwind for the Nutrition division for the second half of the financial year and beyond, allowing the flexibility to re-invest in pricing to drive growth.
Ingenuity's strategic shift continues as THG exits smaller, less profitable contracts leaving it on track to add £1 billion gross merchandise value in new contracts in the financial year.
Thanks HoundDog, well a revenue delay and no mention of bottom line but cash dropping quickly. I do still think it will be a good investment t but needs 2 to 3 years and now it’s getting closer to a realistic SP until it’s proven to be a Velcro become cash accretive. They were very clever at doing a 50p rights issue, it would need to be a 35p to 40p now for a copy and paste.
Regarding the dividend, I think it will be cancelled to preserve cash until one the 3 land sales fetches a decent price and goes through & the existing student accommodation revenue and net show an increase.
Drop is very concerning, how much lower can it go I wonder. The last CEO must have been a totally misleading numpty (At least he has fallen on his sword). With the new guy buying around £200k at 46p one hopes that he believers is to be completely undervalued right now. To be open, it seems property prices and land is off about 5% but quite resilient. Also there is a student accommodation shortage. One has to think that we should be on the cusp of an upwards re-rating. I think the next trading update is this month looking at last year. So hoping for some positive news that turns this tanker around. I do feel it’s very undervalued but is there any more write downs or nasties to still come out is the worry.
Can anyone find the gross margin on their projects and products anywhere. Revenue growth excellent as said, however are these various projects highly profitable, are they being paid on time (eg: Philippine government project). It’s really hard to value until net profit and more importantly cash shows growth. (If not this surely will down to around 30p next results).
As of 31 March 2023, the outstanding balance of loan notes amounted to £7,690,000. These all relate to drawdowns on a secured note programme which has been arranged by LGB Capital Markets and which is secured by a floating charge over the Group's assets. The loan notes have terms of up to 3 years and an interest rate of 8%-12%. Subsequent to the year end, the capacity on the secured note programme has been increased from £20 million to £40 million.
During the year ended 31 March 2023 the covenants in relation to debt service cover and gearing were breached and a waiver from loan note holders was obtained subsequent to the year end on May 2 2023. Due to the waiver not being received prior to the year end and the covenants being re-tested on 30 September 2023, IAS 1 requires that the loans are all classified as being repayable in less than one year, despite their maturity dates.
Hardboy - I assume you think my range bound numbers are too high as data now shows them to be. You seem to be either disillusioned or a troll. What do you think the average SP will be between over the next 18 months. You’re quick to comment but add no value to this BB.
Also with their new extra large warehouse consolidations and reduced logistics costs coming through, they are set for margin improvements going forward. Story gets better and better. Should be back to 250p when markets normalize
I’ve sold out a loss. I thought this was a growing gas producing company, it’s not. It’s a derivatives company trading energy prices like Enron only this time listed on the UK market. It’s extremely concerning the CFO left without any form of handover. I suspect he is under pressure to support some dodgy accounting practices and push the auditors to sign off. I have no real evidence but in reading and looking into this as much as I can understand it looks like it could all come down like house of cards especially with recent fly high gas prices. Good luck to those keeping the faith , hope the divi yield holds up - I’m out, too hard to understand how it is sustainable for me. GLA - One for the very brave