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Real-Time news about Hill Station (London Stock Exchange): 0 recent articles
|pomp circumstance: LOL!!!
Statement re Share Price Movement
HILL STATION PLC (THE "COMPANY")
STATEMENT RE SHARE PRICE MOVEMENT
The Directors of the Company note the recent increase in the Company's share
price and confirm that they are not aware of any matters that require the
Company to make an announcement to the market at this stage.
Hill Station plc|
|tiredoldbroker: Well, today's news showed they did have a desperate need for working capital, and the terms may well cap any recovery in the share price during 2008: I can see that you need to give something away to raise more than the present market value of all the shares in issue, but the 200% redemption premium on the loan stock means that if the value of the business rises by £1.8m, all that will go to the loan subscribers and only after that will shareholders truly benefit. No alternative, I guess, but the subscribers have given themselves quasi-equity which ranks ahead of the shares in issue.|
|davidlloyd: Unfortuantely the old issue of cash flow is what controls whether the share price is an absolute steal or not, hupgomwat. You can have the best product in the world but if you aint got money coming in to pay your outgoings then the company is worth jack. It seems a real shame as the product is good, I agree. IMO it needs a white knight (or to be taken over) - with a cash injection to stregthen the balance sheet to ensure survival. If no interest then this may well go under in this credit environment and given the seasonality of sales in this business the timing of the earlier trading statement is very bad. Still feel that it is a Buy IMO (but Very risky!) on the basis of potential outside interest - but be prepared to lose the lot.....|
|lionelh: I've looked at this share for a while without investing to date. Given the precipitate fall in the share price from 2005/6 to 2007 I think my judgment was sound. Companies affected by seasonality (who buys ice cream in the winter?) always seem to have these problems. Higher dairy costs are also clearly yet another unwelcome factor at the moment. The prospects for this company seem to me to be very much in the balance. I do not like the look of the debt they have. Any interruption in cash flow they have could become fatal for them, making them hostage to future events, including higher interest rates. If you cannot pay suppliers you become insolvent very quickly! Let's see how the fundraising goes. As said above, they are in the last chance ice cream parlour. If it doesn't come off, they've had it.|
|tiredoldbroker: Though I don't think there's any value in the shares at the current 1.25p offer price, this is probably their only chance of survival. Without seeing the circular to shareholders, I'm assuming that the placing will be 1.4 billion shares at 0.25p, to raise £3m after rather steep expenses of £750,000 (be interesting to see who picks that fee up).
The punitive terms of the November 2006 loan stock issue have been moderated, the July 2007 loan stock issue provided survival capital, and if they manage the integration of Real Ice better than past purchases, they could actually get capacity utilisation up towards the point where Cwmbran trades more efficiently.
Apart from managing the integration, the other key issue is that HLL actually gets the £3m its now trying to raise, without which its a dead duck. Obviously, they've been caught between bad weather hitting sales and higher dairy/input costs hitting margins.
We won't necessarily know until 17 Aug whether the placing has succeeded, and I'd hazard a guess that with the likely issue price and the sheer quantity of shares to be issued, the share price will slowly sink towards 0.25p. But without this placing, there's nothing left at all for the shareholders.|
|ponty: GROIN your share price at 1.685|
|ponty: MRPHIL. This new director sounds very interesting got a good backround, he could make all the differance,i will wait a few days for the share price to level out|
|toriel: I've just come across this thread.
I find it interesting that the company is run by a couple of former JP Morgan bankers. The share price graph for HLL is very ugly, and one wonders whether the bankers (a) got involved in the company without having found out enough in advance about its state; (b) are not very good at running a business; or (c) are just unlucky. If it was (a) or (b) it doesn't reflect too well on JP Morgan (though since JPM has some of my money, I'd better not be too nasty to them...)
Whatever the explanation, it appears that the management has not done a lot for the company so far; let's hope they can pull it around.|
|cerrito: I need to say that I am surprised at the fall in the share price coming apparently out of the blue. I would have thought that with the recent fund raising there would have been a base in the share price of about 4p mid market.
Part of the problem of course is trades worth £10k can do this damage.
I take your point Jotoha1 about the seasonality...it was interesting that when they were just Hill Station they claimed that they were relatively immune from seasonality(and indeed I had their icecream for the first time last week at the Renior Cinema, Bloomsbury) but I suppose that has changed with Granelli who are more seasonal I assume. Indeed i was interested to read in the latest RNS of reference to seasonal swings.|
|muntle: It depends what you mean by 'long term'.
Hill Station is the third largest Ice Cream manufacturer in the UK. It has a mix of own brands and third party manufacturing contracts. Richmond Foods (epic RFD), is the largest UK Ice Cream Manufacturer and also has a mix of own brands and third party manufacturing contracts.
Richmond floated in 1996 for £1.80 per share, and began making strategic acquisitions. Within six months the share price had halved to just under 90p. By the end of 1998 further acquisitions had been made and the share price had dropped to 60p over doubts about integration/strategy. The Company has just been sold to an overseas buyer for £182.2m, or £7.50 per share.
Hill Station floated 18 months ago at 10p a share, and has been making strategic acquisitions. The share price is now less than half of the float price due to doubts over integration/strategy.
Is history repeating itself?
DYOR, but presumably we will know in a few years time.|
Hill Station share price data is direct from the London Stock Exchange