Episode 13 of the Investing Matters Podcast has dropped. Listen to our latest episode featuring John Stepek, the Executive Editor of MoneyWeek here.
Guess there will be some grumblling when the pass the port and schnapps around at the next Board meeting All eyes will be turned on Adrian Blair
FFS Adrian we put our hand in our pocket the last time around the houses buy some bl**dy shares
Rollback the years when there was a spat taking place here between the ****sure Jimmy and Cyberduck
regarding Bricks performance in 2018 . Cybs regretting that he didn't take the offer up by Dec it had shrunk to 140p having gone below 200p in October
JIMMY Aug 31st 2018 SP 298p
"My wager with you is that the SP hits 382.00 (£3.82) per share before it hits 200.00 (£2.00). If you're so confident in your calculations and the outlook of PB then this should be easy money for you. What shall we say as the winnings, something like an Amazon gift card? I'm open to suggestions on the winnings and the value. My suggestion would be something nominal like £100 gift card but I'd be happy to wager more."
You're so confident on your views and calculations so put your money where your mouth is; I'm prepared to do just that!"
Jimmy hasnot been back on LSE since !
The disappointing start to May has continued . May is usually one of the busiest months of the year . In May 2019 Bricks took on over 6,300 fresh instructions having fallen just short of 6,000 in 2018.
It looks as if they will be lucky this year to top 4,000 . Trending downwards .Even taking into account that the market is short on inventory this is still poor.
What is even worse is no new initiatives being introduced to counter
They certainly need to have something in place for the next trading statement.
Long gone are the days when today's announcement would have sparked a flurry of share trades and sent the old Duke of York marching up the hill
How long til the next cash call? Something has to be done to pay those lumpy Directors salaries
So this year a continuing progarme of shifting some of the more saleable individual shops as investments when there is a bit of length in a lease so perhaps put another £6m into the coffers with a small profit over current book .to come there on top of the Burger King sale
Walsall. Bearwood .and A****s Green and perhaps Kings Heath provding the ammo They have achieved a number of lettings of the vacant shops there .Nothing wrong with that
Having failed to add any new trading stock they are now relaint on just filling up empty space in attempt to regain value
However it.s no change at the big one in Crewe where unrecoverable service charge is eating into revenue They really can't afford to sit back without undertaking some new iniatives in an attempt to fill the huge voids .This really was a bad purchase and will be hanging around their neck like a millstone
According to Bond Wolfe's website they have the smaller of the 2 buidings at Oldbury under offer.Good news certainly but no doubt will come with a hefty rent free period and still the big loss of rent from Npower who occupied the larger one to fill l
Would be very surprised (and disappointed) that we don't hear of some expansion pushing out in the next month or so Fresh instructions are hard to come by but apart from some of the Central areas Kensington Pimlico Chelsea Sloane Square Earls Court West End & St Johns Wood etc which are pedestrain sales are still fairly robust Lettings doing some good work to mitigate Some of those branches must be barely making a profit .
What is surprising is that with such a lot of slack kicking around at some of the branches with 20% + of inventory been on the market 12months or longer there has not been more pressure on prices from motivated sellers
On the sales side .the end of April finished with a flurry with fresh instructions.Building up hopes that May will resume its position as a busy month and a kickstart to the new FY.
Alas its been very quiet ,very quiet indeed yesterday and Wednesday very quiet
Since Jupiter left the scene jettisoning their shareholding at a rock bottom price and some drector buys taking advantage of it which coincided with a number of Director buys its all drifting back down again
Should receive a trading statement in a few weeks What is certain they certainly didn't average 159 instructions per day as forecasted by Savage of Zeus . Way off beam more Oizys than Zeus
It's a hard act to follow but the new CEO Helna is more invisible than Vic .At least the Bruces were in your face .
