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PIL Produce Invest

186.50
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Produce Invest LSE:PIL London Ordinary Share GB00B3ZGBY47 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 186.50 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
173.00 200.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 186.50 GBX

Produce (PIL) Latest News

Real-Time news about Produce Invest (London Stock Exchange): 0 recent articles

Produce (PIL) Discussions and Chat

Produce Forums and Chat

Date Time Title Posts
09/10/201808:23Produce Investments349

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Produce (PIL) Top Chat Posts

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Posted at 11/9/2018 07:27 by castleford tiger
PIL paid 15m for Jersey potato co back in 2014.
The share price was 260p

The winner here is the buyer as long term holders will have lost money.
I think they issued shares at 220p to buy JPMO.

Short term traders get a cash exit and the market expects this to go through.

Tiger
Posted at 04/9/2018 08:25 by castleford tiger
depends if they are in fixed price contracts.
On the farm today 300/400 ton
Could double to 800 during the season if the crop is as expected.
Basically a 25k sack of spuds today is costing retailers 12/13 pounds!
Tiger
Posted at 18/8/2018 08:33 by castleford tiger
IMPENDING massive shortages.

Good or bad for PIL?
These remain largely unchanged, though the unseasonal conditions in the first months of the second half underline the Group's exposure to adverse weather.

THAT SUGGESTS bad?

TIGER
Posted at 22/3/2018 10:37 by boonkoh
I see a pre emptied profit warning in the outlook statement. Daffodils suffering, missed key demand window this year. Jersey Royals crop also way behind schedule. Normal potato crop also suffering.Prices will rise but with worldwide trading price increases are limited as potatoes can be imported. Mgmt say FY profits will be broadly in line, but depending on the outturn of these three. I think they just don't have the guts to lower profit forecast now, and are waiting for a miracle.
Posted at 22/3/2018 10:34 by mach100
Same dilemna for me Jimmy . I bought at 230p and it has blighted my PF ever since a rise and a retrace. It does pay a divi so I am happy to have some (potato) skin in the game but the share price is trending down so you have to keep your eyes peeled! I woud be happy to let the share vegetate in my PF if I could be the sure we are at the bottom now. I will probably plough on for now but with a weary eye on the weather.
Posted at 22/3/2018 10:20 by jimmywilson612
Any thoughts on today's interim results? Havent had a chance to go through them yet - not been my best investment but don't know whether to leave the ship now or if its a good price.
Posted at 02/3/2018 18:49 by greg the grinch
Hi BB

The sell off started well before the bad weather.

Bad weather in the SE of British Isles but one-two week delay?
I cant see it destroying the crops.

I'm thinking of buying more but will wait until new ISA season.

I note on your BB thread you have removed your list of share? Any reason?

TIA
Posted at 28/10/2017 17:53 by pugugly
Why ?? Fair price Could this be why price moving down again?

" 20 October 2017 - Produce Investments plc (AIM: PIL), a leading operator in the fresh potato and daffodil sectors, discloses that Neil Davidson, Chairman of the Group, on Friday 20 October 2017, sold 130,400 Ordinary Shares at 192p per share.

Following the transaction, Mr Davidson no longer has an interest in the Company's issued share capital. "
Posted at 04/1/2017 17:09 by jon123
stole this from another board

By Edmond Jackson | Tue, 3rd January 2017 - 10:20

Stockwatch: Buy this share on the dips Last December's £633 million takeover of Fyffes by Japan's Sumitomo Corporation was frustrating in that I had drawn attention to it some years before, arguing that fruit and bananas in particular were a long-term growth market, even if Fyffes' stock performance was quite irregular and off-radar for most investors.
I then let it drop off the map, like most, but value was eventually affirmed by Sumitomo. So I wonder the extent of parallel with AIM-listed Produce Investments (PIL), a British potatoes and daffodils supplier, considering how the Jerry Zucker Revocable Trust (named after a late Israeli-American entrepreneur) held 11.8% in Fyffes, and last 7 December raised its stake in Produce Investments from 6.5 million shares to 6.9 million or 25.7% of the equity.

Such extent of ownership of a £47 million company means this trust is locked in, taking a long-term view until a trade buyer makes a move. Either that or the fund manager has special confidence in Produce Investments, currently priced around 175p at the high end of a two-year range of 120p to 190p, albeit down on the 300-320p range the stock reached in 2013 and 2014.

The volatility is explained mainly by variable cropping and a squeeze on supermarket pricing, but management says it has restructured to cope.

I should also clarify, hedge fund Toscafund did reduce its stake from over 10% to 4.1% last October to November, but at the same time asset manager Ruffer went to over 5%. So Toscafund takes a more sceptical view or believes in a better switch.

Double-digit profit surge

Produce Investments is "vertically-integrated", from growing seeds to processing and supplying major retailers and wholesalers. Key brands include England's largest fresh potato packer Greenvale, potato grower the Jersey Royal Company, anti-sprouting storage group Restrain and Cornish daffodil hand-pickers Rowe Farming.

The group hasn't updated on trading since September, when results for the year to 25 June 2016 showed a 4% rise in revenue to £185.1 million and a 14% improvement in operating profit to £9.2 million, helped by more stable retail market conditions. Pre-tax profit dropped 41% to £3.3 million, however, due to the closure of a packaging site in Kent costing £4.6 million and metal contamination causing a product recall.

The matter has been fully resolved and management has now created a supply chain model "more closely aligned" to current market conditions, which can also offset any fluctuations - the closure of a Kent packing facility has removed surplus capacity, for example.

When the chairman of 10 years retired last October, he said: "The business model is more resilient, more diverse and well placed to handle any pressures that it might encounter."

