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Real-Time news about Kesa Elect. (London Stock Exchange): 0 recent articles
|attrader: interesting , i thought that delisting news would have negative effect on the share price . So, trying to understand share price action. Is it due to comet sales and expectations of special divi or does it always happen with companies delisting from Ftse ?|
|liam1om: LONDON (SHARECAST) - Kesa Electricals saw its share price rocket on rumours that it is to delist from the FTSE index. In a report from the Sunday Telegraph, Kesa is set to leave the London Stock Exchange and is also considering changing its name following the sale of its UK retail chain, Comet.|
|markt: Adjusted EPS 10,9c (9.6 p)
Reported EPS 6c. (5.3p)
If give it a P/E of 7 then 7 x reported EPS gives 35p.
If 7 times adjusted EPS then 67p.
And profit numbers for this year will be bad imo with Comet having a hard time....and Spain and Italian branches...and getting worse imo....economic growth and spending has been in downward trend...
Profit A.T fallen from 43M to 31M !! (euros)
And finance cost of 14M
If profit falls to 20M then the finance cost becomes a big worry.....very high % of PAT.
And staff costs are 875M......the risk to the profit is massive.....tiny changes in sales or margin and the staff costs and operating costs will wipe out the profit or make it a loss.
And pension deficit will have increased imo.
And if any lay offs that will be one off costs.
And if property value write downs that will be a hit to the accounts.
Comet sales were down 7% like for like !
Could be more this year. Would produce a greater loss imo. High shop costs still there.
Last year margin reduced....likely again this year.
5.9Bn in sales and only 31M PAT.
But fixed costs are a high % of the sales.
Wow !!....that is very worrying in a falling retail market......
you could cough and the PAT would go negative.
2Bn E. assetts. Reduce by 125M for intangibles and reduce plant etc by 50% due to the crisis (retail property values have crashed imo, perhaps more than 50%. 565 to say 300.
Gives 1,6Bn real assetts.
Liabilities 1.8Bn E.
-ve assetts of 400Mn....with cap. value of around 550M.
-ve assetts is high % of cap. value.
lets assume that COMET is sold for 0 pounds and 100M pounds to take it away...
assetts then gets reduced by say 40%...to 300M and then lets reduce the remainder by 56M to get 200M.....and increase pension deficit by 50M.....
and sell off Italian/Spanish parts for 0 reducing assetts by another 50M say....
then get 1,9Bn -100M-256M-56M -50M -50M = 1,3Bn approx. real assetts
and 1.8Bn liabilities (some already included in assetts calcs)
-ve equity of 500M.....approx. the same as the cap. value NOW.
Half the cap. value to 250M (easily happen imo, share price is collapsing)
then the -ve equity is DOUBLE the cap. value. NOT good ! and bankers wont like it very much....especially since one part of company is currently making losses !!...and trading in last quarter was BELOW EXPECTATIONS !!...ie. getting worse...
Not a pretty scenario imo.....the reason that the share price has been falling to quickly....and with big volumes....big holders are getting out....
and with such a small % margin...and not enough cover for the borrowed assetts in shops but not yet sold....suppliers could easily start to worry and alter their terms hitting the small margin....or require insurance cover for payment which would hit the margin...
Oh, and if Comet is sold....how will the financing of the unsold good be done ?
Any possible buyer has enough finance to act as a g'tee ?
Not many around could do it imo.
782M of total inventories...say 300M for Comet. And 1.2Bn of trade payables.
Not many buyers around that can take on that type of number.
Worrying as well that payables 1,2Bn is much more than receivables + inventories. 1,01Bn
It is 200Mn -ve but it should be positive imo !!
Infers they have sold stuff and not passed the money to the suppliers imo !!...ie. a debt that they did not want to pay....and one assumes that they can not pay...
Total shareholder funds. 200M approx. well...if remove intangibles....and make other adjustments as I have done above....then you can see that current shareholder funds is in fact negative......
And from the calcs. made higher up....imo the money to pay the divi may not be there...37M euros.
Ah, people who invest for dividends....don't ya just love 'em !....|
|markt: and...(noting I'm not a chart expert)....
on the charts....in last 4 or 5 days....it has opened lower than it closed the day before !! negative signal imo
and on last 2 days.....there is a wick below the candle body and very little above....showing it was quite happy to go lower during the trading day....no buyers were there to stop it...and that is after falling approx. 10p or 10 % !!
ie. no big buyers buying 'cause they think it is dirt cheap....none...
and big volume on Thursday...6M....that was breaking support day imo...110p.
