LBG, yes a very good move for RGD and one that could see the share price rise I would say. Question....! who would buy them and why??? doom and gloom for most in sugar by the sounds of it.... come on I need your "positive" spin on this to help me out.... TB
They are dependant on British Sugar, as red tractor (BS only) goes to ASDA (albeit in a WW pack) it's a constant battle (but remember BS rely on them too, as they buy such a large volume) and can't see that changing anytime soon.... if you study the EU/World sugar market you will know EU prices are massively down YonY, so home grown material is the most competitive and easiest to handle/move, Imports are stopping (from the world market to the EU) not that Napier can get them easy, but if they can, it's just not worth it. So as things stand (unless I'm missing anything) they are basically trading a commodity item and the price is thundering down to record low levels, this makes it very difficult for a trader to make margins, 2012 & 2013 prices had been dramatically higher, my worry is that as the price floor is seen, the entire market loses value and makes things incredible difficult. A return to profit is a big statement, which I will be keeping a close eye on....
Brill, thanks for that.... I know lots & lots about this company and the market they trade in, hence the negative (as you say) opinion - but I would call it realistic. My worry is the "real" position on all this, which I will not go into detail on as you will just say I'm being negative and I think your positive view is interesting reading. GL though and I have my fingers crossed for this business, not for investors though, for a very good reason that's a little bit more real world shall we say. Quick question, why are they not tied in anymore? (I assume you mean to British Sugar?) they are still a large British Sugar customer and will be for some time I would say.... P.s. why COO gone and no announcement? I guess you answered this in your SP explanation though hey....
Consistency is key!!! If you want something positive to read, look on linkedin and search for a person called Gino De Jaegher.... very interesting read, given his past.... My 4th post now.... whoop whoop just for the record, I want this company to do well, don't understand the share price, announce a major loss (negative) and the share price rises, very odd - please let me know how that works....!!!
Loads can happen in 14 months!! this is a bit out of date now.....
They're fighting a major UK supplier, both to them and the market - so no doubt a bit of negativity is out in circulation. The horizon doesn't look pretty, but these guys have got through bad times before, with good strong directorship and management they can get through it (if they no doubt lose against BS) but it's going to get ugly first I think. This is as positive as I can be I'm afraid LBG.... one more positive thing, at least the share price isn't 2p like it was a few years back, it was tough then too.... trust me.
I agree with plumcharlie, Immingham is an overhead to the business, sugar is readily available in Europe (deregulation in 2017 is causing immediate market positioning by the big boys) so this OH is going to pull Napier down and effect how competitive this sugar trader is in the short term, only life line is the other group companies keeping them going, but the next 6 months is going to be very interesting indeed..... as I understand the British Sugar issue, has only hit half of the FY results, what could be the impact on a full year.....