|Big Food Grp.
||EPS - Basic
||Market Cap (m)
Real-Time news about Big Food Grp. (London Stock Exchange): 0 recent articles
|factsonly: I hope the management don't get some stupid big pay-off after driving the share price down so much. Although I wasn't in for the big southerly ride, I feel for the guys who did.|
you forget that one of the main problems faced by BFG over the past three years is the way store manager's have been straightjacketed by the "control" brought in by Hoskins and Grimsey. Sure that needed to be done given the state the business was in, but sadly the over cautious approach meant store managers were unable to trade the stores, something Iceland had always done very well.
Further, in excess of £50m was spent on IT systems, the majority of which showed no return due to an ineffecive strategy of trying to merge businesses with little in the way of common processes. Some SAP was implemented at massive cost, and IT was outsourced to Pink Rocadde for MORE than the current runing costs. Hardly wise investments for a business in recovery and something the IT Management and the board should be ashamed of.
With little in the way of cultural and process synergy these investments have resulted in changes which do not support the need for a business like Iceland to dynamically respond to changes in the market. This is why Malcolm Walker could be good for the company - he won't put rigid controls in - sure at some point they have their place, but not when you need to trade your way out in a fight.
So is it a fair deal? Well yes, because the current regime have destroyed the business through their approach. Only months ago Grimsey was bragging about return to shareholders as the share price reached 188.The fact is in the years he has been in charge shareholders have seen a negative return on their investment for which he will have received in excess of £5m incuding bonuses.
Now, were in not for the costs associated with the group structure, IT investments, refits etc, the group would actually have an operating proft some £25m higher........on that basis if Iceland can trade its way out, it does beg the question of what sort of profit it could generate.
As an investor I'd quite like the opporunity of staying in - however given the option of taking 95p or letting Grimsey continue down a path of poor investment choices, poor strategy and wasted money, Ill be voting yes.|
|factsonly: Maybe someone should pose the question to management "How much money do you expect to receive yourselves (excluding share sales) from completing the deal despite the slide in the share price?"|
|kingdwg: old crow
Haven't really looked at it, didn't know it was an issue with sof, perhaps faxxer or Bigface know. Seems a popular reason these days if someone wants to knock the share price.|
|sikhthetech: The pension situation and costs control should become clearer this Thur when BFP announces their results.
However, if BFP split Iceland and Booker isnt the breakup value more than the current share price.
The other factor which doesnt really have a monetary value is the sites. Icelands have some very good locations which some of the larger players would die for. With Bauger increasing its stake in Somerfield, there maybe a possibility that they will bid for BFP, which in turn will push up Somerfield's price. Then Bauger can make some money out of selling its Somerfield stake. Interesting but who knows what tricks they have up their sleeve.
I think a bid of 110p will reveal other buyers and may push the price up to 140p mark....|
|bigface: In a way I hope not Old Crow as Grimsby has a longer term plan and I don't want a them to do an "Abbey" to their shareholders. The refurbished stores accelerating Woodward and Premier expansion should stop the rot.
The balance sheet is stronger than it was, but a merger with a lesser geared company would make sense. I would have put SOF and BFP together years ago.
9th July 2003
- Tobacco -4.5%
- non tobacco 1.6%
SHARE PRICE JULY 9th 2003 84.12p
8th October 2003
- tobacco 2.1
- non tobacco 1.6
SHARE PRICE October 8th 2003 110p at close
Sales are down overall again by OVERALL 0.5% in July 2004 and the closing price today was 83.5p.
If October Sales improve as the did to 8th October 2003 then 110p is likely|
|bigface: Yes thanks Flatty - SOF & BFP look interesting as ever!!
Strange there is no price shift, perhaps they are going to bid for BFP afterall.
In terms of the % of shares in issue trading volumn is as high here too flatty. Perhaps my proposed link is not as unfanciful as some think.
Still holding on here obviously believing that (subject to a general market crash) 80p is far enough. The behaviour of the BFP share price reminds me of the last roller coaster. I made a packet and expect to do the same again.|
|bigface: The bottom is a difficult thing to call my feathery friend, but Booker should be capable of 40m all on it's own. From memory Iceland paid 10 x annual earnings for Booker which was about 360m. The balance sheet has suffered since, but the Tangible Assets Values are improving.
Booker should be worth BFP's market cap on its own, but put BFP and SOF together and we have a much improved balance sheet for BFP and a lower PE for SOF.
In short BFP & SOF fit and I have always considered a merger a real possibility. Similar customers and ethos too.
I sold SOF (even though rate them to go higher) and switched into BFP big time because I see SOF bidding for BFP and as a consequence SOF's share price suffering in the short run.|
|nipster: What now for the BFP share price????? hold or sell???|
|bbfifi: Just received ADVFN newsletter, it mentioned the fall in BFP share prices was due to profit taking. There is nothing to worry about! I'll hold.|
Big Food Grp. share price data is direct from the London Stock Exchange