On Monday and Tuesday....depends a lot I guess on what the FTSE does....since large cap. so computer trading linked to FTSE index...
but also any other news from retail sector.....or TV sales area...or any -ve French or UK retail sales...
or maybe a broker will issue a downgrade....that would really cut the share price...|
|bobsidian: I think you are looking for the survivors in the retail sector. KESA may - and I do stress may - be one. KESA is all about the strength of its Darty operations and little about the UK operations. The UK operations contribute 30% of total sales but less than nothing to overall profitability.
But at this price KESA looks tempting at least for a near term bounce. The danger comes if the £1 level breaks and down may whoosh the share price to go in search of its 2008 lows. Given what is erupting around Europe not necessarily a share to be holding on release of its Q1 IMS on 15 September.
You do have to wonder at what Knight Vinke are doing upping their stake to 20%.|
|bobsidian: In spite of the destruction in the share price of DXNS interesting to see the outperformance of KESA.
This share certainly has some resilience. Each time it looks to be about to break down to test the £1.00 level up it pops to the top of its temporary trading range.|
|crosswire: KESA Electricals downgraded to "sell"
8:27a.m. - Panmure Gordon & Co
LONDON, December 16 (newratings.com) - Analyst Philip Dorgan of Panmure Gordon downgrades KESA Electricals Plc (KESA-GBX) from "hold" to "sell." The target price is set to 75p.
In a research note published this morning, the analyst mentions that the company's share price has appreciated significantly in the recent past, exceeding the target price. KESA Electricals' interim pretax profits fell from £37.5 million to £10.6 million and the company has cut its dividend by half to 1.75p, the analyst says.|
|knowing: Shares in electrical retailer Kesa Electricals moved higher after the company was moved to Goldman Sachs' 'conviction buy' list.
The broker said it was upgrading its recommendation on the Comet owner in light of recent share price declines.
The company has seen its share price fall by more than 70% since July.
Its value fell sharply after September 10 when it reported a heftier than expected 4.7% drop in like for like sales over the three months to 31 July as trading conditions deteriorated across all its markets.
Kesa also owns the Darty electricals chain in France.|
|sicker: Thanks Maywillow. Appears my purchace has had no effect on the share price but at least there is something to read on this thread.
|waldron: LONDON (AFX) - The widely predicted immediate sell-off of Kesa Electricals
PLC stock failed to materialise with less than 4 pct of its 530 mln shares in
issue changing hands by midday.
Kesa, spun-off from Kingfisher PLC this morning and placed in the FTSE 250
index, debuted at 192 pence, the mid-point of the indicated range of 175-210
It rose to a high of 202 pence, before settling at 194 pence by 12.01 pm,
valuing Europe's third-largest electricals retailer at 1.03 bln stg.
However, volume of shares traded was only 19.48 mln as investors adopted a
wait-and-see approach, defying pundits' predictions of a massive day one
sell-off due to concerns over Kesa's exposure to France where some 80 pct of
profits are generated.
Some had predicted a major switch into Dixons Group PLC, the UK's largest
electrical retailer. However, Dixons shares were down 1/2 pence at 127-1/2, with
4.74 mln shares traded.
Earlier, Kingfisher shareholders had received Kesa shares on a one-for-one
Immediately after the demerger became effective the share capital of Kesa,
which owns Comet in the UK and Darty and BUT in France, was consolidated on a
one-for-five basis. Also, to maintain its share price, Kingfisher shares were
consolidated on a seven-for-eight basis.
Kingfisher's most recent trading update, released June 4, showed Kesa
endured a tough first quarter. Like-for-like sales were down 1.3 pct and profit
for the ongoing business fell 16 pct at constant exchange rates.
However, Kesa's listing particulars stated: "Although economic conditions
remain difficult, especially in continental Europe, the Kesa board considers
that the prospects for the group as a whole for the current year remain in line
with its expectations."
Goldman Sachs said Kesa shares are attractive below 182 pence.
Nick Bubb, analyst at evolution Beeson Gregory, today initiated coverage on
Kesa with a 'sell' recommendation. He reckons Kesa's fair value is only about
Richard Ratner, analyst at Seymour Pierce, initiated coverage with a 'hold'
By 12.01 pm Kingfisher shares were up 5 pence at 277-1/4 with 4.4 mln shares
The stock benefited from HSBC moving its stance to 'add' from 'reduce' with
a 295 pence price target, and JP Morgan reiterating its 'overweight'
The demerger of Kesa represents the final step in Kingfisher's
transformation to a pure home improvement player and follows the summer 2001
demerger of variety retailer Woolworths Group PLC and sale of health and beauty
retailer Superdrug, and last summer's purchase of the minority interest in
Kesa Electricals share price data is direct from the London Stock Exchange