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Real-Time news about Corsie Group (London Stock Exchange): 0 recent articles
perhaps he didnt like telling his mates his companies share price was 1.5p, perhaps he think they'll take him seriously when its 30p. he wont tell them he's lost half the companies market cap. well, it wont be 30p for long...5p around the corner.
|glencr: I may be making a fool of myself here but what the hell....
share consolidation = current 0.1 ordinary share x 20 = 2p - no problem with this but why is 60p mentioned on the rns as new subscription price? when 20 x the current share price is only 2.25 x 20 = 45p?
Can somebody put this confused person out of his misery please!|
|spurberry: What do people expect the share price of this to be by end of year. is this a short or long term play?|
|currypasty: Buy Corsie Group* at 2p
Says Luke Heron of the UK's leading small cap website WatsHot.com
This is a stock I have mentioned previously, but for various reasons I have not taken the full plunge and officially recommended it... until now. A quality growth stock that is also a penny share is a rare thing indeed. Corsie* is a well run, profitable group with bags of potential. Yes, there is a bit of debt, but the finances are well under control and debt is a good thing when it comes to funding growth. At 2p, the shares trade on a prospective current year multiple of just 6.6 falling to just 4 next year - that is cheap in my book. The stance is buy with an 8 month target price of 4.5p - and that's just for starters.
Set up in 1997 by former World number 1 indoor bowls champion, Richard Corsie; Corsie Group has established a leading presence as a provider of products to the worldwide leisure market. A broad strokes definition I know, but read on and I shall explain. Corsie's business operates in the UK (in fact, the wee filly and I pass its headquarters several times a week when driving through Haddington) and has a global customer base including markets across Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. Corsie hit the ground running, acquiring the operating businesses of Douglas Kenn Limited and Worth Sports Limited. The group currently consists of four operating divisions. Within each division, Corsie is focused on achieving growth both organically, and through selective acquisition of companies or businesses in the leisure market.
And so, as things currently stand, Corsie consists of Greengauge Sports, which distributes a variety of sporting apparel and equipment including lawn bowls clothing, athletic wear, equipment and accessories. Greengauge Surfaces distributes artificial grass and other synthetic turfs for indoor and outdoor bowling and tennis courts. Meanwhile, Spa Solutions is the exclusive distributor of Li'Tya Spa brand, and operates an online shop via the website - www.shopspa.co.uk. A growing distribution arm, which was given a big boost earlier in the year following the acquisition of Kaloss, makes use of the fantastic new warehouse space in Haddington, boasting deals with the likes of SkinScience, Henselite, Jackie Chan Green Tea and others. Corsie will inevitably take on further distribution agreements where it can offer our existing customers additional products within their respective markets. This is a business all about maximising the operational efficiencies within its new premises (they are very impressive - and yes, size does matter) . Good sales momentum will be quickly translated into profit as the new fixed overhead can facilitate substantial sales growth.
For the last full year to 31st December, Corsie recorded 15% growth in revenues to £3.62 million. On a continuing operational basis, a profit of £42,117 was recorded. Due to various exceptional items, a post tax profit of £1.159 million. I should state here that it will be a couple of years until profits on a normalised basis are at that level.
Anyhow, for the current year, pre-tax profits should comfortably reach £600,000, equating to earnings of 0.3p per share. Next year, I can see the company easily delivering profits of £950,000, and with no tax to pay, earnings will come close to 0.5p per share. Beyond that, the sky really is the limit. Crucially, Corsie understands the importance of using debt to grow. He clearly has great relationships with his bankers, who are quite happy to let the business' strong cashflow fund net debts of around £2 million. This debt figure will inevitably grow as there is no way any new shares are being issued at this price. But as more debt is taken on to acquire more businesses, the interest cover will grow, as will the bottom line.
Valuation and Conclusion
With a massive warehouse and an almost fixed overhead, we should see profits drop nicely to the bottom line as more and more distribution deals are announced. Richard Corsie is a clever and greedy man - as part of the Jackie Chan Green Tea deal, Corsie group took a stake in the actual UK based operation, which in turn took a stake in the actual green tea business. Richard is not only building a strong underlying business, but he is ramping up his asset base too.
A robust growth business such as this really should be attracting a current year multiple of 15. The management has a proven record in the delivery of organic growth, acquiring and integrating bolt-on businesses and delivering genuine asset growth. At 2p - the shares trade on 6.6 times current year earnings, falling to just 4 next year. A 15 times multiple suggests a target price of 4.5p for this year's profits and 7.5p on next year's figures. I really do like this company a lot. It's not perfect - I would like to see Richard Corsie effect a share consolidation, on at least a 15 for 1 basis - but even without a consolidation, we will see fantastic share price growth. Full year results will be out in late March - and so, at 2p, the stance is buy with an 8-month target price of 4.5p.
*Corsie Group is a corporate client of RSH, the ultimate owner of UK-Analyst.com.
Spread: 2.25p - 1.75p (22%)
Luke Heron is the editor of www.WatsHot.com, THE site for you if you are interested in fast-moving small caps. For more on Luke's site click here.|
|corrientes: Anybody got a clue why the share price of this dog has slumped so dramatically ?|
|silent_angel: Director bought about £10,000 worth of shares in this on the 6th June, and there was about £75,000 of shares traded that day, presumably people buying on the hope that as a director is buying, it's a good time to invest. But with a 37% rise, it immediately prompted a sell off thats taken it back to the price the Director bought at. It's a real gamble as to where the share price will go now, on the plus, the company is worth buying in at the level the director bought at, and we could be in for a rebound spike back up, on the other hand the share price has an overall down trend to break which is notoriously hard.|
|corrientes: Is this to attract some interest, a sign of confidence or(though I don't see why)to provide support for the share price ?|
|corrientes: and do you base that on the share price or is there something specifi you know about ?|
Corsie share price data is direct from the London Stock Exchange