Real Good Food Share Discussion Threads

[typo56] 24/2/2014 07:43

I don't think ABF's statement today reads well for RGD.

[buywell2] 24/2/2014 00:08

So how will this impact the bottom line ?

No numbers given in the update so another profit warning coming methinks

Also the lack of forsight of the BOD in NOT sourcing alternatives BEFORE this reflects very badly upon them

[briangeeee] 22/2/2014 11:15

Yes, it's definitely vague. I think I formed the view that it was inclusive by looking back at prior years, when the wording was different, and it looked to be inclusive then. It could be that it has become non-inclusive this year, and that's the reason for the poor/ambiguous wording. Who knows with RGD!

Looking at the sugar pricing issue from British Sugar's point of view - NB are competing ever more aggressively for their customers and are also setting themselves up to increase sugar imports. So, why should BS guarantee them a 5% gross margin on UK grown sugar? It appears like NB are using BS as a fall-back for volumes not sourced elsewhere. Well presumably their agreements say they should, but have the changes in the European and UK sugar markets and regulation now made the historic rulings and agreements void? The fact that RGD haven't applied for an injunction (through law), suggests the case isn't clear cut, and they have to go back to the competition commission for an updated ruling.

It will be interesting to see how this plays out, but potentially painful for shareholders. Given that Napier Brown's whole pitch to customers is about providing a reliable and independent source of sugar it makes this admission all the more ridiculous. It also exposes the nonsense on their rigorous back to back contract pricing. I thought it seemed strange when their new sugar MD said they weren't immediately sourcing against sales contracts, but speculating on falling prices.

[typo56] 22/2/2014 06:41

BrianGeeee, I'm not sure if you're correct in making that assumption. Perhaps you are.

In section 12 of the Annual Report Totté is shown as receiving a remuneration for the y/e 2013 of £432k. This comprises short term employee benefits of £418k plus £14k share-based payments. Below there's a note below stating:-

"Short term Employee Benefits include Salaries received as an officer of the Company. Separate to these payments, consultancy fees are paid to entities in
which Directors hold a beneficial interest. These payments are disclosed as related party transactions in note 29."

To me, "separate to these payments" means "in addition to". It depends whether the "payments" refer to the Employee Benefits, or just to the Salaries. It's a bit vague. Perhaps it's supposed to be!

[briangeeee] 21/2/2014 22:30

I think Totte's increase in salary/fees is scandalous, especially given the company's performance. However, when I looked at this issue a few month ago, I came to the view that the consultancy fees were included within the total remuneration.

The company is in desperate need of a strong and experienced Chairman to sort out the shambles that is the current board. Unless the two main shareholder come to that view also, it's unlikely to happen.

[typo56] 21/2/2014 22:01

Tulip Trust? Is that Totté's Dutch sense of humour? From Wikipedia...

"Tulip mania or tulipomania (Dutch names include: tulpenmanie, tulpomanie, tulpenwoede, tulpengekte and bollengekte) was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed."

[typo56] 21/2/2014 20:18

TOB, check the Related Party Transactions statement in the 2013 Annual Report. Four of the directors had beneficial interests in companies that have been receiving "consultancy fees". The largest by far goes to Menton Investments (I assume Ltd as it is mentioned elsewhere as a holder of 1,925,000 shares). Menton Investments Ltd is wholly owned by the Tulip Trust, a discretionary trust, of which P W Totté and certain members of his family are discretionary beneficiaries. I think Menton Investments Ltd may be registered in the Isle of Man.

In the 12 months ended 31 March 2013 Totté received a remuneration of £432k, plus consultancy fees paid to Menton of £366k. That's a combined average of £66.5k per month.

In the 15 months to 31 March 2012 he received a remuneration of £461k, plus consultancy fees paid to Menton of £338k. That's a combined average of £53.3k per month.

That means in 2013 his total increased by about 25% per month. Not a lot of austerity here. Does it mean times are good for RGD? More likely the opposite!

