|Blavod Extreme Spirits
||EPS - Basic
||Market Cap (m)
|berny3: I would not be overly concerned about fluctuations in the share price over the short term. There is a lot going on with the company and its products.
|altcell: You can't react to every share price move like it's the end of the world ... unless of course it is!|
|fegga: keep up the good work charaxes, there's a limit to the effect my consumption has on the share price :)|
|petersinthemarket: Whilst a little more detail would have been interesting, I believe the summary provided by BES directors demonstrates impressive progress in the company's turnaround. I find it significant that the report uses the expression ''monthly break even'' (rather than annual) as this implies that we may be able to expect a return to monthly profit before the end of calender 2014 and perhaps a small net annual profit at the end of financial year 1Apr14-31Mar15. IMO the development of ''new concepts'' to add to successful existing brands, international market targeting and innovations such as the popular ''rum shacks'' shows a spirited (sorry!) effort on the part of the board of directors. As it is ultimately eps that drives the share price, ''financially robust'', effective cost control and a reduction in low margin business tells me that this BoD means business. All in all, the company prospects suggest this stock is still too cheap and I will be looking to add as soon as I can free up the necessary capital. Pete.|
|aim999: We no doubt hear soon how trade has been over Christmas..... I'm expecting a good report & more importantly good plans for 2014 ............... onwards & upwards for the BES share price|
|glennborthwick: agreed. im sitting on a nice avergae of 1.32 so 3p would be lovely.
If you liek this type of share keep an eye on pipehawk. PIP.
Another tiny market cap but profitable on an operating level. Next results should see share price double|
|sueyou1: Nice one! Let's all drink the share price higher! :-D CHEERS!|
|sueyou1: aim999, that seems a reasonable MCap to me once BES is profitable in Q2 next year.
We are due sales in the USA following the double gold award, I think it takes time to get these kind of deals completed but just imagine a deal with Wal-Mart for example, it would be huge. Even the smaller USA spirit sellers could still be as big a deal as Tesco.
I don't think BES will be sold lock stock and barrel, I think they will sell the brands separately as each becomes attractive to the big boys. For example Red Leg is doing amazingly well for a new brand, so when it starts really eating into the big boys sales then you will see the big boys paying attention and wanting to take it out for two reasons, 1) to claw back the sales it has lost to Red Leg and 2) to have a product that eats away at it's competitors products. The buyer may not want the other products at the same time, they would let BES do the donkey work and then, if the sales get high enough to warrant the big boys selling it, then they would acquire that product. The RNS says so much in relation to selling brands rather than the whole company.
Suppose they sold Red Leg for £15m, they could pay us all a nice special dividend of more than the current share price and still have a stack of cash to develop new products or acquire other 'cottage industry' products to develop.|
|lanzarote666: An interesting day.
I agree with you Berny, this is an excellent long term prospect. But there are those that are fretting over the whip-saw movements in the share price that see it up 30% one week and down 25% the next, regretting entry points and exit opportunities.
It seems like people are keen to bank a quick profit and that is fair enough, but this is a £4.0m company and I am more interested in seeing it become a £25m company so will accept some short term fluctuations.
Let us remind ourselves that BES have an ex Diageo man that knows how the game is played. You develop your own brands, have some modest success in Australia to prove the product, increase the supply. Win some awards for your main product, get the distribution right and then raise some cash to fund the growth with the confidence that there is a demand. A bit of PR and a couple of the majors on board and this could fly if the public like it.
Nice story, but they still have to deliver before a bigger player takes them out - and that wont be short term.
Once the short termers are gone we could see rapid movement, with pull backs as they raise more cash to fund more growth. Enjoy the ride.
Patience is one of my best investments.|
|sueyou1: I said BES was on a recovery, now I believe that the profits BES can see coming along for Blackwoods has spurred them to take the brands before they have to start sharing that profit with the former owners. Why else would you go for it at this time ;-)
Someone else has cottoned on to the BES recovery ;-)
By Steven Moore - Friday 31 May 2013 - Blavod Wines & Spirits (BES) is a company I have long, very disappointingly, followed with it continually apparently having been on the verge of a turnaround but never really delivering. I write on it today as it has announced the acquisitions of brands Blackwood's (gin and vodka), Jago's (vodka cream liqueur) and Diva (super-premium vodka) and the signing of a three year agreement for the distribution in the UK and Ireland of its portfolio of owned brands with Hi-Spirits Ltd a multi-brand distributor formed in 2002.The moves reflect a strategy to be focused on owned brands and brand development and marketing rather than committing resources to continuing to build its own UK sales and distribution network. Blavod notes that although there will be one-off costs associated with exiting these activities, "over the longer term the company expects the reduced cost base will improve margins and profits". The company has been distributor for Blackwood's, Jago's and Diva since 2008 and is now paying £50,000 to acquire the former and a nominal £1 each for the two latter. It specifically notes that in "the year ended 31 March 2012, the Blackwood's licence was responsible for £358k of sales net of duty and £102k of contribution".More recently, the company reported an underlying loss of £191,000 for the six months ended 30th September 2012 and ended that period with net debt of £1.10 million. It has however subsequently, at 0.75p per share, converted £0.44 million of debt into equity and completed a net £1.14 million placing which it stated in the results announcement means "the directors believe that the company has sufficient working capital to implement its strategy". The company explained the last results reflected that "delays in securing the recent refinancing have similarly delayed the implementation of the plan to develop our own brands" and that "market conditions remain difficult as many retailers aggressively price promote to secure sales. However, premium brands are performing well in many categories and are showing promising growth".At a current 0.90p share price, Blavod is capitalised at just £2.75 million. The company has to now prove its new strategy but now led by Don Goulding, a former senior executive of industry major Diageo who increased his involvement at Blavod into an executive role on the departure of the company's Managing Director in late 2011, this is at last perhaps a version of the turnaround promise worth monitoring.
Blavod Wines share price data is direct from the London Stock Exchange