This coincides with supermarkets introducing fresh food price increases as competition eases from the discounters - as if Aldi and Lidl have borrowed from German government subsidies to expand, long enough.

Unjustified valuation

A forward price/earnings (PE) multiple of around 7 times is in line with the stock's annual average historic PE of recent years, although the rating should improve if management de-risks the business with more consistent results. The prospective dividend yield is nothing special at 4.5%, but forecast earnings cover this an ample three times. Yields in the region of 5% or more tend to be covered below two times, so this is yet another sign the stock is being priced cautiously in case of setbacks.

The table also shows a strong cash flow profile, some years in excess of earnings, which bolsters security of the dividend. Capital expenditure is obviously grabbing a share of this and management is on the outlook for further acquisitions, despite a lowly cash position last June. But the overall profile hints more at upside rather than downside, further supported by a strong net tangible assets per share value and operating margin improvement from 3.9% to 6.3% in the last financial year.

So, while Produce Investments isn't exactly an exciting new business and supermarket suppliers are usually a turn-off for investors, key financial metrics hint at a positive risk/reward profile at around 175p.

Flexibility for M&A

My chief concern is that management want to diversify into more food service providers and possibly venture into other markets through acquisitions; but the cash/debt position doesn't imply much flexibility.

At the last balance sheet date of 25 June 2016, cash had run down from £2.8 million to £0.7 million; admittedly after repaying £7.0 million of longer-term debt during the year. Short-term debt rose from £16.5 million to £18.9 million. This leaves net gearing of 35.4% with intangibles representing 31.5% of net assets and net interest charges clipping 11.9% of interim operating profit in the last financial year.

Fair enough, but the board needs to better clarify its funding facilities in annual results like this, especially when it entertains acquisitions as a key plank of development strategy. As things stand it will benefit from a fresh long-term debt facility. Even the 2016 annual report doesn't clarify the group's funding flexibility under present arrangements.

This is a side-step, but I recall Warren Buffett once disclosing how he'd taken out a low-cost debt facility in an annual report, because its terms were attractive and he wanted to demonstrate flexibility for acquisitions even though nothing attractive was in sight.

Weather chief risk

Management says it has upgraded its IT systems partly to cut the risk of failure - migrating to an external cloud-based provider from in-house servers - and doesn't envisage any major impact from Brexit in the short term, although immigrants represent a significant portion of the workforce - a risk if tougher controls ensue.

Weather is the chief factor management can't control, however, and any investor would need to be convinced that climate change won't mean freak weather upsets at key times for the business. But, as the 25.7% shareholder appears to believe, any drop in share price is an opportunity to accumulate for the long-term prize.

For more information, visit the website.

Produce Investments - financial summary Consensus estimates
year ended 25 June
2012 2013 2014 2015 2016 2017 2018
Turnover (£ million) 154 206 192 178 185
IFRS3 pre-tax profit (£m) 6 7.6 8.6 7.3 3.5
Normalised pre-tax profit (£m) 5.6 7.7 10.2 6.1 10.8 8.6 9.3
Operating margin (%) 4.4 3.7 5.8 3.9 6.3
IFRS3 earnings/share (p) 23.1 26.9 31.7 19.8 11.6
Normalised earnings/share (p) 20.4 27.3 38.1 15.6 36.7 24.3 26.4
Earnings per share growth (%) -0.2 33.7 39.7 -59.1 135 -33.8 8.8
Price/earnings multiple (x) 4.8 7.2 6.6
Annual average historic P/E (x) 7.5 7.4 7.9 7.2 6.8
Cash flow/share (p) 37 15.6 42.4 34.4 32.6
Capex/share (p) 12.5 12.5 29 13.6 14.3
Dividend per share (p) 5.5 3.6 5.9 6.9 7.2 7.6 8.3
Yield (%) 4.1 4.4 4.7
Covered by earnings (x) 4 7.8 7 2.3 5.2 3.2 3.2
Net tangible assets per share (p) 71.5 72.7 117 128 129
Source: Company REFS
PIL 167.25p -7.75 (-4.42%)
Posted at 28/12/2016 20:36 by glasshalfull
Forgot to post on this thread that I've been adding here.
Tweeted about it though a few weeks back in response to battlebus flagging the investment opportunity ;-)

@glasshalfull1
PIL (Produce Invetments PLC) owners of @JerseyRoyalCo - Agree, I've also been buying. PER only 6 & Div yield 4.7%. @Stockopedia Rank 98 !!!

Investors Champion also have it on their radar.



Despite staging a recovery in the last quarter of the year, the share price of Produce Investments (AIM: PIL), a leading operator in the fresh potato and daffodil sector, also remains well off historic highs. The Group is a vertically integrated potato and daffodil company encompassing one of the UK’s leading potato businesses in Greenvale AP Ltd as well as the Jersey Royal Company, the principal supplier of Jersey Royals, and Rowe Farming one of the UK’s leading producers of outdoor, handpicked daffodils. Customers include leading grocery retailers and food service companies including Tesco, Sainsbury, Asda, Waitrose and Marks & Spencer.

Price wars between the leading retailers have triggered significant pricing pressure throughout the entire supply chain, resulting in value and volume decline over the year which coincided with an exceptional growing season in 2014. The Group also had to manage the fallout from a metal contamination issue at one of the businesses, which saw a product recall.

Confidence in the future was illustrated by an increase in the final dividend to 4.775p resulting in a total dividend of 7.165p up approx. 5% on the prior year.

Forecasts for the year ending June 2017 are for a full year dividend of 7.625p which equates to a yield of 4.7% at the current share price (160p). It may not be the most exciting business on AIM, and with business reliant on the large retail groups it’s a tough operating environment, but the shares could still offer decent value at current levels.


---

Kind regards,
GHF
Produce share price data is direct from the London Stock Exchange

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