|Canterbury Foods Group
||EPS - Basic
||Market Cap (m)
Canterbury Foods Share Discussion Threads
Showing 526 to 545 of 550 messages
|this is a total write off,yes|
|Sympathies to holders, perhaps this will help re the future.
Allders, Courts, Railtrack, and now Kookai franchisee Forminster (LSE: FORM). All these companies have gone bust in recent years. For me, the demise of
these companies merely confirms the assertion that investing in shares can be risky. Some companies will fail, and your investments can become worthless
Unfortunately, there are no electronic devices that you can buy that will alert you when you approach a death trap. Instead, it is important to regularly
monitor a range of vital signs which can provide early indications that a business may not be performing as well as it should. These include deteriorating
financial ratios, declining margins, shrinking shareholder equity and heavy dependence on short-term financing.
However, in my view, the biggest problem of all is debt, which, more often than not, can provide the killer blow to most businesses. For shareholders,
there is nothing worse than watching a company struggle to meet its borrowing obligations. But how can you tell if a company has too much debt?
By and large, the best way is to check a company's interest cover. This ratio is calculated by dividing the company's earnings before interest and tax by
its interest bill. The lower the ratio, the more the company is burdened by debt expense.
As a general rule of thumb, when a company's interest cover falls below 1.5 then its ability to meet interest payments becomes questionable. Additionally,
an interest cover of less than 1 indicates that a business is not generating enough operating profit to even cover its interest payments!
A quick trawl around the market reveals a few interesting examples of companies that may be too heavily indebted. Plant-hire firm Ashtead Group (LSE: AHT),
which is valued at £740m, has borrowings of almost £500m. Last year, Ashtead paid out £42m in interest, which ate up a huge chunk of its operating profits
of £58m. While interest payments were covered 1.4 times by operating profit, there was nothing left to distribute to shareholders after taxes were paid.
Invensys (LSE: ISYS) is another company that is barely generating enough operating profit to cover its interest expense. Last year, the engineering company
reported operating profits of £175m, of which £136m was paid out in interest. Elsewhere, car dealer HR Owen (LSE: HRO) looks ready to blow a gasket with
interest payments covered just 1.3 times by operating profits. And the result of failing to make ends meet was spelled out by sausage maker Canterbury
Foods (LSE: CBY). With an interest cover ratio of just 1, a modest downturn in sales quickly tipped the food producer into administration.
Of course, not all companies that skate on thin ice will end up in bankruptcy. Provided a business has enough disposable assets, a company can survive
until revenues and margins pick up again. However, given that investing in shares is already risky, prudent investors could do a lot worse than to steer
clear of heavily indebted companies especially given that there are plenty of healthy businesses on decent valuations to choose from.|
|Yesterday, however, after handing over control of the business to PricewaterhouseCoopers' corporate recovery team, Mr Ainsworth and other managers bought back its main operations via a new company called Medway Foods for an undisclosed sum.
Why was the sum undisclosed, unless it was some sort of p*sstake figure?
|tough i say...if they choose to invest in a bad product its their bad luck..the writing was on the wall...move on and stop whinging|
|How convenient, blaming it on Jamie Oliver. It's a WHELK STALL rip-off, Cheltspy. This sort of collusion between directors and creditors at the expense of shareholders has happened all too often.|
|What a rip off, the CE gets the company. Medway Foods.
There are some question marks here.
1. Did the bank actually remove support totally?
2. Was the company in a insolvent state for administration, given it just been handed £4m?
3. Could the company have traded in administration for a better offer for its businesses?|
|Jamie effect finishes school meals firm
Thursday January 5, 2006
Canterbury Foods, maker of processed goods for school canteens and fast food caterers, has been broken up by administrators after its directors failed to persuade its bank they could recover declining sales - in part blamed on Jamie Oliver's campaign for healthier school dinners.
The company, which makes cheap burgers, sausage rolls and other pastries, had been in the midst of a radical review which had seen the workforce more than halved to 270 employees. A factory in Hackney, east London, had been shut and the firm's meat products business was sold last month for £4.5m.
Administrators were called in on Tuesday after talks between chief executive Paul Ainsworth and Canterbury Foods' bankers broke down. Yesterday, however, after handing over control of the business to PricewaterhouseCoopers' corporate recovery team, Mr Ainsworth and other managers bought back its main operations via a new company called Medway Foods for an undisclosed sum.
He was not available for comment yesterday, and the buyout team's backers have not been disclosed. He became chief executive in 2003 and presided over a £6.2m placing the following year. By September last year, noting disappointing sausage rolls sales, he said: "Schools are looking to change the way they are doing things - and that obviously does have a knock-on effect on food manufacturers such as ourselves ... we have got to come to terms with it and find other products."
Canterbury Foods also lost a major contract last year and blamed European rules for the rising cost of certain meat, particularly pork. The company had net debt of almost £20m in September last year.
Joint administrator Ian Green, from PwC, said the sale of three plants - one in Bridgend, South Wales, and two in Kent - would safeguard 200 jobs and maintain vital customer contracts. PwC is hoping to sell its remaining plant, a sausage factory near Bristol, as a going concern.|
"joyridder - 23 Dec'05 - 00:53 - 232 of 261
Deramper Elsworth will be hiding all day.....this is set to explode without notice."
I hope in future some notice/respect is given to level 4..........it was a no brain total loser!!...as i indicated weeks ago, this stock was worth a quick 10 minute daytrade at .0020p
Hope it helps
Professor Marcos Van Shagger.........OBE MSC LLB PHD JPEG MPEG MP3|
|Commiserations holders. With practice you do get better at sniffing the smell of doom.|
|lol onlyl what can be expected after my massive LGB and now small RAF disaster.
Highbury House at last got what it deserved too, considering they multibagged massive when I was piling into LGB and missing out.|
|Joyridder - I'm sorry to hear that, and a curse on those who are mocking you now.
Best of luck with any future plays, but keep away from obvious dogs!!|
|joyridder feeling suicidal at the moment, missed out on jumping ship yesterday I knew the axe was coming....lost this one five grand now in the bin.|
|What a stitch up!
I understand that the FD and MD have lead an MBO for all the profitable parts of the company as soon as CBY was put into administration and this has been approved.
Shareholders done over!!!!!!!!!!! Suppliers done over!!!!|
|JOYRIDDER - where art thou!!
Man, you should be honorable in defeat as well as in victory.
Oh, could you pls advise me of the next multi bagger, so that I can short it and then get out before it goes bust.|
|Joyridder - where are u???|
|I see ther's no sign of JOYRIDDER now!! LOL|
|ignore the RAMPERS follow the fundamentals|
|I said this company was on its death bed. (post 240)
Unfortunately there are always people like joyrider who fail to see the wood from the trees and continue to ramp.|
|yes, dell 35,000 shares, last week on the 29th.|
|If you short and the company goes bust, my understanding is that you still lose everything!!!|