|Food & Drink Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Food & Drink Gp (London Stock Exchange): 0 recent articles
|pizza3: Food & Drink seeks transaction
By Stanley Pignal
Published: January 29 2008 02:00 | Last updated: January 29 2008 02:00
Food & Drink, the company behind Henry J Bean's and Jamies bars, said it was looking for a "substantial corporate transaction" as it announced lower annual profits.
The London-focused operator of 33 bars saw pre-tax profits decrease to £561,000 (£928,000) in the year to September 29. Turnover rose 2.4 per cent to £20.8m (£20.3m).
The share price has lost nearly two-thirds of its value in the past fortnight after it announced profits would be reduced because of "adjustments" to accounts. The changes affected profits by £700,000 for the period, but would not impact future cash flow, according to the company.
James Kowzsun, chief executive, said Food & Drink was "subscale and its current capital structure inappropriate for a more uncertain economic climate".
Like-for-like sales were up 2.4 per cent in spite of the poor summer weather, boosted by a 5 per cent increase in food sales. By contrast, trading since September has been down about 1 per cent.
The shares closed up 8p at 80p. Stanley Pignal|
|johndee: share price needs to pass £100 before i am in profit.............|
I reckon quite a few will be waiting on results before taking the plunge. Then again I also happen to think that the T+10 traders may well arrive once the company releases an RNS confirmation of results.
Many will want confirmation of the strong cash generation forecast by Peel Hunt, reduction in gearing and confirmation that HJB's are the company defining acquisition we are led to believe. I'd imagine that the outlook statement and current trading will be all important.
To be perfectly honest I haven't seen much evidence of research on this board so you may be right in saying that there aren't many following FDG, however I have been in contact with quite a number of people off board who have requested the brokers notes and been extremely helpful in answering the queries and questions my post generated on TMF.
It appears that the like for like growth of 3% is dismissed in a few quarters. Maybe the company will beef up the HJB side and use the Jamies bars as a cash cow?
Many do believe it cheap though and this has been evidenced by a few decent buys over the last few sessions with volume of trades in the stock increasing in comparison to recent months.
I remain convinced that the company is rated cheap in comparison to peers and will hopefully undergo a rerating in due course. We know results will be good ....."significantly ahead" afterall.
The spread has reduced significantly on the stock to 167-168p, so maybe a decent move up is around the corner:-).
Just the normal degree of patience required when holding any stock although I sympathise with those that have been holders here for a few years
The best time to buy is when there is little or no interest.
I did a similar write-up on RCG in January this year when the share price was around 40p.....it subsequently went nowhere for months, people became disenchanted but today we're sitting at 82p.
Good luck to all holders and please feel free to contest any of my assumptions or research.
|jeff h: I'm surprised this stock hasn't risen a lot higher...Paul Hickman from Peel Hunt describes it as 'chronically undervalued' with the market not factoring in the Henry J Beans potential.
Y/E Sep 2006 Pre tax £1.18m EPS 22.4p Div 0p
Y/E Sep 2007 Pre tax £1.37m EPS 26.2p Div 0p
...so a forward P/E of just over 6 whereas I would have thought 10 and a
current share price of 262p more appropriate.
spekky mentions Urbium...I would like to see them target the corporate market as Urbium does...the Jamies website is interesting...Parties and Events feature:-
|golden cross: A quiet opening under the new name. Let's see how the new share price behaves.|
The Food & Drink Group share price data is direct from the London Stock Exchange