Fonebak Share Discussion Threads

[source] 26/6/2007 19:26

Interesting news today regarding management incentive plan i.e.

The performance criteria under the Executive Plan are that, immediately
following the announcement of the Company's results for the period ending 30
June 2010:

* real annual growth in earnings per share for the Company, measured over
a three year period from 1 July 2007 until 30 June 2010 is equal to or in
excess of 5 per cent.; and

* the market value of an ordinary share in the Company (as derived from
AIM) is no less than twice the market value of a share at the close of
business on 25 June 2007 (being 55.5 pence per share)

In economic terms, the senior executives will be in a similar position to a
holder of options at 55.5 pence per share.

[source] 22/6/2007 23:04

signs of life? :)

[source] 10/6/2007 12:05

Quite severe falls on top of already severe falls earlier this year...Seems the fuzzyness of the debt side of things may be causing confusion in the market.

However the management say the banks are with them and cashflows are strong...time will tell.

Further out the continuing strength in their core markets and strong market trends in their favour will be hard to ignore if their recovery plan rights some earlier over-expansion...I thought I'd pot this older article regarding these longer term trends from Questar:-

Questor....

.... (Waste Electrical & Electronic Equipment directive, which enjoys the gloriously apt acronym WEEE. The onerous legislation, which is due to come into effect in January 2007, will require all kinds of companies to recycle a sizeable slug of the electrical and electronic kit they manufacture or sell).

For many businesses WEEE is already proving to be a pain in the proverbial, but, as ever with new laws, it also opens up business opportunities for entrepreneurial types. AIM-listed Fonebak finds itself in this particular sweet spot. Floated in March 2005, it has long-standing rolling contracts with all of the UK mobile networks whereby it takes their used phones from them for free.

If Fonebak can refurbish the phone and sell it on to Carphone Warehouse equivalents in Africa or South East Asia, it will pass on a share of the revenue with the network. In the 10pc of cases where it can't it will send the batteries to a recycling centre in France and the phone chassis to another recycling plant in Sweden.

Last year it processed 3m phones through its operations in the UK, Romania Belgium, France, Lisbon and Istanbul – but the opportunity is much greater. Fonebak estimates there are 400m mobile connections across Europe, of which 150m are switched every year, creating the chance to refurbish or recycle phones.......

[mark43] 06/6/2007 21:58

Told you so...........

[nickcduk] 06/6/2007 14:05

Its not the loss that was the worrying aspect of todays statement. Its all the restructuring costs that will have to be borne as well as the fundamental loss in value of Fonebaks original business. It will cost a million in cash to close down Barnet before other asset write downs etc. The Romanian operation will lose 2m this year. They dont envisage it breaking even for another 2 years. More restructuring costs will be needed.

The debt position is what you need to focus most keenly on. They had 14m of equity at the interim stage. Strip out intangibles and they have a negative tangible asset value of -4m. This is prior to writing off goodwill and asset impairment charges. I reckon another 5-6m isnt out of the question. Debt will rise and the banks will start to worry about so little asset backing. Im not sure how much more leeway the banks will afford a business with such poor visibility.

[blackbear] 06/6/2007 13:28

I would be very surprised if this plan could be implemented with current cash flows, wether opimistic or not the banks are always supportive.

[source] 06/6/2007 12:38

Going a bit over board there.

The loss for this year to July 2007 was WELL flagged up, much more relevant is the point that the plan to get back seems a good one (& funded out of existing cashflows) -- furthermore the banks are supportive.

So the year to July 2008 is by far the most relevant timeframe to consider and things look encouraging - the core FON business is strong, with good prospects -- indeed inbound volumes have grown again even during this troubled period.

In my view the already heavy fall may now be being overdone.

Regards,

[nickcduk] 06/6/2007 08:15

Disastrous trading statement today. Im surprised it hasnt fallen a lot more than it has. This company has horrendous gearing and is due to report a significant loss. Large restructuring costs are also likely when they close operations. Im pretty certain they will be in breach of their banking covenants as well. Not looking good.

[mark43] 05/6/2007 22:09

Nottingham closing soon after losing Vodafone contract and poor management, what next for this failing company ! ! ! Dont waste the capital in a poorly ran circus.

[masurenguy] 23/4/2007 07:55

mrionionbahjee2 - 22 Apr'07 - 20:58 - 48 of 48.

And your point is..............?

[source] 12/3/2007 21:06

Looking like a good potential given Fonebak's house broker now reckons the company will make £2.8m pre-tax and EPS of 7.8p in the year to 2007 and £4m pre-tax and EPS of 9.8p in 2008. Seems the current price is worth a look given this, and then potentially even better as management get a handle on the operational hiccup.

Regards
SOURCE

[source] 09/3/2007 17:58

What are the MM's playing at. Quite disgraceful.

Should bounce before the update given the depth of the fall, then continue after it re-assures or.. :) But then any recovery back to 160p will require more signs of the operations being stablaised from the current hiccup. IMVHO

Regards,
SOURCE

[source] 08/3/2007 16:13

I thought so too. Once the cleaning of the deck is done, people will soon realise there is some real value here especially given the waste directive requirements and FON being there already as a major player.

Regards
SOURCE

[mali7] 07/3/2007 14:48

Just toped up today!

I think there is a over-reaction here from 160p to 70p, on one profit warning. Think? Although risky this is profitable, and results soon to be announced will confirm that its not that bad. Also will confirm the recovery plan and the plans ahead.

[narindg] 07/3/2007 14:32

Ivor its an over reaction - I have been wanting to buy at current price but don't have funds! - broker recommendation at current price

[ivor whopper] 07/3/2007 14:19

going bust?

[nickcduk] 07/3/2007 11:51

74graham - I do seem to find that your in a lot of stocks which are useless. I hope your positions are small and that you haven't suffered much in the way of losses, or that maybe you have recouped them elsewhere. I think Fon is around a fair value level pending their results. If they issue more worrying news then I can imagine this share pricing in the risk of it going bust.

Have you thought of investing in companies less risky and less ramped?

[wiganer] 07/3/2007 11:51

The Charts speak for themselves, what with the News and all.

[74graham] 07/3/2007 11:45

wiganer why no post

[74graham] 07/3/2007 11:39

im in crc figures have been imroving so lets say they are worth 52-53 ,fon are only worth 25p i dont think so mm have overdone this back above £ with an update in the next few days according to rns

[74graham] 07/3/2007 09:36

how low can this go

[mark43] 06/3/2007 18:27

Ruth Webb shafted Celestica, CRC Nottingham and now Fonebak. Dont trust the current "management" team as they could not run a tap.

[mark43] 06/3/2007 17:33

fonebak were wrong to buy CRC and still keep the "management" that ran it i nto the ground in the first place. gary stokes may me the golden balls but at the moment they are being kicked and squeezed because he is relying too much on current management