You would have thought that after the imbrogolio surrounding her appointment an in depth interview , mission statement and forward plan but nothing to justify her share options
Acc .to ZPL today rentals inventory have shrunk to just 144 nationwide .Running on empty
Yes -Hard to see the Strike model working medium term but they have impacted on Bricks in the areas they have gone head to head taking away some of the instructions. The free lunch appealing to many vendors
Bricks are going to have to rethink their marketing budget Difficult to say what impact a reduction would have had this FY just passed and whether fresh instructions would have dropped even further without it
They made great play of this money back guarantee which didn't titilate the public taste buds
The marketing budget last year worked out at over £600 per instruction which is quite ridiculous
Yes certainly new homes apart from the odd small developer and the bustling BTR sector seems to have bypassed them
Let's face it the new CEO has had a rocky ride with HR since her arrival 2 years ago Nothing there to suggest she will have any impact.
Suspect that some organisation somewhere is able to sell themselves to Axel as the ones to take Bricks forward
It can't happen soon enough .It looks like they have been desperate to get some fresh stock in before the year end as both Friday & Saturday have been busy days
Devil is in the detail .The reality is instructions at Bricks have fallen again this quarter compared to FY 21
April has been disappointing as the FY comes to a close this weekend. .Total for FY 22 likely to be coming in at under 48k compared with 69.782 in FY19 & 64.376 in FY18
Even allowing for a market short on inventory this is not the direction of travel they should be on
Themodel is relaint on volume and without any new income streams they are going to have to take a knife to the marketing budget
Strike are certainly impacting with their no fee offer
"If this was dead in the water.why would anyone be buying ."
FOMO -just ask those who were buying INTU who kept forgetting the debt wagged the dog
On the other hand nobody wants to drop the guillotine to crystallise multi bag losses already suffered when they say to themselves might as well hang on for grim death as a few quid more wont make any difference
4 days til year end
Contractors For Justice only announced 2 weeks ago that they were ready to submit a claim so maybe this won't arrive in til next financial year
Should imagine C4J would ideally like to achieve a settlement out of court .Difficult to establish what the best route forward for Bricks Suspect whichever route they choose it will be the wrong one!
The end of the financial year is coming to a close and perhaps another month til a trading update .It's not pretty .
Annus horribilis and no evidence that its likely to get better with a market generally short of inventory . Vic gone toether with key personnel .The money back guarantee has failed to resonate .Recruiting a comedian to head up a campaign,the last laugh has been on them with the promotion of a HR Director to the hot seat.
That promotion fell at the first hurdle with a lack of due diligence and a vain attempt to bury her previous bankruptcy
Not the most auspicous of starts and we have yet to hear her "Vision"
The year littered with a whole host of HR and complaiance problems which have not been satisfactorily resolved
Investors can draw no comfort from the level of fresh instructions arriving in April either. Another quiet weekend just passed .
Zeus indicated last spring that they were expecting to see fresh instructions averaging 159 per day .That forecast is more likely to be way off beam by 20% more like 125 per day Certainly a drop sufficent to put them under water operationally
Maybe by the end of FY 22/23 all the cash will have run out ?
Yep -more invisible than Vic Ironic with a HR background her arrival has been best with employment contract problems .compliance issues key personnel leaving and not only that failed to achivehersuccession smoothly
No mission statement or plans April new instructions falling again -new regime on its way The big question is is it worth a punt at 22.5 p! FOMO
Should imagine they will be writing down their £3m investment in Boomin who are issuing new shares with new investors on board .
The branches must be cheesed off providing free smartvals to people who have no intention of selling their home but just interested to find out what it might be worth no matter how accurate it is
Redwine I agree only just satisafactory . With inventory down in March and April we are in for a rocky Q2 espeially compared to last year which was artifcially boosted by those trying to beat the stamp duty deadline
They need to start performing at the coalface
For example Tooting where the market is active with a high % of inventory spoken for: Sales Inventory 32 of which they have 14 in sols hands -total value under £9m
Winkies Tooting Sales inventory of 99 of which 62 in sols hands with a total value in excess of £30 m That is some difference
Acc. to ZPL unfortunately all looking pretty quiet on the sales and fresh instructions front The Central London offices barely breaking sweat with well under 20% of inventory away Many branches with under £10m value of properties in solictors hands Very few with over £20m of kit in sols hands which really should be the bare minimum
Branches at Blackheath .Dulwich Putney performing woefully compared to Winkies