If and it's a big if, we can land a heavy weight CEO the holes could be plugged and the the ship steered back on courseI'm glad I sold some last week I just wish it was more |
Balance sheet metrics have actually improved with debt to equity 0.88 and equity ratio 2.13
Current assets £130M vs current liabilities £48M |
I challenged the board on there decision to implement a share buyback program when they had debt at the last shareholders meeting.Now debt has ballooned, they don't have the cash for inventory and profits tank.The CFO LEFT THE SHIP he help sink and now the CEO has steered it on to the rocksInstitution gave them one last chance and the CEO had no choice, he had to go |
 I'd been kicking myself for not buying-in here last time it was at £10, but then this terrible set of results comes out and makes me thankful.
What I'm wondering though is when this downward trend ends. Is this the right moment to buy-in? I'm unsure. The fact that the ceo has been given his marching orders without anyone named to takeover shows a business in turmoil.
How have they managed to secure no big new contracts despite all the 'enquiries'? A once profitable business is now reporting losses. Debt is rising, even while the dividend remains the same, further depleting cash - this seems like a mistake. Interest rates are going up. Raw materials are going up. I agree with the posters predicting a 'kitchen-sinking' when a new ceo comes onboard. Ontop of all that, if the war in Ukraine actually ends, this will likely have a strong negative effect on the shareprice.
The wider market appears to be on the cusp of turning downwards due to rising interest rates, energy costs and general inflation and an imminent loss of consumer confidence.
I am tempted to sit on my hands for a few days. |
Buy pick by peel hunt for Avon. Set a watchlist on stockomendation and you get instant stock pick/tip/recs alerts |
Tested this level a few times, if it breaks it runs down. |
"... we remain confident in a return to growth." - In other words, when there is no war and no demand for their helmets, the only product left on offer ... Any naive investors still left should brace themselves for profit warnings in series. |
From bad to worse. Never seen such a disastrous company. Now they are becoming a lossy dog in the middle of a war. What will they be in peace time ? Pleased I was out since I was convinced this is heading to the abyss. Will do the opposite of prosperous companies: To be taken over for peanuts when its share price hits the floor. I won't be surprised to see it priced at £2 - £3 in the next 6 months. |
Ferrugia, good point.
New CEO will paint a terrible picture on which to improve by hanging out all the dirty laundry of the past.
It's not over yet. |
Good riddance! He listened, finally. |
The only positive note is that the CEO has decided to leave. Maybe they'll find someone who is actually competent? |
is this the third profit warning? the new CEO will probably have to do more 'cleaning' on the balance sheet when he comes in so he absolves himself of his predecessor's sins |
A buyer will have the same problems of untangling this and the more tangled the lower the price. It being private and out of the sunlight might help speed up recovery though. A bit of PE tough love. |
No blood. I'm sure he's a lovely bloke. I'll just be happy with accountability and efficient capital allocation. Not wealth destroying acquisitions! |
The company will be sold soon then |
I'm afraid carnage yes |
Must have been substantial stress. |
He has left carnage. Destroyed huge amounts of shareholder value. Shockingly poor performance. BOD equally complicit!Dread to think about size of final severance package... As always, asymmetric risk. Very little accountability. Should have been sacked a lot earlier! |
Probably less. 50% down today IMO. Paul has certainly been transformational. Transformational in making loads of investors a lot poorer ;-( |
800p open? |
We're only two months into the war, but the UK has depleted its stocks of ant-tank weapons and is coordinating with suppliers for more; that must surely be the same for protective gear. Every country is gearing up for possible military action. Presumably the contract announcements will come soon. |
CEO needs to resign and needs to hear this from shareholders.
Email
paul.mcdonald@avon-rubber.com |
I lost faith in this company. If they cannot get things right and make a profit in the midst of a war when are they going to ? |
Awful performance again.
MacDonald is clearly without shame.
No Director buys either. |
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