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Despite the recent fall in SP, the price is still 150% up on the year. They have done well on increasing sales but there seems no prospect of them breaking into profit this year or next. Their borrowings are very high and without profit will remain high in this very unsettled financial period, leaving no margin for error. I am now inclined to reduce my holding and realise some profit. Still heavily involved with KWS & SCT.
The owners still have 66% of the total shareholding, so any bid would need their agreement. With a market cap of around £265m and gross assets of £47m, buyers would be paying for a lot of unrealised expansion and profit. On normal days, I notice that there is very light sharedealing - may be because of the owners high shareholding. Still - interims due on 22 Feb.
HELP / ADVICE REQUIRED!!! Could not take up the rights issue, so it lapsed. Noticed in the RNS that he 'unsold rights' or rump were sold on 21 Dec at a premium. Will I get any money out of this, who pays and roughly when will it be paid? Is anybody in a similar position.Thanks in anticipation.
There are some similarities with the rise in share price after the floatation of Fevertree Drinks last year. The SP is anticipating strong growth in the next few years. I trade thro HSBC and can not get any shares - even at this price!! Personally, I will leave it to settledown for a week or so before I consider buying.
Brothers, who do all Fevertree’s bottling, are buying new bottling facilities in Shepton Mallet from C & C (cider). This will help to cope with increasing demand for Fevertree products. Marstons are also now stocking some Fevertree products in their pubs. Hotel Chocolat is proposing to float on AIM very soon. Another high quality & popular product (with the wife). I wonder if this will do as well?
Had a word with the manager of Morrisons, who says that they will be getting Fevertree in as soon as they run down their stock of Dandelion & Burdock. However, they do sell it on line or at Waitrose and Sainsburys. I couldn't get into my local Morrisons to check 'cause they had just had a loose coal delivery which was blocking the main aisle. Do your own research - look where its got me ...
I have held these since Aug 2015. Have been concerned about the big increase and whether I should sell and take profit whilst it’s there. Basic figures including the PE & Mkt.Cap are abnormally high given the lean setup of subcontracting manufacture & bottling. However, research on Morning Advertiser (Licensed trade paper) confirmed that the soft drinks trade is going through a large uplift. Pub customers may be going less often but they are spending more per visit, particularly in food led pubs. Customers are seeking ‘premium’ soft drinks such as presse and exotic fruits. 20% of people are tee total for a variety of reasons! In my local Tesco, they now sell Fevertree tonic, bottled green tonic, Schweppes, Britvic and their own finest brand. In my local – a Marstons 2 for 1, a lot of new soft drinks have appeared in recent months. ... and in the middle of winter! So, a big increase in demand. Investec have today given a price target of 700p (+27%) on today’s SP of 551p. There were 236K buys and 143K sells as a result of this and a general uplift in the market today of +3.6%. Am hanging on for a while to see if we get back to 600p+
Invested back in August 2015, mainly due to the excellent tasting tonics & upmarket sales pattern. Now getting concerned that I should take profit with the incredible increase in SP. Reasons: The Market Capitalisation is £660M but they have Gross Assets of only £67M due mainly to the fact that all mixing & bottling is subcontracted to Brothers Drinks in Somerset – they are also a shareholder. Only 30 staff employed! Even so, their profit margin is well above competitors BVic, NICL & BAG. Current PE of 200 dropping to 50 when they hit their profit target for this year. Still double/treble that of competitors. For these reasons it is difficult to see a buyer coming in and paying the Mkt Cap let alone a premium over this. Had a similar thing with AO Online when the SP rose very fast after the IPO and then an analyst raised concern, forecast profits slipped and the SP virtually halved in 2 weeks. The interims stated a sales increase of 62%. I note the recent company statement that said the full year will be materially ahead of expectations (? 57%) – all from selling tonic water with fresh ingredients sourced from Central Africa. Hope the bottling plant can keep up this pace and has spare capacity for more growth over the next year. ALL IMO and would welcome views.
A good mover this year till 1st. October - now down 11% from peak. The sector seems to have started falling a few weeks earlier, no doubt due to caution expressed in other company Interim Reports. Now looking to reduce this holding and reduce others held in sector - ELM, CAR, YULC. But - am I right? Can't seem to find much reason to hang my hat on. Any advice? Is a Q 3 statement due soon?