Abbeycrest Share Discussion Threads

[rainmaker] 24/7/2006 11:39

Hybrasil re 196-Talent

regards

[rainmaker] 24/7/2006 11:37

Havenpoint-Would see the recent fall as a retracement rather than the start of a new trend ie the reversal is still intact. Really I think that anyone who was interested in selling has already sold hence no real selling at current levels. Think it's worth contacting the Company.IMHO would definitely stick with ACR and be patient!!

regards

[havenpoint] 16/7/2006 09:47

Do you think the recent downturn is as a result of the overall state of the market or specific to Abbeycrest. I bought a further quantity earlier this week @ 21.65p
and am surprised by the sudden downturn on very little trading and nominal selling of shares.

[munin] 13/7/2006 18:17

Hmmmmmm ....... beginning to look as if I'll soon have to consider "averaging down".

[munin] 06/7/2006 18:23

Hybrasil,
If I knew the answer to that, I'd have either bought a shed load more, or continued to steer well clear of them.
Mind you, what is it they say about averaging down? Throwing good money after bad?

[arthur_lame_stocks] 05/7/2006 12:29

Peter Gyllenhammar´s bought 3.7%. Can´t say as that surprises me, this looks right up his street. I still think it will go bust though.

[hybrasil] 04/7/2006 14:09

Rainmaker
How did you know about Peter G nearly 5 days ago

[hybrasil] 04/7/2006 06:12

Munin
I am indeed. I should of course heeded your very wise counsel.
The big issue now is do I average down.

[munin] 03/7/2006 18:08

Hybrasil, are you still in these?
I've just had a tiny little dabble over these last few days.
In at an average of 18.9p.
I hope somebody buys it, or they orchestrate a management buy-out, pronto.

[rainmaker] 30/6/2006 11:37

Strudwick-Agree that it's not been a lot of fun for any long term shareholders but at the current levels if it's going to make a profit(or it's not going to make a loss and you expect that as Company have cut £3.5mln of annual expenses )and it's trading at less than half it's liquidation value then where's the risk?
Obviously there is enormous upside potential from current levels. Famous Value Investor and Author Ben Graham once said that if there was limited downside then they must large potential for gain.....wise words indeed!!

regards

[rainmaker] 30/6/2006 11:31

Don't dare say that I didn't tell you!You could have easy purchased at 15p yesterday and it's already 19p bid!

regards

[strudwick] 30/6/2006 08:14

This could go bust but looking at the risk reward ratio theres a lot of upside if they can turn it round. So maybe worth a small punt.

[rainmaker] 30/6/2006 00:33

Forgot to mention £3.5mln of annual cost savings as well. Has Peter Gyllenhammar just purchased 4%?? Somebody is showing a lot of interest at current levels. Bodes well for the share price.

regards

[rainmaker] 29/6/2006 11:41

Surely a big buy at current levels?!Company has Net Working Capital of over £9mln yet market capitalisation is not even £4mln.Potentially a very large contract in the offering presumably with either Argos or Signet and will make a profit in current year-not suprised the share price is firm.

Oh yes and £70 mln of annual sales that puts the price sales ratio at just 0.05

regards

[blueliner] 29/6/2006 11:31

Not while Lever's still at the helm.
The only winners are the the banks.

[wilddonkey] 28/6/2006 22:00

Still, now they are saying the see a profit as close as next years results...

[blueliner] 26/6/2006 17:56

Been away, just read the recent announcement, is this the last rites, looking back its just over 12 months since I got out, commiserations to anyone who was still holding.

[wilddonkey] 18/6/2006 18:08

Good or bad ? I can't make up my mind but definately not great. Don't think i'll be buying until I see the directors putting their own money on the line.

[havenpoint] 16/6/2006 15:59

16 June 2006
Abbeycrest plc

Further to the announcement of Monday 8 May, Abbeycrest plc is pleased to update
shareholders on the refinancing of its business and sale & leaseback ("the
Disposal") of its Leeds headquarters.

The company has completed the Disposal of the Group's Leeds headquarters and UK
distribution centre to Moorgarth Investments Limited for a gross consideration
of #3.3m (#3.1m net of rent bond and costs) payable in cash. The net book value
of the property is #2.5m. The proceeds resulting from the sale were used towards
repaying the Group's existing facilities with HSBC. The Group has entered into a
15 year lease securing the Group's continuing tenancy at the property. Following
a six-month rent free period the company will be paying an initial rental of
#350,000 per annum with reviews every five years.

The refinancing referred to below was contingent upon the Disposal taking place.
The company has repaid its existing facilities to HSBC. Burdale Financial
Limited ("Burdale") has been appointed as the Group's ongoing bankers. Burdale
have provided a #33m facility which will be available for the Group's UK
operations and is secured on the Group's debtors and inventory. Burdale has
confirmed that the facility would only be made available on the condition that
the Disposal was completed. In addition, HSBC has agreed to provide new
facilities of #2.5m (together the "Refinancing").

As noted in the announcement of 8 May, Abbeycrest has sought and subsequently
been granted a waiver by the UK Listing Authority of the requirement to prepare
a Class 1 circular for shareholder approval in relation to the Disposal. The
waiver was sought because the level of the company's existing facilities were
insufficient to cope with the seasonal working capital requirements of the
business and HSBC refused to extend the facilities (in size). Consequently, in
order to meet its ongoing working capital requirements, the company had no
option but to pursue the Disposal and Refinancing and had insufficient time to
prepare a circular as a result. The Disposal and Refinancing agreements entered
into by the Group were subject to a waiver from the UK Listing Authority being
granted.

