Coral Products Share Discussion Threads

[clocktower] 24/2/2015 10:04

So, this are not now as bad or so JG seems to say now. So if the loss will now be only £200k and as stated in RNS that group profit is only marginally behind budget. Why did he need to loan £200k taking security on equipment?
Why did he buy 100k of shares just before this new information that seem just to be to support the share price (as it did it seems).

However, he fails to update on container contract - he is still looking for additional tack on business that might not work out as well as the last - is this why he wanted the share price back up and has issued this RNS.

"Chairman Joe Grimmond commented: "Whilst the board is aware that much remains to be done, we believe that the robust performance of the Group during the past difficult quarter supports our confidence in our strategy and our belief in the prospects for further growth.""

Well his actions and cherry picking of info fails to provide me with confidence I regret to say and neither does his actions of loaning funds and taking security rather than not paying the divi in April if that short of cash.
CT.

[charo] 19/2/2015 16:16

Hume capital.

[rp19] 19/2/2015 09:47

Hello all - can anyone point me in the direction of any broker note? Thanks

[playful] 19/2/2015 09:18

In Joe we trust!

[charo] 19/2/2015 08:07

How reassuring must they be.Profitable during period of massive disruption.JG had balls to replace ceo and production director and continue tooling and capex in spite of problems.With profits narrowly behind budget looks likely 1 million for year,broker note 1.2,before loss of media contribution. Assuming 250k in quarter interim well covered and scope for a substantial increase on full year div with little tax to pay .
With no contribution yet from retail contract or new food packaging ,see interim ,I am looking for 1.5 million next year.20 p share price and on 4% yield o.8p div around 3 times cover.dyo

[topvest] 19/2/2015 07:42

A slightly more reassuring update today. Just need the online retail crate contract to come through now.

[topvest] 07/2/2015 16:25

Yes, I think he is doing all the right things. Hopefully, things will improve this year.

[charo] 07/2/2015 09:32

valhamos
Spot on and with a new management in place at the long loss making haydock facility,turnover circa 13 million,we can only expect further progress.Worth noting jg immediately informed the market of the worst position,then having acted decisively in attacking the problem plugged the cash gap,followed by the better than expected reduction in overall loss.Transparency in action.
Again when jg first took interest in coral share price was 4p and market cap was 800k.

[valhamos] 06/2/2015 19:24

clocktower.

Thanks for your comments. However I think you are being too pessimistic.

It might be worth re-reading the outlook section in the half-year report published just 2 months ago.

We are pleased with the continued improvement in performance of the Group. We have now diversified away from physical media products into food containers and trade moulding. Despite the tight market conditions with price increases remaining difficult to implement, the Group has managed to improve its margins and operating costs and maintain its positive momentum. Progress with our new on-line retail customer has been slower than we would have hoped but we are working towards a long-term relationship which will afford benefits to the Group with new markets and improved products.

The Group has maintained a strong balance sheet and managed to substantially reduce its gearing which gives it a foundation for development and growth whilst enabling an improvement in returns on capital employed and to its shareholders. The Board continues to have confidence in its strategy and believes that growth can be achieved in future financial years.

Now obviously it needs to be read in conjunction with the later announcements of a £300k bad debt. But that bad debt was in the part of the business that was fast disappearing anyway. The underlying case for growth for the rest of company that this outlook makes is surely intact?

[charo] 06/2/2015 14:50

clocktower price up by a fractional 14% and will I am confident slowly recover as effects of debt are seen to be not consequential and as current trading washes through.No suggestion that second half significantly worse than first,
every indication that interim will be paid no announcement to contrary.

[clocktower] 06/2/2015 14:25

So since JG`s loan and his purchase of 100k @ .089 the share price is now a fraction higher than it was before the RNS about the revised £300k loss. However, will this hold when the results are announced?

Will any investment in CRU now just be dead money sitting?, as the prospects for any real growth in the share price must be very limited indeed .

Good Luck though if you have been any of the buyers following through on JG purchase.

[topvest] 05/2/2015 20:45

Nice bounce today. It was a good entry point below 10p if this all works out as we all hope it does.

[valhamos] 05/2/2015 09:53

I think JG is doing an excellent job here and do not believe "he failed to keep his eye on the ball".

[clocktower] 05/2/2015 09:03

charo, I note you comments and accept that JG had turned the business around but as the history of the thread shows, I became concerned when JG made it clear he wanted to run before walking by pinning on new business one after the other if it had not been for difficulties encounted. In doing so I think he failed to keep his eye on the ball by allowing clients the ability to jeopardise the whole business by default of payment. If there is another customer of this size or larger ? Would they wipe out the business and put it all in JG hands as he has the security over much of the valuable equipment, if they were unable to pay?

What difference to him if the share price is 3p or 10p at this time, if his one aim is to return value to Pi`s along with his own investment of time and funds.

So at this point in time he has failed PI`s as the likely-hood of reasonable growth in the value of the business (sp) is very limited imo.

[briangeeee] 04/2/2015 21:51

Agree that the company's on the right path under JG, and it was a great pity about the recently incurred bad debt. Very difficult to avoid in a competitive and declining market.

[topvest] 04/2/2015 21:22

Patience needed, but really hopeful that 2015/16 will be better after a transitional couple of years.

[charo] 04/2/2015 17:54

Clocktower come on what failure.JG has turned this dying business,loss makimg for 7 years before he joined,as a nonexec mark you,into a growing profitable business.Untill dec 2014 the fersters still ran this company with full executive powers and JG has only been able to push through changes starting with their removal since November.He has acted quickly and with a degree of ruthlessness in reshaping haydock.
He has taken on reluctantly but with great energy the chief exec role and I believe much will change under his leadership.Having raised money to buy tatra will do all he can to deliver on statements made during fundraising and as shown on the most recent brokers note. The previous management allowed the vdc debt to build up not on jg watch.

[clocktower] 04/2/2015 13:36

"It is the board's intention to pay an interim dividend of 0.2 pence per share to be paid in March 2015 "

It was stated the Board "Intention to pay" - so not fully committed but I think they may stick with the intention but imo that will be the last one for a long time IF it is paid at all.
CT.

[rohkap] 04/2/2015 13:12

they do owe him for stepping in but he's getting a reasonable return for a short secured loan.

Does anyone have any thoughts on the interim divi? I haven't seen any information on ex-div dates so wondering if they do have the ability to 'cancel' it.

In terms of supporting the share price, the biggest help would be an announcement that the contract has started in earnest

[clocktower] 04/2/2015 13:08

playful, You may like J.G along with the HMRC for example but do you like failure? :-)

[playful] 04/2/2015 12:56

I like J.G

[clocktower] 04/2/2015 12:36

I think it is a case of supporting the share price and bear in mind that the company is indebted to him with security held on a whole range of equipment. He could at some point take over if everything goes sour I expect.

[rohkap] 04/2/2015 12:04

JG share top-up. Sign of faith albeit small but still a sign of faith!