Conviviality Share Discussion Threads

[funkmasterp12] 08/11/2013 11:43

It's fallen over a bit this week but I remain long and bullish about the future here. It's clear they are taking decisive action to drop poor performing stores and LFLs are a big improvement - 0.6% versus -1.7% the year prior.

P/E at these levels is c. 11 with a 5% yield and Panmure have come out with a 222p price target. I still think 175p is fairer value here now with growth to come on further updates. Patience will reward here IMO.

[reggie123] 06/11/2013 18:40

Oh dear...so now this lot don't look too good

[solarno lopez] 06/11/2013 16:46

I fully agree PSYCHIC any blip and CVR is in trouble

[battlebus2] 06/11/2013 16:42

Hope you didn't use your special powers :))

[thepsychic] 06/11/2013 16:36

I just sold off after the interims. I think the margins are way too tight and there is not much room for error. I am not sure what will drive this higher until Jan.

[reggie123] 06/11/2013 12:52

New FD's having a wonderful effect on the sp!!!!

[funkmasterp12] 04/11/2013 08:03

Good update and great to see YoY LFL progress.

[battlebus2] 04/11/2013 07:36

Trading Update and Board Changes

Conviviality Retail Plc (AIM: CVR), the UK's largest franchised off-licence chain, which listed on AIM on 31 July 2013, is pleased to provide the following trading update for the 26 weeks ended 27 October 2013 and update shareholders on changes to the Board.

Trading Update

Conviviality has traded well in the period to 27 October 2013, and continues to perform in line with market expectations for 52 weeks to 27 April 2014.

For the 26 weeks ended 27 October 2013, like for like UK store sales growth was 0.6% which represents a marked improvement on the corresponding period in 2012. This has primarily been a result of a reduction in the number of underperforming stores and improved standards across the store portfolio. The business benefits from positive cash flow and had a net cash balance of GBP11.8m as at 27 October 2013.

The Company announced the acquisition of Wine Rack on 2 September 2013. Wine Rack stores are trading in line with management expectations, integrating well and performing to plan. A new Company-owned Wine Rack store opening is planned for 7 November at West Byfleet in Surrey which incorporates improved point of sale customer communications and refreshed branding. The Wine Rack website has also been updated in line with the new design and plans are underway to improve the range and customer experience across all Wine Rack stores before the important Christmas trading period.

The Company will announce its results for the 26 weeks ended 27 October 2013 on 20 January 2014.

Board Changes

Further to the announcement on 6 August 2013, Conviviality is pleased to confirm that Julie Wirth, Chief Financial Officer, commences her role with the Company today, replacing Peter Hodgson who has today retired from the Board following over 20 years of service. The Board would like to thank Peter for his contribution to the business and wish him all the best in the future.

Diana Hunter, Chief Executive of Conviviality commented:

"We are pleased with the performance to date. Like-for-like growth in store sales is encouraging and reflects signs of underlying improvement in the core business. This is a result of the increased focus of our Franchisees and a better quality store portfolio, combined with a number of new incentives successfully introduced during the period.

Wine Rack has bedded in well and we are already seeing the benefits from this acquisition. The Board looks forward to further progress and growth across the business in the second half.

On behalf of the Board, I would also like to take this opportunity to welcome Julie to the Company."

[funkmasterp12] 03/11/2013 23:07

Should be an IMS in the morning if the Shares article is to be believed. GLA.

[thepsychic] 31/10/2013 01:45

Panmure Gordon initiated coverage on Bargain Booze owner Convivality Retail (CVR) with a target price of 222p. The broker feels that Conviviality Retail is a highly scalable franchise business operating in a niche segment of the growing convenience store market. Furthermore, Panmure argues that the current share price does not reflect the multiple growth opportunities which Convivality benefits from. The shares inched up by 1p to 170p.

[funkmasterp12] 29/10/2013 15:17

4th Nov is the next IMS. Beyond that seems currently unknown.

[thepsychic] 29/10/2013 15:16

Does anyone know when the results are due?

[funkmasterp12] 24/10/2013 09:20

Hopefully! 180p is, for me, a sensible target by the end of the year unless we see EPS upside to the current consensus (I note Oriel have come out with a 175p target).

The P/E is bordering on sector average at the current levels but hopefully the lofty dividend and growth potential will attract income investors in after the statement, assuming everything is on track.

Would be good to get other's views on their short and medium term targets here.

[battlebus2] 24/10/2013 07:32

Great thanks FunkmasterP12, should see us reach new highs.

[funkmasterp12] 24/10/2013 07:26

Aha. Trading update 4th Nov according to today's Shares Magazine who also tip CVR a couple of times.

[funkmasterp12] 21/10/2013 08:58

Hmm Morningstar was wrong about the IMS date (not the first time to be honest). Unless it was a w/c date or something.

[rolo7] 17/10/2013 19:40

added a small amount today, world cup next year may bring increase in sales in june/july 8p divi also so says the admission document.

[battlebus2] 17/10/2013 15:18

Yes great to see new highs.

[thepsychic] 17/10/2013 15:18

interesting times! We have seen a massive increase in volume over the past 2 days.

[funkmasterp12] 17/10/2013 10:51

IMS due Monday I think according to Morningstar.

[funkmasterp12] 17/10/2013 09:42

New high this morning! Retail Sales up 0.6% in September according to figures just out.

[critch16] 16/10/2013 12:21

£760k worth of trades this AM. Hmm

[battlebus2] 04/10/2013 10:21

Thanks nichol65.

[saucepan] 19/9/2013 12:59

I should not worry. It is on low volume and the stock is clearly a low beta stock.