How on earth can Totte justify charging the company consultancy fees at the same as the company are paying him a fat salary?

It's impossible to know how much has been previously paid in consultancy fees becuase they've only been declared for the first time in the 2013 Annual Report, in spite of referring to fees paid in the y/e 2012. Why were these not declared at the time in the 2012 Annual Report?

[cockneyrebel] 21/2/2014 20:09

You sort of get that 'penny drop' feeling starting to happen imo.

Who is brave enough to be holding these at the next results then?

CR

[tiredoldbroker] 21/2/2014 18:58

Possibly only £432,000 last year, but he has options on 5m shares at prices from 5.25p upwards, if memory serves.....

[typo56] 21/2/2014 18:51

And who would ask him to leave? The ordinary private investors don't have any power, do they? Typical AIM structure!

[randolph and mortimer] 21/2/2014 18:25

800K?

He might be asked to leave, finally.

[typo56] 21/2/2014 14:14

Totte's annual remuneration (including his consultancy) for steering RGD is about £800k. I don't suppose his expenses are particularly frugal either. That's more than many people will earn in a lifetime. Worth it?

Incidentally, where is Menton Investments Ltd incorporated? The only record Companies House have is for a Menton Investment Ltd, which doesn't seem to be the same thing (it has one Chinese director, living in China).

[pugugly] 21/2/2014 13:11

CR:> Your comment good enough for me. Will not waste an time on investigating if any value left.

[spaceparallax] 21/2/2014 11:20

well summed up CR

[tiredoldbroker] 21/2/2014 11:12

Bad stuff here, no pleasure for me in seeing it heading towards the price level I conjectured. Sorry for any holders.

[sanks] 21/2/2014 11:03

Sheila told me to wait till it drips to circa 4p
Sensible comments appreciated

Sanksalot

[cockneyrebel] 21/2/2014 10:58

A sceptic might say Totte will be able to blame a whole load of his own incompetence on nasty ABF when these do go into liquidation and he starts running his next AIM venture = 'Ominicane Foods'.

I wouldn't dream of commenting :-)

CR

[cockneyrebel] 21/2/2014 10:55

Well - none so blind as them that won't see as they say.

I seem to remember 1406617854354 (or whatever his snappy handle was) calling me a liar and all other sorts of names.

Learn a lesson imo - this isn't an investment. It's a vehicle for Totte to move stuff about, create smoke and mirrors and keep his nice little job running the co. From the day they had that weird reverse takeover of the Napier Brown (another shambolic co) the results here have been massaged, bigged up, toned down that makes bi-polar seem quite stable.

Totte has form, it's like letting Ronnie Biggs run a post office imo.

The sugar price is so low that Totte is moaning about paying too much. What's the deal with Omnicane? We have a global sugar market.

AIM just gets more and more laughable and if you buy into a stock on AIM that's run by a guy that's overseen the demise of several co's then you ask for all you get imo.

CR

[typo56] 21/2/2014 09:57

"I think it was good foresight of Real Good Food to invest in this project, so not to rely on others."

And instead rely on supply from a major shareholder with a seat on the board.

[yewtrees] 21/2/2014 09:00

I just found this -



'Commissioning of the new Immingham sugar plant is virtually complete'. I think it was good foresight of Real Good Food to invest in this project, so not to rely on others.

[typo56] 21/2/2014 08:15

No mention of the C word this morning - CASH!

It's like a slow motion car crash.

[felix99] 21/2/2014 08:13

lol hopefully most people have learnt the cards are stacked against shareholders here and have long since departed!

[graham1ty] 21/2/2014 07:56

Read back over the last few months.....those predicting 40p may be optimistic. How does PT do it ? The quicker this is taken private the better for all. Where is everyone this morning ? How come no more comments

[shanklin] 21/2/2014 07:11

Blimey, I'm astonished RGD have not previously detailed this problem previously. Given this has been going on for months, has there been a false market in RGD shares?