The waiver was granted because the Company met the conditions and gave the
following confirmations:

* negotiation does not allow time for shareholder approval;
* all alternative methods of financing have been exhausted and the only
option remaining is the Disposal in accordance with the timetable which
does not allow sufficient time to seek shareholder approval;
* by taking the decision to effect the Disposal to raise cash, the
directors are acting in the best interests of the Company and shareholders
as a whole and unless the Disposal is completed, in accordance with the
timetable which does not allow sufficient time to seek shareholder
approval, Administrators are likely to be appointed; and

The Directors believe that the Disposal is in the best interests of the company
and shareholders as a whole.

By taking the decision to dispose of this property to raise cash, the Directors
are acting in the best interests of the company and shareholders as a whole. If
the Refinancing and Disposal had not been completed within the current
timetable, which did not allow time for seeking shareholder approval, the
Directors believe that the company would have been unable to meet its financial
commitments as they fell due and consequently would have been unable to continue
to trade resulting in the appointment of administrators to the company.

The Directors confirm that further negotiation with HSBC, the company's existing
bankers, would not have allowed time for shareholder approval. All alternative
methods of financing had been exhausted and the only option remaining was the
Disposal of a substantial part of the business. HSBC confirmed that further
finance would not have been made available and, unless the Disposal and
Refinancing was effected, facilities would have been withdrawn.

The company's sponsor, Hoare Govett, has confirmed that, in its opinion and on
the basis of the information available to it, the company was in severe
financial difficulty and that it would not have been in a position to meet its
obligations as they fell due unless the Disposal took place according to the
proposed timetable.

The overall state of the jewellery market in the UK has been, and remains,
extremely challenging. The UK Assay Office statistics (detailing volumes of
jewellery hallmarked) which were referenced in the half-year statement have not
improved. The weight of gold hallmarked in the calendar year 2005 was 25% lower
than 2004.

As well as the general downturn in discretionary spending in the UK retail
sector, a major factor on demand has undoubtedly been the extraordinary rises in
gold price experienced over the last twelve months. At the time of writing, this
has risen 50% in the last year. Whilst this obviously makes stockholding more
expensive to fund, it also has a negative impact on demand as retailers and end
customers scale back spending. In order to counteract this, the Group is
focusing product development and sourcing on gemset product, rather than gold,
and also alternatives such as gold plated silver and fashion jewellery.

The Group has been successful in reducing inventory levels over recent years and
this process is continuing to mitigate raw material price increases. It is worth
noting, however, that if gold prices continue to rise materially month-on-month
more aggressive action on inventory levels may have to be adopted across the
Group, potentially to the detriment of profitability to the extent that
write-offs are required on disposal.

The interim Chairman's statement noted that a substantive cost saving program
had been actioned to counteract the market downturn and set the size of the
business to reflect prevailing market conditions. This exercise is now
substantially complete with progress since the half-year being:-

* In January 2006 the Group transferred the business of DRT Jewellery Limited
("DRT") to its management by way of a sale of fixed assets and stock and
transfer of personnel. DRT has suffered commercially since the collapse in the
market for its principal style of light-weight wristwear, and has not made a
meaningful profit contribution for some time. A supply agreement has been
agreed for any current sales lines carried by Group customers.

* The sales force covering the UK independent sector was reduced by half in
January 2006 and complemented by the introduction of a commercial web-site
together with enhanced telesales systems and customer relationship management
software.

* Production of 18ct jewellery in Leeds ceased in March 2006, with the workforce
being made redundant. The overhead to service the seasonal peak was
inappropriate for much of the year and the product had little in the way of
unique selling points. That range has been replaced by design-led product
sourced principally from Thailand.

The only major restructure item remaining to be completed is the movement of
elements of Dynamic Creations Limited ("DCL") production from Chinese mainland
sub-contractors to our own manufacturing plant based in Thailand. This has been
held up by a legal dispute with the 25% shareholder in DCL which has now been
settled.

Sales levels since the time of the half-year statement are broadly in line with
internal expectations. As noted above, trading conditions are challenging,
though it is pleasing to report that the jewellery trial with a major UK
retailer has progressed to a roll-out phase. The Group is now much leaner and is
operating on the substantially lower cost base target identified prior to the
Restructuring.

The Company confirms that, in its opinion, the working capital available to the
continuing Group is sufficient for the Group's present requirements, that is,
for at least 12 months from the date of this announcement.

[gemset] 07/6/2006 07:13

'matter of days' was a month ago. Doesn't look good.

[gemset] 07/6/2006 07:13

'matter of days' was a month ago. Doesn't look good.

[havenpoint] 30/5/2006 19:39

Does anyone have any news on this stock and when trading will recommence?

[arthur_lame_stocks] 13/5/2006 10:15

"The Directors are confident that the new facilities, including the sale and
leaseback of property, will be secured within a matter of days. The Directors
also remain confident about the future prospects for the Group and expect to
make a more comprehensive announcement when the new facilities are in place."

Hasn´t happened yet. Could be the end.